Good news for tenants RENTS FALLING

Electrum

Good news for hard-pressed, hard-working, would-be first-time buyers – last month, rents in the UK were down year-on-year.

Well, not strictly across the UK. The average figure fell, but it was dragged down entirely by figures for London and southeast England.

Still, it’s a momentous occasion. Rents in the UK haven’t fallen on this basis since November 2010, according to Countrywide, Britain’s biggest estate and lettings agency.

So what’s going on? And does this signal some sort of turning point for the UK’s mad property market?

http://moneyweek.com/property-market-rents-falling-bad-news-for-landlords-is-just-beginning/

westernpromise

Why have you posted the same thing twice?

AG47

This is very good news

now tenants can ask for reduction in their rent

K4yl5

Haha!!! My landlord just increased my rent by 8.6% to bring it up to "market value"...

AG47

K4yl5 wrote: »

Haha!!! My landlord just increased my rent by 8.6% to bring it up to "market value"...

Do you live in Wales? This is the only place going up, London and the South East are falling like a rock.

An equalising is taking place. The smart money is selling up in overvalued London and buying undervalued areas.

Its simple supply and demand. The number of properties to let has grown significantly in recent months. Last month, there were 10% more properties available to let across the UK than in February 2016. The figure for London was 18%.

At the same time, the number of tenants looking for properties hasn’t budged by much. In fact, in London it’s fallen by about 3%.

So demand is weakening as people move away from London and the largest property building boom in living memory is adding even more new properties to the supply. And the number of available properties already around has gone up. As we all know, if supply goes up, and demand falls, then you get falling prices.

So is this likely to continue? Have we reached a turning point? I suspect that we might have – for renters, at least.

I don’t see this oversupply of property vanishing particularly quickly. There are still too many extra blocks of luxury flats being built on every little corner of London that they can. Also, I suspect that we might see a rise in the number of distressed landlords before too long.

Sapphire

I hope they stop building 'luxury' blocks of flats in London soon. It is awful at the moment – unclean air, too many people, too much traffic, too much building. No one will want to live in London at this rate.

Windofchange

Sapphire wrote: »

I hope they stop building 'luxury' blocks of flats in London soon. It is awful at the moment – unclean air, too many people, too much traffic, too much building. No one [STRIKE]will want[/STRIKE] can afford to live in London at this rate.

There, fixed it for you.

AG47

Sapphire wrote: »

I hope they stop building 'luxury' blocks of flats in London soon. It is awful at the moment – unclean air, too many people, too much traffic, too much building. No one will want to live in London at this rate.

There is no stopping until prices correct back down.

At the moment while prices are still elevated, they are building on every bit of land they can.

Its the biggest property building bubble in living memory.

AG47

Windofchange wrote: »

There, fixed it for you.

I think will want is more fitting than can't afford.

Rents are now falling in London and the south East. But still masses are moving away.

This time next year rents will have fallen even more than they have over the last year.

westernpromise

Rents continue to rise according to the ONS.
https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/indexofprivatehousingrentalprices/jan2017

• Private rental prices paid by tenants in Great Britain rose by 2.2% in the 12 months to January 2017; this is down from 2.3% in December 2016.
• In England, private rental prices grew by 2.3%, Wales saw growth of 0.4% while Scotland saw growth of 0.1% in the 12 months to January 2017.
• London private rental prices grew by 2.1% in the 12 months to January 2017, which is 0.1 percentage points below the Great Britain 12-month growth rate.

You know, you crashtrolls are very funny. You hate and distrust estate agents but if one produces a dodgy bit of analysis that aligns with your confirmation bias, you seize on it as gospel truth. If the ONS produces the opposite finding you block your ears with your fingers and shout "La, la, la" so you can't hear.

You might want to think about whether your emotional approach to property has anything to do with why you don't own any.

AG47

westernpromise wrote: »

Rents continue to rise according to the ONS.
https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/indexofprivatehousingrentalprices/jan2017

• Private rental prices paid by tenants in Great Britain rose by 2.2% in the 12 months to January 2017; this is down from 2.3% in December 2016.
• In England, private rental prices grew by 2.3%, Wales saw growth of 0.4% while Scotland saw growth of 0.1% in the 12 months to January 2017.
• London private rental prices grew by 2.1% in the 12 months to January 2017, which is 0.1 percentage points below the Great Britain 12-month growth rate.

You know, you crashtrolls are very funny. You hate and distrust estate agents but if one produces a dodgy bit of analysis that aligns with your confirmation bias, you seize on it as gospel truth. If the ONS produces the opposite finding you block your ears with your fingers and shout "La, la, la" so you can't hear.

You might want to think about whether your emotional approach to property has anything to do with why you don't own any.

You know you perma prop bulls are so funny. Even when London and south east are clearly falling rental averages, you still look for a statist somewhere else which shows rent falls aren't so bad.