Rents continue to fall

AG47

Crashy_Time wrote: »

https://www.theguardian.com/money/2019/jan/23/uk-rents-fall-for-first-time-in-a-decade

"London recorded the biggest fall in cash terms, "

“There is also slowing demand for rental properties from EU nationals, the benefits freeze, and more people are leaving London, which makes up a considerable proportion of the private rental market in the UK. These are all likely to be having a downward effect on rents.”

AG47

“

Crashy_Time wrote: »

https://www.property118.com/number-empty-homes-actually-increasing/

”According to figures out today, between October 2017 and October 2018 the number of empty homes in England increased by almost 30,000 from almost 606,000 to over 634,000.

Of these, the number of homes classed as being empty for six months or more increased by over 10,000 from more than 205,000 in October 2017 to over 216,000 in October 2018.”

The answer is obvious for the landlords to keep lowering the asking rents until they find a tenant willing to pay it.

A lower rent coming in is better than no rent for months and months of vacant empty properties.

Landlords may have to cut expenses like the agency fees and just rent directly to the tenants for lower rents.

I wouldn’t want to be a landlord in these certain times.

Trying to get tenants in your property when there are so many empty properties keep undercutting each other.

Brexit is partyto blame, it’s going to be painful all round no matter what happens.

It’s probably better to just pull the plaster off quick and leave with no deal, yes short term pain a lot of pain, but it’s over quick and then move on.

They are pulling it off slowly dragging out the pain by extending brexit which just extends the pain and suffering over more time.

It’s all good news for us tenants, uncertainty and lower rents and property prices being dragged out.

fatbeetle

Lower rents is a good thing, enabling more people to save to get on the housing ladder.

Theophile

AG47 wrote: »

"London recorded the biggest fall in cash terms, "

“There is also slowing demand for rental properties from EU nationals, the benefits freeze, and more people are leaving London, which makes up a considerable proportion of the private rental market in the UK. These are all likely to be having a downward effect on rents.”

the average rent fell by £9 (1.17%) from £774 in 2017 to £765.

Wow. A £9 drop.

AG47

fatbeetle wrote: »

Lower rents is a good thing, enabling more people to save to get on the housing ladder.

Yes lower rents and property in general is a good thing for the majority of the people, it's the minority's who suffer in a Property decline as we are seeing now.

MobileSaver

AG47 wrote: »

Yes lower rents and property in general is a good thing for the majority of the people, it's the minority's who suffer in a Property decline as we are seeing now.

Since you joined this site in 2013 property owners have seen their assets increase by 28% on average and their weekly rental income increase by 18%; is that your definition of "suffer?" Your assertion that lower rents and property are a good thing is as inaccurate as it is wishful thinking.

Lower rents encourage landlords to either not do repairs or else do repairs as cheaply as possible. A healthy rental market encourages landlords to invest in their properties in order to keep their long-term good-payers happy. If rents get too low then landlords just decide it's not worth the hassle and either leave the property empty or sell up. Neither scenario is a good thing for renters!

Lower property prices just means less properties on the market and stricter lender criteria making it harder to get a mortgage. As a result when house prices dropped 18% in 2008, transactions dropped by 25%. Lower house prices is not a good thing for those hoping to get on to the property ladder!

AG47

Brexit uncertainty is very good for those of us wanting lower rents and property prices.

phillw

AG47 wrote: »

Brexit uncertainty is very good for those of us wanting lower rents and property prices.

Not really, on average they'll fall in line with your income.

AG47

phillw wrote: »

Not really, on average they'll fall in line with your income.

Everybody will see falling income in the aftermath of brexit uncertainty

phillw

AG47 wrote: »

Everybody will see falling income in the aftermath of brexit uncertainty

In real terms our incomes have all fallen already, apart from the elite few who were to benefit from brexit.

AG47

phillw wrote: »

In real terms our incomes have all fallen already, apart from the elite few who were to benefit from brexit.

Yes it’s the elite only who benefit from currency expansion or the other way to say it is inflation. Those who create the currency out of thin air and get to charge interest on it, benefit while the rest of us see our real term purchasing power go down as they expand the currency supply