What happened to rental rates last HPC ?

tanikk£

Cant find any graphs showing historic rent levels by year like for house prices on housepricecrash.co.uk ... I assume they simply do not exist, any personal experiences ?

kunekune

Bump, because this is a really useful question!

Gorgeous_George

Last time we had a crash it was just a correction.

When people get repossessed, they need to rent. With even fewer council properties than last time around, you can expect rents to rise and LLs to be choosey who they let to.

After years of wishing for a HPC, HPCers could find that they still cannot buy (credit crunch) but may not be able to rent either (more competition).

GG

Generali

The NSO doesn't do a regular statistic of rents as such although if you can be bothered you'd be able to extract the data from the RPI series and run it yourself.

FWIW, my belief is that real rents rose during the last HPC in the late 80s/early 90s. Part of that would be purchasers delaying buying, part would have been that with interest rates very high, rents could be pushed up and still be cheaper than buying.

My suspicion is that assuming we get another collapse in house prices which looks likely but you never know, it could well be accompanied by a nasty bit of deflation given that the Fed clashing rates seems to be having no impact on banks' ability and willingness to lend. In that case I suspect that rents will rise at first and then fall back quickly as more people are relying on welfare to pay the rent and the govt runs out of ability to borrow.

m00m00

the difference back then though, was that there was much less private rental stock, BTL didn't exist as we currently understand it.