Rents set to plunge!!!!!!!!!!!!!!

macaque_2

I hope I got the right number of exclamation marks. Given the theme of the other thread, I felt we needed a little bit of balance.

With the locking up of the housing market, rents will enjoy a few months of bouyancy. Beyond that however, rents must be destined to plunge for lots of reasons:

1. A flood of cheap properties coming onto the market.
2. Over supply of new builds lying empty.
3. East Europeans heading home in their thousands.
4. Rapidly rising levels of emigration.
5. Falling incomes
6. Rising unemployment.
7. Rising taxes.
8. Councils using their new powers to bring 840,000 empty properties back into use.

Save4ArainyDay

LOL! I dispute No.8. As we are all going to be broke we won't be paying all our Council Tax and therefore there will be no money to refurbish 840,000 properties.

cells

macaque wrote: »

5. Falling incomes
6. Rising unemployment.
7. Rising taxes.

those are the main points

if we get a prelonged or more credit contraction then we will get more unemployment.

less people employed = they stay at home with family/friends or lodge ect. hence demand for rentals drops quite sharp.

i think we will get lower rents in the not too distant future

one thing i cant fully figure out though is housing benifit!
if you loose your job, you would naturally cut back and move into somewhere smaller/with family/ with friends ect. But if the gov pay your rent? then why would you??

chrisandanne

cells wrote: »

those are the main points

if we get a prelonged or more credit contraction then we will get more unemployment.

less people employed = they stay at home with family/friends or lodge ect. hence demand for rentals drops quite sharp.

i think we will get lower rents in the not too distant future

one thing i cant fully figure out though is housing benifit!
if you loose your job, you would naturally cut back and move into somewhere smaller/with family/ with friends ect. But if the gov pay your rent? then why would you??

Cells, I could be wrong about this but I think Housing Benefit only pays about £300 per month towards rent. If you have a mortgage and become unemployed I think you're mortgage interest is paid for six months. I am sure there is someone out there who knows the exact figures. What I can't understand is the BTLers posting that they will NEVER have a problem covering their mortgages because rents will always go up !!. They don't seem to understand about people only paying what they can afford. Also if interest rates are going up and rents come down there are going to be some very worried BTL landlords trying to offload.

PasturesNew

A lot of people rent "quite posh places". Not me, I opted for a clean, but dinky, place. Sustainable living. Doesn't take much to cover the mortgage - and the saving on rent/council tax between this (studio) and having a bedroom is about £150/month.... so that's another £1800/year banked for me!

Anybody who has a bedroom that isn't being slept in is wasting this much and more every year. Money that could be squirrelled away into a deposit. Or, in 3-5 years, it could pay all buying fees and taxes.

I'd like my rent to go down, which it won't unless I move. But moving means coughing up more agent fees again and locking myself into a 6-month AST. I like being on periodic "just in case". You can never tell when or how life will present another big change.

Be prepared. Keep life small and simple.
The next 5 years will be a great ride if you've kept your hand on your sixpences!

A_Nice_Englishman

PasturesNew wrote: »

I'd like my rent to go down, which it won't unless I move. But moving means coughing up more agent fees again and locking myself into a 6-month AST. I like being on periodic "just in case". You can never tell when or how life will present another big change.

Well, you could always tell your landlord you are leaving unless he reduces the rent

carolt

macaque wrote: »

I hope I got the right number of exclamation marks. Given the theme of the other thread, I felt we needed a little bit of balance.

With the locking up of the housing market, rents will enjoy a few months of bouyancy. Beyond that however, rents must be destined to plunge for lots of reasons:

1. A flood of cheap properties coming onto the market.
2. Over supply of new builds lying empty.
3. East Europeans heading home in their thousands.
4. Rapidly rising levels of emigration.
5. Falling incomes
6. Rising unemployment.
7. Rising taxes.
8. Councils using their new powers to bring 840,000 empty properties back into use.

9. People cash-strapped as unable to remortgage to more favourable rates etc, forced to rent out a room to help meet the mortgage and avoid reposssession. I think we're going to see a huge increase in rooms for rent very soon, and the prices of them sinking rapidly as a result of the oversupply.

Doozergirl

Woohhooo! A new crash! A rent price crash!

Quick, who wants to start a new website and forum? Get in there early and we can flog it on to some randoms for a quick buck!

flower_72

10 - Global warming. Who needs for brick and mortar any more. It's hot. A lovely beach hut on the coast of Scotland for me!

poppy10_2

PasturesNew wrote: »

Anybody who has a bedroom that isn't being slept in is wasting this much and more every year.

But it's good to have a nice clean spare bedroom to bring the laydeeez home to. :cool:

mystic_trev

11. Bird Flu.