Wednesday, 19 November 2008

The great rental giveaway begins....

Falling house prices, now falling rents; how will buy-to-let survive. Ah, yes, it won't. From the Times.....

"Rents fell for the first time in five years between July and October as home-movers flooded the rental market with properties that they could not sell.

According to a new survey, 12 per cent more lettings agents said that rents had fallen rather than risen between August and October. That was a reversal from the previous three months, when nearly a third more agents said that rents were rising, figures from the Royal Institution of Chartered Surveyors (RICS) show.

It is the first time since 2003 that the gauge of rental yields has turned negative."

8 comments:

Mark Wadsworth said...

It's good to see the Iron Laws Of Supply And Demand in action.

If real wages are falling, we would expect to see real rents fall as well.

Nick von Mises said...

As with most of my predictions, my main surprise is it took this long for the market to recognise the realities

electro-kevin said...

Funny Money was the reason for that, Nick.

Anonymous said...

It shows how rigged the market is. That it is actually a conspiracy between the government, estate agents and the banks. They kept it going for as long as possible, threw billions of tax money at it, but it still fell apart. That's how bad the fundamentals are: they can't keep the Ponzi scam going.

Markbaldy said...

Like I said in an earlier blog... house prices will only really start to tank when the BTL'ers rush for the exits.... last there will really take a hit... and what a shame for some of those responsible for creating a divided society... NOT !
This will coincide with a lot of BMW 3 series being sold off cheap too I guess !

RenterGirl said...

Am I allowed to say I told you so? Okay: I TOLD YOU SO!!!

Anonymous said...

I feel like a child waiting for Christmas. No debts 130K deposit in the bank.

Sara said...

Yeah! It feels good to know that the rental rates have reduced and people are getting benefited by the same...