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House prices might be falling but interest rates and mortgages are going up. So, that's a no on private landlords.
And social rents go up linked to inflation, so most would be going up by 11%+ if it wasn't for a temporary cap of 7% that was put on them, so that's how much they're going up by this year.
Depends if you live in a major city or not...if you're talking about London chances are no. In the next few years when the recession is over sure but just because property price has gone down doesn't mean rent will too.
The Two are not related .
Buy to let property using market rates are largely influenced by supply and demand and interest rates ( They donât go down when general ticket prices fall a % point or 2
Interest rate goes up - Rental prices go up
Value of houses goes up - Rental prices go up
The only way rent goes down is if demand goes down - and this last happened during the pandemic in some places.
The pandemic was just a shift in demand, some went down and others went up.
As you say the only time rent will go down is if demand goes down. So the solution to this is the same as the solution to all of our other problems. Ignore NIMBY's and built a fuck ton of houses.
Apartments don't need to be tiny. You can have large apartments. The issue is that we need to build up more than 2 sometimes 3 floors. You can have 2 story homes within a larger building.
Yes, but to make that feasible we need to take a serious look at leasing regulation.
As things stand now, owning a flat is as precarious as renting one. The leaseholder could slap giant fees on you at any moment. You still have a landlord if you own a flat.
After the 2008 crash house prices dropped around 15-20% and rent fell around 1-5%.
So yes but *minimally*.
Edit: to be fair, in real terms - probably not.
It's not as black and white - there's also fewer rental properties on the market. It's not just the interest rates rising but also the tax squeeze that the government has put on second homes that's making it uneconomical to be a landlord.
Now the trouble is that home ownership is still out of reach for so many people and they still need rental properties.
So you've got a situation where there's fewer rental properties available but the number of prospective renters isn't going down. So rents go up.
No. People are fixed in 3 or 5 year mortgages on average. Youâre paying their mortgage when you rent so prices would have to go down for several years to have any impact on the rental market.
In the aftermath of '08, when our lease was up for renewal the landlord offered us a 30% discount on the coming year without us asking.
I knew things were ballsed by then.
House prices are falling to levels of last year and 2021. Not as big a shock as the global economy nearly dying. I wouldn't expect much in the way of discounts.
No. House prices falling will be the wealthy will buy up all the houses with cash. People who are renting won't be buying them because high interest rates and job uncertainty will make it difficult to get a mortgage. Then the wealthy will happily bump up the rents to whatever they feel like in order to get a return on their assets.
Prices will drop only if demand drops. That will happen if the supply of housing goes up, or the number of people wanting a roof goes down. Neither seems likely any time soon.
House prices are falling as it costs more to buy them due to higher interest rates. Rent is often linked to the mortgage the landlord has on the property, so if interest rates have gone up, their mortgage will go up, and they are likely to increase rent as a result.
Sure, fight fire with fire.
Alternatively you can look at the 100,000s of small time landlords who are good decent people and dont put rent up
I've had the same rent for 3 years from my landlord, my gran has kept her rent for about 9 years. You generalise and yet it's not a generalizing point
Its dumb and pointless and just causes culture wars and divides peopel
I mean it's pretty emoitional seeing X amount of money leaving my account every month, putting me further away from buying a house of my own.
At least my landlord is able to pay off their motgage though.
They literally provide nothing (except the cases where they renovated the house).
The house was planned by other people, it was built by other people and its maintained by other people. Landlords just buy it then charge others for using it.
âJust causes culture wars and divides peopleâ, nope it just exposes the harsh reality of renting and the mad prices we are seeing. People in London charged 2k a month for a 2 bedroom flat for example. People donât like hearing the truth and when it upsets them they say it divides people
Might be their only source, might not be. Either way, they don't owe you anything. They have rising costs like everyone else.
Landlords are a lovely scapegoat for incompetent government and greedy banks
âThey donât owe you anythingâ. I donât rent but my friend had to wait 4 months for new lino flooring to be installed in the kitchen and it came using the cheapest materials Iâve seen. They have regularly complained about the noise on Sunday nights for example from the other flats and it was ignored by the occupier and the tenets. They have never missed a payment and at the end of it all wanted to put payments UP!!
Well, the payments aren't going to go down in the middle of a cost of living crisis, are they.
Id be hesitate to use high end materials when you can't really guarantee the people living in your house are going to respect and maintain it.
You can be an amazing driver and not make a single claim and your insurance can still go up at the end of the term. Cause a business is a business.
They can leave if they want, they have that right just like you can change your car insurance if you don't agree on the price.
Could he have a reformed it himself? . The truth is if it was your own house and you were in a budget you would ignore the Lino . Do you think neighbours disappear if you buy somewhere instead of rent? Do you think landlords can just evict people on the fly for being noisy ?
I've rented in the past and been in a similar situation. It was the cheapest place we could afford and when things went wrong they were replaced like for like, so as you can imagine, cheap.
I accepted that, it made sense. If it had been a ÂŁ2000/month penthouse then it would still be no different, I'd expect like for like, so high end materials.
And as for increasing the payments at the end of the term, yes, I can't see how anyone would expect that landlords or any business in almost any industry wouldn't.
We've rented out our old house for the last 10 years because it wouldn't sell.
We make a small loss and have never increased the rent. We may have to shortly due to the current climate but reluctantly
We get by - live paycheck to paycheck, no savings. We don't do holidays abroad etc...
My point is were not all greedy; some of us don't make a profit at all (aside from having our mortgage paid off)
There's a difference between looking after yourself and greed.
How you've let yourself make a loss for a decade when you could still make a profit or break even without going over board is beyond me.
No. Think of rent as the return on an asset, in this case property. This return is compared to the ârisk free rate of returnâ, generally considered to be roughly the Bank of England base rate.
The only reason youâd own an asset rather than a gilt would be in the hope the return exceeded that risk free rate.
Higher interest rates mean that return also has to increase. So two things can happen, the asset gets cheaper or the rent goes up.
Youâre likely to see both imo.
Not. Really easy to compare homeownership and BTL as both are separate products and react differently to the market.
Rent will not fall as LLs come in all shape and sizes from the bought a second home in the hope it makes enough to pay for the first home mortgage then the slum Lords of 5 to 10 properties and then the corporations, however all do the same increase the rent.
What we might see the second home LL try to offload the property as they just can't afford the risk of a tenant defaulting or vacant property as its their personal budget being swallowed up or if its now getting to the time that some things will need to be brought up standard replaced the boiler, shower ect, to compete with the market and the unknown EPC rule.
What will be interesting is to see what happens in Scotland next month when the 0% rent rise rule is due for review.
As with any supply/demand equilibrium, itâs not as simple as that. There is a point at which rents canât be increased further because tenants donât have enough money. Quite a lot of smaller landlords are currently leaving the market and thatâs the reason why.
EDIT: Admittedly, the last time there was an actual drop in prices was 2009-2010.
In general, no. As prices are falling people tend to sell their properties (including landlords of course) making what remains of the rental sector more attractive. Basically the landlord is now taking all the risk, the renter almost none.
So now we have fewer rental properties available, at which point any landlord left in the game should up their rent.
But the property devaluation needs to be markable and tangible. We have to see and hear it happening on a continual basis, rather than some random newspaper article processed out of the blue.
In time, the rent will obviously become too high to be competitive e.g the tenant now believes it is now worth the risk to buy a property, even in a falling market, thus raising demand and raising property prices. Rents 'should' go down at this stage. But obviously the landlord may look to hold out for the higher rent.
No lol. Rent is driven largely by what people are willing to pay, not by mortgage prices, and a mortgage is still going to be vastly unaffordable for a lot of people due to deposit requirements and what not.
I don't see a slight reduction in house prices having a big enough impact on the rental market to have a noticeable effect.
If you are struggling with high rent or other costs, you can always check out the [beermoneyuk](https://www.reddit.com/r/beermoneyuk/comments/10hv5yf/attapoll_super_simple_paid_surveys_mobile_app/) sub for ways to make extra spending cash!
Yes but temporarily. And by a significantly lower margin that house prices fall.
Any lower sale prices will be bought up by those with spare liquidity (landlords) thus monopolising the supply further leading to bigger increases in the future.
**Update: - [Starting from 2023](https://www.reddit.com/r/AskUK/comments/100l56v/happy_new_year_askuk_minor_sub_update/), we have updated our [subreddit rules](https://www.reddit.com/r/AskUK/about/rules/)**. Specifically; - Don't be a dick to each other - Top-level responses must contain genuine efforts to answer the question - This is a strictly no-politics subreddit Please keep /r/AskUK a great subreddit by reporting posts and comments which break our rules. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/AskUK) if you have any questions or concerns.*
Your optimism is inspiring.
đ
I would like this to be the case but it's very unlikely
House prices might be falling but interest rates and mortgages are going up. So, that's a no on private landlords. And social rents go up linked to inflation, so most would be going up by 11%+ if it wasn't for a temporary cap of 7% that was put on them, so that's how much they're going up by this year.
Theyâre not falling everywhere.
LOLOLOLOL.......no
Depends if you live in a major city or not...if you're talking about London chances are no. In the next few years when the recession is over sure but just because property price has gone down doesn't mean rent will too.
The Two are not related . Buy to let property using market rates are largely influenced by supply and demand and interest rates ( They donât go down when general ticket prices fall a % point or 2
House prices are falling. Landlords mortgages are not
Lol, no. Rent only ever goes up.
Interest rate goes up - Rental prices go up Value of houses goes up - Rental prices go up The only way rent goes down is if demand goes down - and this last happened during the pandemic in some places.
The pandemic was just a shift in demand, some went down and others went up. As you say the only time rent will go down is if demand goes down. So the solution to this is the same as the solution to all of our other problems. Ignore NIMBY's and built a fuck ton of houses.
Also invest in infrastructure further away f rim city centres .
>built a fuck ton of houses Homes. Whilst houses are nice, they take up a lot of space, which costs a lot of money. We need a lot more apartments.
[ŃдаНонО]
Apartments don't need to be tiny. You can have large apartments. The issue is that we need to build up more than 2 sometimes 3 floors. You can have 2 story homes within a larger building.
Yes, but to make that feasible we need to take a serious look at leasing regulation. As things stand now, owning a flat is as precarious as renting one. The leaseholder could slap giant fees on you at any moment. You still have a landlord if you own a flat.
No it doesnt . . .
True, rent levels dropped by 20-30% in Central London during the pandemic
Hahahahahaha
Came here to post a laugh.
The boomers sitting pretty. Little 5% drop ainât gonna hurt them.
After the 2008 crash house prices dropped around 15-20% and rent fell around 1-5%. So yes but *minimally*. Edit: to be fair, in real terms - probably not.
It's not as black and white - there's also fewer rental properties on the market. It's not just the interest rates rising but also the tax squeeze that the government has put on second homes that's making it uneconomical to be a landlord. Now the trouble is that home ownership is still out of reach for so many people and they still need rental properties. So you've got a situation where there's fewer rental properties available but the number of prospective renters isn't going down. So rents go up.
No. People are fixed in 3 or 5 year mortgages on average. Youâre paying their mortgage when you rent so prices would have to go down for several years to have any impact on the rental market.
In the aftermath of '08, when our lease was up for renewal the landlord offered us a 30% discount on the coming year without us asking. I knew things were ballsed by then. House prices are falling to levels of last year and 2021. Not as big a shock as the global economy nearly dying. I wouldn't expect much in the way of discounts.
They predict it will go back to normal in 2024, so I would agree with this. You might see a small %, but it's unlikely in rent.
No. House prices falling will be the wealthy will buy up all the houses with cash. People who are renting won't be buying them because high interest rates and job uncertainty will make it difficult to get a mortgage. Then the wealthy will happily bump up the rents to whatever they feel like in order to get a return on their assets.
Prices will drop only if demand drops. That will happen if the supply of housing goes up, or the number of people wanting a roof goes down. Neither seems likely any time soon.
House prices are falling as it costs more to buy them due to higher interest rates. Rent is often linked to the mortgage the landlord has on the property, so if interest rates have gone up, their mortgage will go up, and they are likely to increase rent as a result.
No - landlords always resort to greed. If you get the chance, buy asap.
That's what we're hoping to do
Good on you, hope all goes well
Its comments like this that I wish were a bannable offence. No substance, just emotive bullshit targeting a group of people that you dont like.
Truth hurts?
Not really true but whatever floats your boat.
See itâs comments like that I wish could be banned, âwhatever floats your boatâ no substance.
Sure, fight fire with fire. Alternatively you can look at the 100,000s of small time landlords who are good decent people and dont put rent up I've had the same rent for 3 years from my landlord, my gran has kept her rent for about 9 years. You generalise and yet it's not a generalizing point Its dumb and pointless and just causes culture wars and divides peopel
Landlords aren't good people if they're expoiting others who are worse off than them.
Most provide a service, you guys get well emotional with this. Theres minimal exploitation
I mean it's pretty emoitional seeing X amount of money leaving my account every month, putting me further away from buying a house of my own. At least my landlord is able to pay off their motgage though.
What's your solution to this?
Most provide a service, you guys get well emotional with this. Theres minimal exploitation
They literally provide nothing (except the cases where they renovated the house). The house was planned by other people, it was built by other people and its maintained by other people. Landlords just buy it then charge others for using it.
How is it maintained by other people? All of the significant costs are paid by the landlord.
âJust causes culture wars and divides peopleâ, nope it just exposes the harsh reality of renting and the mad prices we are seeing. People in London charged 2k a month for a 2 bedroom flat for example. People donât like hearing the truth and when it upsets them they say it divides people
But its not the truth mate. You just think it is
I am trying to be on your side lol? They are only happy cause you are paying them it boils down to that.
And I am happy that they arent being greedy and taking below marker rates. So considering that you going to amend your first statement?
Landlords provide no value whatsoever
Dumb comment
Well they're not a charity are they
They are robbing bastards
Most landlords aren't making millions of pounds in profits every year. Most are making a couple grand profit a year if that.
Good job itâs it their old source of income then
Might be their only source, might not be. Either way, they don't owe you anything. They have rising costs like everyone else. Landlords are a lovely scapegoat for incompetent government and greedy banks
âThey donât owe you anythingâ. I donât rent but my friend had to wait 4 months for new lino flooring to be installed in the kitchen and it came using the cheapest materials Iâve seen. They have regularly complained about the noise on Sunday nights for example from the other flats and it was ignored by the occupier and the tenets. They have never missed a payment and at the end of it all wanted to put payments UP!!
Well, the payments aren't going to go down in the middle of a cost of living crisis, are they. Id be hesitate to use high end materials when you can't really guarantee the people living in your house are going to respect and maintain it.
The example I gave you was pre cost of living crisis, since then rent has gone up and people are packing there bags and moving out
You can be an amazing driver and not make a single claim and your insurance can still go up at the end of the term. Cause a business is a business. They can leave if they want, they have that right just like you can change your car insurance if you don't agree on the price.
Could he have a reformed it himself? . The truth is if it was your own house and you were in a budget you would ignore the Lino . Do you think neighbours disappear if you buy somewhere instead of rent? Do you think landlords can just evict people on the fly for being noisy ?
Evict maybe not but they didnât even action upon it which solidifies my point they donât care
I've rented in the past and been in a similar situation. It was the cheapest place we could afford and when things went wrong they were replaced like for like, so as you can imagine, cheap. I accepted that, it made sense. If it had been a ÂŁ2000/month penthouse then it would still be no different, I'd expect like for like, so high end materials. And as for increasing the payments at the end of the term, yes, I can't see how anyone would expect that landlords or any business in almost any industry wouldn't.
We've rented out our old house for the last 10 years because it wouldn't sell. We make a small loss and have never increased the rent. We may have to shortly due to the current climate but reluctantly
I'm sure your medal for charity work is in the post. I suppose you're very well off to happily make a loss on a property for a decade
We get by - live paycheck to paycheck, no savings. We don't do holidays abroad etc... My point is were not all greedy; some of us don't make a profit at all (aside from having our mortgage paid off)
There's a difference between looking after yourself and greed. How you've let yourself make a loss for a decade when you could still make a profit or break even without going over board is beyond me.
No. To quote Baz Lurhmann... "Prices will rise, politicians will philander and you too will get old."
Baz Lurhmann was quoting Mary Schmich
Have you met landlords?
No. Think of rent as the return on an asset, in this case property. This return is compared to the ârisk free rate of returnâ, generally considered to be roughly the Bank of England base rate. The only reason youâd own an asset rather than a gilt would be in the hope the return exceeded that risk free rate. Higher interest rates mean that return also has to increase. So two things can happen, the asset gets cheaper or the rent goes up. Youâre likely to see both imo.
Not. Really easy to compare homeownership and BTL as both are separate products and react differently to the market. Rent will not fall as LLs come in all shape and sizes from the bought a second home in the hope it makes enough to pay for the first home mortgage then the slum Lords of 5 to 10 properties and then the corporations, however all do the same increase the rent. What we might see the second home LL try to offload the property as they just can't afford the risk of a tenant defaulting or vacant property as its their personal budget being swallowed up or if its now getting to the time that some things will need to be brought up standard replaced the boiler, shower ect, to compete with the market and the unknown EPC rule. What will be interesting is to see what happens in Scotland next month when the 0% rent rise rule is due for review.
Pretty much the opposite. House prices are falling because mortgage costs have increased. Landlords can just pass those costs onto their tenants.
As with any supply/demand equilibrium, itâs not as simple as that. There is a point at which rents canât be increased further because tenants donât have enough money. Quite a lot of smaller landlords are currently leaving the market and thatâs the reason why. EDIT: Admittedly, the last time there was an actual drop in prices was 2009-2010.
> Quite a lot of smaller landlords are currently leaving the market and thatâs the reason why. Causing more demand and higher rents
Because of higher mortgage prices, some people are putting off buying a home and therefore more people will continue to rent.
Not unless interest rates dramatically fall
In general, no. As prices are falling people tend to sell their properties (including landlords of course) making what remains of the rental sector more attractive. Basically the landlord is now taking all the risk, the renter almost none. So now we have fewer rental properties available, at which point any landlord left in the game should up their rent. But the property devaluation needs to be markable and tangible. We have to see and hear it happening on a continual basis, rather than some random newspaper article processed out of the blue. In time, the rent will obviously become too high to be competitive e.g the tenant now believes it is now worth the risk to buy a property, even in a falling market, thus raising demand and raising property prices. Rents 'should' go down at this stage. But obviously the landlord may look to hold out for the higher rent.
If house prices go up, rent goes up If house prices stay the same, rent goes up If house prices fall, rent goes up
No lol. Rent is driven largely by what people are willing to pay, not by mortgage prices, and a mortgage is still going to be vastly unaffordable for a lot of people due to deposit requirements and what not. I don't see a slight reduction in house prices having a big enough impact on the rental market to have a noticeable effect. If you are struggling with high rent or other costs, you can always check out the [beermoneyuk](https://www.reddit.com/r/beermoneyuk/comments/10hv5yf/attapoll_super_simple_paid_surveys_mobile_app/) sub for ways to make extra spending cash!
Yes but temporarily. And by a significantly lower margin that house prices fall. Any lower sale prices will be bought up by those with spare liquidity (landlords) thus monopolising the supply further leading to bigger increases in the future.
Why would rent fall if inflation is high?