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Rented property starting to drop in price

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Rented property starting to drop in price

Postby Eddie001 on Fri Sep 05, 2008 7:48 am

At last, in my area at least, the price of rented property is starting to drop. Sadly it peaked just before my contract came up for renewel :( which meant I paid a premimum for extending my contract, where as I could have got a better deal by moving, although sadly the cost of moving would have negated the savings made :(

But if the price drop carries on, I will be in a stronger postion next year to demand no rent rise, or even, a rent drop!

Cold day in hell, I know ;)

I think the rent price drop is for a few reasons. Firstly there was an oversupply of rented property as people tried to save losing their homes by moving back in with the parents and renting out their place. Estate agents jumped on this as a chance to earn some money (currently they are earning bugger all from home sales) and so bumped up the prices. As most property in this country goes through an agency, and no agency wants or indeed needs to start a price war, it's easy for price fixing to go on.

Time for regulation? Well it would be nice, but fortuntalty it seems as though the market has finding it's own levels. Rented property that has been on the market for a month or so are dropping (in my area) by around 25 pound per month. Be interesting to see if they drop any further.

The theory always put forward by the estate agents for the price rise was simply that people must live somewhere, and if they cannot afford to buy, and who can these days, then they will rent... Except that some, if not most are starting to think, hey, why dont I stay at mums, where my socks get washed, and save all that rent for a house of my own... One that I might be able to afford due to the massive slide in prices...

If property prices drop another 10% next year, the renting out property will become a blood sport and only the fittest blood sucker, sorry, BTL landlord, will survive.
Eddie001
 
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Re: Rented property starting to drop in price

Postby drpmulay on Mon Feb 02, 2009 7:41 pm

haah haah. nice one. i think market will go into a decline and will stay so for the next few years....5 years in my opinion. and i am being optimistic.
drpmulay
 
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Re: Rented property starting to drop in price

Postby ERTIANZHAO on Mon May 18, 2009 7:39 pm

just joined
ERTIANZHAO
 
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