richardg

i wouldn't say everyone has been caught out - there are people out there who have learned from the last time and those who have learned from the stories they have heard from the last time.

people stretch themselves to live beyond their means...sometimes it pays off, sometimes it doesn't and you fall down the ladder a little before you can get going again

you're right about wages though - they never seem to catch up

john banks

I'm still puzzled how house prices could further dislocate from rents and wages... I know the market can be irrational longer than I can remain solvent though. Why will people take on massive debts when they can rent really nice property for much less? Only if they believe the market will outperform over a long period? What precedent do we have of a housing market correction that doesn't actually correct to long term trends?

If there was a real shortage of property then rents would be going to the moon. The only thing that kept the property prices up was the expectation of future growth (funded by easy credit). I see no return to the old lending patterns, the situation now is more normal given the collapse of mortgage backed securities.

TelBoy

I don't think rents will be going to the moon either.

Jay m A

iTrader: (2)

But can you prove rents haven't been to the moon already?

Back on topic, rents about the same as 6 months ago, but less properties available in my area.

spider

iTrader: (1)

Just been advised by the agency to raise the rent on my place by nigh on 10% over what it was in March this year.

They reckon they're getting a lot more properties on the books now - 3 to 4 a day as opposed to 3 to 4 a week six months back.

I wonder where the owners of those places will be living as the lass at the agency says lots are from folks who can't afford the repayments and are trying to rent them out to cover the mortgage - so they must be looking for cheaper rented housing themselves? :confused.

fast bloke

Petem95 - You still haven't told us if you actually believe that house prices will NEVER recover?

You tend to do this quite a bit. You make a statement (in this case indicating that you think I am too stupid to get a grasp on an over simplification) - Then when you are asked to clarify your position, you ignore the thread. You also need to tell us how much house prices will drop below the levels of 2004 when you first predicted your house price crash. At least pslewis has the ***** to admit that he had been calling it wrong for several years

Dracoro

So that would mean you should REDUCE rent as supply is greater......Is your agency on some types of percentage commission? they're looking out for themselves, NOT you...

We're renting a house the moment (£1k a month) and have been for about 2 years. We are "model" renters (sensible couple in our 30s, always pay our rent and keep property in ship shape condition) which are hard to find. If our landlord put our rent up, we may look for something elsewhere, it then only takes ONE month of the property being empty for any potential gains to be lost.

boxst

It depends. It may mean that the quality of the properties coming on the market for a similiar price is not as a good. As such yours is worth slightly more.

Steve

Dracoro

Yes, but is it worth the risk? the property only has to be empty one month to negate any gains.
empty for longer and you're down on the year.

Up to the landlord if he wants to take that risk.

dunx

iTrader: (3)

Flats near me in South Leeds are filling rapidly, but four bed town houses can't be given away atm !

DunxC

Deep Singh

Rents will not rise by any significant amount imho. As said before the number of rental properties coming to the market is increasing