Q:Cant find any graphs showing historic rent levels by year like for house prices on housepricecrash.co.uk … I assume they simply do not exist, any personal experiences ?
FWIW, my belief is that real rents rose during the last HPC in the late 80s/early 90s. Part of that would be purchasers delaying buying, part would have been that with interest rates very high, rents could be pushed up and still be cheaper than buying.
My suspicion is that assuming we get another collapse in house prices which looks likely but you never know, it could well be accompanied by a nasty bit of deflation given that the Fed clashing rates seems to be having no impact on banks' ability and willingness to lend. In that case I suspect that rents will rise at first and then fall back quickly as more people are relying on welfare to pay the rent and the govt runs out of ability to borrow.
When people get repossessed, they need to rent. With even fewer council properties than last time around, you can expect rents to rise and LLs to be choosey who they let to.
After years of wishing for a HPC, HPCers could find that they still cannot buy (credit crunch) but may not be able to rent either (more competition).
GG
tags: House prices, personal experiences
posted in mortgage by admin
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