Rents rising yet house prices fall is it true?

Discussion in 'Property Market Economics' started by Illusivedreams, 25th Mar, 2019.

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  1. Simon Hampel

    Simon Hampel Founder Staff Member

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    I fear Choice and other agitators in this area would like to see housing socialised - either provided by the government or by heavily regulated large businesses. This way they can ensure that housing is both affordable and controllable.

    The problem is that both government and the regulated business will have one goal in mind - to provide the minimum service necessary to tick the boxes. There is no incentive or driver to improve these properties or to even maintain them beyond the barest minimum. Both will be run by accountants who only ever care about the numbers and never about the tenants.

    The outcome of a demand to justify rent increases will simply be that no money is ever invested into rental properties - because there will be no capital available to do so.

    As much as these people have the goal to provide housing for everyone, I fear they would not like the housing that is actually provided!

    I do think that some more work is required to get the best balance between landlords right and tenant rights (I am both a landlord and a tenant, so I get both sides) - but I also think that some people have a naively optimistic view on the likely outcomes here.
     
    craigc, MWI, Francesco and 4 others like this.