Monday, November 17, 2008

UK: House Rents Fall

by Bill McBride on 11/17/2008 07:40:00 PM

From The Times: House rents fall as unsold properties flood market (hat tip James)

Rents fell for the first time in five years between July and October as home-movers flooded the rental market with properties that they could not sell.
It is the first time since 2003 that the gauge of rental yields has turned negative. James Scott-Lee, of RICS, said: “Many vendors have been forced to become amateur landlords, creating an inevitable downward pressure on rents.”
Usually in a recession some people double up with friends or family - and that puts downward pressure on rents. This time there is also a huge number of "amateur landlords" renting out their unsold properties, and that is additional downward pressure on rents.

This is also happening in the U.S., see: Apartment Market Weakens