Wednesday, 17 October 2018

The Disappearing Homes Conundrum

I commend a fine article, backed up with logic and hard numbers by Generation Rent.

What happens to rents if landlords exit the market? Nothing.

Unsurprisingly, their research shows that average rents paid fall slightly, because it is higher earning tenants who are most likely to become owner-occupiers, and they were the ones paying the higher rents.

3 comments:

Bayard said...

One niggle: they talk about supply and demand as if they had an effect in rents, whilst at the same time pointing out that they don't.

Mark Wadsworth said...

B, do they? Where?

Bayard said...

"But market rents are set by the balance of supply and demand in the housing market as a whole, rather than simply in the private rented sector. "