New word ‘downshift’.
There will need to be some serious changes in the law re tenants rights.
The full Daft rental report for Q4 2008, on which the article is based, is available here:
daft.ie/report/
Foreword is by Gerard O’Neill, Chairman of Amárach Research.
Maybe the correct title for the Indo should be " Future generations may be able to afford own home" with sub heading “Without mega-mortgage”
Not a nice report for canny and how will this impact on the sale price valuation of these BTL’s.
Surely the generation who will never own their own home are those who bought in the boom years and now stuck in negavite equity.
Yep I figured it would be all the people with 35 year mortgages who won’t live to see them paid off.
Maybe the caption should have read “Generation will never own their own mortgage”.
Average gross yields based on asking rents are at 3.4%, average net yields are probably below 3%. The myth that yields would rise as prices fell is dispelled.
Did anyone else read that as Armchair Research? Hence making them Armchair Economists?
Sofa, no.
Agreed. Rents seem to be falling even faster than house prices in some areas. Its always easier to accept a cut in rent as your embedded optimism tells you rents will recover after 12mos. While selling at a reduced price is obviously permanent, and being on a much larger amount is much harder to stomach…
In any case, no matter what way you look at it… 3% net yields for an asset where cashflow is depreciating 15%+ a yr, only makes sense to the delusional
What price could rents go to? In 2000, they might have been £300-400 per person. Will they fall back to levels near this or even below this? How will they be supported e.g. reaching a certain proportion of average income?
McD,
This (daft.ie) table only goes back to 2002, but it suggests that renting in Jan 09 is a good deal cheaper than Jan 02. Perhaps rents are already at 2000 levels?
a mortgage is not a home …a mortgage is not a home …repeat!
Click you heels together and say “There’s no place like mortgage…”
Repeat for 35 years.
It’s an interesting question, how far can they fall?
Given we’ll be looking at unemployment in the mid teens by year end, wages for anyone still in a job will be falling, net emigration resumes, and hundreds of thousands of empties that are yet to join in the rental supply, this can only lead to reduced spending power, reduced numbers of potential renters and vastly increased supply.
A 100% increase in supply and only a 12% fall in rents? Pah, the full effects of the current increase in supply have not fed through yet.
Rents, like house prices, have a long long way to fall yet.
And there are eejits still building more fucking houses 
The drops in rents will continue.
There are people with 6 months left on their lease that are reading about these drops that will expect/demand a reduction when they renew.
Rince Repeat
-Rd
It’s much more amusing to read the html and read the comments of some of the spacers who fail to realise that the oul Yazz and the Plastic Population theory of house prices has become defunct and will remain sofor the next 20 year at least if they are ever to return.
Its like they’re deliberately making an mess out of it at times.