BOOMED! Huge buying opportunity ...

[TimberWolf]

What if instead of defaulting on mortgages and being unable to sell their homes, people rent out their homes instead (and go renting themselves, downsizing). Will this bring rental prices tumbling down too. What happened last time?

[sasguru]

What if instead of defaulting on mortgages and being unable to sell their homes, people rent out their homes instead (and go renting themselves, downsizing). Will this bring rental prices tumbling down too. What happened last time?

Don't think it'll affect the rental market as demand and supply will both go up in that scenario. Just people playing musical chairs. Ultimately this is a crowded island with limited housing stock and a bottom will be found pretty quickly

[TimberWolf]

Don't think it'll affect the rental market as demand and supply will both go up in that scenario. Just people playing musical chairs. Ultimately this is a crowded island with limited housing stock and a bottom will be found pretty quickly

Yeah, but will demand be greater for lower valued property as downsizing occurs?

[sasguru]

Yeah, but will demand be greater for lower valued property as downsizing occurs?

Don't think so - there's alway a demand for multi-occupancy rentals, at least in London.

[rootsnall]

The question is how bad it's going to be.
We can't avoid a period of prolonged pain.
The US dosh isn't nearly enough and I can understand the people who voted against - it's like pissing in the wind.
The next stage of this recession is when unemployment rises and people of the mortgage class one level above sub-prime start defaulting.

What happens to the big UK banks will determine how bad it is going to be. Reading some discussion board stuff it sounds possible that RBS, Lloyds and Barclays could all need rescuing and it's just a matter of how the government go about it. Best option for the govt ( and us the taxpayers ! ) will be to let them go bust and pick them up for free. But more likely they'll waste our money by attempting to prop them up and bail out the shareholders and bondholders.

DISCLAIMER - gleaned from various discussion boards where I could be reading Atw's finest work !

[TimberWolf]

Don't think so - there's alway a demand for multi-occupancy rentals, at least in London.

So to summarise, house prices are overvalued, but not rental values

[KentPhilip]

Reading some discussion board stuff it sounds possible that RBS, Lloyds and Barclays could all need rescuing

Lloyds??

I thought they were one of the safer banks. Reports say that people are currently moving money INTO Lloyds at the moment, not out of it.

[rootsnall]

Will this bring rental prices tumbling down too. What happened last time?

During the actual recession I think rents just about held their own or fell. It was a year or two after when the economy picked up but people were still too scared to buy houses that rents in London started climbing.

[rootsnall]

Lloyds??

I thought they were one of the safer banks. Reports say that people are currently moving money INTO Lloyds at the moment, not out of it.

Theory is they are all stuffed and haven't owned up yet, they may be safer but not safe if you know what I mean.

NOTE PREVIOUS DISCLAIMER