The decline in the number of first-time home buyers has made the rental option more attractive, but people looking for homes to let are limited by affordability, say estate agents.
The FNB Residential Rental Barometer for the second quarter of 2008, released yesterday, showed a decline in activity from a rating of 8.4 to 7.6 . Agents who were polled for the national index said only 59 percent of rental properties on their books were snapped up in less than a month, compared with the 75 percent take-up recorded in the first quarter of the year — a 16 percent decline in activity.
The main reasons given for slowed activity was a 7.43 rating of landlords asking high rentals, and a 6.73 rating for the letting market being a tenants market.
Please note the sentence that I emphasised in the above quote. With the property bubble collapsing landlords (especially the recent buy-to-let crowd who have been losing thousands every month covering bonds that rentals don't pay for) have been hoping that with less property purchases there would be more demand for rental and so rentals will go up. Well as I expected the opposite has happened because in an economic downturn raising rentals, especially with reliable tenants, is a one way ticket to an empty 'investment' property.
2 comments:
a lot of houses should not even be on the market to be let. They need so much repair, leaking rooks, leaking walls etc...if you rent of one those properties i wonder if you can break your lease or not pay the rent until all the work has been done
Good question.
I am in exactly this situation where the flat I am renting has mold problems. It was time to renew the lease and I refused any rent increases until the problem is solved.
In my lease there is a clause that states that the landlord must resolve any issues with the flat within 10 days.
I would assume if he fails to do so this is a breach of the agreement.
It also says the if in the period of 12 months I had to request repair or maintenance 3 times, I can cancel the lease without any consequences for me.
Post a Comment