Average rent hits new record high

Nick houses are the price they are because of supply and demand - nothing else. Ireland makes my point that if you build more homes prices than demand can support prices will fall. If house prices fall rents will follow. Governments don't keep prices high consciously, but due to NIMBY type opposition to development, they don't force through higher rates of development. Interest rates of 5% will help savers but cripple many borrowers, hundreds of thousands will lose the "owned" homes and become renters instead. People have to live somewhere.

Building more homes has nothing to do with it. Rents are based on overpriced houses caused by low interest rates and the availability of finance. In Ireland for example, there were so many houses built there are empty estates, and this was when prices were excessive. They were allowed to crash back in Ireland, but oh no, not allowed here.These rents are excessive, and should pay a mortgage, so there must be another reason why people rent. House prices are kept artificially high by governments to protect the over borrowed and the banks. The little people are being robbed. Interest rates have to go back to 5% and flush out the bad debt. The decent folk will then get a fair deal.

Want to get rents down? Build more homes! There is a shortage of homes. Build more to reduce the scarcity factor- more people currently renting will buy and thus reduce the demand for rental property. Less demand = less rent. If landlords can't make the rent cover their expenses then they'll sell up and reduce property prices even more. but the key is to build more (and better) homes for people to live in. I've said before that this was O level economics when I was at school, and that was a long time ago! Its a pity that few of our politicians can see what really needs to be done. But social rents are ridiculously low - raising them would not affect the lowest paid whose housing benefit would compensate. The better off social tenants would pay more and then the providers would have more money to build more social homes. That's a win win in my book. Look at hackney council their policy is to keep rents to less than 50% of market rents - irrespective of the tenants ability to pay more. this permanent subsidy - irrespective of tenant's actual income levels is a scandal that needs urgent addressing. Can't imagine Labour doing anything to affect their core "payroll" voters though - can you?