Thursday 20 September 2007 12.02pm
Another way of looking at this would be that, in a time when capital values are rising quickly, you could expect rents to stay the same/fall/rise considerably more slowly.
A landlord should be doing their sums based on total return on investment. Their purchase price doesn't change. But if capital values go up then that increases their return and so they need less rent to make an acceptable overall total return (capital plus income - i.e. rent).
But, as Sarah points out, people will try to charge as much as they think they can get.
[We've had no rent increases in 4 years]
...if you press it, they will come.