General (main property discussion here) - Rents rise as house prices fall

See this on the bbc website this morning just wondering what any of your thoughts are about this.

http://news.bbc.co.uk/1/hi/business/7404947.stm

my rents will not be increasing and only a fool increases his rent on a good paying tenant./

Rents haven't risen as much as house purchase prices over the last few years.

In 1999 one of my student houses cost £75000 to buy and each student paid £50 per week rent. Now a similar house costs at least £225000 and my students pay £80 per week each.

In 1998 I bought a 2 bedroom flat for £35000 and charged £400 per month rent for it. My son currently pays £600 per month to rent a 2 bedroom flat which cost his landlord £160000.

Small annual increases are far better than massive knee-jerk rises. Having said that I actually don't increase the rent if any of my households choose to stay for a second year.

Rents rise - is that 'cos more people are suffering reposession and need to rent? Or is it the foreign-worker effect?

landlord software http://www.properite.co.uk