Firstly, market rents are not linked, other than indirectly, to property values. Market rents are linked to the local market for rental properties - basic supply and demand, if supply goes up relative to demand then rents fall, and vice versa. What's been driving rents up is that generally demand has been rising while supply has been falling - but I read just recently that rents are falling in London as supply has suddenly gone up
I respectfully disagree, for the following reasons:
1) “market rents are linked to the local market for rental properties- basic supply and denand”
That’s is of course true, however high demand in popular regions, for example where there are plentiful high paid jobs….means property prices are high and rental prices are high.
2) “what’s been driving rents up is that demand has been rising”
As far as I know the primary reason rents have gone up is due to interest rates: it has put up mortgage rates and that has increased costs for landlords.
Furthermore landlords are selling up because they are losing money, which reduces rental supply, raising demand for the remaining market.
Firstly, market rents are not linked,
But the evidence shows that rent and houses prices always follow together
Expensive city with lots of high paid jobs, eg Sevenoaks, Tunbridge Well: property expensive, rents expensive
Poor city with high unemployment, eg Hull: property cheap, rent cheap
Where the demand for rentals is high, the demand for property is high
I fail to see how you can argue otherwise TBH