Tuesday, Aug 19, 2008

More bear porn - rental properties flood market

BBC: Supply of rental properties rises

Oh dear, oh dear. Not.

Posted by mark wadsworth @ 10:30 AM (983 views) Add Comment

16 Comments

1. mark wadsworth said...

Actually, I can see a downside to this.

Instead of selling EAs encouraging sellers to drop the price (hooray!) for a one-off commission of £3,000, letting agents (the same people as selling EAs, by and large) will encourage sellers to turn landlord and earn 10% of annual rents for the foreseeable future (thus earning more in the long run). EAs, on the whole, will benefit from this stalemate (backed up by EAs with whom I've spoken over the past couple of weeks).

Tuesday, August 19, 2008 10:34AM Report Comment
 

2. last_days_of_disco said...

Look at America. There is no escape for the EA. People will find more cost effective ways of letting things out. They will have *no choice* because no one will
have the 3000 to blow on a rancid EA in a suit.

Tuesday, August 19, 2008 10:38AM Report Comment
 

3. Eternal Sceptic said...

So we can look forward to endless drivel on TV on makeovers for rental property.

Tuesday, August 19, 2008 10:40AM Report Comment
 

4. tyrellcorporation said...

Mark, where are the sellers going to live? Surely this is a zero sum game?

Tuesday, August 19, 2008 10:43AM Report Comment
 

5. harold said...

Just had my tenancy renewed for another 12 months; no increase in rent. If things continue like this I might ask for a cut next year! ;o)

Tuesday, August 19, 2008 10:51AM Report Comment
 

6. Mark Wadsworth said...

Tyrell, in terms of 'people in houses' it's a zero sum game (or possibly midly positive - it is better for a house to be let out than stand empty 'pending' a sale). But for the let-to-rent brigade it's a negative sum game - their rental income is taxable, but the rent they pay for their new home is not deductible.

Tuesday, August 19, 2008 10:57AM Report Comment
 

7. Ilikepies said...

there are a plethora of landlord to tenant sites in the offing. the truth is that estate agents are history.

Tuesday, August 19, 2008 10:58AM Report Comment
 

8. Cheekie Charlie said...

"where are the sellers going to live? Surely this is a zero sum game?"
Maybe there's more empty property than any of us thought! With alot of greedy people who are going to get their finger's burnt.

Tuesday, August 19, 2008 11:34AM Report Comment
 

9. symo said...

But property only ever goes up, supply and demand.....................................

Tuesday, August 19, 2008 11:37AM Report Comment
 

10. alan said...

"But potential tenants are outweighing would-be landlords, and helping to push up rents in many areas of the UK".

So tell me where they are all coming from. I don't think they exist.

I think the VIs are making this up.

Tuesday, August 19, 2008 11:50AM Report Comment
 

11. nooneo said...

Expect a collapse of the lettings market by christmas.

It's a complete and utter lie that there ever was a shortage of houses in the UK

Tuesday, August 19, 2008 03:37PM Report Comment
 

12. mark wadsworth said...

Cheeky Charlie, Nooneo, statistics show that there are/were anywhere between half a million and one million empty properties, even in the boom years, depending on how you count them. (derelict, vacant between lettings/sales, second homes, homes where heirs are wrangling etc etc). Add to that another one million three bed 'family homes' with a single pensioner hanging on.

Tuesday, August 19, 2008 07:48PM Report Comment
 

13. Honest Valuer said...

I have been told that if you take a night time cruise on the Thames through docklands you will see blocks and blocks of swanky appartments with only a handfull of lights on in each block. There are literaly thousands of empty flats here - most owned by the BTL brigade and also many owned by overseas investors who were cash purchasers and can afford to leave them empty and swallow the empty rates/insurance/service charges.

Tuesday, August 19, 2008 11:12PM Report Comment
 

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