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
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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).
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.
3. Eternal Sceptic said...
So we can look forward to endless drivel on TV on makeovers for rental property.
4. tyrellcorporation said...
Mark, where are the sellers going to live? Surely this is a zero sum game?
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)
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.
7. Ilikepies said...
there are a plethora of landlord to tenant sites in the offing. the truth is that estate agents are history.
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.
9. symo said...
But property only ever goes up, supply and demand.....................................
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.
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
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.
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.
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