Wednesday, Sep 09, 2009
Signs of Optimism for the BTL
Times: Rental market supply tightens as the accidental landlords finally decide to sell
The number of rental properties coming onto the market is falling quickly as increased property sales over the summer months coupled with a accidental landlords being encouraged to sell. This could result in upward pressure on rents due to a combination of lack of finance available for FTB and a housing market that is still over-priced thus forcing people to rent. Whilst this situation remains, many BTL landlords may see a likely increase in rents as an attractive proposition and increase their portfolios. Could we end up with a cultural shift away from the aspiration of property ownership and gettings ones foot on ladder to an acceptance of a rental as being the norm, as is common in other European contries?
Posted by denzil @ 09:50 AM (885 views) Add Comment
8 Comments
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1. mark wadsworth said...
As I said elsewhere yesterday, the free local property magazine used to be 90% sales and 10% lettings until a year and a half ago, then it went to 40%/60% and now it's back to 70%/30%, so something is definitely happening.
But in six months' time those properties still won't have been sold and we'll be back to 40%/60% again.
2. taffee said...
could be the case but in countries where this exists,houseprices are not high because of lack of demand
3. wdbeast said...
I think she is right.
As we all know a large number of people failed to sell their properties last Autumn/Winter and therefore decided to rent.
Most, I would assume rented on a 6 month lease. As these leases have come to an end over the last couple of months they have not renewed the leases but have decided to "give it another go" at selling because of the positive market.
The questions are;
1. At what price will they come to market .
2. What will be the effect of higher stock on the housing market.
3 What will they do if the house doesn't sell.
4. paul said...
Ah its beccy o'connor. I wondered where she had gone to.
Becca's editorial ruleset works as follows:
Rising prices = good news for property speculators = good news = drinks all round!
Falling prices = rising tenant demand = good news for property speculators = good news = drinks all round!
Falling tenant demand = rising buyer demand = good news for property speculators = good news = drinks all round!
Rising tenant demand = rising rent returns = good news for property speculators = good news = drinks all round!
Rising sales supply = falling tenant bargaining power = good news for property speculators = good news = drinks all round!
Falling sales supply = rising sale prices = good news for property speculators = good news = drinks all round!
5. uncle tom said...
This Rebecca is proving to be a right thicko.
Rental instructions are not falling dear - they are still increasing. Maybe not increasing quite as fast as they were but still increasing
Rents are not rising (according to RICS, who are far more authoritative than some jumped-up rental website) - they are falling. They may not be falling quite as fast as they were, but still falling
And most of these new landlords are not 'accidental' - they are muppets in so much denial about the value of the house they were leaving, that they elected to buy a new home before selling their old one..
Thanks to their antics, the supply side of the housing market has been tightened to the extent that the inevitable price correction has stalled this summer, with thousands of properties being left empty.
Anyone who thinks that such a scenario is sustainable in the longer term deserves a one way ticket to the funny farm..
6. The Baldman said...
Without reform to tenants rights there will be no shift to renting
7. the number cruncher said...
High prices and high rents - oh how the new propertied classes would wish.
I do hope (but very much doubt) Dave will give us back a real property market next year.
The political problem seams to be that the 300,000 floating voters that decide elections in this country are probably over represented by BTLers and thus our politicians are going to do everything in their power to protect them.
Is it that the whole of this economic catastrophe is down to the fact that floating voters are the property flippers and BTLers in the UK and US? Is proportional representation the Key - come to think of it those countries with PR seem to be the ones without a property bubble?
8. mander said...
Misleading article I must say,
But If the properties come to market it is not good news for property speculators because it will distroy the "shortage myth" and without it a lot will not feel rich anymore.
Recovery shape: VL and we are at the top letter L if properties are comming to the market for sale and not for rent.