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Rental Market Supply Tightens As The Accidental Landlords Finally Decide To Sell

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http://www.timesonline.co.uk/tol/money/pro...icle6825391.ece

The number of rental properties coming on to the market is falling quickly, leading to less choice and potentially higher rents for those priced off the housing ladder.

The Royal Institution of Chartered Surveyors (RICS) reported that 6 per cent more estate agents reported a rise rather than a fall in new instructions from landlords in the three months to July 31, down from 21 per cent in the previous three months.

RICS attributed the slowdown in property to let to the disappearance over summer of “accidental landlords†— owners who choose to let rather than sell properties to raise finance. The number of accidental landlords rose at the end of last year as property prices tumbled, but has since tailed off as evidence of price stability in the housing market has encouraged owners to sell instead.

A spokesman for the RICS said: “This may be the first indication that the stabilisation in the residential sales market is having an impact on the number of accidental landlords entering the lettings sector.â€

The industry body said that rental prices, which had been falling, were starting to stabilise. The balance of surveyors reporting a fall rather than a rise in rents was 29 per cent in the quarter, compared with 55 per cent in the three months to April.

In an optimistic sign for buy-to-let landlords, an increasing number of agents expects rents to rise in the coming months. The balance expecting a fall rather than a rise improved from 25 per cent to 6 per cent, RICS said.

The RICS spokesman said: “The number of properties coming on to the rental market has slowed as the sales market has begun to stabilise. This is good news for landlords, who were coming under pressure to reduce rents as a result of oversupply. The need to respond in this way is easing and, providing the housing market holds firm, the outlook for the rental market should continue to improve.â€

However, the change in sentiment will put those searching for affordable accommodation at a disadvantage.

Keatons, a Central London-based agent, said the demand and supply imbalance was leading to property being let soon after it came on the market.

The RICS said the demand for flats rose at a faster pace than demand for houses between May and July, with 12 per cent more surveyors reporting a rise rather than a fall in demand for flats, compared with 5 per cent reporting a rise rather than a fall for houses.

Clearly we all need to buy properties now this is the bottom of the market and rental yields are about to go up due to pent up demand.

The recovery is here being led by the jobless.

Demand is up that clearly means higher prices, this impartial advice has been given to us by RICS. It's buy buy buy before you get priced out and you don't make your fortune.

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http://www.timesonline.co.uk/tol/money/pro...icle6825391.ece

Clearly we all need to buy properties now this is the bottom of the market and rental yields are about to go up due to pent up demand.

The recovery is here being led by the jobless.

Demand is up that clearly means higher prices, this impartial advice has been given to us by RICS. It's buy buy buy before you get priced out and you don't make your fortune.

there's that trusty 2nd derivative-change-that-sheeple-read-as-a-first-derivative-change again

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http://www.timesonline.co.uk/tol/money/pro...icle6825391.ece

Clearly we all need to buy properties now this is the bottom of the market and rental yields are about to go up due to pent up demand.

The recovery is here being led by the jobless.

Demand is up that clearly means higher prices, this impartial advice has been given to us by RICS. It's buy buy buy before you get priced out and you don't make your fortune.

This is what the boy who presents BBC news business section was trying to get the RICS representative to say. He tried several angles to get him to say it is a great time to buy because rents are going up. The RICS guy had the integrity to say they were not rising because supply is still coming on just less quick than before and it may be an indication of a decline in the number of rentals in the future but it was not the case now.

I nearly raised another BBC are unbelievable thread this morning (It was realy quite shocking ramping and it has been continuous form the BBC recently) but have just lost the will on that argument, we are in a finacial war and as in any war propoganda is required to help us get through it.

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Guest DissipatedYouthIsValuable
there's that trusty 2nd derivative-change-that-sheeple-read-as-a-first-derivative-change again

Less of a negative change = Up?

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The AL's are finding out it is not such a cash cow after all and the hassle involved is just not worth it...there is only a short window left, or be forever regretful and resentful. ;)

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http://www.timesonline.co.uk/tol/money/pro...icle6825391.ece

Clearly we all need to buy properties now this is the bottom of the market and rental yields are about to go up due to pent up demand.

The recovery is here being led by the jobless.

Demand is up that clearly means higher prices, this impartial advice has been given to us by RICS. It's buy buy buy before you get priced out and you don't make your fortune.

The fundermental foundations of house prices is desposable income from work to pay for the house or rents.

Clearly low interest rates are a massive driver both up and down and at the historic low levels they are now its a no brainer why prices are shooting up and I expect them to continue to do so while the loose fiscal policys remain in place and will probably continue until the next election and also the unemployment may be falling then all points to rising HPI.

I referred to desposable income as the fundermental driver well lets say I want a flat costing 100k I earn 20K pa but I take home 15K now after tax finding 5k to pay the mortgage shouldnt be a problem or rents the same thing but taxes are going to shoot up VAT up in January and in a couple of years its a no brainer 15K will be worth in real terms a lot less because of price rises of things to live and its likly income tax or NI will go up resulting in take home pay going down I can only see real desposable income from work going down long term not up.

The higher tax goes up the more businesses will fail means more unemployment and if you have no job you lose your house or cant buy one and we are back to 2007/08 but the next time interet rates cant go lower than now and the country is riddled with debt so for me its a great time to sell and get a fair price because they will go down again after the next election and this is the best case the worst is the government prints spends too much for the currency markets to take and a collapse of the GBP or the government is forced to offer 10%+ interest on gilts and that would be one hell of a problem.

Another consideration over the RICS statement if forced landlords are selling hence reducing supply its likley the buyers would be the tennants so as these properties sell its reducing demand for landlords to let to and the more houses on the market can be a driver to lower prices.

For me rent the cheapest accom you can get protect your capital and wait for things to pan out unless you see the home you realy want.

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