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Realistbear

Demand For Rentals Soaring

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http://uk.finance.yahoo.com/news/buy-to-let-demand-for-rented-accommodation-at-record-levels-tele-eea7e6b2e36e.html?x=0

Buy-to-let: demand for rented accommodation at record levels

8:45, Tuesday 20 July 2010
Demand for rented accommodation reached record levels during the second quarter of the year, research has revealed.
Countrywide (LSE: CWD.L - news) , the UK's largest letting agent, said 50,480 people wanting to rent a property registered with it during the three months to the end of June, the highest level it has recorded since it started collecting the data in 2003.
The figure was also 16pc higher than demand was during the first three months of the year.
June saw the biggest spike in demand with more than 18,000 new tenants registering for rented accommodation, the highest number ever recorded during a single month and 22pc more than in May.

You cannot but help notice the redundant pre-amble to this article! What has it got to do with BTL?

I can attest to the huge demand for rental sin my area. I recently received notice to get and of my rental and not come back ever again because the owner decided to try to sell--probably after my fear mongering!

There are very few properties to rent and the average for a small 3 BR bungalow is 1100 PCM.

In a crash sensible people like me do not buy but rent. To buy now at asking prices is just like catching a falling knife. In the meantime the EAs for sale books start to overflow, prices drop and you start to see the for sale/for rent signs crop up causing rents to start falling. Its a no winner for house owners now.

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Good news for BTL then if the demad goes up!

Short term yes. But as the crash deepens sellers offer their houses FOR SALE or RENT flooding both markets!

Everyone is a loser in a crash: BTLers and Owners trying to sell.

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MMmmmmm making me think i might accept the landlords request that the rent go back up.

Been there 2.5 years, year ago got it down from £795 to £725. Came round yesterday and said that they needed to put the rent up to circa £765/£775, needed to put new roof on, fix the aerial etc. Which i pointed out that they were not really our costs to incur indirectly. They said we were getting a great deal (which we are) and that they had had it valued (i unleashed the Halifax news!) and it was worth more in rent than they were getting. We have a contract till April and would stay another 18 months on top of that and everything that goes with it in terms of no re-marketing, they deal direct with us not through an agent etc.

I did say we wanted the loft insulating as well and we would consider it but max i really wanted to pay is £755 on principle given the fact we have been there and will be there so long!

BUT there is sod all about at that level we are paying and this seems to be getting worse. This article does seem to point at the what the rent market is like and surely it is better to have your crash bolt hole sorted ready to imerge like a sleepy bear into the post crash spring late 2012?!

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There is a shortage of rentals now as all the forced LLs have put their properties on the market so it is affecting rents :angry:

Yep I'm looking for a new rental (South London) as, surprise surprise, my current landlord is selling. There's not much about and it's very expensive.

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Expensive areas like Esher have a lot of properties to rent I note. It’s the same story where I am renting now, plenty of small flats available, a few houses at £6,000 pcm that have been available for ever (growing weekly) and houses £900 to £1800 pcm get snapped up quickly. The rental market is a better barometer for the market than sales but it will be a year or two before we see serious distressed rentals as most landlords have an equity buffer and take time to absorb market changes.

A few STC houses in my street are now back on the market, this is inflection time.

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So have we had a population explosion? Or destruction of swathes of the housing supply? Because it is only under those conditions that total demand for houses (buy or rent) soars. Like for Like stats for 1 rental company does not a trend make

Edited by mdman

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So have we had a population explosion? Or destruction of swathes of the housing supply? Because it is only under those conditions that total demand for houses (buy or rent) soars. Like for Like stats for 1 rental company does not a trend make

Is there the demand to buy, though? Even if people want to buy, are they able to? Unemployment, underemployment, reduced hours, 25% deposits, valuations from lenders lower than the agreed price, lenders getting picky... This is no doubt why sales volumes are so low.

There must be people still in work who can't live with their parents - their parents have already downsized so there's no room, they have moved to another area of the country to work, they have family of their own. If they can't buy, they'll need to rent.

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Realistbear, if you are retired, just get as far away from London and the SE as possible. Loads of houses in West Yorkshire. Six rentals available within a five minute walk all with "To Let" boards up. All shops have flats and houses to let cards up in their windows. And some of the rentals are only £300-400 or so month and the truth is many people up here can't afford that, so how they expect to sell at ludicrous prices is beyond me. I've just renewed my contract but will be looking for a much better deal in six months. Perhaps a nice detatched property. Thats if I don't clear off to France or Madrid, as still have a lot of € (don't laugh!).

Edited by SirStirlingSlumlord

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I for one am happy paying a few extra quid a month for the next couple of years if that's the price of the housing market being flooded and thus fewer rentals. Still a far sight cheaper than buying a house now and loosing 20% of it's value over the same time period ;)

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Indeed, the East Mids is awash with crappy 2 bed flats

You can rent a small house for about the same price! :blink:

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Yep I'm looking for a new rental (South London) as, surprise surprise, my current landlord is selling. There's not much about and it's very expensive.

We found the same in North-East London (nice part :)), however we eventually found a nice place and as we were "the right sort of tenant" we had our "offer" accepted... which was nice :)

So hang in there, do the leg work and you will find something.

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Realistbear, if you are retired, just get as far away from London and the SE as possible. Loads of houses in West Yorkshire. Six rentals available within a five minute walk all with "To Let" boards up. All shops have flats and houses to let cards up in their windows. And some of the rentals are only £300-400 or so month and the truth is many people up here can't afford that, so how they expect to sell at ludicrous prices is beyond me. I've just renewed my contract but will be looking for a much better deal in six months. Perhaps a nice detatched property. Thats if I don't clear off to France or Madrid, as still have a lot of € (don't laugh!).

About another 10 years to go before retirement I am afraid!

I moved down to the S Coast from Warwickshire a couple of years ago and its a lot cheaper up there also. Difficult thing is buying in an area where you do not have any sense of "community." A lot of retired people make this mistake thinking they can start over again in their sixties.

The average nice house around where I live now is about 300k. I do not want to spend more than 250k so a small drop of around 18-20% will take care of it. With added momentum to the downside every day I think this kind of drop could be with us this side of Crimbo because there is no such thing as a "plateau" after a bubble or a static market.

The Sun report that houses are now dropping by an average of 36 pounds a day. When that gets to 100 pounds a day we can say the rapid descent has begun.

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