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tomandlu

More For Sales, Fewer Rentals

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We're looking to move to a larger rental and very little is coming up via RM at the moment. However, I'm seeing an endless forest of 'For Sale' signs - are BTLs, etc. trying to off load (in anticipation of a crash plus lower HB), hence the dearth of rentals, or is it just the normal perception that there's never enough of what you want (rentals) but lots of what you don't want (for sales)?

Any estate agents or similar on here with anecdotal info about what's happening?

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Still seeing plenty of SOLDS, few FOR SALES, other than the ones that are perrenially there...there are 5 in my village....although the 6th turned into a rental.

A SOLD that had an agents change accross the road is still empty yet sold....Ive been on holiday and returned since it was sold...thats mid June.

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I've watched FOR SALE go through the roof over the past couple of months - supply in St Albans is up from 600 to over 900 in 3.5 months. The number FOR RENT started to decline at the same time but started to increase again a couple of weeks ago.

This is starting just like 2007/8 - falling house prices meaning people put their homes up for rent to "ride it out" forcing down rents due to over supply. All the accidental landlords from 2007/8 are now back and trying to sell, they will go back to rent soon as will even more of the "won't sell it for less than asking" brigade to "ride it out". The supply of rentals is going to go through the roof driving rents way down (meaning BTL gets even worse - shame that :)). In the meantime, motivated sellers will be all that's left on the market driving house prices down.

I expect to see FOR SALE decreasing soon and FOR RENT increasing quickly. Keep an eye open for that and when your rent revioew comes round get the reduction in quick and make it deep.

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I've watched FOR SALE go through the roof over the past couple of months - supply in St Albans is up from 600 to over 900 in 3.5 months. The number FOR RENT started to decline at the same time but started to increase again a couple of weeks ago.

This is starting just like 2007/8 - falling house prices meaning people put their homes up for rent to "ride it out" forcing down rents due to over supply. All the accidental landlords from 2007/8 are now back and trying to sell, they will go back to rent soon as will even more of the "won't sell it for less than asking" brigade to "ride it out". The supply of rentals is going to go through the roof driving rents way down (meaning BTL gets even worse - shame that :)). In the meantime, motivated sellers will be all that's left on the market driving house prices down.

I expect to see FOR SALE decreasing soon and FOR RENT increasing quickly. Keep an eye open for that and when your rent revioew comes round get the reduction in quick and make it deep.

I think the people who were riding it out from 07/08 are part of the surge in supply of for sales as these people are starting to think that if it turns down again it's going to be another 3 years before they can sell again. I doubt many will want to do that even if they don't need to sell the thought of another 3 years stuck somewhere they hate might be too much to take!

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We're looking to move to a larger rental and very little is coming up via RM at the moment. However, I'm seeing an endless forest of 'For Sale' signs - are BTLs, etc. trying to off load (in anticipation of a crash plus lower HB), hence the dearth of rentals, or is it just the normal perception that there's never enough of what you want (rentals) but lots of what you don't want (for sales)?

Any estate agents or similar on here with anecdotal info about what's happening?

Totally agree.

I keep intouch with my area of Glos via R/M and currently no rentals are available.

I have never seen the rental cupboard looking so bare, having previously moved when we saw a better rental deal.

Currently nothing to rent so no possibility of practising our negotiating skills! :angry:

(not actually looking though, just watching the market from a distance, part of my research and education!)

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I've watched FOR SALE go through the roof over the past couple of months - supply in St Albans is up from 600 to over 900 in 3.5 months. The number FOR RENT started to decline at the same time but started to increase again a couple of weeks ago.

This is starting just like 2007/8 - falling house prices meaning people put their homes up for rent to "ride it out" forcing down rents due to over supply. All the accidental landlords from 2007/8 are now back and trying to sell, they will go back to rent soon as will even more of the "won't sell it for less than asking" brigade to "ride it out". The supply of rentals is going to go through the roof driving rents way down (meaning BTL gets even worse - shame that :)). In the meantime, motivated sellers will be all that's left on the market driving house prices down.

I expect to see FOR SALE decreasing soon and FOR RENT increasing quickly. Keep an eye open for that and when your rent revioew comes round get the reduction in quick and make it deep.

I've noticed exactly this in St Albans as well. It's actually put me in mind of the Dublin rental market approx 3 years ago when at the start of the property crash, rental prices spiked quite dramatically before falling off sharply as supply started to increase dramatically. What followed of course was a complete capitulation of both rental and sale prices.

Having said that, it's a real pain at the moment trying to find family accommodation at a reasonable price in St Albans, Harpenden etc. Although the supply of 2 bedroom, terraced shoeboxes in the city centre (sorry, I of course mean executive character cottages in the conservation area) seems to be inscreasing at the moment, and I'm seeing a corresponding drop in the levels of rents asked.

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Totally agree.

I keep intouch with my area of Glos via R/M and currently no rentals are available.

I have never seen the rental cupboard looking so bare, having previously moved when we saw a better rental deal.

Currently nothing to rent so no possibility of practising our negotiating skills! :angry:

(not actually looking though, just watching the market from a distance, part of my research and education!)

Shame but rentals was all that kept some EAs afloat.

now they have no sales, and no rentals.

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We're looking to move to a larger rental and very little is coming up via RM at the moment. However, I'm seeing an endless forest of 'For Sale' signs - are BTLs, etc. trying to off load (in anticipation of a crash plus lower HB), hence the dearth of rentals, or is it just the normal perception that there's never enough of what you want (rentals) but lots of what you don't want (for sales)?

Any estate agents or similar on here with anecdotal info about what's happening?

Im in the southwest london area. A couple of months ago we were talking to letting agents as we were looking at renting somewhere a bit bigger. They told me straight up there is a shortage of rental properties. I asked if this was due to an unusually large take up coz people were reluctant to buy - he replied that there werent any more than usual for the time of year - it was more because landlord were selling up.

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We're looking to move to a larger rental and very little is coming up via RM at the moment. However, I'm seeing an endless forest of 'For Sale' signs - are BTLs, etc. trying to off load (in anticipation of a crash plus lower HB), hence the dearth of rentals, or is it just the normal perception that there's never enough of what you want (rentals) but lots of what you don't want (for sales)?

Any estate agents or similar on here with anecdotal info about what's happening?

I just moved into a new rental in SW London after previous LL wanted to sell-up (the place is still for sale and empty). It was a very hard job finding somewhere,p laces were going within hours of hitting the market. We had no chance of negotiating on the rent, EAs were pretty snooty with us. It must be down to people delaying buying and so-on. This happened a couple of years ago and a lot of those 'for sale' properties eventually turned into 'to let'. It's all about timing. If you can wait 6 months I bet the rental market will go really slack again as people give up on selling and rent their places out again.

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We're looking to move to a larger rental and very little is coming up via RM at the moment. However, I'm seeing an endless forest of 'For Sale' signs - are BTLs, etc. trying to off load (in anticipation of a crash plus lower HB), hence the dearth of rentals, or is it just the normal perception that there's never enough of what you want (rentals) but lots of what you don't want (for sales)?

Any estate agents or similar on here with anecdotal info about what's happening?

I think an element of it is a return to normal. We've been through a BTL bubble (more low-end-but-not-slum rentals) and a reluctant-landlord surge (more rental homes the landlords were prepared to live in themselves), and we're moving gradually back closer to long-term trend.

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+1

Flat (near Maidenhead station) I am renting currently has just gone For Sale. Landlord is earning fairly good rental on it, as I understand. Early days though, but EA haven't called for any viewing. It will be interesting to experience how things are going in current market.

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I just moved into a new rental in SW London after previous LL wanted to sell-up (the place is still for sale and empty). It was a very hard job finding somewhere,p laces were going within hours of hitting the market. We had no chance of negotiating on the rent, EAs were pretty snooty with us. It must be down to people delaying buying and so-on. This happened a couple of years ago and a lot of those 'for sale' properties eventually turned into 'to let'. It's all about timing. If you can wait 6 months I bet the rental market will go really slack again as people give up on selling and rent their places out again.

Beginning of Septemeber is always going to be a hard time because it is when all the "foreign" students will be arriving and looking for somewhere to stay.

In normal years it corresponds with all last year's graduates starting their new job and looking for somewhere to live, but I guess that this year there aren't many of them

tim

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I am seeing lots that went SSTC in June/July now coming back on the market in Swansea.

Tremendous satisfaction because, in each case, I told the respective EAs that the houses were over-priced and that no bank would give a mortgage for that price... and was duely assured that the buyers were always cash buyers... but 2 or 3 months go buy and then they turn up back on the market.

Edited by The Masked Tulip

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Perhaps there are less rentals out there, …..so you should all pile into BTL according to this. What can go wrong?

www.mortgagestrategy.co.uk

Landlords struggle to meet demand for rental property

The future looks bright for the buy-to-let sector as demand rises but there is a sting in the tail.

The number of new tenants signing up for rental property hit a new high in Q2, according to Countrywide. And a record 20,000 new entrants were welcomed to the rental market in July.

This increased demand is in stark contrast to the number of rental properties coming to the market.

In the three months to June the number of homes available Countrywide’s latest quarterly survey also indicated that June’s hike in Capital Gains Tax for buy-to-let investors from 18% to 28% for higher rate taxpayers has done nothing to deter new landlords entering the sector, with 6% more first-time investors coming to the market in Q2.

Excess demand has pushed up average rents, with four-bedroom family homes seeing the greatest price rise of 4% compared with Q1 to reach £1,090 per calendar month.

Overall, there was an average of 5.5 tenants chasing every available property in Q2 - up from 4.9 in Q1.

As a result rental homes are now let in an average of 14 days - three days fewer than in the previous quarter.

Demand is set to rise further as record numbers of students head off to study in the autumn.

But the bad news is that landlords are struggling to find the financing to take advantage of increasing tenant demand and rising rents.

While 35% of landlords polled by Paragon expect demand to continue to rise over the next year, and a fifth intend to invest in Q3, over half have found accessing buy-to-let funding difficult.

Meanwhile, rents are being pushed higher as a result of increased tenant demand and a shortage of residential letting properties, according to the Royal Institution of Chartered Surveyors.

The RICS survey showed that 26% more chartered surveyors have reported a rise in demand for property rather than a fall, the second consecutive month that letting demand has risen above the long-term average.

This is in contrast with the same period last year, when 29% more surveyors saw falling rents.

The outlook for rents also remains positive, with 33% more surveyors expecting rents to increase rather than fall over the next quarter.

More government support for landlords is needed to enable the increased demand for rental property to be met.

It is possible that we are starting to see a cultural shift away from home ownership and towards long-term renting.

It seems younger people are either less inclined or certainly less financially able to get a foot hold on the property ownership ladder.

We could be witnessing the start of a generation for whom their home is not going to be their largest financial asset, which will have broad implications for the financial services sector and economy.

…or prices could crash to a sustainable level, so that younger people can afford them.

How d’ya like them apples?

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My side of Oxford, source RM:Month / Rental Properties / For Sale Properties Jun-10 / 332 / 337 Jul-10 / 353 / 356 Aug-10 / 277 / 376 Sep-10 / 254 / 409. Definite move from rent to sell. I see lots of SOLD boards, not so many FOR SALES recently. I think that indicates dropping prices to achieve sales

Edited by ElPapasito

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  • 153 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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