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More Tenants Able To Pay Rent Sets Btl Demand Off Again

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http://uk.finance.yahoo.com/news/Buy-let-good-time-invest-tele-710342051.html?x=0

Buy-to-let: is now a good time to invest?

Rosie Murray-West, 11:43, Wednesday 12 January 2011
Rents are rising and so is demand. It sounds like an easy way to make money.
Is the buy-to-let bandwagon on the run again, and if so, should you jump on? Many will be surprised to hear the health of the buy-to-let industry described as anything but sickly. After all, this is the industry that sank Bradford & Bingley (Xetra: 602362 - news) , and left thousands of ''Mum and Pop'' landlords nursing losses and unsaleable newbuild flats.
But for those investors who kept their portfolios,
the picture is looking rosier than it has been for some ti
me, even though the Office for Budget Responsibility is predicting that property values will be worth nearly 3pc less at the end of April 2012.
Landlords are the major beneficiaries of the current stagnant mortgage market, since those who cannot buy a home need to live somewhere.
Figures from the Royal Institution of Chartered Surveyors showed that demand for rented property is increasing at its fastest rate since the fourth quarter of 2008; a third more of the Institution's members reported a rise in demand than a fall, with rents also expected to pick up.

VIs must be getting real desperate now! With jobs being lost, wages being cut, overheads and taxes rising it is getting toxic out there if you expect people to carry on paying high rents.

BTW, the reason demand for rented property is rising is because people ain't buying but waiting for the crash to deepen.

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Landlords are the major beneficiaries of the current stagnant mortgage market, since those who cannot buy a home need to live somewhere.

this is one of the most fallacious HPI arguments and it really annoys me - the assumption that housing demand is very inelastic

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As far as I can tell rents are not booming and are largely flat (someone posted a rents tracking graph recently). The stats that are provided are strange ones like enquiry:lets-on-books ratios. There are anecdotes of London renters not being able to rent anything decent as it gets snapped up in hours which a HPCer rightly identified as indicative of low prices. They are quoting typical yields on investment but not giving hard figures on the increases to yields.

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As far as I can tell rents are not booming and are largely flat (someone posted a rents tracking graph recently). The stats that are provided are strange ones like enquiry:lets-on-books ratios. There are anecdotes of London renters not being able to rent anything decent as it gets snapped up in hours which a HPCer rightly identified as indicative of low prices. They are quoting typical yields on investment but not giving hard figures on the increases to yields.

RICS (a.k.a "experts") obviously want to try to stimulate demand in the BTL sector to offset the loss of income selling houses to people who can't buy, won't buy and would be daft to buy.

They will publish anyhting to help their struggling industry survive. Even to the point of suggesting a boom in BTL.

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RICS caught that headline which is the reason for my post--a direct contradiction to other news.

Balance being the key here. :D

I thought it may have been, and a very good reason to post it is too. :) Good work Sir!

The media is just hilarious right now. All over the place!

Mind you, its the EA's and financiers that are really providing the best entertainment. Watching them trying to save themselves is staggeringly funny. :lol::lol:

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House price vs rent inflation

21-may-2010-house-prices-and-rent.jpg

Source (FT blog)

We know what booming house price inflation looks/feels like...rents don't seem to be anything like booming if doing anything much at all.

Edited by cica

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More confusion with this article contradicting the boom Telegraph

I don't see articles painting a false picture of BTL booming as a bad thing as it only helps to confuse the public, and that in itself robs out any faith in the property market. It also indicates that things are getting tougher and tougher which as has already been pointed out is good spectator sport, this article reinforces how things are getting interesting. And that article is written by someone who can hardly be described as impartial. The market is moving closer to the edge, I can't wait till the MSM unexpectedly announce that there is a HPC.

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landlords talk about rent simply increasing so their 'investments' remain profitable.

they seem oblivious to the fact that rent levels are dictated by ability to pay rent ,ie wages - which are crap.

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landlords talk about rent simply increasing so their 'investments' remain profitable.

they seem oblivious to the fact that rent levels are dictated by ability to pay rent ,ie wages - which are crap.

Rents are dictated by the ability to pay - i.e. housing benefit, which is not crap and is not going to be reduced as promised by the UK's #1 liar and spin expert multi-millionaire toff David Cameron.

What we need is some kind of ruling. I know - how about a "fair rent" act. Oh no, that was scrapped by the last Tory loony Mrs T.

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this is one of the most fallacious HPI arguments and it really annoys me - the assumption that housing demand is very inelastic

I wouldn't be so quick to dismiss it.

To some extent, the tenant's access to money acts as competition for landlords

I think this is one reason we haven't seen rents flying downwards

Edited by Stars

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  • 276 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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