Jump to content
House Price Crash Forum
NEO72

Why Are Landlords Selling When Rents Are High?

Recommended Posts

Came across this on EA today (courtesy of Rant n Rave) and thought worth posting here. Some interesting comments e.g:

Yes, there must be others in our position. We only started buying in our sixties when we paid off the mortgage on our home, as we're cautious and risk averse. On the advice of brokers and research having revealed that historically property prices had doubled every ten years, we took 85% BTL mortrgages. The 10 year mortgages will mature in the next few years and, because we're now over 70 we aren't eligible to remortrgage. Far from doubling in price, these properties will now make less than we paid before the improvements we've made. The tenants struggle to pay the same rent we were getting 8 years or so ago. Despite having savings, we shall need to sell some properties to pay off mortgages.

Furthermore, the value of one-bedroom properties has really crashed in this area since housing benefit tenants under 35 are no longer eligible for this accommodation, and half of our properties are on-bed flats! Yes, we were prudent and took advice but the banking crisis and alterations in government policy have exacerbated the effects of unemployment to make it inevitable that some BTL landlords will sell.

Why Are Landlords Selling When Rents Are High?

Presumably LHA dropping by £40 pcm on average from October won't help much either..

Edited by NEO72

Share this post


Link to post
Share on other sites

Came across this on EA today (courtesy of Rant n Rave) and thought worth posting here. Some interesting comments e.g:

Presumably LHA dropping by £40 pcm on average from October won't help much either..

So landlords are selling because rents are not so high?

Share this post


Link to post
Share on other sites

Came across this on EA today (courtesy of Rant n Rave) and thought worth posting here. Some interesting comments e.g:

Presumably LHA dropping by £40 pcm on average from October won't help much either..

Most 'investments' are a gamble. The higher the anticipated returns, the greater the risk. So exactly what research did these people do?

They could have put their money into relatively safe areas such as deposit accounts, Bank bonds etc. for a more modest return, but no, they were greedy and wanted to cash in on others misery.

They hoovered up the properties, driving prices beyond all common sense, causing great social distress, causing their own children's generation untold misery.

Now reality sets in.

Tough.

Share this post


Link to post
Share on other sites

Came across this on EA today (courtesy of Rant n Rave) and thought worth posting here. Some interesting comments e.g:

Seems to me to be a simple case of philanthropy

This is what gives me hope for the UK, occasionally you see something like this that shows the togetherness.

These entrepreneurs are getting on a bit and like most philanphropists recognise they have done well and are now willing to give something back to the community, stepping aside to let a younger canny entrepreneur get a piece of the pie. Its enlightening

Share this post


Link to post
Share on other sites

I'm pretty disgusted with those comments, such ignorance of the plight of the people they are exploiting, it's just not on the radar. One idiot makes mention of 'youngsters' who 'must learn like my generation did that you can have a house OR a car OR a GAP Year or sex, booze and rock n roll.'. So a 5k car equals a 150k mortgage (300k worth of repayments), or a 10k gap year does it. The most vile thing about these lucky idiots is that their blind stumbling into a heap of free money is viewed as anything to do with any ability on their part. And to top it all off they've nothing but contempt for those whose suffering they profit from, people who today have to do more than they have ever been capable of just to get by. Disgusting.

Share this post


Link to post
Share on other sites

Came across this on EA today (courtesy of Rant n Rave) and thought worth posting here. Some interesting comments e.g:

Why Are Landlords Selling When Rents Are High?

Presumably LHA dropping by £40 pcm on average from October won't help much either..

Rents are high but properties remain empty.

EAs have transferred the old hoarding approach to the rental market. Would be BTL moguls are falling like flies instead of reducing asking rents.

Share this post


Link to post
Share on other sites

I'm pretty disgusted with those comments, such ignorance of the plight of the people they are exploiting, it's just not on the radar. One idiot makes mention of 'youngsters' who 'must learn like my generation did that you can have a house OR a car OR a GAP Year or sex, booze and rock n roll.'. So a 5k car equals a 150k mortgage (300k worth of repayments), or a 10k gap year does it. The most vile thing about these lucky idiots is that their blind stumbling into a heap of free money is viewed as anything to do with any ability on their part. And to top it all off they've nothing but contempt for those whose suffering they profit from, people who today have to do more than they have ever been capable of just to get by. Disgusting.

Top post. They were lucky, plain and simple. They did nothing except happen to live at a time when gambling was in their favour.

On rents: They might be creeping up in some parts of London, but they are most definitely not creeping up in many other places, except of course in "desirable" rural locations. My rent has fallen in cash terms and even more including inflation. Most rents in all the areas I have visited in the last year are either static (ie falling inclusive of inflation) or very slightly rising (ie: static including inflation).

The myth of a nationwide hike in rents is entirely due to lazy or vested interest media (eg: BBC, Telegraph and sad to say, the Guardian too) spreading the myth created by EA's, letting agents, politicians, spivs, charletons and anyone with a "chartered" before their professional status. Rents have always been inextricably linked to house prices. Eventually, rents will descend in line with current trends, and might descend further still because the market is flooded with new rentals from sellers who cannot sell.

Edited by VacantPossession

Share this post


Link to post
Share on other sites

Seems to me to be a simple case of philanthropy

This is what gives me hope for the UK, occasionally you see something like this that shows the togetherness.

These entrepreneurs are getting on a bit and like most philanphropists recognise they have done well and are now willing to give something back to the community, stepping aside to let a younger canny entrepreneur get a piece of the pie. Its enlightening

B)

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 343 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.