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My Aunt The Letting Agent

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I was on a visit to the Midlands to see some members of my family. My aunt, who I like a lot, is in charge of the lettings desk at a multi-purpose independent Estate Agent in one of the more middle class towns in Ipswich.

So the talk turned to tenants, having been a tenant quite recently. I described (some) of my experiences as a tenant and got some interesting responses:

1) When I talked about housing benefit - her view was that this was the single most stable form of payment

2) I started complaining about how housing benefit was out pricing employed tenants - and her view was that tenants should only ever pay what was being asked

3) She seemed to have the view that only landlords should have rights under tenancy agreements - although this may be because she didn't understand the situation that I had faced when trying to leave the tenancy

4) The most chilling piece was when I asked why on earth renting a house was the only area of the private sector that I'd dealt with where the producer was king and not the customer - in this case it was that the contract she had was signed with the landlord and not the ultimate customer

I'm no longer a tenant, but I still remember the shock of dealing with the rental sector where I, as customer, was treated with the contempt of a Soviet customer trying to get on a ten year waiting list for a Lada.

The customer will win - in a market economy for better or worse the consumer will always win. But why is it taking so long? Why is private renting still seen as a savings bond rather than a business where a happy customer means a profitable business?

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The customer will win - in a market economy for better or worse the consumer will always win. But why is it taking so long?

The molesting, interfering fist of the government into a free market. That's why.

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The molesting, interfering fist of the government into a free market. That's why.

You nailed that one.

In fact you could copy and paste onto most questions of the day and be just as right.

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The molesting, interfering fist of the government into a free market. That's why.

I'm as big a free market zealot as the rest of them, but with the exception of housing benefit I really don't see where government regulation is driving this discrepancy.

I fully expect the cash bearing customer to become king as that is the natural order of things - I just don't see how it will happen.

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I'm as big a free market zealot as the rest of them, but with the exception of housing benefit I really don't see where government regulation is driving this discrepancy.

I fully expect the cash bearing customer to become king as that is the natural order of things - I just don't see how it will happen.

When interest rates go up and their cost of voids is crippling.

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I'm as big a free market zealot as the rest of them, but with the exception of housing benefit I really don't see where government regulation is driving this discrepancy.

I fully expect the cash bearing customer to become king as that is the natural order of things - I just don't see how it will happen.

Tracker mortgages, I think.

In 2008/09 I saw a surge in BTL repos, but that has slacked off. Alot of them are on IO deals, and it's common to see their individual interest rates reduced from 7% to 2%.

Last week I came across an unemployed mortgage broker who was on a rate of 0.75% for his BTL mortgage. The deal was collared, so effectively a rate of 2.5%, but some lenders ignore that and allow the full reduction (I think Nationwide is a culprit). This guy was in trouble, but admitted that the interest rate reduction had balanced out much of his loss of income. It also helped that he had been allowed to run up his arrears for 18 months before legal action was taken. He understood the effect of the LIBOR rate and was NOT hopeful for the future, and had no difficulty admitting that the real cost of this daft business is transferred to the innocents.

Another point is that the BTLer can demand his price from the renter without much risk of the renter shopping around - it depends on fixity of tenure/rent, which is determined by gubmint legislation. There is also the insanity of of tax deductions on mortgage interest + planning restrictions on necessary accomodation.

It's pretty complex, but basically, the winners and losers in this casino are chosen by the ignorant, grasping fools that we elect to Westminster. Our democracy has been perverted, and I'm not sure if it can be put right.

Edited by okaycuckoo

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I was on a visit to the Midlands to see some members of my family. My aunt, who I like a lot, is in charge of the lettings desk at a multi-purpose independent Estate Agent in one of the more middle class towns in Ipswich.

So the talk turned to tenants, having been a tenant quite recently. I described (some) of my experiences as a tenant and got some interesting responses:

1) When I talked about housing benefit - her view was that this was the single most stable form of payment

2) I started complaining about how housing benefit was out pricing employed tenants - and her view was that tenants should only ever pay what was being asked

3) She seemed to have the view that only landlords should have rights under tenancy agreements - although this may be because she didn't understand the situation that I had faced when trying to leave the tenancy

4) The most chilling piece was when I asked why on earth renting a house was the only area of the private sector that I'd dealt with where the producer was king and not the customer - in this case it was that the contract she had was signed with the landlord and not the ultimate customer

I'm no longer a tenant, but I still remember the shock of dealing with the rental sector where I, as customer, was treated with the contempt of a Soviet customer trying to get on a ten year waiting list for a Lada.

The customer will win - in a market economy for better or worse the consumer will always win. But why is it taking so long? Why is private renting still seen as a savings bond rather than a business where a happy customer means a profitable business?

one blip to the interest rate and the servant becomes the master.

their whole btl world falls into alabaster.

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one blip to the interest rate and the servant becomes the master.

their whole btl world falls into alabaster.

thisng is they are caught between a rock and a freight train. their only hope (and this is why a depression is certain) is that somehow, from somewhere in this low growth high inflation economy, will thousands and thousands of lowly paid 20-25yr olds pull a magic £30k out of their ass and take on a £130k loan. thats not going to happen.

depression should hit this year. and it will stay until hard times overtake any concern over anything.

the benchmark to tell were in a depression is when you see your first KFC / McDonalds drive through boarded up.

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  • 333 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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