Jump to content
House Price Crash Forum
Sign in to follow this  
gruffydd

English Rental Yields Fall Again

Recommended Posts

English Rental yields hit three-year low

Quarterly figures released by Landlord Mortgages has revealed rental yields in England have fallen to 5.87per cent - their lowest in three years.

The quarterly renatl yield figures also showed London figures dropped from 5.99per cent (Q2 2005) to 5.82per cent (Q3 2005).

Although England and London saw a drop in rental yields, this is not necessarily bad news for the overall market. Lee Grandin, managing director of Landlord Mortgages commented: "Although we have seen a fall in rental yields over the last quarter in England and Wales, the UK buy-to-let market is still very healthy."

:blink::lol::lol::lol:

http://www.mortgageintroducer.com/news/new...p?unqueid=14929

Share this post


Link to post
Share on other sites

Let them suffer - as they cause youngsters priced out of the market to suffer.

The arrogance of these people is so galling. Some bird in the telegraph at the weekend going on about she did this and that, then bought 4 ex council houses as BTL ...

They never pause for one second to think - 'why should I own five houses when other people own none? What is so great and deserving about me that I should be in a wonderfully privileged position where other people can slave at work to pay rent to me - so that I can idle my days away in luxury.

Sorry, the socialist in me will out from time to time.

All property is theft. Ha ha!

Share this post


Link to post
Share on other sites

Let them suffer - as they cause youngsters priced out of the market to suffer.

The arrogance of these people is so galling. Some bird in the telegraph at the weekend going on about she did this and that, then bought 4 ex council houses as BTL ...

They never pause for one second to think - 'why should I own five houses when other people own none? What is so great and deserving about me that I should be in a wonderfully privileged position where other people can slave at work to pay rent to me - so that I can idle my days away in luxury.

Sorry, the socialist in me will out from time to time.

All property is theft. Ha ha!

but its a free market.. perhaps people should be able to own as many as they want..

but perhaps the economic minister and the MPC should have looked after the economy instead of letting debt and house prices grow out of control.

If they paused to think that perhaps the massive profits they percieve themselves to have made can't exist until they are realised.. then perhaps they wouldn't be in this position

Share this post


Link to post
Share on other sites
Guest

A lot of people (particularly newspaper editors) don't understand the idea that to have profit, you have to have made a sale. Nothing sold, no income, no profit.

It mildly irritates me when the local rag described the average Joe as having "made a profit" on his home just by, er, well, doing mostly nothing. Let's see him sell it first!

IMO, this reinforces the idea in people's minds that these rises are something that they are entitled to. Although, from a vindictive perspective, I guess this would increase the chances of these people chasing the market all the way down to the bottom.

Share this post


Link to post
Share on other sites
Guest Bart of Darkness
English Rental yields hit three-year low

Does this mean that TTRTR wll have to light his cigars using £10 notes instead of a £20?

Times is hard!

Share this post


Link to post
Share on other sites

an anecdotal of mine confirms this.

i was looking at a rental prop a few months ago, but he put it through letting agent who then wanted £50 pcm more for his fees. i said no thanks.

they came back a few days ago asking if i would take the prop at the earlier price minus agents fees.? its beenempty all that time. plus it wasnt to bad of a property and also was fairly cheap. now its cheaper.

and still empty.

Share this post


Link to post
Share on other sites

but its a free market.. perhaps people should be able to own as many as they want..

but perhaps the economic minister and the MPC should have looked after the economy instead of letting debt and house prices grow out of control.

If they paused to think that perhaps the massive profits they percieve themselves to have made can't exist until they are realised.. then perhaps they wouldn't be in this position

It is not really a free market is it? It is a market with a highly limited supply. There is no effective mechanism for increasing supply to meet increased demand. It's not like buying and selling widgets. It is a land grab, with luck being the main determinant as to whether one propsers or suffers.

Share this post


Link to post
Share on other sites

I dont think there is any point trying to explain the concept of justice to a BTL'er. They are a different species. One from whom the concept of integrity is entierly alien. Personaly I would no more consider getting involved in a dirty buisnes like that than I would robbing old ladies (and yes I do have the resources to). It has nothing to do with socialism. I am not particularly a socialist.

Edited by jellybean

Share this post


Link to post
Share on other sites

Not only is the news looking bad, it is VI spin - the real news is even worse.

Remember this is Landlord mortgages reporting - this guys need BTL to be thriving to make their living.

On the other hand, ARLA just needs a bouyant BTL market (not actual buying BTL properties), and are more likely to report a true reflection of the market (as a service to Landlords).

Current returns on flats across the UK are distributed as follows:

Less than 4%: 8.6% of properties

Betwn 4-5%: 48.1% of properties

6% : 18.4%

7% : 6.3%

As you can see, the vast majority of flats are earning little more than you would get in a decent savings account! About 1% lower than Landlord Mortgages claim. The return for houses is even lower!

Source: page 17, ARLA Q2 2005 BTL report: Clicky

Share this post


Link to post
Share on other sites

"We believe that overall rental yields are dropping not as a result of reduced rental demand but due to other market factors. House prices are stabilising and, in some areas, even falling forcing many vendors to drop the price of their properties in order to sell them. This has created an environment in which landlords are finding it harder to find under market value properties, as sellers can't lower their prices further. This has led to yields on newly purchased properties falling causing overall yields to drop."

"Despite these falls, I believe that the market will remain relatively stable for the remaining quarter of 2005. With strong rental demand and a historically strong housing market, there is no need for investors to panic about their property investment."

Quoted from the link at the top thread.

I love the logic. This guy deserves an award. I think his logic says that yields have fallen because.....no, lost it again. Help.

1. "Sellers can't lower their prices further" Aaah yes, of course they can't. Becasue they have unrealistic expectations I guess.

2. If yields are falling one of three things is happening, either rents are falling or prices are increasing or both. If prices are falling as per his logic above, then rents must be falling too.

3. No, got lost again. Anyone help?

Share this post


Link to post
Share on other sites

but its a free market.. perhaps people should be able to own as many as they want..

but perhaps the economic minister and the MPC should have looked after the economy instead of letting debt and house prices grow out of control.

If they paused to think that perhaps the massive profits they percieve themselves to have made can't exist until they are realised.. then perhaps they wouldn't be in this position

You're right, it is a free market and I hate using moral arguements to whip these people. I say let them buy as many ex LA houses as they like and let them basque in their perceived wealth. One day, very soon, all these ill informed amateur BTLers will discover that the perceived wealth is in fact a huge debt which they cannot repay.

I'd like to say that they would realise how much money they have lost, but I would doubt that would ever happen. Last week my collegue calculated that he could make £2,000,000 by renting out a couple of flats, he didn't account for the real cost of the flats (mortgage interest over 25yrs), maintainance, periods without tennents or rogue tennents (need I go on). He's an average guy, willing to borrow £100,000+ for an investment he clearly hasn't done any homework on.

By the way, I keep getting spam from property auction places. Increased number of Repos maybe?

Share this post


Link to post
Share on other sites

I got loads of property auction spam last week. What c*** yields. Just an anecdotal - on the rental front, a friend has been trying to rent out a room in her nice house in Bristol for 3 months - started at £90 a week - 3 months later she's down at £70 and still struggling to find anyone who wants to rent it - those that do are trying to bargain her down even further.

Share this post


Link to post
Share on other sites

Here's a funny one

6 months ago my landlord increased the rent by 50£. I said ok but I'm not renewing the tenancy at all and moving on. Actually I moved in the same area of Derby for 50 less than what I was paying...so in effect saving me 100£! a month

anyway the fun bit is that this property is STILL available for rent at the original cost! so he's lost out 6 months worth of rent from me and now due to over supply in rental properties in the area he's screwed

so 6 months x 500, 3000£ that does not take into account the fact the HE now has to pay for Council Tax etc

Does not take into account the depreciation in property value

Greed is a terrible thing

B) lifes hard..........

Edited by sammysnake

Share this post


Link to post
Share on other sites

Usual bunch of bitter moaning losers. Stop talking, get up off your ****, get a decent job/jobs and make a living. If you can't just admit you are a bunch of wasters. If I were sat with you while you complain like old women I'd bitch slap you!

Get a life

Share this post


Link to post
Share on other sites

I got loads of property auction spam last week. What c*** yields. Just an anecdotal - on the rental front, a friend has been trying to rent out a room in her nice house in Bristol for 3 months - started at £90 a week - 3 months later she's down at £70 and still struggling to find anyone who wants to rent it - those that do are trying to bargain her down even further.

Not surprised it won't rent at that price. £90/week is £4680 pa - or yield of 4.7% on £100,000. Is her room really worth £100k, and why should anyone pay that for the privilege? Even at £70/week she's pulling in £3640 pa. Of course there's a market rent at some level for the room but put the numbers in perspective and they are pretty shocking.

Share this post


Link to post
Share on other sites

Usual bunch of bitter moaning losers. Stop talking, get up off your ****, get a decent job/jobs and make a living. If you can't just admit you are a bunch of wasters. If I were sat with you while you complain like old women I'd bitch slap you!

Get a life

Arrh Bless

I believe by joining in this forum (and thread) you are, to all intents and purposes, 'sat with us'.

Edited by laughing_goat

Share this post


Link to post
Share on other sites

Please drop the offensive posts DRS - I find them deeply uncivilised.

Well hold on a mo. Look through this thread, people have described btlers as ' a different species' and likened them to people who rob old women. Nobody blinked at that comment did they? Similar types of comments are used to describe speculators/second homers/ ea etc in other threads. Everybody seems to lap that up. It seems to only be an insult when its a comment about the losers here. Two faced me thinks :o

Share this post


Link to post
Share on other sites

Well hold on a mo. Look through this thread, people have described btlers as ' a different species' and likened them to people who rob old women. Nobody blinked at that comment did they? Similar types of comments are used to describe speculators/second homers/ ea etc in other threads. Everybody seems to lap that up. It seems to only be an insult when its a comment about the losers here. Two faced me thinks :o

no,not really.

I think most folks would get the concept that BTL has profited and done well,but their profit has not been without cost....and that cost is to the FTB of today.

from BTL point of view it looks good....now.but consider that today's FTB raises the kids to pay for BTL retirement and pension..

could you blame FTB or their kids for letting BTL go without bird-flu vaccine????....tough luck or what?

I detect hints of Logan's Run about to happen!!!

Share this post


Link to post
Share on other sites

DRS, sounds like your keen to talk up this so called 'market'.

e

ver thought you might have been had by smarter lever pullers in the media and that they might have pulled your lever into thinking everybody could be a landlord ?

i make a decent living, but im not giving it away. id rather keep it while btlrs have none.

Share this post


Link to post
Share on other sites

I got loads of property auction spam last week. What c*** yields. Just an anecdotal - on the rental front, a friend has been trying to rent out a room in her nice house in Bristol for 3 months - started at £90 a week - 3 months later she's down at £70 and still struggling to find anyone who wants to rent it - those that do are trying to bargain her down even further.

Ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha

By asking for too much she's already lost potential (say) £65 * 14 weeks = £900 ish. She's really very silly, by being greedy she has lost money.

Ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha

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...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 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.