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Supply & Demand

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Before the mid 80's a lot of rented accomodation was council, or if private, tennants were often 'Sitting Tennants' who had many rights like low rent, and the right to continue renting for life. BTL was not advantageous in many cases, and landlords sometimes had to buy out a sitting tennants for large sums of money (which they often used to put a deposit on their own property) to enable to sell their property at market value, or when the law changed, they could then take on tenants on a shorthold tenancy at increased rent and greater protection for themselves.

People were then therefore more willing to BTL and more able due to lenders relaxing their lending critera, thus increasing property prices and demand. The supply in rented accomodation increased as more council property was sold, and people who couldn't or wouldn't buy required rented property.

When BTL property ceases to be profitable house prices will plummet

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  • 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%

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