MattW Posted February 20, 2013 Share Posted February 20, 2013 My sister rents a 3 bed house (built around 8 years ago). Last Saturday her landlord informs her that he wants to put the rent up from £570 a month to £695 a month! He cited the fable that 'private rents are skyrocketing!'. At the drop of a hat, my sister verbally gives him a month's notice. Cue panic by the landlord. Come Sunday morning, he's offered a modest increase of £30 to £600 / month, which my sister agrees to. Apparently, he had shown her the mortgage statement for the property. Payments are around £625 / month for it. So he has been making a loss of £55 / month on this house ( going down to £25 / month shortly). Yes, BTL is a great 'investment'. He has other rental property that may or may not be plugging the shortfall for this house. Apparently, he wants to sell the house my sister is renting in 2014. He probably thinks that the value of the house will increase next year (he was going to put it up for sale in 2012 but never did). Quote Link to comment Share on other sites More sharing options...
inflating Posted February 20, 2013 Share Posted February 20, 2013 My sister rents a 3 bed house (built around 8 years ago). Last Saturday her landlord informs her that he wants to put the rent up from £570 a month to £695 a month! He cited the fable that 'private rents are skyrocketing!'. At the drop of a hat, my sister verbally gives him a month's notice. Cue panic by the landlord. Come Sunday morning, he's offered a modest increase of £30 to £600 / month, which my sister agrees to. Apparently, he had shown her the mortgage statement for the property. Payments are around £625 / month for it. So he has been making a loss of £55 / month on this house ( going down to £25 / month shortly). Yes, BTL is a great 'investment'. He has other rental property that may or may not be plugging the shortfall for this house. Apparently, he wants to sell the house my sister is renting in 2014. He probably thinks that the value of the house will increase next year (he was going to put it up for sale in 2012 but never did). A very important anecdote, thanks for posting it. Quote Link to comment Share on other sites More sharing options...
plummet expert Posted February 21, 2013 Share Posted February 21, 2013 My sister rents a 3 bed house (built around 8 years ago). Last Saturday her landlord informs her that he wants to put the rent up from £570 a month to £695 a month! He cited the fable that 'private rents are skyrocketing!'. At the drop of a hat, my sister verbally gives him a month's notice. Cue panic by the landlord. Come Sunday morning, he's offered a modest increase of £30 to £600 / month, which my sister agrees to. Apparently, he had shown her the mortgage statement for the property. Payments are around £625 / month for it. So he has been making a loss of £55 / month on this house ( going down to £25 / month shortly). Yes, BTL is a great 'investment'. He has other rental property that may or may not be plugging the shortfall for this house. Apparently, he wants to sell the house my sister is renting in 2014. He probably thinks that the value of the house will increase next year (he was going to put it up for sale in 2012 but never did). Well done your sister! In fact, private rentals have peaked. Some properties sitting about for ages around here in West Sussex. Often seeing them remarketed at a lower rent inevitably saying 'new' when they are not. Here is one that never sells and been on the market on and off for 4 years - rented a couple of times and now for sale and rent at the same time. http://www.rightmove.co.uk/property-for-sale/property-37105865.html AND RENT http://www.rightmove.co.uk/property-to-rent/property-27059878.html AND YES, IT IS THE SAME PROPERTY. Builder did it up and it never sold - too greedy so it sits there year after year. He is not the only one. Quote Link to comment Share on other sites More sharing options...
MattW Posted February 22, 2013 Author Share Posted February 22, 2013 Here is one that never sells and been on the market on and off for 4 years - rented a couple of times and now for sale and rent at the same time. http://www.rightmove...y-37105865.html AND RENT http://www.rightmove...y-27059878.html AND YES, IT IS THE SAME PROPERTY. Builder did it up and it never sold - too greedy so it sits there year after year. He is not the only one. Seems like the vendor isn't in a dire need to sell. Some months ago I saw an unmodernised bungalow up for rent at £595 a month but it was also on for an asking price on a par with similar modernised ones - offers in excess of £150k. Seems to have gone from the listings now. "We're not giving it away!" I expect the vendors bark at the Estate Agent. Quote Link to comment Share on other sites More sharing options...
65243 Posted February 23, 2013 Share Posted February 23, 2013 My sister rents a 3 bed house (built around 8 years ago). Last Saturday her landlord informs her that he wants to put the rent up from £570 a month to £695 a month! He cited the fable that 'private rents are skyrocketing!'. At the drop of a hat, my sister verbally gives him a month's notice. Cue panic by the landlord. Come Sunday morning, he's offered a modest increase of £30 to £600 / month, which my sister agrees to. Apparently, he had shown her the mortgage statement for the property. Payments are around £625 / month for it. So he has been making a loss of £55 / month on this house ( going down to £25 / month shortly). Yes, BTL is a great 'investment'. He has other rental property that may or may not be plugging the shortfall for this house. Apparently, he wants to sell the house my sister is renting in 2014. He probably thinks that the value of the house will increase next year (he was going to put it up for sale in 2012 but never did). Congratulations to your sister for sticking her ground. Rents are fixed by the market, not by what the landlord's mortgage statement says. Can you give us any idea where the flat/house is? Quote Link to comment Share on other sites More sharing options...
MattW Posted February 24, 2013 Author Share Posted February 24, 2013 Congratulations to your sister for sticking her ground. Rents are fixed by the market, not by what the landlord's mortgage statement says. Can you give us any idea where the flat/house is? The house is inNorwich, Norfolk (NR3). A few days ago I looked at the sale price of the houses in the same row. Built in 2002, they sold for around £140k but the house my sister is renting last sold in 2006 (so near peak) for an eye watering £280k! That makes the rental yield very low indeed I'm hopefully moving later this year from my current rental flat to a house closer to work and I feel brave enough to consider negotiating a deal. Quote Link to comment Share on other sites More sharing options...
btl_hater Posted February 27, 2013 Share Posted February 27, 2013 A pleasing story! Quote Link to comment Share on other sites More sharing options...
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