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Sancho Panza

Return Of First-Time-Buyer Sparks Rise In Unlet Property

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Telegraph 13.8.13

'A study by a credit ratings agency suggests that as buyers return to the housing market some landlords are struggling to find tenants

Research by Experian, the credit referencing agency, showed the number of properties listed "to let" in the UK increased by 11.4 per cent in those months compared to the same period last year.

London led the increase in properties to let with a 26pc rise over the period. This compared to a 2pc increase in the number of homes being listed for resale in the capital.

Wales and the East of England were the only areas in the UK to see a fall in the number of properties being listed for rent - down 0.08pc and 3.2pc respectively.

Experian's research suggests that tenants - where they can afford to - are leaving the rented sector and buying property. This trend is being helped by growing mortgage availability and rising house prices. The latest data from lenders' body the Council of Mortgage Lenders showed first-time buyers are more active in the market now than at any point since 2007.

Landlord lending has boomed in the past few years, with CML figures showing £5.1bn was advanced to landlords in the three months to the end of June, almost a third higher than the figure for the same period in 2012.

Another study published today - the HomeLet Rental Index - suggested rental prices had still been rising.

It suggested the overall average cost of renting a home in the UK increased by 1.8pc in July to £826, up 3.6pc on a year earlier and setting a new high.

Renting in London now costs almost £1,300 a month, on average.

However, rents in South-East England were reported as falling - at £841 compared to £851 a year earlier.

Andy Richards of HomeLet Business said: “Tenants already seem to be facing increasingly expensive rental prices due to the lack of mortgage availability, so it will be interesting to see if the new Help to Buy scheme helps to ease the pressure." '

So rents are going up because there are fewer tenants?

Sometimes,one can't help but be speechless.

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So rents are going up because there are fewer tenants?

Sometimes,one can't help but be speechless.

Yes things only ever go up. Great isn't it! We can't have any of that evil deflation in rents.

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Yes things only ever go up. Great isn't it! We can't have any of that evil deflation in rents.

The notion that Landlords can't transpose higher mortgage costs onto tenants is clearly an alien concept to many and clear evidence of why we're in the mess that we are.

Edit to add.Note to self.Do some work.

Edited by Sancho Panza

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The notion that Landlords can't transpose higher mortgage costs onto tenants is clearly an alien concept to many and clear evidence of why we're in the mess that we are.

Edit to add.Note to self.Do some work.

Cheers for posting this, it's good to see. As you say, many LLs are blissfully unaware of their position regarding pricing power, even though they sort of know it already. They think they can put a floor under prices at their cost base as some sort of fundamental barrier.

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