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fru-gal

Why Do Landlords Do This?

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I see this a lot on Zoopla. A property that has reduced the rent suddenly puts the rent right up again. This doesn't work so they end up reducing the rent even more. Why would a landlord put the rent up when reducing it has failed to get a tenant? See here for example;

http://www.zoopla.co.uk/to-rent/details/26527430?search_identifier=31870782d3f0274b87193fd63319faa4

http://www.zoopla.co.uk/to-rent/details/28987334?search_identifier=31870782d3f0274b87193fd63319faa4

And on a different subject, why are so many prime rental properties reducing their rent so much? Who would be paying £1000+ per week to rent in Marylebone etc? Surely bankers would just buy a property to live in?

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I see this a lot on Zoopla. A property that has reduced the rent suddenly puts the rent right up again. This doesn't work so they end up reducing the rent even more. Why would a landlord put the rent up when reducing it has failed to get a tenant? See here for example;

http://www.zoopla.co.uk/to-rent/details/26527430?search_identifier=31870782d3f0274b87193fd63319faa4

http://www.zoopla.co.uk/to-rent/details/28987334?search_identifier=31870782d3f0274b87193fd63319faa4

And on a different subject, why are so many prime rental properties reducing their rent so much? Who would be paying £1000+ per week to rent in Marylebone etc? Surely bankers would just buy a property to live in?

Many corporate relocation packages in central London are completely insane. There are plenty of people on £10k per month or more housing allowances in London. I think a lot of landlords don't bother trying to find tenants who are paying their own rent, and they're willing to wait for someone to come along who's using the company charge card to put a roof over their head and so isn't so bothered about wasting money on a house that's marginally nicer than others, but twice the price of what else is available.

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And on a different subject, why are so many prime rental properties reducing their rent so much? Who would be paying £1000+ per week to rent in Marylebone etc? Surely bankers would just buy a property to live in?

'Just buying' at this end of the market isn't the no-brainer it would for someone in Middle England looking at a three-bed semi. The maths are completely different. You'd have to stump up 40 or 50 times your yearly rent, pay two or three years rent in transaction costs (stamp duty etc) and then sit back and pray that either a mansion tax isn't brought in after the election or you fall short of the threshold. It's not inconceivable that half your equity, above a certain level at least, could be wiped out at the stroke of a pen (a 1% levy on a property that yields 2%).

Only really suitable for those who are really certain they want to stay there a long time and/or really hate letting agents.

If a HPC comes along in the near future I suspect it will come from the top down.

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'Just buying' at this end of the market isn't the no-brainer it would for someone in Middle England looking at a three-bed semi. The maths are completely different. You'd have to stump up 40 or 50 times your yearly rent, pay two or three years rent in transaction costs (stamp duty etc) and then sit back and pray that either a mansion tax isn't brought in after the election or you fall short of the threshold. It's not inconceivable that half your equity, above a certain level at least, could be wiped out at the stroke of a pen (a 1% levy on a property that yields 2%).

Only really suitable for those who are really certain they want to stay there a long time and/or really hate letting agents.

If a HPC comes along in the near future I suspect it will come from the top down.

Seems it is already starting at the bottom in Edinburgh, it is getting easier to find 40 - 50% drops from peak prices in FTB flatland. Many said they couldn`t go under 100k again. Bit of a pain if you borrowed peak debt to buy one?

Edited by dances with sheeple

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