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Help 2 Buy Causes Private Landlord Rethink

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http://www.insidehousing.co.uk/development/landlords-rethink-private-sector-plans/7002599.article?utm_source=twitterfeed&utm_medium=twitter

Housing associations are scaling back plans to enter the private rented sector because of the booming housing market in London and the south east.

Just one year after landlords unveiled proposals to plough hundreds of millions of pounds into supporting a coalition drive to roll out large-scale private rented sector housing, they are warning government initiatives to boost homeownership, such as the £12 billion help to buy scheme, are undermining this push.

Affinity Sutton, Notting Hill Housing Trust and The Guinness Partnership all confirmed they are among a growing number of landlords reassessing their PRS ambitions as a result of changing market conditions, which are reducing returns on lets compared with sales.

Last March nine housing associations won bids for allocations of the government’s £1 billion build-to-rent fund which aims to attract large-scale institutional investment into the private rented sector.

Makes you wonder the real aim of Help To Buy, given its reducing the prospect of new homes being built.

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Hopefully HTB2 will be bearish for rents in the PRS, not that I support it as a policy. Pretty much a case of damage limitation for me, what with Osborne&Co pushing/supporting prices at seemingly any cost.

Anecdotally there's plenty of rental choice around me and prices are similar to around 18 months ago(Chester) when I started to look for the place I'm in now. Looks probable that I could rent a similar place for the same or maybe a touch less money.

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Hopefully HTB2 will be bearish for rents in the PRS, not that I support it as a policy. Pretty much a case of damage limitation for me, what with Osborne&Co pushing/supporting prices at seemingly any cost.

Anecdotally there's plenty of rental choice around me and prices are similar to around 18 months ago(Chester) when I started to look for the place I'm in now. Looks probable that I could rent a similar place for the same or maybe a touch less money.

I do kinda get the feeling near me that BTL has saturated.

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I do kinda get the feeling near me that BTL has saturated.

Hope this is true (below)... I can't work out such things myself, and that HTB is going to give the landlords further rental yield issues.

14 March 2014

A report by property website Zoopla revealed that after seven years, the typical tenant in the capital is £82,412 better off than someone who buys an equivalent property with a 10 per cent deposit. It claimed that it takes 18 years for the buyer to be better off than the renter. Surprising stuff.

Comments on the newest-section are very anti-renting though, yet these owners/buyers make their own decisions - although the article author plays down any chance of hpc. http://www.thisismoney.co.uk/money/mortgageshome/article-2580895/Renting-vs-buying-Home-ownership-holy-grail-renting-gives-choice-flexibility.html

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I do kinda get the feeling near me that BTL has saturated.

A good slew of accidental LLs should help drag the 'ProAm' masses underwater too.

As to the original story, seems a bit odd- are housing associations saying that apparent ~record rent levels in London are not sufficient when building their own flats? Maybe HTB2 allows an outlet for punters to buy, who would otherwise have to sit and take their RPI rent reviews.

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You may of heard me banging on about the lack of rental reports, especially from Rightmove and the Government.

LSL produce one, but I take their figures with a large pinch of salt.

LSL Property Services is the parent company of E.Surv Chartered Surveyors, Your Move and Reeds Rains, and forms the second-largest Estate Agent chain in the United Kingdom

http://www.lslps.co.uk/documents/buy_to_let_index_jan14.pdf

Rents across England and Wales now average £742 per month, up by 1.4% since January 2013 Tenant finances recover in the New Year, as proportion of late rent falls to 7.4%

All entrants into BTL in the last two years are there for potential capital appreciation.

Five out of ten regions saw rents fall on a monthly basis between December and January, in line with a monthly fall across England and Wales as a whole.
The index is based on analysis of approximately 20,000 properties across England and Wales. Rental values refer to the actual values achieved for each property when let. Yield figures are unadjusted, and do not take account of void periods or arrears.

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As to the original story, seems a bit odd- are housing associations saying that apparent ~record rent levels in London are not sufficient when building their own flats? Maybe HTB2 allows an outlet for punters to buy, who would otherwise have to sit and take their RPI rent reviews.

It's more about HTB removing a lot of decent/honest/hardworking folks from the pool of available tenants, leaving (student markert aside) just deadbeats and a vastly-reduced number of working folks.

That should be a lot better for the slumlord than for the landlord letting a nice place, who now finds himself on the wrong side of the supply/demand shift.

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It's more about HTB removing a lot of decent/honest/hardworking folks from the pool of available tenants, leaving (student markert aside) just deadbeats and a vastly-reduced number of working folks.

They used to have places to put people like that, they were called council estates.

IMO it's better to keep certain types of people together and segregated from the decent 'hardworking' families.

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