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Randall Herbert

Association Of Residential Lettings Survey For Dec 2005

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Association of Residential lettings survey for Dec 2005

In summary, although yields are holding up the average price of rented houses is down by 1.5% in the last 3 months and if you strip out London and the south east the decrease is 2.4%.

The survey makes even scarier reading for flats. Over the last 3 months they are down 5.1% though when you look into the numbers it can be seen that flats in prime London are down 6% and for the UK ex London and south east they are down 9%.

Perhaps the most telling thing about this data is that it is all before the impact of both the SIPP U turn and the withdrawal of the Portman building society, amongst others, from the buy to let market on the grounds of hugely inflated price risks leading to bad debts.

Perhaps TTRTR may wish to dispute the data?

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I had a very quick look at it - it doesn't seem to be a very robust report.- when it asks questions of the EA's like "Do you think rents have gone up a lot, a little, etc" - it doesn't seem to have real quantitative questions (eg rents up 0 to 1%)

The price of houses under rent - ? not sure how they arrive at that - does it mean that cheaper properties are being rented out?

It also mentions that 14% of LL's are looking at buying v 7% previously - interesting.

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It also mentions that 14% of LL's are looking at buying v 7% previously - interesting.

It means that the BTLs' addiction to expanding their Lettings portfolios are getting worse, not better, despite the fact that the market has changed.

We've even seen this on property ladder, a property done up for selling cannot be sold so is rented out while the self styled property entrepeneur moves on to make their next property purchase - without stopping to think about why the property they put on the market didn't sell.

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Of course bloody yields are holding up. Yield is rent/house price, so falling prices actually flatter rent yields in % terms.

Coversely if both rents and prices are falling yields will still hold up provided rents don't fall faster than prices.

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Of course bloody yields are holding up. Yield is rent/house price, so falling prices actually flatter rent yields in % terms.

Coversely if both rents and prices are falling yields will still hold up provided rents don't fall faster than prices.

Indeed, prices are falling but so are rents. After STRing in Nov 2004 I Rented a house in Bushey Herts.

In august I was paying 800pcm when my contract ended. he wanted a 12 months term but I refused saying I preferred a rolling month by month so he served notice on me and i left for a better and cheaper place.

5 months later the place is now up for £750 with no takers and he has redecorated!!!! It has become a weekly point of humour checking the watford observer to see it it still there.

My heart, of course, bleeds for the d*ck

Edited by Mr_Nice

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It means that the BTLs' addiction to expanding their Lettings portfolios are getting worse, not better, despite the fact that the market has changed.

We've even seen this on property ladder, a property done up for selling cannot be sold so is rented out while the self styled property entrepeneur moves on to make their next property purchase - without stopping to think about why the property they put on the market didn't sell.

I am not surprised by this increase. I have met many BTL people who say that a dip in prices is to be welcomed as an opportunity because it will give them the chance to expand their portfolios.

The question is as to how much of a dip are they expecting (ie at what point will they enter the market again). As most of them are extremely bullish and rule out any chance of a crash, a 5% decline on the market means that they consider that the dip means an extra 10k in the "bank" immedately they buy another 200k flat.

Therefore, the more bearish the market becomes, the higher the figure will become that say that they intend to expand their portfolios.

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Therefore, the more bearish the market becomes, the higher the figure will become that say that they intend to expand their portfolios.

and the three little pigs lived happy ever after, well untill market day anyway :lol:

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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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