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Fairyland

Are London Rents Falling

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Apologies if there is already a thread for this. Mods please delete if a thread exists.

Is this being tracked? Surely, benefit cap/HTB/ Investors cashing in/Boomers cashing in should have affected rental market.

Edited by Fairyland

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Superficially Leeds rents in the housing benefit bands seems to be falling a bit, notably 3 bedders

Edited by Si1

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Edinburgh one bed rentals are rising - due to a lack of supply or/and an increase in demand. Reason behind this I do not know.

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I doubt if demand/supply has changed much. The south has peaked so a boom is being created in the north. All the media articles will point to booming north now.

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Touch wood but I haven't had a rent increase in 4 years. The flat next to me in naice, middle class North London was empty for the good part of 6 months earlier this year/late last year. The owners reduced the rent quite a bit over that time and got a family in who are paying less than us now.

Edited by fru-gal

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Not sure how rents can increase if wages aren't increasing - I know in Northampton rents have been (in my view) stagnant for the last 5 years.

Renters have less disposable income and/or living room, landlords and bankers progressively more.

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Guest Jemmy Button

Apologies if there is already a thread for this. Mods please delete if a thread exists.

Is this being tracked? Surely, benefit cap/HTB/ Investors cashing in/Boomers cashing in should have affected rental market.

I very much doubt that London rents would be falling. First of all, London is jam packed with greedy twatt-ish slumlords and the thought of them nullifying their natural propensity for being greedy twatt-ish London slumlords is a bit too much for them. Secondly, as alluded to above, 300,000 people enter this country every year and these people need housing. "Welcome aboard'" say the greedy twatt-ish London slumlords.

Edited by Jemmy Button

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It is true that 300K + enter in the country but those 300K+ live in overcrowded shared homes often 4+. Will those slumlords be caught out in HMO licensing now? Also, some of these may be moving to booming north.

Edited by Fairyland

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My LL has sent in the tree surgeon this week. I'm assuming that when my renewal notice comes through I'll see the cost added to my rent. Places round here are few and far between so I may be forced to either swallow the rise or buy.

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Touch wood but I haven't had a rent increase in 4 years. The flat next to me in naice, middle class North London was empty for the good part of 6 months earlier this year/late last year. The owners reduced the rent quite a bit over that time and got a family in who are paying less than us now.

Your 'nice part of north london' is in fact zone 4 and whoever has left their flat empty for 6 months did so out of their own choice/ineptitude.

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Your 'nice part of north london' is in fact zone 4 and whoever has left their flat empty for 6 months did so out of their own choice/ineptitude.

Thats true of any empty property in a town or city south of Leicester that is habitable IMO.

Being in zone 4 hardly matters - an empty flat in zone 6 could be let tomorrow, for the right price

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Being in zone 4 hardly matters - an empty flat in zone 6 could be let tomorrow, for the right price

This is the crucial point. In my view rental affordability is stretched beyond breaking point. Rents simply have to come down. You can ask £1m for a loaf of bread. That doesn't mean anyone can afford to buy it.

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I very much doubt that London rents would be falling. First of all, London is jam packed with greedy twatt-ish slumlords and the thought of them nullifying their natural propensity for being greedy twatt-ish London slumlords is a bit too much for them. Secondly, as alluded to above, 300,000 people enter this country every year and these people need housing. "Welcome aboard'" say the greedy twatt-ish London slumlords.

Doesn't sound like any place I'd want to live/be. Next to ever more HMOs. If I were an owner I'd look to sell up and cash in.

300,000 all with piles of gold in their pockets and high paying jobs to go to?

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Your 'nice part of north london' is in fact zone 4 and whoever has left their flat empty for 6 months did so out of their own choice/ineptitude.

That is an interesting post. Finchley is in North London. Lots of it is really nice, if you are into that whole leafy suburb thing. Much of it is in Zone 4, and some in Zone 3. Your point is?

Also you're totally missing the point. The thread title is falling rents. fru-gal's anecdotal is consistent with falling rents, because the rental achieved recently is lower than the rental achieved earlier.

However, we can add to the anecdotal because one way to square the circle is to propose that the BTLer took all that time because they couldn't at first accept that they were going to have to accept a lower rent in order for the market to clear. Basically, the market stayed irrational* longer than they could stay solvent, so eventually they folded and let at a lower price. Now that suggests that some BTLers are simply unable to believe that rents fall, and you are giving the appearance of being additional anecdotal evidence to that end.

It also suggests two tricky questions for BTLers. How long do you keep a property void in order to wait for a pinch point in the mismatch between supply and demand to allow you to lock in the rent you want, and how many times does 'bad luck' on this score result in BTLers wiping out all their profits? On thin margins even a single month void is bad news. The take home message is that as Milkshock suggests a wise BTLer with any sense wouldn't hold the property void for too long. If that meant pulling the rent down sharply then plenty of BTLers will do just that, with the earlier entrants able to pull further down without turning cash flows negative. In the teeth of the next recession with all these piss weak late entrant BTLers desperate to avoid voids, rents could fall quite sharply. Sweet. Again, combine that with the end of FLS, BCBS RWA revisions and housing element of UC being trimmed and some late entrant BTLers are going to find that a 5% gross yield was just a ticket to an enormous capital loss on an investment with a negative carry. Double sweet.

* Irrational according to the BTLer, natch.

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Guest Jemmy Button

The bottom line is this: London is utterly SCREWED and it will only get worse. London is a vile place full of greedy tossbags. Hate the place. My only wish is that all the vermin/scumbags in London stay in London and not infiltrate the North with your vile shit.

Edited by Jemmy Button

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The bottom line is this: London is utterly SCREWED and it will only get worse. London is a vile place full of greedy tossbags. Hate the place. My only wish is that all the vermin/scumbags in London stay in London and not infiltrate the North with your vile shit.

:lol:

That's great, but now tell us what you really think.

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Your 'nice part of north london' is in fact zone 4 and whoever has left their flat empty for 6 months did so out of their own choice/ineptitude.

Nope, it is definitely zone 3. Are you stalking me, otherwise you would have no idea where I live.

Edited by fru-gal

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Guest Jemmy Button

Thats true of any empty property in a town or city south of Leicester that is habitable IMO.

Being in zone 4 hardly matters - an empty flat in zone 6 could be let tomorrow, for the right price

Zone 6, zone 3. zone 4, zone 2...'kinell. London eh? What a shithole.

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What was it - 300k net migration last report.

I'm not expecting London rents to fall.

Certainly aren't where I'm looking.

Rents have to fall when correlated with the people who rent monthly income......so what happens is less space is provided, more people living in less space to bring down individual rent commitment.

This is not good.......high density,conjested roads and transport systems,air quality, problems finding and over crowded schools and health services.....gardens being built on etc etc

Why do people put up with it all?....I think many who have seen how things have declined over the last 30 to 40 years are thinking is it all worth it?......but for others what you have never known you will never miss.

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