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The Uk Needs A Million More Rental Homes In The Next Five Years

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The government has a target to build 400,000 new affordable homes for sale over the course of this parliament - but that's ignoring the needs of renters. Sluggish economic recovery, low interest rates - and, crucially, a 2.8 per cent-a-year decline in the social rented sector, mean private renting grew at a rate of 17,500 households per month in the 10 years to 2014, and is expected to keep rising. “Demand for rented homes could still rise more sharply than we have forecast,” said Susan Emmett, director of Savills residential research.

Experts have warned that a hike to stamp duty on buy-to-let homes, which is due to be introduced in April, may hit renters where it hurts. Last week the Council of Mortgage Lenders warned the three per cent hike to stamp duty could push up rents, or cause landlords to sell up altogether. "Given the complexity of the proposals, we suspect that in practical terms the surcharge could cause more problems than it solves," said Paul Smee, the organisation's director general. http://www.cityam.com/233605/savills-the-uk-needs-a-million-more-rental-homes-in-the-next-five-years

The UK desperately need more BTL landlords. And for the existing one: don't panic, just do what you did before.

Edited by rollover

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Maybe it is message for London's landlords.

Generation Rent is fleeing London as housing costs soar

The capital’s exorbitant housing costs are hardly news, but a new survey suggests that the situation is getting so bad that more than 80 per cent of London’s twenty-somethings may be sent packing to other parts of the UK. At £1,507, the average monthly rent for a Londoner is more than double the UK average - and not something everyone can comfortably, or for that matter uncomfortably, afford. Some 82 per cent of twenty-somethings polled by campaign group Fifty Thousand Homes admitted they’ve considered moving out of London specifically because of the high housing costs.

Landlords threaten to sell up 500,000 rental homes after stamp duty hike

Landlords are so tired of being persecuted by the government, they're threatening to flog half a million rental properties in the next 12 months - meaning the UK's rental sector could be about to shrink dramatically. And as we have learned today - the UK needs more rental properties...

Research by the National Landlords Associations (NLA) suggests landlords' confidence has fallen to its lowest level since the darkest days of the financial crisis in 2007, thanks to a raft of new legislation aimed at increasing home ownership in the UK. The most recent of those includes measures due to be implemented in April, which adds a three per cent surcharge onto stamp duty for buy-to-let homes.

Edited by rollover

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"Landlords are so tired of being persecuted by the government, they're threatening to flog half a million rental properties in the next 12 months - meaning the UK's rental sector could be about to shrink dramatically. "

So as we keep saying on here......the prices will fall because of all the properties flooding the market; some people currently renting will be able to buy these properties (the properties won't disappear in a puff of smoke!) so the number of people wanting to rent (all things being equal) will fall......

The number of properties stays the same but more of them will be OO.

So everyone's a winner (except the LL obviously :) )

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Looks like Cameron has come back from the EZ leaders with half an old dog biscuit rather than a bone, so IMO if the anti-EZ meme of "We are a Great Global Seafaring nation" takes hold we could have the pop corn moment, and that will be bad for people farmers in general.

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On the whole Savills research is pretty darn good. Go take a look at the research section of their website.

http://www.savills.co.uk/research/uk.aspx

Why take any notice of estate agent pro-HPI anti-HPC propaganda and advertorials?

Eg " The withdrawal of tax relief

may also prompt some to rationalise

their portfolios although we are

not expecting a mass exodus from

buy-to-let. The experience of the last

downturn suggests that most are

long-term investors."

Laughable

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I'm not sure Landlords can sell their stock to ordinary individuals. There isn't the money and there isn't the credit available.

The lending terms to individuals and the multiples are so much less that they can't afford the bloated prices they currently sit at.

They don't have the tax advanatges and they don't have the rents to count towards the loan nor the far looser standards.

Hence why so many people have been tempted to circumvent the strictures by pretending they're landlords.

+1

Edited by RentierParadisio

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