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SarahBell

Flood Of Lettings

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It's not just BTL landlords, it includes more and more accidental landlords who can't get what their property is 'worth', so rent it out... I know two from work. Tick tock...

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'But Adrian Gill, a director of Reed Rains and Your Move, believes they will not fall much further.

"Tenants still need homes and demand is still soaring," he told the BBC.

"So actually later this year the balance of supply and demand might shift even further in favour of landlords. A short-term spurt of supply won't shift the fundamentals."'

Supply goes down,prices up.Supply increases,prices up.

The fundamentals are underpinned by housing benefit for which we're running a 5%+ fiscal deficit.Sustainable...meh!

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It's not just BTL landlords, it includes more and more accidental landlords who can't get what their property is 'worth', so rent it out... I know two from work. Tick tock...

I believe the phrase is "just rent it out, innit".

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Over the past 18 months there has been a real change in the media and from the Chancellor in their attitudes towards BTL and the housing market in general.

This could eventually come good.

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The fundamentals are underpinned by housing benefit for which we're running a 5%+ fiscal deficit.Sustainable...meh!

If supply should dramatically increase then the cost of renting has to fall.

Ultimately, Housing Benefit should come down too.

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It's not just BTL landlords, it includes more and more accidental landlords who can't get what their property is 'worth', so rent it out... I know two from work. Tick tock...

I have come across them.....I think they want to hang on to what they still see as well above inflation capital growth, cheap interest rates, always a cheaper deal and no other alternative to put the cash when sold.....only when they either see the costs increase or the value fall past their own individual tipping point will they take positive action to get shot of it.....drop the red hot brick.

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I've suddenly noticed a lot of houses coming up for rent around the £1250 mark. Which is still extortionate but a few weeks ago this was the minimum you could rent a flat for. The flats don't seem to have changed their pricing yet but I am hoping they will be forced to. Also - some properties I have seen keep coming up time and time again at the same price. The added date keeps getting renewed so they look like they just became available - but actually they have been vacant for 4 months +. Why on earth aren't they lowering the price?

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Brexit or a rework of tax credits/benefits to EU nationals will see ~3mln people leave the UK.

Most are renting.

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I would not use the word "rush" just yet. I remember a time when street after street was flooded with For Sale signs, and remember so many people back then used to class them as ugly and bringing the area down. Too me right now it would be a thing of beauty to see so many again :)

I had a trip to London in 93. We drove from the West/m4 . 10000s of For Sales. And that was with a lot less leverage and no BTL.

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Brexit or a rework of tax credits/benefits to EU nationals will see ~3mln people leave the UK.

Most are renting.

We need more than a rework of tax credits and benefits for *everybody* regardless of where they are from. I.e their total and utter abolishment.

And start with the working tax credits/housing benefit for in work vs the tiny state aid for the unemployed. The 'help' nominally for workers is as we know a corporate and landlord subsidy. That will destroy rental floors and make people question widely why work really pays so very little (and that's squarely caused by financialisation and corporate tricks).

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The flat below mine (beautiful characterful conversion 1bed, use of massive mature garden, original features etc, in the kind of leafy SW London area that EAs call the 'most desirable cream of the crop') was bought by my landlord in December from previous owner/occupier. Made available to rent out from around Christmas for £1500 -- no takers. January -- nothing. Not one viewing. Dropped the price to £1400 in February -- still nothing. Dropped the price to £1300 in March -- still no takers. Dropped the price to £1200 -- nothing. Finally got tenants in late April who are paying somewhere under that figure.

A 25% drop in asking rent and a 4 month void. We're going to see a lot more of that going on in the rental market over the next couple of years.

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The flat below mine (beautiful characterful conversion 1bed, use of massive mature garden, original features etc, in the kind of leafy SW London area that EAs call the 'most desirable cream of the crop') was bought by my landlord in December from previous owner/occupier. Made available to rent out from around Christmas for £1500 -- no takers. January -- nothing. Not one viewing. Dropped the price to £1400 in February -- still nothing. Dropped the price to £1300 in March -- still no takers. Dropped the price to £1200 -- nothing. Finally got tenants in late April who are paying somewhere under that figure.

A 25% drop in asking rent and a 4 month void. We're going to see a lot more of that going on in the rental market over the next couple of years.

Do you know what he paid for it back in December?

Edit: I'm going to guess just under £400,000.

Edited by Ah-so

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There are certainly more recently decorated houses in a rental market.

Great news for me as I'll be buying a nicer house when BTLs bankrupt themselves in 2 years time.

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Do you know what he paid for it back in December?

Edit: I'm going to guess just under £400,000.

I think you're right -- it's not yet on the 'prices paid' search tool, but I'm sure it was between £350-390K leasehold.

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I have been waiting for the opportunity to mention something on here about the noticeable rise in For Sale signs this past few weeks, more that I have seen in several years, No noticeable movement downwards in prices though, hoping that's the next move. It just takes one person in one area to lower his rice and then you have a new level., and then someone to do it again and again.

Which area is this?

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My rental is up for renewal in July... I might be able negotiate a reduction!

Um, who the f**k do you think you are, have you not heard of the #NeilTennanttax? ~10% a year increase for the next four years I heard, give or take, providing you can name a pet shop boys song, and if you don't like it, write a letter to George Osbourne. What do you expect your entrepreneurial genius landlord to do otherwise? Theres a queue of compliant renter scum ready and waiting to pay whatever the DEBTjunkie interest only mortgage holder needs to pay the bills. Get back in your box you f**king pleb.

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If supply should dramatically increase then the cost of renting has to fall.

Ultimately, Housing Benefit should come down too.

In the long term, no.

Landlords create the demand they pretend to meet, by preventing people from buying houses.

Supply of rented accommodation comes at the expense of owner occupied accommodation, and that means more people who require rented accommodation.

Supply goes up, but so does demand, and rents stay, roughly, the same. The net outcome is that rents are set by wages, and not by the interplay of supply and demand.

Forcing people to pay you for a service they dont need or want is pretty much the definition of extortion and is absolutely immoral.

Edited by BuyToLeech

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Forcing people to pay you for a service they dont need or want is pretty much the definition of extortion and is absolutely immoral.

You mean like the TV licence ?

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You mean like the TV licence ?

Like all undemocratic taxes.

There are arguments justifying taxes in a democracy (whether you believe them or not, they exist), but that's a separate topic.

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In London it's very different; very unusual drop in lettings available so far for the peak season compared to last few years.

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