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New rents fall for first time in six years

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Rents across Britain fell annually for the first time in more than six years, according to Countrywide data.

February’s Countrywide Lettings Index shows that new rents in Great Britain fell 0.6% year-on-year to £921 a month, the first annual drop since November 2010.

The fall in the average national rent was driven by London and the South-East where the cost of a new let fell 4.7% and 2.6% respectively to £2,359 and £1,152.

The agent said the slowdown in average rental growth is driven by a fall in the number of tenants looking for a home combined with higher numbers of homes available to rent in London and the South-East.

While across the country there were 5% more tenants looking for a home than at the same time as last year, London and the South-East had falls of 3% and 5% respectively.

There were 10% more homes available to rent nationally in February 2017 than last year, but the rate of growth has halved since last month, Countrywide said.

Johnny Morris, research director at Countrywide, said: “Rents are growing in most of the country but falls in London and the South-East are dragging down the national growth rate.

“Recent falls in London and the South-East are small in the context growth in recent years. Rents are a third higher in London and the South-East than in 2007.

“Early signs point towards 2017 being a rare year where rents rise faster in the north of the country than in the south. While rents are likely to track any increase in earnings, affordability in London and the South-East remains stretched. That is likely to limit rental growth.”

 

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I finally post this news because no one else had, then someone makes the same post at exactly the same time.  ^_^

It's certainly worth repeating.

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Falling rents are LLs minor problems.

Increasing voids is the killer.

I've seen houses sat 'For Rent' for 2-4 months in the last year.

Whats happending?

Falling LHA.

Working EErs (as opposed to tax-crediting EEers) goign elsewhere.

Vast over supply when thne rental markets reverts to just working, UK nationals.

 

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' Johnny Morris, research director at Countrywide, said: “Rents are growing in most of the country but falls in London and the South-East are dragging down the national growth rate. '

No they are not.

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'While across the country there were 5% more tenants looking for a home than at the same time as last year, London and the South-East had falls of 3% and 5% respectively.

There were 10% more homes available to rent nationally in February 2017 than last year, but the rate of growth has halved since last month, Countrywide said.'

 

Countrywide maths.............................you wonder why they're struggling.

Edited by Sancho Panza

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1 hour ago, rantnrave said:

“Recent falls in London and the South-East are small in the context growth in recent years. Rents are a third higher in London and the South-East than in 2007.

So rents a third higher and wages??

 

They're not making the link are they?

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44 minutes ago, spyguy said:

Falling rents are LLs minor problems.

Increasing voids is the killer.

I've seen houses sat 'For Rent' for 2-4 months in the last year.

Whats happending?

Falling LHA.

Working EErs (as opposed to tax-crediting EEers) goign elsewhere.

Vast over supply when thne rental markets reverts to just working, UK nationals.

 

I know a few BTL landlords.One is a council worker and she has 4,all paid for (she downsized a big house to a 3 bed semi to clear mortgages).Her houses are all done to a nice standard,gets on well with her tenants,even helps them out at xmas etc giving them £100 ,does any jobs the same day (her partner is handy).She never has voids for more than a week.Another lad bought 6 two up two downs in terrible places at height of the boom for £40/50k each.Sounds cheap but they were worth £10k.He is losing money hand over fist.Repair bills through the roof the houses are in such bad condition.Voids and tenants who just dont pay.Takes ages to get them out.He has been trying to sell at prices to clear mortgages,no takers.He has a decent retail business on the high street and all spare cash flow is going to prop up the BTLs.He is an honest lad and says sooner he is out of BTL the better,mugs game outside a big city.He does have repayment mortgages,his plan was pay them off after 20 years to retire,but no equity.

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excuse me but i was led to believe that landlords would just put th rents up, that the tenent would pay. 

 

so a rents are growing everywhere else yet only a 3% fall in london is causing a nationwide 0.6% drop overall. that just shows a at best a stagnation not a rise, i see the article dont actually tell you what they are growing elsewhere a 0.000007% growth just dont cut it

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14 minutes ago, durhamborn said:

I know a few BTL landlords.One is a council worker and she has 4,all paid for (she downsized a big house to a 3 bed semi to clear mortgages).Her houses are all done to a nice standard,gets on well with her tenants,even helps them out at xmas etc giving them £100 ,does any jobs the same day (her partner is handy).She never has voids for more than a week.Another lad bought 6 two up two downs in terrible places at height of the boom for £40/50k each.Sounds cheap but they were worth £10k.He is losing money hand over fist.Repair bills through the roof the houses are in such bad condition.Voids and tenants who just dont pay.Takes ages to get them out.He has been trying to sell at prices to clear mortgages,no takers.He has a decent retail business on the high street and all spare cash flow is going to prop up the BTLs.He is an honest lad and says sooner he is out of BTL the better,mugs game outside a big city.He does have repayment mortgages,his plan was pay them off after 20 years to retire,but no equity.

Private rentals is a hard game in the North.

LHAs have a tendency to direct scum to private LLs.

Most towns have a good enough supply of social housing, so the market for private rentals tends to be small.

Your first LL probably knows that and is competing by out competing the LHA - not hard, as LHA make msot Northern local ocuncils look like well oiled, efficient orgs.

4 rentals, all paid, means they are manageable and she can bit and choose her tenants. Get a good family on housing in their and she should be OK.

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29 minutes ago, durhamborn said:

I know a few BTL landlords.One is a council worker and she has 4,all paid for (she downsized a big house to a 3 bed semi to clear mortgages).Her houses are all done to a nice standard,gets on well with her tenants,even helps them out at xmas etc giving them £100 ,does any jobs the same day...

I'm confused as to why she is "helping them out at Xmas"? This seems a strange relationship that I would not want. "Oh thank you Mrs Landlady, you are kind to us" *Doffs cap*.

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5 minutes ago, btl_hater said:

I'm confused as to why she is "helping them out at Xmas"? This seems a strange relationship that I would not want. "Oh thank you Mrs Landlady, you are kind to us" *Doffs cap*.

Not really.

Id guess her tenants are on LHA/social LL.

There's enough wiggle in her finances room to 'gift' back some of the rent during xmas as a Thank-You for not stripping out the copper pipes.

http://www.hartlepoolmail.co.uk/news/crime/oaps-heating-pipes-stolen-for-coppers-1-4747544/amp

 

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9 minutes ago, btl_hater said:

I'm confused as to why she is "helping them out at Xmas"? This seems a strange relationship that I would not want. "Oh thank you Mrs Landlady, you are kind to us" *Doffs cap*.

Agreed. The implication is that if you are renting you are clearly poor or in need of money.

Whereas, in fact, a renter could easily have more wealth than the landlord.

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6 minutes ago, Errol said:

Agreed. The implication is that if you are renting you are clearly poor or in need of money.

Whereas, in fact, a renter could easily have more wealth than the landlord.

I doubt they have more wealth - bar the massive negative LLs. Most people with cash in the NE tend to own houses.

Most people in social tend to live week to week.

Private social tenants do have power over the LL. There's a lot of competition of tenants - most Northern towns have plently of social housing. LHA are normally seen as a better bet than private LLs.

I oculd not sleep as a private social LL with a mortgage in the North - Id be worried the tenant would stop paying.

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Just now, interestrateripoff said:

Those sums starting to come under pressure? 

What 'sums'?

IO BTL is blind belief.

 

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2 hours ago, spyguy said:

Not really.

Id guess her tenants are on LHA/social LL.

There's enough wiggle in her finances room to 'gift' back some of the rent during xmas as a Thank-You for not stripping out the copper pipes.

http://www.hartlepoolmail.co.uk/news/crime/oaps-heating-pipes-stolen-for-coppers-1-4747544/amp

 

And almost on cue

http://www.gazettelive.co.uk/news/teesside-news/paranoid-speed-addict-heard-something-12731347

 

 

Edited by spyguy

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The best bit about this article? Loads of tenants will see these headlines and won't be too sympathetic when they get their Section 24 rent increases which are going out about now. The timing could not be more beautiful ... It almost seems calculated :-) They are struggling to understand it all over on P118.

https://www.property118.com/spring-budget-2017-landlords-reactions/95299/comment-page-4/#comment-88537

Perhaps I can make it clearer for many of them:

"You're f***ed".

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1 hour ago, oatbake said:

The best bit about this article? Loads of tenants will see these headlines and won't be too sympathetic when they get their Section 24 rent increases which are going out about now. The timing could not be more beautiful ... It almost seems calculated :-) They are struggling to understand it all over on P118.

https://www.property118.com/spring-budget-2017-landlords-reactions/95299/comment-page-4/#comment-88537

Perhaps I can make it clearer for many of them:

"You're f***ed".

Wow, there are some seriously thick BtLers out there.

Quote


I have a property in Gerrards Cross which has been on the rental market for 4 months now and still not let. I have dropped the price twice (total £200pcm) and still no takers.

I also have 2 properties in Weymouth and pretty much the same story there. I am now approaching rental figures from 2 years ago so can definitely confirm rents are dropping.

 

 

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