Jump to content
House Price Crash Forum
keeprenting

Forced sellers in London (and surrounds)

Recommended Posts

There will be far more of them than last time.

For anyone looking to move who can't sell their existing property, renting it out is unthinkable (for anyone with two brain cells to rub together). Rents are plummeting. Schedule 24. Worst of all, there will be an additional 3% SDLT on purchase of their new home, which might be more expensive than the one they're selling (although potentially refundable if they sell the first one). So either you cut the price or you don't move.

Then there's BTL'ers. Obviously the ones in real financial trouble will have to sell but, in addition, some of the prudent ones will (in effect) be forced sellers. I've seen a few properties up for rent on Rightmove where they've dropped, dropped, dropped, still can't find a tenant; then the property goes up for sale. The BTL'er will still have to pay the mortgage on it - and not all the interest will be tax deductible. He or she has to drop the asking price. There is no other option. Can't just let it sit there and keep paying the mortgage. Can't find a tenant without massively dropping the rent - and if you do rent it out again, it becomes more difficult to sell, and there's Schedule 24 to rub salt into the already painful wound.

Edited by keeprenting

Share this post


Link to post
Share on other sites

The best healthier homes are lived in homes, get plenty of ventilation and warmth.....cheaper to insure and secure.......good landlords value highly their good tenants that house sit and care for their investments well....good tenants can and surprisingly are paid to care for property, therefore quality tenants that pay low affordable rents are worth keeping.....better than voids, refusal to pay or damage done..... careful what is wished for, better the angel you know.;)

Share this post


Link to post
Share on other sites
10 hours ago, keeprenting said:

For anyone looking to move who can't sell their existing property, renting it out is unthinkable (for anyone with two brain cells to rub together). Rents are plummeting. Schedule 24. Worst of all, there will be an additional 3% SDLT on purchase of their new home, which might be more expensive than the one they're selling (although potentially refundable if they sell the first one).

Anecdotally I can confirm this is happening in London. Friend moved in with his other half recently and they planned to buy home together while renting out their individual 1 bed flats rather than selling them. Then discovered the extra 3 SDLT.

 

An acquaintance living in London purchased a small 2 bed BTL flat up north (north-east) for about £50k. Now they want to buy their first main residence in London looking to spend about ~£600k. The additional stamp duty is going to cost them about £20k, wiping out all profits from their rental property for years to come. 

The additional SDLT appears to be very effective in stopping small-time and "accidental" landlords. I suspect these people had a larger role in reducing market liquidity than many appreciate 

Share this post


Link to post
Share on other sites

Very often typical first time property was not sold, it was remortgaged, rented out and another property purchased to live in, rince and repeat......so lots of first time property was taken out of the market for many years completely, turnover grinded to hault..... thousands having no choice but to rent the home they once used to buy to own.....so yes increasing SD on more than one home should help to discourage this behaviour.;)

Share this post


Link to post
Share on other sites

I can confirm this is happening in London as well and what you are seeing is a lot of one and two bed flats on the market coming up from sellers who want to trade up and buy houses.

Looks to me like flats are oversupplied and houses are still in demand, 

Interesting to see what others think 

Share this post


Link to post
Share on other sites
10 minutes ago, Jack Kada said:

I can confirm this is happening in London as well and what you are seeing is a lot of one and two bed flats on the market coming up from sellers who want to trade up and buy houses.

Looks to me like flats are oversupplied and houses are still in demand, 

Interesting to see what others think 

Good thing, big jump from a flat to a freehold or a house where you own the land and use the whole of the building on that land....flats, shared bedsits and appartments are easy to make......family homes like this are very expensive in overcrowded and congested places people seem to value......do they value them because they think they will forever increase in value?;)

Share this post


Link to post
Share on other sites
13 hours ago, keeprenting said:

There will be far more of them than last time.

For anyone looking to move who can't sell their existing property, renting it out is unthinkable (for anyone with two brain cells to rub together). Rents are plummeting. Schedule 24. Worst of all, there will be an additional 3% SDLT on purchase of their new home, which might be more expensive than the one they're selling (although potentially refundable if they sell the first one). So either you cut the price or you don't move.

Then there's BTL'ers. Obviously the ones in real financial trouble will have to sell but, in addition, some of the prudent ones will (in effect) be forced sellers. I've seen a few properties up for rent on Rightmove where they've dropped, dropped, dropped, still can't find a tenant; then the property goes up for sale. The BTL'er will still have to pay the mortgage on it - and not all the interest will be tax deductible. He or she has to drop the asking price. There is no other option. Can't just let it sit there and keep paying the mortgage. Can't find a tenant without massively dropping the rent - and if you do rent it out again, it becomes more difficult to sell, and there's Schedule 24 to rub salt into the already painful wound.

What part of London is this?

Share this post


Link to post
Share on other sites
1 hour ago, winkie said:

Good thing, big jump from a flat to a freehold or a house where you own the land and use the whole of the building on that land....flats, shared bedsits and appartments are easy to make......family homes like this are very expensive in overcrowded and congested places people seem to value......do they value them because they think they will forever increase in value?;)

I agree leasehold property is a big risk.  Many councils see leaseholders as a cash cow.  It is quite a pain when selling as well.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   47 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.