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City AM Property market to become 'flooded' as 380,000 landlords look to sell-up

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http://www.cityam.com/286067/property-market-become-flooded-380000-landlords-look-sell

 

Suprised no one has pointed out this post today hot off the press

 

Experts have predicted that the property market could be flooded by homes for first time buyers as 380,000 buy-to-let landlords are looking to offload their property in the next year.

A survey conducted by the National Landlords Association (NLA) said that around a fifth of the UK's landlords were looking to sell, and that nearly half (45 per cent) of those selling would be offloading a flat or apartment.

The NLA explained that this flooding of the market would be good news for first time buyers and bad news for renters, as it may lead to a fall in the number of homes available to tenants.

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This will push rents up, and leave loads of people homeless (when the ex BTL properties disappear). Hard working landlords will make less profit. The gubbermint need to step in and do something.

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Now this is a big topic for me if nobody else's 🙂

There are two big questions for me here, one leading to the other I suppose. The first one is how many BTL scum landlords does it take to exit the market to bring on a crash. I really do suspect it is under 20%, and probably well under that. My second question is how business thick are BTL landlords and I know already how naive and how little business sense they have now in most cases. I know the BTL game is something these fools just jumped into with their hands held the vast majority of the time where they patted themselves on the back for being so clever and then burst into tears whenever the rules changed slightly against them.

But how many of the really believe that it is as simple as just waiting for the top to come and all just jumping off the ride with bags of money. To me there is only a small percentage should the big crash come who will get out with all the money they bragged about over the years, maybe they have already. But there is no doubt in my mind that some are that stupid that they actually believe that 100% can just cash in with all their other BTL buddies when it starts getting a little scary

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Selling to whom..?

Like all [massively] overpriced bubble 'assets' (soon to become liabilities) the 'owners' of these places are going to find there are no takers.

Thus is the nature of all bursting bubbles.

Landlords who think that they'll be able to jack up rents against this backdrop are also living in a detached dream world; setting aside the fact that nearly half the UK population are living from paycheck to paycheck and the idea they'll be able to magic up more cash is laughable, there will be plenty of desperate forced landlords stuck with depreciating property they cannot sell but cannot finance without a tenant, therefore giving the tenant the whip hand.

Thus is the nature of all bursting housing bubbles.

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Its not bad new for renters. If it means more  first time buyers, the rental demand will go down corresponding to the number of rentals propertes going down. Clueless Crow  and NLA

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38 minutes ago, inbruges said:

Now this is a big topic for me if nobody else's 🙂

There are two big questions for me here, one leading to the other I suppose. The first one is how many BTL scum landlords does it take to exit the market to bring on a crash. I really do suspect it is under 20%, and probably well under that. My second question is how business thick are BTL landlords and I know already how naive and how little business sense they have now in most cases. I know the BTL game is something these fools just jumped into with their hands held the vast majority of the time where they patted themselves on the back for being so clever and then burst into tears whenever the rules changed slightly against them.

But how many of the really believe that it is as simple as just waiting for the top to come and all just jumping off the ride with bags of money. To me there is only a small percentage should the big crash come who will get out with all the money they bragged about over the years, maybe they have already. But there is no doubt in my mind that some are that stupid that they actually believe that 100% can just cash in with all their other BTL buddies when it starts getting a little scary

In answer to your question,it doesn't necessarily take any LL's to sell to create a price drop,jsut a lack of buyers.More LL's entering the market will merely reinforce the direction of travel.

17 minutes ago, zilly said:

Landlords who think that they'll be able to jack up rents against this backdrop are also living in a detached dream world; setting aside the fact that nearly half the UK population are living from paycheck to paycheck and the idea they'll be able to magic up more cash is laughable, there will be plenty of desperate forced landlords stuck with depreciating property they cannot sell but cannot finance without a tenant, therefore giving the tenant the whip hand.

Thus is the nature of all bursting housing bubbles.

Quite.Rents are paid out of cash earnings.Just because the amount of homes for rent goes down,it doesn't mean that people will have salary increases to pay extra rent with.

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couple of armchair economists in the house here eh? 

 

rents are set by whatever the landlords spreadsheet says, based on REQUIRED YIELD (look it up) always has been always will be. If I pay a premium for a prop, to blast the competition out of the water, let them know who's the BOSSMAN in the bidding stakes then you can be sure my tenants are going to pay premium rents for the privilege of living in a premium rental. 

 

simple supply and demand, straight from the school of life pal

 

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Unfortunately I think there are so many young-ish people who have been had the “get on the ladder” mantra bleated at them by their parents and indebted friends that there will be a soft cushion for BTL landlords fleeing the market.

Many people will be happy with only 5-10% drops.

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I just love the classic landlord hissy fit when they don't get their way of "well I will just put the rent up won't I", when right now they should be crapping themselves with probable capital losses and ironically rent falls.

These idiots really do put themselves up there with the NHS as protected institutions that the public will not allow to fail. They really cannot see apart from their comrade LL's that they are one of the most hated group of people in the UK today.

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This is good news for first time buyers. It probably doesn’t have such a large affect on renters.

Whilst some first time buyers maybe living with parents, many will be renting. So when these people become owner occupiers it reduces the demand for rented accommodation as well as the supply of it.

Therefore, if landlords are expecting a big increase in rents - they are likely to be disappointed.

 

 

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42 minutes ago, dropbear said:

Unfortunately I think there are so many young-ish people who have been had the “get on the ladder” mantra bleated at them by their parents and indebted friends that there will be a soft cushion for BTL landlords fleeing the market.

Many people will be happy with only 5-10% drops.

MMR says they won't get a mortgage at current salary levels.5-10% down is the lite option of what's coming.

7 minutes ago, inbruges said:

I just love the classic landlord hissy fit when they don't get their way of "well I will just put the rent up won't I", when right now they should be crapping themselves with probable capital losses and ironically rent falls.

These idiots really do put themselves up there with the NHS as protected institutions that the public will not allow to fail. They really cannot see apart from their comrade LL's that they are one of the most hated group of people in the UK today.

Yep.Even the politicians no longer want them onside.

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1 hour ago, thewig said:

couple of armchair economists in the house here eh? 

 

rents are set by whatever the landlords spreadsheet says, based on REQUIRED YIELD (look it up) always has been always will be. If I pay a premium for a prop, to blast the competition out of the water, let them know who's the BOSSMAN in the bidding stakes then you can be sure my tenants are going to pay premium rents for the privilege of living in a premium rental. 

 

simple supply and demand, straight from the school of life pal

 

Love it Wiggy😀

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1 hour ago, Gribble said:

Its not bad new for renters. If it means more  first time buyers, the rental demand will go down corresponding to the number of rentals propertes going down. Clueless Crow  and NLA

I think The Crow was being sarcastic.

Edited by Riedquat

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Landlord: I'm going to sell my flat at < insert insane amount here > so consequently I'm asking you to leave at the end of your fixed term

Tenant: Sure, understand. However it seems you are having trouble selling - how about I stay on a month by month basis at 50% the normal rent, just till you sell it?

Landlord: OK, thats good for me - I'm sure this will sell soon though so be prepared to leave sharpish!

 

3months later = tumbleweed, even after the flat is reduced a few times...*

 

* based on a true london story

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14 minutes ago, Riedquat said:

I think The Crow was being sarcastic.

Oh OK thanks. Its just I am never sure because so may time this and other ridicuous mantras are trotted out by very stupid people.

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28 minutes ago, BearlyBegun said:

Landlord: I'm going to sell my flat at < insert insane amount here > so consequently I'm asking you to leave at the end of your fixed term

Tenant: Sure, understand. However it seems you are having trouble selling - how about I stay on a month by month basis at 50% the normal rent, just till you sell it?

Landlord: OK, thats good for me - I'm sure this will sell soon though so be prepared to leave sharpish!

 

3months later = tumbleweed, even after the flat is reduced a few times...*

 

* based on a true london story

That's excellent

 

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My colleagues landlord just told her that there are selling up and they want them to leave. She very pi55ed off as they added an extra clause to say that they couldn't give notice or raise the rent until Sep 2019 as they (the tenant) had contributed 50% towards adding an extra bathroom.

She contacting her lawyer now.

Landlord response was - would she be interested in buying the house. 😶 

This is in Hammersmith.

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2 minutes ago, Timbuk3 said:

My colleagues landlord just told her that there are selling up and they want them to leave. She very pi55ed off as they added an extra clause to say that they couldn't give notice or raise the rent until Sep 2019 as they (the tenant) had contributed 50% towards adding an extra bathroom.

She contacting her lawyer now.

Landlord response was - would she be interested in buying the house. 😶 

This is in Hammersmith.

If there's that clause in the contract then the LL is sh1t out of luck.Could be very funny.

Tell her she doesn't necessarily need to do viewings either even if it's in the contract(I'm not a lawyer but she should clairfy with hers).

Edited by Sancho Panza

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2 hours ago, Timbuk3 said:

My colleagues landlord just told her that there are selling up and they want them to leave. She very pi55ed off as they added an extra clause to say that they couldn't give notice or raise the rent until Sep 2019 as they (the tenant) had contributed 50% towards adding an extra bathroom.

She contacting her lawyer now.

Landlord response was - would she be interested in buying the house. 😶 

This is in Hammersmith.

As I lawyer I an tell you that the tenant is entitled to compensation in respect of the 50% contribution, as the landlord is effectively breaching the contract condition with respect ot the "no rent raise till Sept 2019" agreement

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8 hours ago, Timbuk3 said:

 they (the tenant) had contributed 50% towards adding an extra bathroom. 

What?! 

So the tenant pays for the mortgage as well as the renovations? Unbelievable!

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Just found out today that my pr**k landlord is selling up which will include my place, and doing it in he slyest sneakiest way that he is renowned for, I suspected it anyway, even though he has over played it recently using psychology to make me feel I will be safe in my home for a few years yet.

He was left a lot of property in my village by his family including homes and shops, and the tightest t**t you can ever imagine, I am actually one of the few people in the village that gives him a little more time than he deserves. I am p**sed off because he could be giving me bags of notice rather than the short term I bet he ends up doing to get as much money out of me as possible. Good thing is that I know that he will have to eventually tell me and then I know he will take ages selling because you can be sure he will well over price it all greedy as he is, that's a cert.

Trying to get lots of positives from this, and there is a lot, I am mega straight at the moment with money, business and all finances, zero debt. I am good mentally and physically, three ish years a go I was hitting the bottle a little and playing the escapism game a little, today I am training and ready for a 1/2 Ironman and my mind is sharp for lots of reasons.

The day I get told I have to go I will be on the case next day and OK, a few years ago it might have been "Oh no not again". I am deciding to see this as a good thing and just maybe being the greedy c*** he is he could be trying to get out on top like many of the other scum.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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