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Dorkins

Rental market 'has fallen into recession' says The DPS

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The latest figures from The DPS Rent Index show that during the April-to-May period of this year, average monthly UK rent decreased for a second consecutive quarter; this last happened in 2009. 

Average rent also fell year on year for the first time since the crisis, falling £10 or 1.3 per cent from £774.

London experienced the greatest value decline in average rent between Q2 2017 and Q2 2018 by £36 or 2.73 per cent from £1,326 to £1,289.

https://www.lettingagenttoday.co.uk/breaking-news/2018/9/rental-market-has-fallen-into-recession-says-the-dps

Enjoy your rent price crash BTLers!

Edit: full report here https://www.depositprotection.com/media/1497/dps_rent_index_q2_2018.pdf

Edited by Dorkins

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Leveraged landlords are really caught now, especially in London/SE. Rents decline = income drops. Tax breaks disappear, prices fall, LTV goes up, mortgage interest rate goes up = outgoings go up. The time to sell now sell everything was two years ago as Bland Unsight kindly told them at the time.

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52 minutes ago, Dorkins said:

Recession?

Nah.

Gross mismatch between supply (at LL) price and demand (at tenant) price.

As I have to repeatedly say to an loon IO BTL - You cannot assume you'll always get a tenant at a price thatll pay the mortgage and the other costs.

Just not true.

 

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1 minute ago, Dorkins said:

Leveraged landlords are really caught now, especially in London/SE. Rents decline = income drops. Tax breaks disappear, prices fall, LTV goes up, mortgage interest rate goes up = outgoings go up. The time to sell now sell everything was two years ago as Bland Unsight kindly told them at the time.

Well.

There is a silver lining.

If they dont have a tenant then they are no affected by S24....

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Interesting. If we have a "hard brexit", I expect more outflows of people and less inflows of EE. A lot of Poles seem to be going to Germany and Sweden now rather than the "racist" UK.

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21 minutes ago, Dorkins said:

Leveraged landlords are really caught now, especially in London/SE. Rents decline = income drops. Tax breaks disappear, prices fall, LTV goes up, mortgage interest rate goes up = outgoings go up. The time to sell now sell everything was two years ago as Bland Unsight kindly told them at the time.

Debt is not always wealth.....there is a time for everything, until it changes.;)

 

Edited by winkie

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10 minutes ago, fru-gal said:

Interesting. If we have a "hard brexit", I expect more outflows of people and less inflows of EE. A lot of Poles seem to be going to Germany and Sweden now rather than the "racist^h^h^h^h^Islamic" UK.

As was told to me at the weekend.

Its benefit reforms post-Brexit that will be the killer for LLs.

Cant afford to keep ~9M EUers on tax credits. They'll go

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1 minute ago, spyguy said:

As was told to me at the weekend.

Its benefit reforms post-Brexit that will be the killer for LLs.

Cant afford to keep ~9M EUers on tax credits. They'll go

Ha. They won't do anything. The globalists pulling the Government's strings won't allow it. 

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2 hours ago, Dorkins said:

Quite. From the article -

Quote

There are clearly long-term issues with the sector that are having a substantial effect on growth, particularly in the capital, and it’s difficult to see this negative trend ending any time soon

Well, it's is a good thing that the sector is in remission.

So much for just putting the rents up after S24!

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15 minutes ago, Ah-so said:

The landlords deny this is occurring, and point to their own anecdotal evidence as being more reliable that government statistics.

The only anecdotal figure you need to know regard rents is that 80%+ of rentals are within LHA + 10%.

LHA goes down, private rents go down.

 

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Comment:

' The DPS is a toothless supporting tenant company Only and has not got a clue about the Real business of property rental. More and more landlords are refusing to use this joke of a deposit protection company thus the DPS figures are declining. Get in the Real world DPS and listern to the truth from landlords not the lies and distortions from tenants who Use the DPS to rip of good honest landlords. '

https://www.gov.uk/deposit-protection-schemes-and-landlords/if-you-dont-protect-your-tenants-deposit

'You must place your tenants’ deposit in a tenancy deposit protection (TDP) scheme if you rent out your home on an assured shorthold tenancy that started after 6 April 2007. '

 

. . . .

 

'The court may also order you to repay your tenants up to 3 times their original deposit within 14 days of making the order. '

Good n honest eh.

 

 

 

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15 minutes ago, Ah-so said:

The landlords deny this is occurring, and point to their own anecdotal evidence as being more reliable that government statistics.

In the methodology section of the full report (link added to OP) the DPS claims to have the largest database of its kind - does this mean they have the largest market share of the deposit schemes? No idea if landlords have to tell them the rent cost when registering a deposit - if they do it would be hard to argue with the raw data itself, though of course index methodology is always open to question.

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1 hour ago, spyguy said:

Comment:

' The DPS is a toothless supporting tenant company Only and has not got a clue about the Real business of property rental. More and more landlords are refusing to use this joke of a deposit protection company thus the DPS figures are declining. Get in the Real world DPS and listern to the truth from landlords not the lies and distortions from tenants who Use the DPS to rip of good honest landlords. '

https://www.gov.uk/deposit-protection-schemes-and-landlords/if-you-dont-protect-your-tenants-deposit

'You must place your tenants’ deposit in a tenancy deposit protection (TDP) scheme if you rent out your home on an assured shorthold tenancy that started after 6 April 2007. '

 

. . . .

 

'The court may also order you to repay your tenants up to 3 times their original deposit within 14 days of making the order. '

Good n honest eh.

 

 

 

Haha - they don't like up em. 

Earlier this year my former scumlord tried to stiff us for 858 for items that were clearly his responsibility. I appealed with some detailed statements and photos and he got zilch. 

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2 hours ago, Ah-so said:

The landlords deny this is occurring, and point to their own anecdotal evidence as being more reliable that government statistics.

Don't we do that here too? Lost count of the number of times people say house prices are falling when the official figures (which should be challenged) say otherwise.

That said anything that shows rent falling is good for me 3 years since last rise and that corresponded with an upgrade. Decent landlords don't raise rents anyway if they have a good tennant why risk a potential void or refurb costs to rent out. Rising costs S24 and falling income should hopefully shake a few landlords into selling up.

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3 hours ago, Dorkins said:

Leveraged landlords are really caught now, especially in London/SE. Rents decline = income drops. Tax breaks disappear, prices fall, LTV goes up, mortgage interest rate goes up = outgoings go up. The time to sell now sell everything was two years ago as Bland Unsight kindly told them at the time.

Indeed, they did not see SENSE.

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14 minutes ago, Kurt Barlow said:

Earlier this year my former scumlord tried to stiff us for 858 for items that were clearly his responsibility. I appealed with some detailed statements and photos and he got zilch. 

Always a joy. I've only had to do it once, way back at university, where the landlords (an older couple) took the lot and tried to claim it for such things as "worn stair carpet" and even accused us of sabotaging the central heating (which they had failed to fix). I guess they thought we'd just roll over but we ended up in the small claims court and got it all back. Happy days.

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1 minute ago, Pebbles said:

Don't we do that here too? Lost count of the number of times people say house prices are falling when the official figures (which should be challenged) say otherwise.

That said anything that shows rent falling is good for me 3 years since last rise and that corresponded with an upgrade. Decent landlords don't raise rents anyway if they have a good tennant why risk a potential void or refurb costs to rent out. Rising costs S24 and falling income should hopefully shake a few landlords into selling up.

I know a landlord who raised the rent, the tenants moved out, new tenants didn't pay for a year, had to take them to court and now are selling (altough that is because they want the cash to emmigrate, not just because of the hassle).

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5 minutes ago, iamnumerate said:

I know a landlord who raised the rent, the tenants moved out, new tenants didn't pay for a year, had to take them to court and now are selling (altough that is because they want the cash to emmigrate, not just because of the hassle).

I love stories like that.

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4 hours ago, Dorkins said:

Enjoy your rent price crash BTLers!

I want to see them burn 🙂 

I have made that statement in public as well and knowing how it will get around to quite a few of my BTL family and friends.

Heard this a few times "They are still human you know".

Mmmm, yes they are and in any other circumstance I might rethink that statement, but for these people, NO

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3 hours ago, spyguy said:

Well.

There is a silver lining.

If they dont have a tenant then they are no affected by S24....

As someone who runs a business myself I have been looking forward to not hearing the word "just" from landlords, any problem that comes their way they "just raise the rents", S24 coming "I will just raise the rent". Well lets see what you do now, they have had their hand held for far too long now, only the few that can be creative and offer something better will survive, it's what we call business and not a God given right.

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14 minutes ago, inbruges said:

🙂

Heard this a few times "They are still human you know".

Hmm. Where was the BTLers' concern for their fellow humans when they were pricing FTBs out while buying up their rent farms, raising rents under threat of eviction, failing to complete repairs, making deductions from deposits, opposing every proposal to improve tenants' security of tenure etc?

Edited by Dorkins

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  • 244 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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