Jump to content
House Price Crash Forum

Landlords slash rents by up to 20% as tenants quit city centres in pandemic


Recommended Posts

Landlords slash rents by up to 20% as tenants quit city centres in pandemic

 

Private rents in some parts of London have tumbled by up to 20% as tenants quit the capital, the number of international students plummets and companies put relocation plans on hold.

A glut of rental properties on the market means many landlords have had to slash rents in order to attract tenants.

Tooting in south London is one of the areas that has seen some big falls. A four-bedroom house in Upper Tooting that was listed at £2,850 a month in mid-July is now on at £2,500 a month – a reduction of more than 12%. Similarly, a one-bedroom property near Tooting Bec common that was listed at £1,450 a month in late July has been reduced to £1,285 – a cut of nearly 11.5%. Meanwhile, a two-bedroom flat in Tooting listed at £1,450 a month in early August has had £100 lopped off at £1,350.

 

Link to post
Share on other sites

Anecdotal:

was chatting to a friend yesterday, they rented out their own flat via AirBnB and moved to a more expensive rented flat to get into the catchment of a good school. 

AirBnB now dead and they’ve got a long term tenant in paying a third of the sum the we’re getting via AirBnB. Friend is now being made redundant due to Covid and they can’t cover the rent on the flat they are living in. They can’t boot the tenant (although I don’t think they would if they could bc their second daughter doesn’t start secondary school until next year so they need to stay in catchment). So they have to try to find another place to rent locally for cheaper. Quite a lot cheaper than any discounts that seem to be available.

 

 

Link to post
Share on other sites
5 minutes ago, Bear Goggles said:

Anecdotal:

was chatting to a friend yesterday, they rented out their own flat via AirBnB and moved to a more expensive rented flat to get into the catchment of a good school. 

AirBnB now dead and they’ve got a long term tenant in paying a third of the sum the we’re getting via AirBnB. Friend is now being made redundant due to Covid and they can’t cover the rent on the flat they are living in. They can’t boot the tenant (although I don’t think they would if they could bc their second daughter doesn’t start secondary school until next year so they need to stay in catchment). So they have to try to find another place to rent locally for cheaper. Quite a lot cheaper than any discounts that seem to be available.

 

 

Very interesting can you give me an idea which part of London and whether Airbnb was even worth it pre COVID days?  I mean how many days let out what rate vs long term. 
 

somehow I don’t believe these claims that Airbnb is three times more income 

Link to post
Share on other sites
7 minutes ago, house-down said:

Very interesting can you give me an idea which part of London and whether Airbnb was even worth it pre COVID days?  I mean how many days let out what rate vs long term. 
 

somehow I don’t believe these claims that Airbnb is three times more income 

Not London, Central Oxford.
 

Yeah, the 3x might be an exaggeration, but suffice to say the rental income was covering their costs and now isn’t. 

Link to post
Share on other sites

Nice, the bear food is coming thick and fast these days. Yummy!

Please note that the picture I have chosen is only meant to represent bear food, and is absolutely not supposed to be a slur on the communist dictator Xi Jinping.

Bear Food.jpeg

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

Anecdotal:

was chatting to a friend yesterday, they rented out their own flat via AirBnB and moved to a more expensive rented flat to get into the catchment of a good school. 

AirBnB now dead and they’ve got a long term tenant in paying a third of the sum the we’re getting via AirBnB. Friend is now being made redundant due to Covid and they can’t cover the rent on the flat they are living in. They can’t boot the tenant (although I don’t think they would if they could bc their second daughter doesn’t start secondary school until next year so they need to stay in catchment). So they have to try to find another place to rent locally for cheaper. Quite a lot cheaper than any discounts that seem to be available.

 

 

Oh...unlucky...lolz. This should be titled "when greed bites you on the bum". Karma my freinds, Karma....

P.S. stories like that make me feel warm and fuzzy on the inside :)

Link to post
Share on other sites
18 minutes ago, highcontrast said:

Oh...unlucky...lolz. This should be titled "when greed bites you on the bum". Karma my freinds, Karma....

P.S. stories like that make me feel warm and fuzzy on the inside :)

We’ll, in this case it’s more driven by the panic to get into a good school than direct financial greed. The irony is that both flats are in walking distance of the school in question, it’s just that the catchment isn’t a circular radius. 

They only need to hold out for about 18 months until March 2022, when the school applications are submitted, then they can safely move back into their original flat. I suspect they will muddle through, but it might be a bit tough in the meantime. 

Link to post
Share on other sites
3 hours ago, Bear Goggles said:

We’ll, in this case it’s more driven by the panic to get into a good school than direct financial greed. The irony is that both flats are in walking distance of the school in question, it’s just that the catchment isn’t a circular radius. 

They only need to hold out for about 18 months until March 2022, when the school applications are submitted, then they can safely move back into their original flat. I suspect they will muddle through, but it might be a bit tough in the meantime. 

In Gloucestershire kids can be, and have been, expelled if the parents moved into a catchment property, retained the family home then moved back in.  Its fine to keep the original  home & rent it out, move back when the kid has left the school, but extremely risky to try to play the system.

Glos has excellent schools, know that & play hardball.  Local schools for local kids.  Seems fair.

Link to post
Share on other sites
2 minutes ago, hotblack42 said:

In Gloucestershire kids can be, and have been, expelled if the parents moved into a catchment property, retained the family home then moved back in.  Its fine to keep the original  home & rent it out, move back when the kid has left the school, but extremely risky to try to play the system.

Glos has excellent schools, know that & play hardball.  Local schools for local kids.  Seems fair.

All kinds of shenanigans go on here. You’d definitely get away with it. In this particular case the original flat is technically in catchment too, but no one gets in from that location anymore so it is effectively now not in any catchment. You apply to the local schools and they say - sorry, no room at your first or second choices, here’s a place at a school miles away that is undersubscribed because it’s in special measures.

No wonder people do anything to play the system.

On the other hand, there’s a load of irrational nonsense how good or bad certain schools are, so a lot of the problems are self perpetuating. I don’t personally have a great deal of sympathy for any of it.

 

Link to post
Share on other sites

I've listed my house on Airbnb purely because I was spending a lot of time away at my partners house. I was and still amazed at how often it rents out. Sometimes just for 1 night, sometimes 4-5 nights and next month I have someone whose booked it for a month! I only charge about £50 a night and the house is near Welwyn Garden City.

Listed since early July 2020, I'm averaging nearly £1K a month in rental for on average 20 days booked a month.

Link to post
Share on other sites
53 minutes ago, Watkins said:

I've listed my house on Airbnb purely because I was spending a lot of time away at my partners house. I was and still amazed at how often it rents out. Sometimes just for 1 night, sometimes 4-5 nights and next month I have someone whose booked it for a month! I only charge about £50 a night and the house is near Welwyn Garden City.

Listed since early July 2020, I'm averaging nearly £1K a month in rental for on average 20 days booked a month.

Don’t forget you need to pay tax on it, especially as your leaving a trail of digital breadcrumbs 

Link to post
Share on other sites
21 hours ago, Bear Goggles said:

Anecdotal:

was chatting to a friend yesterday, they rented out their own flat via AirBnB and moved to a more expensive rented flat to get into the catchment of a good school. 

AirBnB now dead and they’ve got a long term tenant in paying a third of the sum the we’re getting via AirBnB. Friend is now being made redundant due to Covid and they can’t cover the rent on the flat they are living in. They can’t boot the tenant (although I don’t think they would if they could bc their second daughter doesn’t start secondary school until next year so they need to stay in catchment). So they have to try to find another place to rent locally for cheaper. Quite a lot cheaper than any discounts that seem to be available.

 

 

Playing a Sad Tune on Tiny Violin - YouTube

Link to post
Share on other sites
11 hours ago, Watkins said:

I've listed my house on Airbnb purely because I was spending a lot of time away at my partners house. I was and still amazed at how often it rents out. Sometimes just for 1 night, sometimes 4-5 nights and next month I have someone whose booked it for a month! I only charge about £50 a night and the house is near Welwyn Garden City.

Listed since early July 2020, I'm averaging nearly £1K a month in rental for on average 20 days booked a month.

I guess its a house yes with three beds

 

What sort of people are renting it - Is it a single business man or a family of 10??

 

What sort of money would it get if rented long term?  1K or a lot less?

Link to post
Share on other sites
19 hours ago, Watkins said:

I've listed my house on Airbnb purely because I was spending a lot of time away at my partners house. I was and still amazed at how often it rents out. Sometimes just for 1 night, sometimes 4-5 nights and next month I have someone whose booked it for a month! I only charge about £50 a night and the house is near Welwyn Garden City.

Listed since early July 2020, I'm averaging nearly £1K a month in rental for on average 20 days booked a month.

I hope any profit is shared with your partner...🤨😀

 

Link to post
Share on other sites

aurbnb is a lot of work. if you factor in the extra work and risk you reduce the gain quite a bit.

 

it allways amazes me that people are paying the equivelent of the national average wage to rent and council tax a 1 bed flat in a drab part of london. if your on 40k your still on less that a part time pot washer in blackpool or glasgow. if 50k youve got a far better job than a 1 bed flat in zone 4 suggests. i just dont get it at all. id buy a campervan and live in that, thats what i would do at weekends head to the coast. 

Link to post
Share on other sites
 

I guess its a house yes with three beds

 

What sort of people are renting it - Is it a single business man or a family of 10??

 

What sort of money would it get if rented long term?  1K or a lot less?

It's a 2 bedroom house with a garden and street parking. I lock my bedroom so I can keep all my personal items there so they have the spare bedroom and bathroom, then the rest of the house downstairs and garden. I don't bother them while they're there. 

I've had all sorts, businessmen / labourers working in the area, couples visiting local relatives / friends and people who just want to explore the local area (it's lovely and green with great walks around here). I also accept dogs which I think makes a difference. 

Link to post
Share on other sites
 

What sort of money would it get if rented long term?  1K or a lot less?

I think it would achieve about £1,200 if I moved out and rented it out as a 2 bedroom home, perhaps more if I gave them use of the garage as well.

Something to think about when I move in with my partner full time next year. I do want to keep my house, will either rent it full time or carry on with the airbnb.

Link to post
Share on other sites
On 21/09/2020 at 21:42, jimmy2x3 said:

aurbnb is a lot of work. if you factor in the extra work and risk you reduce the gain quite a bit.

 

it allways amazes me that people are paying the equivelent of the national average wage to rent and council tax a 1 bed flat in a drab part of london. if your on 40k your still on less that a part time pot washer in blackpool or glasgow. if 50k youve got a far better job than a 1 bed flat in zone 4 suggests. i just dont get it at all. id buy a campervan and live in that, thats what i would do at weekends head to the coast. 

Where would you put the campervan?  I am not sure that this would work.

Link to post
Share on other sites
 

Only once I reach the 'Rent a Room' threshold. I can take £7,500 a year........I haven't quite reached that bridge yet.

You need to living there to get the relief, it sounded like in reality you live with your partner, just make sure you keep it legal by staying in the place regularly, you’d not want a jealous neighbour to rat you out 

Link to post
Share on other sites

London rents falling might foreshadow a property price drop.

I am part of the exodus as I left London to live with my sister whilst WFH.  From what I know my former LL hasn't been able to re rent my room  😁

Can't imagine how many people have left already in the hospitality sector. Also this 10pm curfew will damage the zone1 economy further.

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    No registered users viewing this page.

  • 433 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%



×
×
  • Create New...

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.