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Realistbear

More Pain For B T L With Saturated Market And Frozen Rents

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http://investing.reuters.co.uk/news/newsAr...OLET-YIELDS.xml

REUTERS

LONDON (Citywire) -
Rental yields are static and there are still more properties on the market than there are tenants looking for accommodation
.
The latest survey of members of the Association of Residential Letting Agents (ARLA) shows that the return on residential property investment has stayed static at 4.9 percent for houses and 5.1 percent for flats.
The proportion of ARLA agents saying that there are more properties than tenants has fallen from a high of 66 percent three years ago to just 45 percent for this quarter, but is still significant, indicating that it is still a tenants' market - hence the static rental yields.

Swelling numbers of empty BTL properties may lead to TTLTR (Time to lower the rents).

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http://investing.reuters.co.uk/news/newsAr...OLET-YIELDS.xml

REUTERS

LONDON (Citywire) -
Rental yields are static and there are still more properties on the market than there are tenants looking for accommodation
.
The latest survey of members of the Association of Residential Letting Agents (ARLA) shows that the return on residential property investment has stayed static at 4.9 percent for houses and 5.1 percent for flats.
The proportion of ARLA agents saying that there are more properties than tenants has fallen from a high of 66 percent three years ago to just 45 percent for this quarter, but is still significant, indicating that it is still a tenants' market - hence the static rental yields.

Swelling numbers of empty BTL properties may lead to TTLTR (Time to lower the rents).

The article you quote appears to say that the percentage of agents with more properties than tenants has fallen. How does this correspond to "Swelling numbers of empty BTL properties"?

Billy Shears

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The article you quote appears to say that the percentage of agents with more properties than tenants has fallen. How does this correspond to "Swelling numbers of empty BTL properties"?

Billy Shears

"Rental yields are static and there are still more properties on the market than there are tenants looking for accommodation."

IMHO, more properties than tenants = swelling numbers of properties available.

When supply exceeds demand it will be TTLTR.

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The BTL era ended during the summer of 2004 and the professionals know this. Professional property investors work through thick and thin so will continue to buy the occasional house even when prices are falling.

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"Rental yields are static and there are still more properties on the market than there are tenants looking for accommodation."

IMHO, more properties than tenants = swelling numbers of properties available.

When supply exceeds demand it will be TTLTR.

Yes, but if there were more properties than tenants in the past (as there were) there could still be more properties than tenants even though the number of properties available had fallen.

E.g. imagine there were 5000 properties available in a city, and only 3000 potential tenants. If the number of properties available fell to 4000, then, but there were still 3000 potential tenants, then there would still be more properties than tenants even though there were a decreasing number of properties available.

Billy Shears

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my God Billy.

Your mathematical abilities continue to astound me. I can see that your equations are very very clever, but I just can't seem to understand them.

300 tenants? x coefficient of volatility? less than 4000? Jeez. I prostrate myself at the feet of the greatest living authority on pan-dimensional mathematics.

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my God Billy.

Your mathematical abilities continue to astound me. I can see that your equations are very very clever, but I just can't seem to understand them.

300 tenants? x coefficient of volatility? less than 4000? Jeez. I prostrate myself at the feet of the greatest living authority on pan-dimensional mathematics.

Well if that's the way you want to put it, fine. But rushing into print (virtual anyhow) with a quotation and a comment on it doesn't really help if the quotation does not support the comment. This is precisely the sort of thing that gives critics of this forum ammunition.

Billy Shears

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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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