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Very good article in the Times to day by Alice Miles (alice.miles@thetimes.co.uk) re the evils of multiple home ownership and how M.Ps have got their snouts well and truely in the trough.

She mentions something I was aware of but didnt realise was imminent and that is that as of April 2006 councils will be able to take control of the 684,000 empty homes around the U.K and put them up for rent. So what effect do we think the surge in available rental properties will have on an already oversupplied market. I suspect if the council are renting them out then the rents will be more realistic too. Only one way to go, IMHO, and that is rents carry on going down and with them house prices as BTLrs bail out. You'd have to be almost certifiable to BTL now surely ?

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Sorry don't know how to post the link but the artcile is in today's Times page 36. There most certainly are 684,00 empty homes, and you can find out all about them at www.empty homes.com apparently.

Edited by Bearfacts
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Wollop, that's it. Goodnight all BTL'ers and I'll be weeping a tear for you all.

Or maybe you could sell up at a loss if you've recently been suckered into this by GB and he'll thank you for the houses he doesn't have to build or renovate on the govt. payroll.

Suckers. :lol::lol::lol:

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This news is a shocker!! Councils able to take control of empty houses and bring them back on to the market!! Who knows more about the detail please? If it is hand=outs to LLs to upgrade their houses then that is a p1ss-off. If LLs lose the rental income to the council then this is a gift to HPCers. We can then get active and ensure Concils use the powers to our benefit and theirs.

EP

Wollop, that's it. Goodnight all BTL'ers and I'll be weeping a tear for you all.

Or maybe you could sell up at a loss if you've recently been suckered into this by GB and he'll thank you for the houses he doesn't have to build or renovate on the govt. payroll.

Suckers. :lol::lol::lol:

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Guest muttley

From the article

They don’t exactly have an incentive to act, do they? A glimmer of hope lies in the Affordable Rural Housing Commission. Set up last summer, it will report to the Government in May. By then, new rules will have come into force enabling councils to take over the management of any home left empty for more than six months, and use it to house local families. There are 684,000 of these in England alone (www.emptyhomes.com). People should pressurise their council to use the new laws from next month.

There must be ways around this for LLs.

The last property I left has been empty for 3 months and may prove difficult to let out (It has 5 bedrooms)Will the LL be forced to let it out to some chav extended family?

I don't believe it will happen.

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This news is a shocker!! Councils able to take control of empty houses and bring them back on to the market!! Who knows more about the detail please? If it is hand=outs to LLs to upgrade their houses then that is a p1ss-off. If LLs lose the rental income to the council then this is a gift to HPCers. We can then get active and ensure Concils use the powers to our benefit and theirs.

EP

A Local Authority has the ability to give grants, loans and even mortgages to owners of empty properties to enable them to refurbish them and bring them back into use. Usually there will be a condition that the property, when habitable, will be let to someone from the housing waiting list.

Remembert though that the majority of these empty properties are in areas of low demand i.e.

There are parts of England suffering from low demand for housing. In some areas streets upon streets of potentially good quality housing stand empty and deteriorate. In addition, these empty properties are a financial burden to the LA or housing association that owns them.

The Council is able to dispose of these properties for a nominal sum, after having sought permission form the Secretary of State, to provide housing for local people.

Newcastle Council set up one such, very successful, scheme. They offered council flats for properties for sale for 50p each. The conditions attached were that the chosen applicants:

Were local families with at least three children (indicative of a particular housing resource shortage)

Must buy two flats

Be able to raise a mortgage for the considerably reduced purchase price. The mortgage covering 50% of the cost of bringing the property back into use. The LA gives a grant for the other 50%.

Newcastle Council then paid for the flats to be converted into single houses and to be refurbished completely.

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I don't hink it will be from LL's. Maybe the homes will be old council dwellings or ex-service but it surely can't be the taking of privately owned housing.

All the same 684, 000 houses is a chunk. get ready if they go at an affordable price.

Round my way they sold a load of ex RAF housing 7ish years ago and that fed the ladder. Now that ladder has stopped.

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Sorry don't know how to post the link but the artcile is in today's Times page 36. There most certainly are 684,00 empty homes, and you can find out all about them at www.empty homes.com apparently.

I think 'Megaflop' was dishing out a bit of tongue-in-cheek humour... :P

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I just found the link and worked out how to post it too: http://www.timesonline.co.uk/article/0,,17...2069264,00.html

Actually our local council (Windsor and Maidenhead) have been doing this for a while too. The rentals section in our local rag gets bigger every week. Incidentally we managed to negotiate 20% off our rent starting up in December so I don't believe that the rentals market is healthy at all. Come May, perhaps we'll haggle for another 20% off !

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The BTL craze seems to be still going strong... but then again there were many stock investors who got into the markets at the last minute before the crash in 2000 with bullish expectations.

Potentially...If so many properties come onto the market in the current environment then we should expect rents to fall... if rents fall the highly geared BTL's may be forced to sell property... more properties = more competition = possibility of lower prices.

I think with so many investors rather than OO's in the market there's far more liklihood of a serious glut of properties hitting the market even if small capital value falls occur - after all from an investment position one should know when to close down positions and re-invest elsewhere.

The amateur investors are the ones pushing up prices now, just as it was the mainly the amateurs who lost out in 2000. It will be these people become FTS (Forced to sell) or holding properties with vast negative equity (accross their portfolio) when the HPI kicks into reverse gear.

If anything this thread highlights yet another reason why the time for HPC to commence in earnest is now - but it will be years before prices bottom out.

- Pye (Property Speculation Ninja :ph34r: )

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There was a programme on the TV a few months ago about buying empty property. There were nearly 1,000,000 in the UK as a whole!!

Much of the property is in private hands. One house that a prospective buy looked at had been empty for years, but it looked as if the owner had just gone down to the shop!! Personnal belongings just where they had been left. The poor old sole had been taken into care and had obviously hoped to go homewhen they were better. They never got better and the house stayed empty. It was a very very sad programme.

The law change was mentioned and I believe that they can force a private owners hand, although how that works I do not know.

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From the article

There must be ways around this for LLs.

The last property I left has been empty for 3 months and may prove difficult to let out (It has 5 bedrooms)Will the LL be forced to let it out to some chav extended family?

I don't believe it will happen.

The way out of it is to pay full council tax so that the Council doesn't know the home is empty. I reckon the greedy buggers won't actually think through it properly though.

Councils have been trying for years the cooperative approach. About time they got to do it fair and square.

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A search on Rightmove for a half mile radius around my post code brought up 66 properties. Of these, I was surprised to see that 9 were being displayed as chain free, nearly all of them being the lowest priced properties for the area - ex local authority, etc.

I suspect this could be a wave of BTLers feeling the squeeze and starting to bail....

TLM

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I took the trouble to e-mail Alice and she bothered to reply. I shan't post her response here, that would not be fair, but the drift of it was she didn't feel that we would see our hoped for correction because it is in the governments interests to keep the property market booming. Secondly, in reposne to my comment ' I expect you'll be deluged with a mountain of angry compalints from all the V.Is' she said that the last time she had written a similar piece that had indeed proved to be the case and she also had some 'furious' responses form her colleagues at The Times. So I think that probably gives us a clue as to how impartial the Times is and no doubt most of the media too. I expect I could guess the journos who gave her grief .... Messrs Kaletsky, Rozenberg, Smith, Spackman no doubt and a few more too. Don't believe what you read !

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Very good article in the Times to day by Alice Miles (alice.miles@thetimes.co.uk) re the evils of multiple home ownership and how M.Ps have got their snouts well and truely in the trough.

She mentions something I was aware of but didnt realise was imminent and that is that as of April 2006 councils will be able to take control of the 684,000 empty homes around the U.K and put them up for rent. So what effect do we think the surge in available rental properties will have on an already oversupplied market. I suspect if the council are renting them out then the rents will be more realistic too. Only one way to go, IMHO, and that is rents carry on going down and with them house prices as BTLrs bail out. You'd have to be almost certifiable to BTL now surely ?

I'd heard bits and pieces about this, but nothing really solid. Is this really going to happen? It just seems too radical a move to actually happen. It would certainly be bye-bye BTL, as the only way BTL can be saved now is a massive increase in rents, and this would put the kibosh on that.

Billy Shears

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  • 440 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% +
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      • Even
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      • up 5%



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