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Without_a_Paddle

Time To Raise The Rents?

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http://www.find-a-property.co.uk/story.aspx?storyid=8681

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Rising house prices have boosted tenant demand and pushed up rents, says the RICS...

According to their quarterly survey, rents are on the up as tenants return to the lettings market.

Chartered surveyors are reporting the biggest increase in tenant demand in four-and-a-half years, with 27 per cent more reporting a rise in new lets than a fall (23 per cent in October).

Rents rose at a similar pace for both flats and houses, though the rise in rents for flats was the largest recorded in four-and-a-half years.

On the supply side, there was also a rise as landlords returned to the market. Nineteen per cent more surveyors reported a rise in new instructions than a fall, compared with 14 per cent in October.

First-timers Priced Out

The current pick up in activity, says the report, is partly due to a renewed upturn in house prices which is pushing potential buyers, particularly first-time buyers, back to the rental market.

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It seems that 'Supply and Demand' rules work for rental prices too.

Maybe TTRTR was right all along....

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http://www.find-a-property.co.uk/story.aspx?storyid=8681

***********************************************************************************

Rising house prices have boosted tenant demand and pushed up rents, says the RICS...

According to their quarterly survey, rents are on the up as tenants return to the lettings market.

Chartered surveyors are reporting the biggest increase in tenant demand in four-and-a-half years, with 27 per cent more reporting a rise in new lets than a fall (23 per cent in October).

Rents rose at a similar pace for both flats and houses, though the rise in rents for flats was the largest recorded in four-and-a-half years.

On the supply side, there was also a rise as landlords returned to the market. Nineteen per cent more surveyors reported a rise in new instructions than a fall, compared with 14 per cent in October.

First-timers Priced Out

The current pick up in activity, says the report, is partly due to a renewed upturn in house prices which is pushing potential buyers, particularly first-time buyers, back to the rental market.

***********************************************************************************

It seems that 'Supply and Demand' rules work for rental prices too.

Maybe TTRTR was right all along....

How do tenants "return" to the rental market? The only people that are doing this are STRs as the price of houses fall. The retail figures are bad again this month and unemployment rates are likely to continue to deteriorate so who is going to be able to pay rent, let alone higher rent?

The story of Henry Ford I comes to mind. He was showing off his newly invented assembly line to a group of reporters. Henry boasted that soon he would not need to hire employees to produce his cars. One of the reporters then asked Henry who, then, was going to be able to buy his cars?

The rental market is dictated by affordability issues and right now is not a good time for the rental market to even think about jacking up rents. BTLers will just have to swallow the coming IR hikes and hope that long term captial appreciation will one day offset rental losses.

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Guest X-QUORK

What a crock of $hit. That report states that rents are rising as well as the amount of BTLers...surely a rise in supply and demand should equal flat rents?

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Its not what I'm seeing on the ground. Not in Aberdeen or London anyway.

Nor around Guildford area. My brother-in-law has just negotiated a 20% reduction on the asking rent on a property in that area. For that BTLer it was TTLowerTR! Landlords are having to drop rents all over this area due to oversupply. Findaproperty.com shows the huge increases in properties for let that are going on as BTLers scramble to find tenants.

Edited by Realistbear

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No rent rises here in Bedfordshire either owing to the over-supply of rental properties.

I negotiated a 9% reduction in my rent and it has remained fixed for over two years. My landlord's yield on this house (a very nice period 4 bed in a prime location) is a pathetic 2.8%.

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Aberdeen is awash with new builds. Most new build schemes have numerous long term vacant appartments (two years plus) Rents being driven down not up.

Still they build more and more and more.

Rents in Aberdeen are very negotiable (down!!)

Going to be a ghost town one day as the oil recovery drops further off a cliff.

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http://www.find-a-property.co.uk/story.aspx?storyid=8681

***********************************************************************************

Rising house prices have boosted tenant demand and pushed up rents, says the RICS...

According to their quarterly survey, rents are on the up as tenants return to the lettings market.

Chartered surveyors are reporting the biggest increase in tenant demand in four-and-a-half years, with 27 per cent more reporting a rise in new lets than a fall (23 per cent in October).

Rents rose at a similar pace for both flats and houses, though the rise in rents for flats was the largest recorded in four-and-a-half years.

On the supply side, there was also a rise as landlords returned to the market. Nineteen per cent more surveyors reported a rise in new instructions than a fall, compared with 14 per cent in October.

First-timers Priced Out

The current pick up in activity, says the report, is partly due to a renewed upturn in house prices which is pushing potential buyers, particularly first-time buyers, back to the rental market.

***********************************************************************************

It seems that 'Supply and Demand' rules work for rental prices too.

Maybe TTRTR was right all along....

I'm not sure about this, I live in hertfordshire and am seeing homes to sell on the market for over a year (no price reduction) and then transfer over to the rental market (owner can't sell so tries to rent it out). The rental market is flooded where I am, anything overpriced does not attract interest. Also, letting agents have changed their attitude to renters. A few years ago, I would say we were treated as something that could be replaced easily, now we are 'valued customers'.

Obviously this is very much anacdotal and isn't a view of the whole country, but I really do find it hard to believe that LL's can charge what they like.

Has anyone else found the same?

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i'm currently in the process of looking for a new property to rent due to my housemates having a baby. i've noticed that there does seem to be a slight increase in some of the rents for new properties - landlords charging £575pcm for something which last year would only have gone for £550.

however, these more expensive properties are not moving at all in the areas of sheffield i'm looking, so i'm hoping to get a bit of a discount if i'm backed into paying above my percieved value of anything we like.

the main problem seems to be the proliferation of new build flats in sheffield. people are expecting to be able to charge more than for a house for these frankly poor quality (although superficially pleasant) properties, but what i'm hearing is much like the conversation i had with one ea this morning:

'we've only got the £650 flats left i'm afraid.'

'ok, what's special or different about them compared to the £550 flats then?'

'errr... nothing. that's how much we've been instructed to charge for them...'

still, if they're that desperate to get that sort of money for them, at least it's more crap to flood the market when they finally realise that people aren't going to be prepared to pay over the odds forever...

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I'm not sure about this, I live in hertfordshire and am seeing homes to sell on the market for over a year (no price reduction) and then transfer over to the rental market (owner can't sell so tries to rent it out). The rental market is flooded where I amHas anyone else found the same?

We're in East Herts and moved to 5 bed + study for £1200 pm. Believe me it is a steal compared to what LLs were asking a couple of years ago.

NB the LL tried to sell for around 9 months at 435k then 415k then 407.5k at which time they tried to rent also at £1300 pm. We were first to offer decently.

:lol::lol::lol:

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I've been monitoring the Bath market for sometime now. I have watched the numbet of empty rental properties on Rightmove go up by 200%.!!

I think there must be a lot of BLTers suffering badly at the moment. I could be that they are being squeazed by OO trying to rent while they wait for the Spring Bounce.

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First-timers Priced Out

The current pick up in activity, says the report, is partly due to a renewed upturn in house prices which is pushing potential buyers, particularly first-time buyers, back to the rental market.

Please think about this carefully.

If FTBs cannot afford to pay their own mortgage with all the tax and lending benefits available to owner occupiers, then they cannot afford to pay the landlord's mortgage, let alone create a profit for the landlord.

Any BTL which is based on FTBs being priced out is unsustainable!

frugalista

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http://www.find-a-property.co.uk/story.aspx?storyid=8681

***********************************************************************************

Rising house prices have boosted tenant demand and pushed up rents, says the RICS...

According to their quarterly survey, rents are on the up as tenants return to the lettings market.

Chartered surveyors are reporting the biggest increase in tenant demand in four-and-a-half years, with 27 per cent more reporting a rise in new lets than a fall (23 per cent in October).

Rents rose at a similar pace for both flats and houses, though the rise in rents for flats was the largest recorded in four-and-a-half years.

On the supply side, there was also a rise as landlords returned to the market. Nineteen per cent more surveyors reported a rise in new instructions than a fall, compared with 14 per cent in October.

First-timers Priced Out

The current pick up in activity, says the report, is partly due to a renewed upturn in house prices which is pushing potential buyers, particularly first-time buyers, back to the rental market.

***********************************************************************************

It seems that 'Supply and Demand' rules work for rental prices too.

Maybe TTRTR was right all along....

You know these guys are pissing me off lately, this is days old news re cycled.

More reasons the BTL phenonema appears to be vanishing

http://firstrung.co.uk/articles.asp?pageid...1378&cat=47-0-0

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Guest Winners and Losers

Did TTRTR write that pile of pants ??

I think TTRTR has plotted an evil plan to clone himself. WAP is his first experiment.

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I can certainly see attempts to "raise the rents" happening. After all, unless rents raise massively BTL just can't continue. The yields are just too low.

But if there was any scope for rents to rise significantly, surely they would have. Landlords and estate agents set the rents as what the market will bear, do they not?

The other thing about rents, is, isn't setting asking rents a bit of a prisoner's dilemma? If all landlords in a sufficiently large area agreed to raise the rents at the same time, then tenants would have to pay more. But anyone who cheats and doesn't raise the rents immediately has their pick of tenants. So it's difficult for rents to rise.

Billy Shears

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http://www.find-a-property.co.uk/story.aspx?storyid=8681

***********************************************************************************

Rising house prices have boosted tenant demand and pushed up rents, says the RICS...

According to their quarterly survey, rents are on the up as tenants return to the lettings market.

Chartered surveyors are reporting the biggest increase in tenant demand in four-and-a-half years, with 27 per cent more reporting a rise in new lets than a fall (23 per cent in October).

Rents rose at a similar pace for both flats and houses, though the rise in rents for flats was the largest recorded in four-and-a-half years.

On the supply side, there was also a rise as landlords returned to the market. Nineteen per cent more surveyors reported a rise in new instructions than a fall, compared with 14 per cent in October.

First-timers Priced Out

The current pick up in activity, says the report, is partly due to a renewed upturn in house prices which is pushing potential buyers, particularly first-time buyers, back to the rental market.

***********************************************************************************

It seems that 'Supply and Demand' rules work for rental prices too.

Maybe TTRTR was right all along....

What do you mean 'maybe'?

:D

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Guest muttley

We were renting this one for £1350 a month http://www.rightmove.co.uk/viewdetails-514...a_n=1&tr_t=rent until the begining of the year, it's still stood empty - 3 months now and not one viewing (we know the LL)

The house we rented 3 months ago remains empty at the price we took it on in June 2004 (£1,200 pcm).The rental market here remains competitive.If my LL tries to put my rent up I have the option to move a few doors away.

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The house we rented 3 months ago remains empty at the price we took it on in June 2004 (£1,200 pcm).The rental market here remains competitive.If my LL tries to put my rent up I have the option to move a few doors away.

There are also particular circumstances in local areas. Here in Leicester students were a major part of the rental market as there are two large universities and it's not that big a city. But over and above all the new build flats, the universities built big halls of student residence. A person, I think an estate agent, said that the student rental market in Leicester was "dying". Certainly there are large numbers of houses for sale in my local area, but few for rent. I can't see the rents rising much here. In fact, there's a much larger and nicer house not too far from me that has a "to let" sign outside. I'm tempted to look into how much it would cost and if the LL would take an offer similar to what I'm paying now.

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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