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Rent Yields In Decline.

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Although everyone welcomes more personal space, we don't have a genuine or acute shortage of property in the UK. Historically however there has not been enough rental property and this has driven rents to unsustainable levels. For example, the rent on a rural family home in the UK is £15-25k PA whereas the equivalent in France is £5 to 8K.

I believe we are starting to see the benefits of a big shift in the supply demand equation. Fifteen years ago, there were very few properties for rent. A significant proportion of the contracts were company lets and landlords were able to extract eye watering yields. Today there many more aspiring landlords than there are people who want rent. As a result, yields have crashed and there is no evidence of the slide stopping.

This is a healthy trend and one might hope that in another 15 years time, rents might be half today's levels.

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Although everyone welcomes more personal space, we don't have a genuine or acute shortage of property in the UK. Historically however there has not been enough rental property and this has driven rents to unsustainable levels. For example, the rent on a rural family home in the UK is £15-25k PA whereas the equivalent in France is £5 to 8K.

I believe we are starting to see the benefits of a big shift in the supply demand equation. Fifteen years ago, there were very few properties for rent. A significant proportion of the contracts were company lets and landlords were able to extract eye watering yields. Today there many more aspiring landlords than there are people who want rent. As a result, yields have crashed and there is no evidence of the slide stopping.

This is a healthy trend and one might hope that in another 15 years time, rents might be half today's levels.

*Bump*

Cant quite catch your drift here.

The amount of new builds has been reasonably stable in the last 15 years. We now have all these immigrants. How can there be more property available to rent than 15 years ago?

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*Bump*

Cant quite catch your drift here.

The amount of new builds has been reasonably stable in the last 15 years. We now have all these immigrants. How can there be more property available to rent than 15 years ago?

Because every man and his dog has been piling into BTL. The developers have responded by providing masses of small 'investment' properties which is why we see swathes of unsold apartments in towns and cities. This oversupply, and competition between LLs, will hold rents down especially as many amateur landlords cannot afford to hold out for high rents because their ability to service the debt depends on having a tenant paying rent. This increases the negotiating strength of the tenant.

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I was speaking to a group of people at work the other day, all people in their 40s. They were saying how kids these days will probably 'never leave home' and how they couldn't wait to buy/rent a flat as soon as they finished school or college.

I was suddenly stuck by just what a huge difference a couple of decades has meant. These people became adults in a time when anybody could get a job and leave home. None of this living with mum until you're 30, none of this sharing with four other young people in a studentesque dive forever.

Surely the growing normality of people at living home until they're 25, 26, 29 or even 34 who a generation ago may have been off by the age of 18-21 has had an impact on demand?

Edited by CrashedOutAndBurned

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I was speaking to a group of people at work the other day, all people in their 40s. They were saying how kids these days will probably 'never leave home' and how they couldn't wait to buy/rent a flat as soon as they finished school or college.

I was suddenly stuck but just what a huge difference a couple of decades has meant. These people became adults in a time when anybody could get a job and leave home. None of this living with mum until your 30, none of this sharing with four other young people in a studentesque dive forever.

Surely the growing normality of people at living home until you're 25, 26, 29 or even 34 who a generation ago may have been off by the age of 18-21 has had an impact on demand?

Not to mention the constraints it puts on mobility and flexibility

How are people expected to have a career and move about from job to job.

Society is stagnating

How will they ever have children (i.e. grandchildren in the same hosuehold) - given how small UK rabbit hutches are?

In some countries three generations live together but the house is house with each floor being a kind of self-contained residence for each generation (I beleive that is typical of the Balkans).

But the UK ... forget it on 60 square meters living space.

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*Bump*

Cant quite catch your drift here.

The amount of new builds has been reasonably stable in the last 15 years. We now have all these immigrants. How can there be more property available to rent than 15 years ago?

Your comment presupposes that there were only just enough properties 15 years ago. I suspect that there were a significant excess. We have seen a large number of immigrants, but we also seeing a growing tide of people leaving the UK. New builds might be stable but there are other types of property development (Many larger houses have been sub-divided into flats). One also has to suspect that the number of people with two homes will fall over the coming years (for tax reasons). With an aging population, we will also see more demand for sheltered accomodation rather than houses and flats.

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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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