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Ash4781

Base Rate Prompts Rent Rise

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Its very unlikely that rents will rise, too many BTL on the market and if they can pass on the rise they would have done so along time ago, why else do you think yields are scraping the barrel at 3-4%.

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If the LL's are so confident about raising the rents why didn't they push them up before the rate rise and make more money? Probably becuase we're all such nice accommodating people!

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Well as soon as you see the name Paragon then you know it's a bit of a joke. Absolutely no rent rises around here, falls if anything. And I live in a rural area and pay less than in town.

6% yield for anyone buyin around here at present is fantasy.

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Well as soon as you see the name Paragon then you know it's a bit of a joke. Absolutely no rent rises around here, falls if anything. And I live in a rural area and pay less than in town.

6% yield for anyone buyin around here at present is fantasy.

Yep. BTL merchants could be in for a rude awakening to financial reality.

I have a friend who was on the point of renting his flat out in Clapham, and buying another one to do up and let out. After a few weeks of having people looking round as prospective tennants, the feedback was that people could rent a lot more space for less money. The tennants are very choosey, and they have plenty to choose from. There is no way for him to achieve the rent necessary on his place to fund the purchase, and even if he did purchase, he decided that the new place might also be difficult to rent at a sufficiently high rate. So, he's packed the idea in. No BTL for him. Total sense.

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Most Likely 2-3 % yields for anyone buying today along with around 6-8% Interest BTL Mortgage debt charges ( at the current state of play),

That's around a 3-5% deficit per year (not counting voids, repairs, etc, etc )

3-5% of say a 200k BTL Mortgage= 6-10k loss EACH year, At x 10 years (In it for the Long Term ;) ) is 60-100k loss! , also this is not counting repayment!

(subsidising at it's finest! :lol::D:lol: )

Ouch!

Edited by A Fool & His Borrowed Money

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No rise for me !! Am moving out of my 1 bed flat (£425 pcm) into a 2 bed at £420 pcm. nicer area, bigger place and burglar proof - 3rd floor (I got broken into twice in March)

Am renting this off a friend - he gets a reliable tenant with no hassle or worries and there's no letting agent involved

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About to move into a 4 bed-shared house tomorrow. Landlord is still charging just £160/month per person.

That's cheaper than any rent I paid as a student between '98 and '02

:lol::lol::lol::lol::lol::lol::lol:

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Paragon Mortgages should be asked to justify the rental increase data. Who produced it? Who verified it?

Again as the FSA are not responsible for BTL mortgages, they will turn a blind eye to of the cuff announcements and the gullible 'investor' follows the 'good news'.

Let us see verification...or is it there and I have missed it.

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No rent change here. Although obviously it can't be altered until the AST ends in September anyway.

Anecdotal time: I've just learned that our landlords were looking at buying the downstairs flat in addition to the first floor where I rent. But they were too late and it has just sold STC to a couple for the asking price (£230K)

I'm not quite sure how to interpret this news. On the one hand I imagine that means my landlords aren't planning on getting out of the market in the near future and therefore I don't have to worry about them selling this place (the possibility of which was bugging me slightly). On the other hand, if they are willing to pay absolute top dollar for new properties for their 'portfolio' perhaps they're at risk from a housing market slump.

They did remortgage this place last year or so, so I imagine they've been MEWing it up to buy new properties. I just hope they haven't been buying more flats in Brighton, that's all I can say.

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So rents have risen 22% since August? I doubt it.

I get the press releases from Paragon, and there claims are just absurd. I.e. they claim rents have risen 8.2% in Quarter 1 2007.

I believe there index is based on members comments about what they think achievable rents are.

Have a look at the ONS, rates have risen marginally since 2005. I'm betting those rent rises are coming from places like central London, DSS rents (where the council allow a rent increase). Any good tenant will easily be able to snub a rent rise, as 'asking' rents tend to rise when the property is re-marketed.

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Nope, not in 'Cardiff Bay'.

And given that they are still building blocks of flats like they are going out of fashion, I think competition will keep rents down in this and similar areas.

If there's more competition don't things normally become more competetive? '00,000s new BTLs is more competition! Maybe BTL will be a victim of it's own success

If supply was reduced dramatically due to loads of BTL's selling, I could see rents rising.

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Been in the same place in "desirable" North London for a while now, big ****** of garden etc, rent =

Tenancy got extended for another year, no rent increase :)

Mind, I do look after our huge garden and pay my rent on time via DD.

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My current tenants ar really good. It hasn't even occured to me to ask for more money. In fact I would be willing to drop the rent considerably if they want to resign for another couple of years when their contract expires.

However, in saying that rents around my area are on the up but it's not worth losing good tenants over.

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I know through the news and government reports that there is a shortage of property, however round my area there seems to be a fair bit to rent..

W14.. London..

Hell the flat I live in is in a shared house with three other flats, lovely area minutes from the tube..

and since I have been here (9 months) no more then one other flat has been rented out..

Appears to be a catastrophic over supply of rentals perhaps..

Everyone I know seems to think that there are constantly empty rentals in whatever area they all live in..

Saw a garden flat the other day, tempted.. rents seem to be getting cheeper...

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