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F. T. : Crash Fear Is Causing Rush To Rent

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http://www.ft.com/cms/s/fa379f1a-47a3-11dc...00779fd2ac.html

Financial Times

Property price fears fuel growth in rentals
By Elaine Moore
Published: August 11 2007 03:00 | Last updated: August 11 2007 03:00
Demand for rental accommodation is outstripping supply at the fastest rate for six years as
fears grow that further increases in interest rates may trigger a property price
crash
.
Letting agents say rental demand has exceeded all expectations this summer and the trend is widely expected to continue for the next year.
The Association for Residential Letting Agents (ARLA) says the level at which demand from tenants is outstripping supply from landlords is at its highest since they began conducting surveys about six years ago.
"Everyone has their own theories as to why this is," said ARLA spokesman Malcolm Harrison. "Part of the reason is down to simple demographics because there are more single people looking for housing. But it is probably also to do with a
fear of house prices softening
."
The UK housing market has remained buoyant despite a series of interest rate rises from the Bank of England but the number of properties available to rent has been reduced
as buy-to-let investors reallocate assets away from property
.
"
Landlords are leaving the market and investing elsewhere
because they feel it's a good time to make the most of their capital," said Tim Hyatt, head of UK lettings at Knight Frank estate agents.
"We have seen a 15 per cent reduction in instructions this year and this is indicative that people are feeling uncertain about where the house sales market is going."
Fears of a slowdown or potential housing market
crash
have led more people to eschew purchasing a property in favour of renting.
Across the country letting agents say they have seen a huge rise in rental agreements this year with central London witnessing the greatest growth of activity.

This is still bad news for BTL as the recession will guarantee mass unemployment and inability to pay rent. Bottom line: the mainstream press are talking crash openly.

GC2 is here and its all happening very quickly.

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Guest Winnie

There will be a few "Baldrick" BTLers who thik it is clever to go back in now, as renat demand rises....forgetting that the banks won't lend to them, and negative equity will be on the horizon. Paddy and Micky, stick to the greyhounds for now.....

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STR appears to be the hot game in town now. Too late for most of them. As they say, trying to time the market to get that extra 10% of gain can end up costing you everything.

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STR appears to be the hot game in town now. Too late for most of them. As they say, trying to time the market to get that extra 10% of gain can end up costing you everything.

It'll be particularly interesting to track the volumes on the property web sites now.

RB, how are your marker sites doing - I know you keep track of the volumes in a couple of areas near you?

TD

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GC2 is here and its all happening very quickly.

Q3 2007: this is when the real fun and games will begin ;)

We could all see in Q2 that things were beginning to get interesting. The whole thing is unravelling more quickly than I would have anticipated- I guess thats why a lot of people have been caught out.

BTL sheeple stampede: its what I've been waiting for

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Q3 2007: this is when the real fun and games will begin ;)

We could all see in Q2 that things were beginning to get interesting. The whole thing is unravelling more quickly than I would have anticipated- I guess thats why a lot of people have been caught out.

BTL sheeple stampede: its what I've been waiting for

Given the latest move in stockmarkets,it appears to be the financials that are getting hit hardsest.

.....looks promising...all those peripheral lenders who can't make ends meet.

prime M&A targets at fire-sale prices......sod the workers......which is A LOT of the UK economy.

oh dear!!! :lol::lol::lol:

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Having been looking for a flat to rent recently I can believe this. I mean the flat i just took had at least 3 viewings on the first day on market, another shithole i looked at had at least 2, the largest agent in the area has virtually nothing left available, especially in the lower end.

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I find this difficult to believe.

Does anyone honestly believe that the general public has come over to the dark side en masse thinking that the market is going to crash?

If there are more people wanting to rent then I suggest it is because of immigration. However, I believe this story will have been generated by the EAs who also let properties - they realise that worrying people over the price of houses is failing to work, so it's time for a change of tack!

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I find this difficult to believe.

Does anyone honestly believe that the general public has come over to the dark side en masse thinking that the market is going to crash?

If there are more people wanting to rent then I suggest it is because of immigration. However, I believe this story will have been generated by the EAs who also let properties - they realise that worrying people over the price of houses is failing to work, so it's time for a change of tack!

because they arnt selling.

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I find this difficult to believe.

Does anyone honestly believe that the general public has come over to the dark side en masse thinking that the market is going to crash?

If there are more people wanting to rent then I suggest it is because of immigration. However, I believe this story will have been generated by the EAs who also let properties - they realise that worrying people over the price of houses is failing to work, so it's time for a change of tack!

I have been looking to move to a new rental property and havent noticed a shortage. In fact a few places I have enquired about have phone me up trying to convince me to rent their property. The other day I kept got phone calls from 5 different agents asking if I was still looking to rent.

This is for properties around the $800-1200/month mark though.

Edited by Adrian Allen

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I found the article very unconvincing.

It read like a puff piece, to help EA's trying to help their clients jack up rents.

Very superficial- short on any solid evidence

It is a good one from the point of view that they mention the "c" word in the context of a chnaging market.

There are plenty of rentals available as findaproperty.com still have well over one third of a million properties on their books both for sale and rent:

http://www.findaproperty.com/

Search 375,741 properties for sale and rent
Edited by Realistbear

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This article confirms what Mrs B has been telling me - they suddenly become very busy in the lettings department 2-3 weeks ago, with nothing going on in sales. I reported this at least a week ago. Cant be arsd to find the thread but this suggests that Mrs Bs reports from the frontline are a good leading indicator - perhaps I should start selling a weekly report - any takers ?!

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Where the extra tenants are coming from if house sales have not increased?? How else the "demand" can increase?

House owner rents first and then tries to sell? Existing renter decides to rent a holiday home?.. :huh:

Edited by refusnik

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This article confirms what Mrs B has been telling me - they suddenly become very busy in the lettings department 2-3 weeks ago...

They have been letting departments? :huh:

:lol:

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Where the extra tenants are coming from if house sales have not increased?? How else the "demand" can increase?

House owner rents first and then tries to sell? Existing renter decides to rent a holiday home?.. :huh:

House sales have not increased because there no buyers with $$$$. You can have as many renters looking for a place as you want, same happened in the lastcrash renting became fashionable with all the horror stories of reposessions, and people struggling to have a social life because of mortgage commitments.

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http://www.ft.com/cms/s/fa379f1a-47a3-11dc...00779fd2ac.html

Financial Times

Property price fears fuel growth in rentals
By Elaine Moore
Published: August 11 2007 03:00 | Last updated: August 11 2007 03:00
Demand for rental accommodation is outstripping supply at the fastest rate for six years as
fears grow that further increases in interest rates may trigger a property price
crash
.
Letting agents say rental demand has exceeded all expectations this summer and the trend is widely expected to continue for the next year.
The Association for Residential Letting Agents (ARLA) says the level at which demand from tenants is outstripping supply from landlords is at its highest since they began conducting surveys about six years ago.
"Everyone has their own theories as to why this is," said ARLA spokesman Malcolm Harrison. "Part of the reason is down to simple demographics because there are more single people looking for housing. But it is probably also to do with a
fear of house prices softening
."
The UK housing market has remained buoyant despite a series of interest rate rises from the Bank of England but the number of properties available to rent has been reduced
as buy-to-let investors reallocate assets away from property
.
"
Landlords are leaving the market and investing elsewhere
because they feel it's a good time to make the most of their capital," said Tim Hyatt, head of UK lettings at Knight Frank estate agents.
"We have seen a 15 per cent reduction in instructions this year and this is indicative that people are feeling uncertain about where the house sales market is going."
Fears of a slowdown or potential housing market
crash
have led more people to eschew purchasing a property in favour of renting.
Across the country letting agents say they have seen a huge rise in rental agreements this year with central London witnessing the greatest growth of activity.

This is still bad news for BTL as the recession will guarantee mass unemployment and inability to pay rent. Bottom line: the mainstream press are talking crash openly.

GC2 is here and its all happening very quickly.

Oh how I wish TTRTR was here!! :lol:

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