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laurejon

Rental Market Booming As Credit Crunch Takes A Grip

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The buy-to-let sector is booming as the credit squeeze makes it more difficult for first time buyers to get on the property ladder, according to Your Move. Your Move says the number of leases beginning in January and February has risen 21% compared with the same period last year.

Your Move says tighter credit conditions have prompted many to continue renting, creating a rise in tenant demand which is set to continue.

David Newnes, managing director of Your Move, explains:” First time buyers with little or no deposit are finding it virtually impossible to secure high LTV mortgages – the days of 125% mortgage are long gone. But frustrated wannabe first time buyers still need a roof over their heads - and buy-to-let is filling the gap. The strong fundamentals are impossible to argue with.”

Your Move says it has observed a large increase in the number of people looking for rented accommodation, putting landlords in a strong position to expand their portfolios.

Rents are predicted to rise over the rate of CPI to end 2008 with a 12% increase as buyers are excluded from the market on two fronts, the price of property, and the lack of lenders wishing to finance high risk first time buyers, and those with less than 40% deposit.

Newnes says negative sentiment in the housing market has also kept first time buyers at bay, meaning landlords are seeing less competition when buying properties.

Edited by laurejon

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Guest DissipatedYouthIsValuable
The buy-to-let sector is booming as the credit squeeze makes it more difficult for first time buyers to get on the property ladder, according to Your Move. Your Move says the number of leases beginning in January and February has risen 21% compared with the same period last year.

Your Move says tighter credit conditions have prompted many to continue renting, creating a rise in tenant demand which is set to continue.

David Newnes, managing director of Your Move, explains:” First time buyers with little or no deposit are finding it virtually impossible to secure high LTV mortgages – the days of 125% mortgage are long gone. But frustrated wannabe first time buyers still need a roof over their heads - and buy-to-let is filling the gap. The strong fundamentals are impossible to argue with.”

Your Move says it has observed a large increase in the number of people looking for rented accommodation, putting landlords in a strong position to expand their portfolios.

Rents are predicted to rise over the rate of CPI to end 2008 with a 12% increase as buyers are excluded from the market on two fronts, the price of property, and the lack of lenders wishing to finance high risk first time buyers, and those with less than 40% deposit.

Newnes says negative sentiment in the housing market has also kept first time buyers at bay, meaning landlords are seeing less competition when buying properties.

I urge all BTLs to buy more and exploit the situation until the non-property owning riff raff are forced, starving onto the streets.

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I urge all BTLs to buy more and exploit the situation until the non-property owning riff raff are forced, starving onto the streets.

Inclined to agree rents are rising in places I'm checking, in one case by £100 pcm in just a few weeks (that's 14%) on the ask.

Lookin dismal for renters at the moment, only the utter rubbish is hanging around to rent (including where I'm living now once it's vacant!). And my landlord has every intention of putting the rent up on this once I go I can assure you!

I predicted this rent rise some months ago, I see also landlords withdrawing then putting back on for higher rent.

Looks like house purchase prices declining, rental prices firming and climbing. I'd love to be wrong about the rental rises, I'm hoping it's a blip during what looks like a shortage. Just a month or two ago a letting agent I know told me it was all quiet. Well, judging by what I see on Rightmove, that's all changing and demand is back up for rentals in some London/SE spots.

This game is now see-sawing the other way.

If HPI recommences too (probably won't) then there could be even more serious homelessness consequences, there might be anyway as tenants get priced out of places if DSS benefits not extended to them.

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Guest DissipatedYouthIsValuable
Inclined to agree rents are rising in places I'm checking, in one case by £100 pcm in just a few weeks (that's 14%) on the ask.

Lookin dismal for renters at the moment, only the utter rubbish is hanging around to rent (including where I'm living now once it's vacant!). And my landlord has every intention of putting the rent up on this once I go I can assure you!

I predicted this rent rise some months ago, I see also landlords withdrawing then putting back on for higher rent.

Looks like house purchase prices declining, rental prices firming and climbing. I'd love to be wrong about the rental rises, I'm hoping it's a blip during what looks like a shortage. Just a month or two ago a letting agent I know told me it was all quiet. Well, judging by what I see on Rightmove, that's all changing and demand is back up for rentals in some London/SE spots.

This game is now see-sawing the other way.

If HPI recommences too (probably won't) then there could be even more serious homelessness consequences, there might be anyway as tenants get priced out of places if DSS benefits not extended to them.

I'm counting a LOT of To Let and For Sale signs up in the villages around here.

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I'm counting a LOT of To Let and For Sale signs up in the villages around here.

There's some signs here too, and when you enquire on the rent you see why they're hanging around, but then even they (at those prices) get taken.

2 in herts I've been looking at - 1 went last week 750pcm, next door now also a 2 bedder on for 850pcm.

How long until someone desperate is forced to take the 850pcm and up goes the rent as a new precedent is set?

It's scary. In late 2006 where I wanted to rent was 165pw (I've still got the Rightmove email links), now they're from 185pw and most 200pw.

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The buy-to-let sector is booming as the credit squeeze makes it more difficult for first time buyers to get on the property ladder, according to Your Move. Your Move says the number of leases beginning in January and February has risen 21% compared with the same period last year.

You would hope from a BTL point of view the number of leases have increase YOY because the number of BTL have increased significantly over the last year. Don't see much upward movement in rent from the ones I have been watching and fully expecting the rental market to become very competitive with those refusing to sell at "ridiculous" prices and those already establish BTL's.

It is going to be carnage. :rolleyes:

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Surely this a result of reduced work for EA's in sales, so trying to gain more rental work, by overstating rental valuations Aside from certain areas/certain types rents will be always be a measure of local affordability. Three or four months of voids will soon sort it out.

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Guest Shedfish

i've noticed some rents up, and some down - you can still get a half decent 3 bed terraced / 2 bed semi with garden for 450pcm (2005 prices), and i'm still renting a 3 bed flat for 375pm, 2 years on

weren't YourMove the people that recently closed a couple of hundred offices, and made a last gasp jump into B2L? or did i dream that... if i didn't dream it, then the chap is just 'talking book'.

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The buy-to-let sector is booming as the credit squeeze makes it more difficult for first time buyers to get on the property ladder, according to Your Move. Your Move says the number of leases beginning in January and February has risen 21% compared with the same period last year.

Your Move says tighter credit conditions have prompted many to continue renting, creating a rise in tenant demand which is set to continue.

David Newnes, managing director of Your Move, explains:” First time buyers with little or no deposit are finding it virtually impossible to secure high LTV mortgages – the days of 125% mortgage are long gone. But frustrated wannabe first time buyers still need a roof over their heads - and buy-to-let is filling the gap. The strong fundamentals are impossible to argue with.”

Your Move says it has observed a large increase in the number of people looking for rented accommodation, putting landlords in a strong position to expand their portfolios.

Rents are predicted to rise over the rate of CPI to end 2008 with a 12% increase as buyers are excluded from the market on two fronts, the price of property, and the lack of lenders wishing to finance high risk first time buyers, and those with less than 40% deposit.

Newnes says negative sentiment in the housing market has also kept first time buyers at bay, meaning landlords are seeing less competition when buying properties.

Have you got a link for this or is it an unsubstantiated assertion?

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So presumably, all these people who have suddenly decided to rent were living on the streets before? People entering the rental market won't suddenly be able to magic an extra £100 from nowhere without this having a knock-on effect in the rest of the economy. It's a blip.

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Inclined to agree rents are rising in places I'm checking, in one case by £100 pcm in just a few weeks (that's 14%) on the ask.

Lookin dismal for renters at the moment, only the utter rubbish is hanging around to rent (including where I'm living now once it's vacant!). And my landlord has every intention of putting the rent up on this once I go I can assure you!

I predicted this rent rise some months ago, I see also landlords withdrawing then putting back on for higher rent.

Looks like house purchase prices declining, rental prices firming and climbing. I'd love to be wrong about the rental rises, I'm hoping it's a blip during what looks like a shortage. Just a month or two ago a letting agent I know told me it was all quiet. Well, judging by what I see on Rightmove, that's all changing and demand is back up for rentals in some London/SE spots.

This game is now see-sawing the other way.

If HPI recommences too (probably won't) then there could be even more serious homelessness consequences, there might be anyway as tenants get priced out of places if DSS benefits not extended to them.

The little known benefits withdrawel happens in April, its going to be very interesting as many people some of whom are working find their 800pcm rent is now only covered with a 350pcm payment from the council housing benefits office.

Good old Labour, they encouraged millions to live on benefits, now they pull the rug from under their feet.

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Who cares what an estate agent MD thinks about BTL, let's have alook at the other articles from this press release, and wind up merchant laurejon's source :lol:

www.ifaonline.co.uk

1. Buy-to-let booming in credit crunch

2. Assetz has launched a range of buy-to-let products offering exclusive rates to its clients through its new in-house finance offering.

3. Buy-to-let returns beat FTSE All Share

4. Migrant tenants putting upward pressure on rental yields

5. Alliance & Leicester (A&L) has launched a number of fixed rate, tracker and buy-to-let mortgage products.

6.Paragon says the latest rate cut by the Bank of England is a positive factor for landlords

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well, i noticed that Your Move have closed one of their premises in the wealthy part of Bristol -are things really that good?

How's 'Sadley Broke' doing (Bradley Stoke in Bristol) these days? Has anyone been tracking it using Property Bee? This might be worth starting as it was badly hit last time and may be a good indicator this time around.

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Hm just checked my block of flats and they've gone up nearly 10% since 6 months ago. There must be some severe stress on the housing market, lets hope my LL doesn't take the piss when the contract is up for renewal.

The little known benefits withdrawel happens in April, its going to be very interesting as many people some of whom are working find their 800pcm rent is now only covered with a 350pcm payment from the council housing benefits office.

Good old Labour, they encouraged millions to live on benefits, now they pull the rug from under their feet.

Na. ******em, steal my money and then steal rentals from the market that I struggle to pay for. Show them for living from the sweat of anothers brow.

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How's 'Sadley Broke' doing (Bradley Stoke in Bristol) these days? Has anyone been tracking it using Property Bee? This might be worth starting as it was badly hit last time and may be a good indicator this time around.

don't have any interest in living in Bradley Stoke-so i have no idea. Funny thing,my boyfriend works in near there and goes into Bradley Stoke Tescos frequently and regales me with stories of whats on the reduced counter on a regular basis-mostly items such as venison,goats cheese and pheasant!

try not to look at HPs in Bristol as it still depresses me!

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How's 'Sadley Broke' doing (Bradley Stoke in Bristol) these days? Has anyone been tracking it using Property Bee? This might be worth starting as it was badly hit last time and may be a good indicator this time around.

Some of the worlds largest business''s have close premises, its too expensive to run a business in the UK and with the small payment of 30k per annum in tax it makes sense for large corps and their execs to go offshore with their money and live here tax free.

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Its a fact that the same thing happened to rents before the last crash.

That's right, because the sheeple have woken from their slumber , and are now thinking hang on I have equity and I want to keep it. And ofcourse the only way to do that...is to STR or beggar off elsewhere in the the world where houses are cheap.

Hang on its a good time to think of buying in the good old U S of AR*E...nice big house for 20 cents and a hubba bubba!!!

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Just negotiated my rent for next year in London. A whopping 2% rise.

I bet a few mortgage owners would trade that as the resets kick in.

I'm not seeing a single rent rise in my neck of the woods.

How much is your rent, what are you renting, and what location ?

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  • 295 Brexit, House prices and Summer 2020

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      • down 5% +
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