Rental Market Booming As Credit Crunch Takes A Grip

[AC2]

Asking rental prices in Brighton and Hove, where I am, are the same as - if not slightly lower than - they were in 2004, judging from the local property porn rag. But this is the BTL capital of the world, I believe, so there's a lot of competition for tenants.

Other areas of the country must be experiencing some pretty significant rental price rises to combat the level of stagnation around here.

[laurejon]

http://www.rightmove.co.uk/viewdetails-192...1&tr_t=rent

asking prices on my road up from 800 to 875 a month since november but it's still fairly reasonable for what you get.

That is Lush!!!!!.

[Mr Nice]

I would imagine that right about now there are a lot of BTL's that have realized that the spring bounce isn't going to happen, and are trying to raise rents to cover higher mortgage payments.

as someone else said, a few months of voids will sort everything out.

the prognostications of a BTL rag aren't the best source of legitimate opinion on future rents I would think.

also, it isn't that unusual to see fairly big jumps in rents in an individual place.

many LLs don't raise their rents with inflation every year, but take big whacks every 5 or so.

until you see it over broad areas, like HPI was, I wouldn't put too much into it.

Edited March 10, 2008 by Mr Nice

[smash]

Here's a LINKY, courtesy Google News. And another one, rather more to my taste: Your Move axes branches as housing slowdown hits.

Ahh! Net etiquette. thank you very much glad to see that everyone is not as rude as 'lauriejohn'. I would of thought that posting unsubstantiated postings (without caveats in the absence of) would be banned on this site, certainly on most web forums it is, and most certainly such activity brings down the reputation of the forum.

[laurejon]

Asking rental prices in Brighton and Hove, where I am, are the same as - if not slightly lower than - they were in 2004, judging from the local property porn rag. But this is the BTL capital of the world, I believe, so there's a lot of competition for tenants.

Other areas of the country must be experiencing some pretty significant rental price rises to combat the level of stagnation around here.

Well Brighton is a dump, and it only took off in recent years due to clever marketing and publicity. In reality life in Brighton is for Dullards, Pink Rinses and Zimmer Frames.

Last downturn you could not give a flat away in Brighton, the place was full of HIV infected Druggies and a night out was composed of Bingo or sitting in a police cell.

[toonboy]

This is EXACTLY how I remember it during the last crash.

what do you mean, pent up rental demand all of a sudden, i want to buy but not at these prices, going to see a 1100 rental tomorrow hopefully, good rentals round my way go within a day apparently, i need to move fast.

[Mr Nice]

Ahh! Net etiquette. thank you very much glad to see that everyone is not as rude as 'lauriejohn'. I would of thought that posting unsubstantiated postings (without caveats in the absence of) would be banned on this site, certainly on most web forums it is, and most certainly such activity brings down the reputation of the forum.

so does mewlish whinging.

next it'll be the chavs, jeez.

[laurejon]

I would imagine that right about now there are a lot of BTL's that have realized that the spring bounce isn't going to happen, and are trying to raise rents to cover higher mortgage payments.

as someone else said, a few months of voids will sort everything out.

the prognostications of a BTL rag aren't the best source of legitimate opinion on future rents I would think.

also, it isn't that unusual to see fairly big jumps in rents in an individual place.

many LLs don't raise their rents with inflation every year, but take big whacks every 5 or so.

until you see it over broad areas, like HPI was, I wouldn't put too much into it.

I live on the South Coast and was poised to buy with some cheap money from Birmingham and Midshires since November.

I had predicted Landlords would be selling up this spring to cash in and bail out. I was wrong, there is nothing new to market since December, and the rental market is booming, properties to Let are moving quickly with people now queing up in the Agents for good 2 Bed Semi's or Flats at around 750pcm to 1200pcm.

[yellerkat]

...and a night out was composed of Bingo or sitting in a police cell.

Some of us do Bingo AND the police cell!

[Mr Nice]

I live on the South Coast and was poised to buy with some cheap money from Birmingham and Midshires since November.

I had predicted Landlords would be selling up this spring to cash in and bail out. I was wrong, there is nothing new to market since December, and the rental market is booming, properties to Let are moving quickly with people now queing up in the Agents for good 2 Bed Semi's or Flats at around 750pcm to 1200pcm.

I think most of the BTL's are waiting for the april CGT change to put their places up.

but with whispers that they might put that off indefinitely, who knows what will happen.

[laurejon]

Some of us do Bingo AND the police cell!

What about the pink rinse ?

Brighton has had some good publicity, not least the fantastic beach party that ended up with me in the sea.

It is certainly more pleasant now the seafront has been revamped, but taking someone out to lunch in a converted toilet where I had one of my first shags during the days of mods and rockers is not going to draw me to the place, or indeed many other people.

The West Pier is a joke, there is nothing to save, its about time they removed the eyesore and rebuilt it with a modern contemporary pier!!!.

[yellerkat]

I had predicted Landlords would be selling up this spring to cash in and bail out. I was wrong...

Barely spring now is it? In fact our little rain-shower earlier on today was described as the biggest storm this winter.

[AC2]

In reality life in Brighton is for Dullards, Pink Rinses and Zimmer Frames.

Hmm. I think your geographic compass may be out by a few miles to the East.

I'll be leaving B&H later this year, but I've had more fun here than at any other time & place in my life. I don't doubt it'll be tw@tted in the downturn, and the London spillover effect has spoiled things to an extent, but it's by far the most entertaining place I've lived in in the UK.

[Harry Sacks]

what do you mean, pent up rental demand all of a sudden, i want to buy but not at these prices, going to see a 1100 rental tomorrow hopefully, good rentals round my way go within a day apparently, i need to move fast.

What do I mean? It was difficult to get a decent place at a reasonable rent. Going through the classified on the day they came out to be told "it's gone" over and over. Standing in a queue outside a flat to view it. Yeah, stuff like that.

Plenty of slums though. A mate of mine rented a room in Finsbury Park in '92. The room itself was a toilet that had the toilet removed. The door would open half way before it hit the bed. He had to climb over the bed to get in! £50 a week!

The room below him was bigger but had five sharing!

[Wayo]

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.

If the anecdotals are true, then CPI / RPI will be propelled into the stratosphere.

Looking at 2004 weights on CPI, electricity, gas and other fuels were 26/1000, fuel / oil for vehicles was 26/1000, while rents were 48/1000, only just above alcohol at 46/1000. So for every £1 spent on rent, we spend £1 on alcohol, 55p on electric/gas, 55p on petrol and about £2 on food. If the budget speculation is to believed, we might have the full set in hyper inflation mode.

There should still be plenty of city centre pads left to sit the crash from. Just don't buy one!

[laurejon]

Hmm. I think your geographic compass may be out by a few miles to the East.

I'll be leaving B&H later this year, but I've had more fun here than at any other time & place in my life. I don't doubt it'll be tw@tted in the downturn, and the London spillover effect has spoiled things to an extent, but it's by far the most entertaining place I've lived in in the UK.

Well if you are the type of person that considers eating an After 8 mint at 7:30 as living life on the edge, then I suppose Brighton is the place.

I find the place dull, the Churchill Shopping Centre is full of Chavs, the Boutiques in the lanes are dated, and the nightlife is very Student Budget orientated. Three lines in the Funky Budha and a grope on the Beach is not living the life for me.

[southsea13]

Well Brighton is a dump, and it only took off in recent years due to clever marketing and publicity. In reality life in Brighton is for Dullards, Pink Rinses and Zimmer Frames.

Last downturn you could not give a flat away in Brighton, the place was full of HIV infected Druggies and a night out was composed of Bingo or sitting in a police cell.

Sounds like my kind of place

[laurejon]

Sounds like my kind of place

Your are joking ?

Tiger Tiger, Liquid, Southsea Wine Vaults, mate you have arrived

[0q0]

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.

PM me if you want examples of these rises. As yet the 850pcm hasn't shifted, but who knows.

Here's a LINKY, courtesy Google News. And another one, rather more to my taste: Your Move axes branches as housing slowdown hits.

Ta.

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.

Not a good 'interesting'.

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

Hmm, I don't recall, but will take your word for it.

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.

Wish I could say that.

I would imagine that right about now there are a lot of BTL's that have realized that the spring bounce isn't going to happen, and are trying to raise rents to cover higher mortgage payments.

as someone else said, a few months of voids will sort everything out.

the prognostications of a BTL rag aren't the best source of legitimate opinion on future rents I would think.

also, it isn't that unusual to see fairly big jumps in rents in an individual place.

many LLs don't raise their rents with inflation every year, but take big whacks every 5 or so.

until you see it over broad areas, like HPI was, I wouldn't put too much into it.

No voids - things snapped up within 7 days here. The chancers now on the increased rents, well they're taking longer but I fear are leading the way up at the moment wo price rises. Definite rises, definite shortages where I am looking, no doubt about it. Agents don't even want my name, they don't even keep tenants' registers or mailing lists etc, they're barely interested in tenants as we're 10 a penny it seems. Not one has ever called me and asked if I want to rent anything that's 'just come in' etc etc. Back in 05, they used to contact me, not any more.

Things ain't looking good where I am (N London/Herts).

[thedebtisreal]

Wish I could say that.

Very sorry to hear that. I was hoping rents would stay down as the crash happened. Perhaps I was wrong.

[AC2]

I find the place dull, the Churchill Shopping Centre is full of Chavs, the Boutiques in the lanes are dated, and the nightlife is very Student Budget orientated. Three lines in the Funky Budha and a grope on the Beach is not living the life for me.

None of those would be on my list, either. I've been in the Chavhill Centre twice in four years, both times dragged there under protest by 'er indoors.

The edgier side of B&H has been fun, but as I said, Londonisation has spoiled a lot of it. For that reason I won't miss the place when I leave, but I will miss a lot of friends made over the past few years.

When did you live here? Sounds like you had a particularly bad time.

[laurejon]

Market forces will push the price of rents upward into a huge inflationary spriral.

People will begin to accept that for the same price of a house or flat to themselves, they will now have to share, that they will not get the location for the money they did last year, that the terms of the lease will fall more in favour of the Landlord, that Service Charges will increase also.

We have a projected 10million new arrivals coming over the next decade from Eastern Europe alone, we have an increasing population as many of the new arrivals start families, unlike their British Counterparts, and they have large families, having 6 children is seen as quite normal in some cultures.

I think the market will reach and equilibrium, with house prices reducing, interest rates rising, and rents rising along with wages and goods.

[southsea13]

Your are joking ?

Tiger Tiger, Liquid, Southsea Wine Vaults, mate you have arrived

Hmmm....maybe I`m showing my age (38), but these places do not appeal to me at all.

Yes, the gash may be plentiful but after paying all the money for getting in, buying drinks plus the omnipresent fear of being accused of rape later on, you might as well go to Amsterdam and hook up with a hooker (as a customer you can the ho` to do exactly what you demand ). Much better than getting off with some ropey old slapper and a head full of regret the next day as Craig David would say! (Also, there is no guarantee of a shag if you end up with a pr1ck teaser!) Trust me, the whores in Amsterdam look quite tidy!

Please excuse the blatant sexism and misogynistic overtones in this post

[Injin]

Market forces will push the price of rents upward into a huge inflationary spriral.

People will begin to accept that for the same price of a house or flat to themselves, they will now have to share, that they will not get the location for the money they did last year, that the terms of the lease will fall more in favour of the Landlord, that Service Charges will increase also.

We have a projected 10million new arrivals coming over the next decade from Eastern Europe alone, we have an increasing population as many of the new arrivals start families, unlike their British Counterparts, and they have large families, having 6 children is seen as quite normal in some cultures.

I think the market will reach and equilibrium, with house prices reducing, interest rates rising, and rents rising along with wages and goods.

People have to live somwhere. How far up do you think rents will go before en masse squatting happens?

If folks cannot afford mortgages without borrowing, rents must be lower than that. Next thing is that there are and will be increasing amounts of people with houses looking to rent out rooms in order to keep the wolf from the door. Food and fuel are going up. Getting to work and eating come before paying ursury payments and rent.

Rents, mortgages and property prices are all going to go into freefall, hit a bottom and stay there for 5 years or so.

That's assuming there are any mortgages, full on banking collapse is on the cards and who knows what that will do to debt. Can't owe an institution that ceased to exist, can you?

Rents - down.

Mortgages - down.

Property prices - down.

[laurejon]

None of those would be on my list, either. I've been in the Chavhill Centre twice in four years, both times dragged there under protest by 'er indoors.

The edgier side of B&H has been fun, but as I said, Londonisation has spoiled a lot of it. For that reason I won't miss the place when I leave, but I will miss a lot of friends made over the past few years.

When did you live here? Sounds like you had a particularly bad time.

I will be popping over to Brighton this week for a bit of shopping, but usually steer clear of the Churchill Centre, I usually get a good parking space at the top of the North Lanes and walk down to the Centre of Town.

I have never lived there, but spent a lot of time there as the train journey is only 20mins from where I live so not bad for a night out. Portsmouth is good for a night out, but again a bit Chavy if you are foolish enough to get the train home.

Its not all bad, but its good to paint a black picture to add to the ambience of this forum

London is my favourite place, having lived there for many years in Knightsbridge and Bayswater, and Chelsea, I hasten to add my company paid the rent.

Edited March 10, 2008 by laurejon