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VacantPossession

Financial Planner Request

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FP: I know you are doing a stirling job at various media interviews on the crash. A request please: Would it be possible, next time you have the opportunity, to nip in the bud the current ridiculous hyping up of rents among broadcasters and VIs? It is beginning to get quite absurd. There is no evidence whatsoever that rental prices are rising, and a great deal of evidence to suggest they should be moving the opposite way. Where rents are genuinely claimed to be "going up", in fact it is the OFFER to rent price which has been unrealistically set but again, evidence suggests there is a growing over-supply and the ACTUAL rents agreed are highly likely, if anything, to be LOWER than what is current in a given area.

Thanks so much.

VP

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Anecdotally, my own experience is that rents are at best static or fallen since FIVE YEARS in East herts. However, there is at least one poster in N London / S Herts who says rents are rising.

You prove rents are falling and I'll do my best.

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Anecdotally, my own experience is that rents are at best static or fallen since FIVE YEARS in East herts. However, there is at least one poster in N London / S Herts who says rents are rising.

You prove rents are falling and I'll do my best.

That's me, I've already been on Newsnight but Jez Paxman said he's not having me back on again until I apologise for making him cry and lay black and white flooring in my vestibule. "Frankly," he said, still drying his tears, "until you get a smart lino down like the real expert has, I don't want you back on the show."

Edited by The Last Bear

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Whatever change there is in rentals, I can't see it going up or down by a significant amount anytime soon.

House prices are the real story.

Edited by DementedTuna

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Even if rents are going up. It would seem to me that its indicative of landlords trying to improve their yield to cope with rising mortgage rates, and/or because their LTV ratios are getting close to breaking the terms of their BTL loans.

I don't think its due to a huge surge in demand for rented accomodation. Everywhere I go I see mostly empty 'studio' flats. Thousands of em! No curtains or blinds, and no lights on etc. Tennents aren't lacking in choice. There's a huge supply of places out there.

Edited by Khayl

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Studio

£365 PCM in 2004

£395 PCM in 2008

Yup rents are going parabolic.

Geesh! Leave the rental thing to the professionals why don't you?

1 newbuild near a city centre. There are now loads of vacant properties and two Polish couples have moved out within the last two months. A sign of the times...and much worse to come, with subsequent lowering of rents.

This was 450 last year, now 395 for the last 4 months, and still vacant..over 12% decrease.

http://www.rightmove.co.uk/viewdetails-170...1&tr_t=rent

This was 475, now 425....still vacant

http://www.rightmove.co.uk/viewdetails-172...1&tr_t=rent

Of course, these guys are dreaming and will be repossessed shortly :lol:

http://www.rightmove.co.uk/viewdetails-496...2&tr_t=rent

Did I say 'professional'? Ooops. Sad thing is the normal financial system will be toast thanks to pillocks like this.

But hey, at least the UK will be able to feed its population as we have an agricultural base, don't we? Oh ****!

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The recent ARLA report showed rents not rising

Why not have a poll of renters on HPC. Options could be % rise or fall over the last 12 months (for me the rent of £850pm for a 3 bed det has not changed despite the AST allowing for RPI increase. A poll would at least move us along the line from anecdotal towards valid sample.

I agree with the OP though. This issue is where property bulls have dug into their new defensive positions in order to hold the line on the supply/demand argument

Y

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The London Evening Standard was "rent ramping" today. Strangely contradictory piece saying rents were rocketing in London apparently, yet there was lots of supply caused by owners being unable to sell. It was almost as if they had cut and paste two contradictory press releases togethor. Do journalists still go to reporter school these days?

I cycled round parts of the Isle of Dogs the other day near Marsh Wall and the Pan Peninsular development. I was looking at some of the smaller developments shoe horned in and thought they looked occupied. Accept they are not. All identical beige coloured sofa's and Ikea flatpack furnishings still waiting for quite rich (banking) professionals to move in. I don't think will ever come now, yet this sit on the market at unrealistic rents.

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"Motivated Landlords" theres your next sound bite :)

During a market of rapidly increasing house prices, capital gains were so vast that many landlords were quiet happy to have accommodation sitting emtpy. The gains on paper outweighed any costs in reality. Now the market has turned the empty properties are no longer an investment based on capital gains but a return to the fundamentals of being a landlord, and that is all about the yield.

Of course this explains several recent phenomenae. A supposed shortage of housing is in fact evident in hundreds of thousands of vacant properties in recent years. Purely being used as an investment vehicle. In reverse you are still investing in a rapidly shrinking capital vehicle. The best way to offset that is find someone else to make the investment for you or cash out and actualise the paper gains.

Cashing out is long gone. Buyers have dried up in no time at all. Another victim of the credit crunch with no end to the problems in sight and any kind of solution even further on the horizon.

So now you need to find a tenant. Now you find every other Tom, Dick and Harry that was also sitting on an empty property is trying to do the same thing. What happens? Market economics kicks in. 'Motivated' Landlords need to get punters through the door as quick as possible and the best way to do that is make the rental attractive compared to others in the area. So time to drop those rents.

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Is there any reliable source of data to confirm rental trends or are we dependent entirely upon anecdotal evidence?

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Moonlady take a serious look around. We have already found 13 similar properties in our area at up to 5% less than our current rent.

Compile the details. Send to your landlord and point out that you are quiet happy to move on but would rather stay in place and pay the same rent this year.

He might be very stupid and call you bluff, but in the end you have to offset what it costs you in time, effort and money against what that 4.8% increase is going to cost you all year.

One month with no tenant is a more than 8% void over a year, and when pointed out to most landlords they are quiet happy to stick with the status quo.

Even better if you can find a cheaper property on the market thats been a sticker for a couple of months so the landlord knows what they are in for.

and the best policy.... tell the Landlord straight up that you cant afford it and will have to move.

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http://www.rentright.co.uk/rrpi.aspx

according to rentright it'z dropping

click on studio's :lol: ooofh.

can't see that as a massively legit site atm though - it looks shoddy and new and i imagine there isn't a great deal of data feeding it. i'd say it needs users to be able to post rent changes into the database somehow, but that's open to abuse, so unfortunately the only option would be EA input :(

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Lots of 'To Let' signs appearing everywhere and once up, they seem to stay up, on the whole.

PropertyBee is reporting quite a lot of significant (>10%) reductions... the only one I've noticed being snapped up had the asking price reduced by 40%.

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My Landlord wants to increase my rent by 4.8 % in Ashford Middlesex

Will probably go with it but not very happy!

ML :(

A couple of months ago my landlord (well letting agent) wrote to me saying he was increasing the rent by a similar amount. I replied saying I wasn't willing to pay any more than the current rent and asked if he wanted to reconsider - I never heard back and am still paying the same as I was when I moved in 18 months ago ;) So my advice would be to say no or at least negotiate, tell him the Chancellor is urging restraint in sticking to the 2% target so inflation doesn't get out of control :rolleyes:

Looking at Property Bee, rental prices around me (South Yorks) are falling.

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  • 396 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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