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Dave Spart

Builders Renting : Thethreat To Btl.

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There have been quite a number of reports recently saying that things like the shortage of mortgages and high inflation are good news for BTLers.

I'm yet to see acknowledgement that with builders now turning in droves to renting their new builds, BTLers face as much a threat as the aforementioned presents opportunity.

While we're on this topic I'm a tad surprised the Govt (the builders' best friend) haven't decided to rent unsold properties and use them as Armed Forces accomodation.

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There have been quite a number of reports recently saying that things like the shortage of mortgages and high inflation are good news for BTLers.

I'm yet to see acknowledgement that with builders now turning in droves to renting their new builds, BTLers face as much a threat as the aforementioned presents opportunity.

While we're on this topic I'm a tad surprised the Govt (the builders' best friend) haven't decided to rent unsold properties and use them as Armed Forces accommodation.

This type of response has occurred across the price range. As well as you standard homes and flats, I have seen homes marketed at £1m-£2.5m being put up for rent. Funnily enough at £5000 plus a month there don't seem to be many takers. Rents in this part of the market are definitely falling, its not just the new build or refurbs, but also people who can't sell their own home trying to take this approach. Again usually without success. To be honest I just don't think there is a big market for rents over £2500 per month - its a tiny market and has suddenly been flooded with properties for rent.

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If the Rent 'em out, they wont be new anymore when they move to Sell them

I guess they could refit them afterwards, if they are still in business.

Actually that is another point - would you want to rent from a builder at the moment? Probably three times as likely to go bankrupt as a normal BTLer.

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I think its pure desperation, renting out a new build because they can't sell it for the price they want. Also, given its no longer brand new, having had a tenant in for 6 months would cause more loss in depreciation i.e. for no longer being brand new, than the actual rent for the 6 months. Madness

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There have been quite a number of reports recently saying that things like the shortage of mortgages and high inflation are good news for BTLers.

I'm yet to see acknowledgement that with builders now turning in droves to renting their new builds, BTLers face as much a threat as the aforementioned presents opportunity.

While we're on this topic I'm a tad surprised the Govt (the builders' best friend) haven't decided to rent unsold properties and use them as Armed Forces accomodation.

you also have the trouble that rents have been weak for years, not being enough to cover a new mortgage.

so many of the people involved can't affor to rent them out since it wouldn't cover the bills anyway, and as others have said it would just devalue the house by making it used.

seeing as rents aren't that likely to strengthen any time soon since there have been so many new properties put on the market, I wouldn't expect renting to help of the BTL'ers out of their problems.

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This is all going to lead to an oversupply of rental property, eventually desperate landlords competing with each other will have to lower rents. Faced with the fact that they can no longer afford to keep paying the topups to the mortgage company that the rents don't cover there will be a flood of BTL properties selling onto the market.

Carnage!

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I am renting from a builder at the mo. The flat is spotless and lovely. Only downside is that it's almost impossible to keep it that way, and any marks/damage is well easy to spot.

It's on the market for 205K, I'm paying 675pcm. Recently they wrote to me offering 20% off the asking price as a goodwill offer if I wanted to take it off their hands.

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If the Rent 'em out, they wont be new anymore when they move to Sell them

They're not like cars though are they?! Never had a brand new house - do they really have "showroom value" which is gone on day 2? :blink: I wouldn't pay it...

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They certainly are more saleable brand new and have an attached premium. Relating houses to cars, would you pay the same for a 6 month old car which has been driven up the M1 everyday by a chain smoking sales rep as a brand new car?

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It's on the market for 205K, I'm paying 675pcm. Recently they wrote to me offering 20% off the asking price as a goodwill offer if I wanted to take it off their hands.

:lol:

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If the Rent 'em out, they wont be new anymore when they move to Sell them

I can remember when it was thought new developments were cheaper because you had to put up with the mess & noise.

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There have been quite a number of reports recently saying that things like the shortage of mortgages and high inflation are good news for BTLers.

Pretty much every possible scenario from here on in is good news for BTLers

According to them anyway

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  • 399 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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