Jump to content
House Price Crash Forum
crash2006

Next Move Caused By This Credit Crunch Is Rent Drops

Recommended Posts

The next stage will be rent drops aug/sep will be the start, landlords dropping rents to get their stock rented, this will be the final nail in the coffin for a large amount of BTLers who will want to escape the market and reduce their selling price.

People are already cutting back not because of choice because of force, up to their neck in debt keeping it quiet. It really amazes me that I keep finding out new recruits to the debt phenomenon, people that I thought/looked like they weren’t in trouble, sinking their heads into the sand hoping it will go away. i think iam the only one with no debt out of my friends shocking.

Share this post


Link to post
Share on other sites

i know now of a couple of renting friends who before didnt worry about the high cost, now feeling the pinch.

the talk is of rents down or finding cheaper places. pockets rule the head today. not lifestyle ambitions.

landlords - poop pants now;l

just think too how many landlords mortgage costs are aboot to rise.

how man. savings oot.

Share this post


Link to post
Share on other sites
The next stage will be rent drops aug/sep will be the start, landlords dropping rents to get their stock rented, this will be the final nail in the coffin for a large amount of BTLers who will want to escape the market and reduce their selling price.

People are already cutting back not because of choice because of force, up to their neck in debt keeping it quiet. It really amazes me that I keep finding out new recruits to the debt phenomenon, people that I thought/looked like they weren’t in trouble, sinking their heads into the sand hoping it will go away. i think iam the only one with no debt out of my friends shocking.

I agree, but there is a lot of spin around at the moment about rental demand and rents increasing by xx% due to this demand and I think this will have some impact on the expectations of the average renter when a rent rise is suggested by their Landlord. Plus with RPI increases, I'm sure there are automatic rent increases that will just get passed on based on those figures.

AFP

Share this post


Link to post
Share on other sites

I think that with the gumment running out of monies, the rents paid by LAs are going to get squeezed. The floor is going to drop away from rents. That should reduce the financial pressure on a lot of voters.

Share this post


Link to post
Share on other sites
I agree, but there is a lot of spin around at the moment about rental demand and rents increasing by xx% due to this demand and I think this will have some impact on the expectations of the average renter when a rent rise is suggested by their Landlord. Plus with RPI increases, I'm sure there are automatic rent increases that will just get passed on based on those figures.

AFP

My rent is staying the same for the next 12 months, I think my LL realises he is better off having a tenant but not getting as much yield than having no tenant for the sake of an extra £50pcm, which would be wiped out by a single void month. There is other stuff just as cheap in the area, though we have the advantage of having a garden, but i'd still be prepared to move somewhere without a garden if he tried to hike the price.

Share this post


Link to post
Share on other sites

I knocked my LL down from 700 to 650 pcm 3.5 years ago and not heard a peep since, despite him living next door. O except when I wanted a new bathroom fitted and when stuff goes wrong ;)

Share this post


Link to post
Share on other sites

We are moving to a newly-decorated 2 bed with garden on the same road as our current 1 bed with half-size garden in South East London. Rent at current place is £1100pcm and we will be paying £1250pcm on the new place.

Funnily enough our current landlord has just put the flat on the market for £1250pcm (13% increase anyone?) despite having less square footage, half the garden, and needing cosmetic work.

There have been six viewings yet but no offers as far as I know. Probably because he insists on calling it a 2 bedroom (living room is apparently a bedroom)! :lol:

Share this post


Link to post
Share on other sites

We haven't altered our rents for ages.

In general, we tend to charge what is generally seen as a "cheap" rate for a given area and size of place.

This means that once tenants are in, they will tend to stay for ages.

We have several big flats in London where the same tenants have been renting on the same rent for 6 years+.

When I say the "same" - what tends to happen in a 4 bed flat of young professionals is that one person leaves and the remaining tenants find a new housemate, and so it goes on for years. Rather like the guy who tells his friends he has had a broom for 25 years. "Mind, its had 3 new handles and 4 new heads in that time!".

I don't see rent changing much, up or down. Rents did not really follow house prices up, and I don't think they will follow them down to any degree.

If landlords charge the max they can, they may find tenants, but those tenants will know they are being ripped off and won't stay longer than the six month term. If they are not greedy and charge a cheaper price, they will win in the long run, because they won't have repeated voids and letting fees etc every six months or so.

It works for us.

Share this post


Link to post
Share on other sites
If landlords charge the max they can, they may find tenants, but those tenants will know they are being ripped off and won't stay longer than the six month term. If they are not greedy and charge a cheaper price, they will win in the long run, because they won't have repeated voids and letting fees etc every six months or so.

It works for us.

I totally agree with you, and as a tenant its obvious the difference between profiteering and decent landlords. The decent ones realise it doesn't take that much compromise to keep the tenant happy, and that its in their own interests. I've had two good landlords on the trot now, after 2 awful ones. I'm always much likely to stay longer when I feel the deal is reasonable.

If they're not squeezing every last penny out of you, you can have respect for them. A tenant that respects you is what I imagine makes the life of a landlord easier.

Edited by Fraccy

Share this post


Link to post
Share on other sites

It's good to see posts confirming that rents are not rising as the media and spin doctors would have us believe. Unfortunately I suspect that there are lots of people out there who simply believe everything they are told and are thinking "oh, well if rents are going up like the BBC says they are, I suppose we'll have to accept the fact". WRONG. How can rents possibly be going up (assuming a free market) if there are hundreds of thousands of desperate sellers who as a last resort put their ailing properties up for rent? The market is flooded with the damn things. How can rents go up in these circumstances? Codswollop.

VP

Share this post


Link to post
Share on other sites

20% rent price crash possible.

more people sharing homes

people living at home with parents longer as there is no need to buy before prices go up even more...

more rooms to rent

more dense living (that 2 bed flat with 2 people in it will now have a 3rd one using the living room as a bedroom.

Share this post


Link to post
Share on other sites

Well I dont have a crystal ball but my view is that there will be huge resistance to prices dropping. And I think it would take an awful lot for me to move back in with my parents :ph34r:

I noticed today a few flats have come onto the market with asking rents considerably higher than the average. By far and away the majority of new build 2 beds are about £750 - £900. There are still plenty on at this, but today I saw lots of new ones for £1000 - £950.

If I was a conspiracy theorist I'd suspect the agents had colluded to test the market a little....

Share this post


Link to post
Share on other sites

Think your right but it will depend on how long they can hold - every month lost is an 8% drop in their annual income. When they have lost 32% will they be holding out or shutting down?

Share this post


Link to post
Share on other sites

What do you mean next move? Everyone I spk to - Landlord or tenant says rents have crashed.

Before I started reading this site and asking questions, I actually beleived what I saw on the news and read in the papers - that seems such an alien concept to me now!

EDIT: The other day I was updating my propertybee database when I came accross a load of rentals I must have scanned by accident about 3 months ago - just 1 rightmove page, but all still un rented and nearly all 20% off!

Edited by sbn

Share this post


Link to post
Share on other sites

My landlord has charged me the same rent, £395, for the last four years. He's not even mentioned putting it up. I've never met him, he lives 100 odd miles away, but owns quite a few properties, a professional landlord I think. So I have been suprised he's never tried to raise the rent. Mind you I am a good tenant.

Share this post


Link to post
Share on other sites
What do you mean next move? Everyone I spk to - Landlord or tenant says rents have crashed.

Before I started reading this site and asking questions, I actually beleived what I saw on the news and read in the papers - that seems such an alien concept to me now!

EDIT: The other day I was updating my propertybee database when I came accross a load of rentals I must have scanned by accident about 3 months ago - just 1 rightmove page, but all still un rented and nearly all 20% off!

Do you have any links for these properties? I'd expect to see Leeds new build flats crash first and they havent....

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.