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Have A Laugh In Hampton

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So our current rental property has a landlord that really is a bit slow on the uptake for getting stuff fixed. Given that hes in breach of contract we now have a get out clause to end the tenancy early. So now we are looking around at rentals in the area.

My word.... so many houses that were up for sale most of this year are now up for rent. But heres the kicker, we are seeing hundreds coming off of rental prices and even the lettings agents are telling us to put in a substantially cheeky offer to rent the property.

One nice 4 bed that was daft at £1600 per month has dropped to £1400, £1350 and is now considering offers around the £1250 mark. Its been empty now for a year!!!!!!!!! omg!

Way to lose money lol depreciating asset and paying the mortgage.

Not going to move until I can secure a quiet ridiculous discount on a rental agreement for 12 months and find a nice 4 bed with a "distressed" landlord :)

Rent increases... I think not around here. Landlords are feeling the pinch.

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Many forced renters in my neck of the woods (Reigate/Redhill), alot of 4 bed houses - used to be looking at around £2000 plus per month, now down to £1600 and falling. The house we currently rent was marketed at £1800, we pay £1600.

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i am just down the road from hampton in twickenham and the rents here have gone up by about 15% 1 and 2 bed places anyway, 3/4 bed houses have not changed that much i still see them on at the same prices they were at 2 years ago.....strange times

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So our current rental property has a landlord that really is a bit slow on the uptake for getting stuff fixed. Given that hes in breach of contract we now have a get out clause to end the tenancy early. So now we are looking around at rentals in the area.

My word.... so many houses that were up for sale most of this year are now up for rent. But heres the kicker, we are seeing hundreds coming off of rental prices and even the lettings agents are telling us to put in a substantially cheeky offer to rent the property.

One nice 4 bed that was daft at £1600 per month has dropped to £1400, £1350 and is now considering offers around the £1250 mark. Its been empty now for a year!!!!!!!!! omg!

Way to lose money lol depreciating asset and paying the mortgage.

Not going to move until I can secure a quiet ridiculous discount on a rental agreement for 12 months and find a nice 4 bed with a "distressed" landlord :)

Rent increases... I think not around here. Landlords are feeling the pinch.

It is getting more and more difficult, especially for the less well maintained places, which most LL can ill afford to do anything about with margins shrinking.

You would be surprised how many are also too stupid to stay in contract. The common one at the moment is failure to ACTUALLY register your deposit with a protection agency. Most give details and actually don't register ;) this prevents them serving section 21 AND can leave them liable to 3 x Deposit to the tenants plus having to register the deposit or return it to the tenants. The biggest clue is if you did not get a reference code and certificate to sign from the LL or agency within two weeks of moving in.

If you signed since April 6th 2007 and have not got a registration code or certificate for your deposit check with the agencies: Direct.gov to see if you are registered. I bet many are not. In these difficult times it is VERY important to make sure it is registered as if the LL or agency goes bust you could lose your money if it is not.

EDIT: Corrected date from which tenancy deposit scheme came into effect

Edited by Bubble&Squeak

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It is getting more and more difficult, especially for the less well maintained places, which most LL can ill afford to do anything about with margins shrinking.

You would be surprised how many are also too stupid to stay in contract. The common one at the moment is failure to ACTUALLY register your deposit with a protection agency. Most give details and actually don't register ;) this prevents them serving section 21 AND can leave them liable to 3 x Deposit to the tenants plus having to register the deposit or return it to the tenants. The biggest clue is if you did not get a reference code and certificate to sign from the LL or agency within two weeks of moving in.

If you signed since April 4th 2007 and have not got a registration code or certificate for your deposit check with the agencies: Direct.gov to see if you are registered. I bet many are not. In these difficult times it is VERY important to make sure it is registered as if the LL or agency goes bust you could lose your money if it is not.

Hi B&S,

Thanks for the reminder about the Tenants' Deposits Scheme - does this also apply to lodgers? I've had a quick look but can't see anything specifically about if you share a house with the propery owner?

Cheers

M21er

Edit: Spelling

Edited by M21er

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GAWD I must be really out of touch. Those rents are more than take home salaries for most people, in my mind anyway. If I was keeping a family going in some of those rentals, I would be freaking broke. I am in the ME getting what I thought was a good tax-free salary. NO way could I pay those rents. Are they unfurnished too or what? Sheesh the streets must be truly paved with the yellow stuff down Sowf! :o

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Hi B&S,

Thanks for the reminder about the Tenants' Deposits Scheme - does this also apply to lodgers? I've had a quick look but can't see anything specifically about if you share a house with the propery owner?

Chers

M21er

Edit: Spelling

Hi M21er, if you have signed an AST the deposit (if there is one) MUST be registered with a deposit agency

EDIT: To add Housing Act 2004 Chapter 4

Section 213 relates to requirements

Section 214 & 215 relates to what can happen if the LL/Agency doesn't comply with HA2004

Edited by Bubble&Squeak

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So our current rental property has a landlord that really is a bit slow on the uptake for getting stuff fixed. Given that hes in breach of contract we now have a get out clause to end the tenancy early. So now we are looking around at rentals in the area.

My word.... so many houses that were up for sale most of this year are now up for rent. But heres the kicker, we are seeing hundreds coming off of rental prices and even the lettings agents are telling us to put in a substantially cheeky offer to rent the property.

One nice 4 bed that was daft at £1600 per month has dropped to £1400, £1350 and is now considering offers around the £1250 mark. Its been empty now for a year!!!!!!!!! omg!

Way to lose money lol depreciating asset and paying the mortgage.

Not going to move until I can secure a quiet ridiculous discount on a rental agreement for 12 months and find a nice 4 bed with a "distressed" landlord :)

Rent increases... I think not around here. Landlords are feeling the pinch.

good for you,,swings and roundabouts good luck. if your landlord is reading your post... :o:lol:

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So our current rental property has a landlord that really is a bit slow on the uptake for getting stuff fixed. Given that hes in breach of contract we now have a get out clause to end the tenancy early. So now we are looking around at rentals in the area.

My word.... so many houses that were up for sale most of this year are now up for rent. But heres the kicker, we are seeing hundreds coming off of rental prices and even the lettings agents are telling us to put in a substantially cheeky offer to rent the property.

One nice 4 bed that was daft at £1600 per month has dropped to £1400, £1350 and is now considering offers around the £1250 mark. Its been empty now for a year!!!!!!!!! omg!

Way to lose money lol depreciating asset and paying the mortgage.

Not going to move until I can secure a quiet ridiculous discount on a rental agreement for 12 months and find a nice 4 bed with a "distressed" landlord :)

Rent increases... I think not around here. Landlords are feeling the pinch.

Renters and sellers will be chasing prices down in 2009 ;)

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GAWD I must be really out of touch. Those rents are more than take home salaries for most people, in my mind anyway. If I was keeping a family going in some of those rentals, I would be freaking broke. I am in the ME getting what I thought was a good tax-free salary. NO way could I pay those rents. Are they unfurnished too or what? Sheesh the streets must be truly paved with the yellow stuff down Sowf! :o

thats the price in these parts get over it.... :lol:

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thats the price in these parts get over it.... :lol:

if your on slave wages, well you can for get it around here.....too rent a place. :lol:

Edited by BXLONDONMAN

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So our current rental property has a landlord that really is a bit slow on the uptake for getting stuff fixed. Given that hes in breach of contract we now have a get out clause to end the tenancy early. So now we are looking around at rentals in the area.

My word.... so many houses that were up for sale most of this year are now up for rent. But heres the kicker, we are seeing hundreds coming off of rental prices and even the lettings agents are telling us to put in a substantially cheeky offer to rent the property.

One nice 4 bed that was daft at £1600 per month has dropped to £1400, £1350 and is now considering offers around the £1250 mark. Its been empty now for a year!!!!!!!!! omg!

Way to lose money lol depreciating asset and paying the mortgage.

Not going to move until I can secure a quiet ridiculous discount on a rental agreement for 12 months and find a nice 4 bed with a "distressed" landlord :)

Rent increases... I think not around here. Landlords are feeling the pinch.

I have two friends who have both become unwilling landlords in the last few months...one tried to sell and couldn't (moved into a property she inherited), the other couldn't afford to sell due to negative equity but followed the dream of a career change (moved into rented accomodation up North).

At first they expected as landlords they would be making a profit..... but boy did they change their tune when they did the sums with respect to EA fees, insurances, notification to mortage lenders about change of use etc but all that was a nothing to the battle to find a tennant...any tennant - so I am not surprised that LLs are chasing the market down.

Squeeze

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Well, if you are daft enough to pay it... they will charge it. Obviously YOU have got more money than sense, with that attitude. :lol:

I'd love to haggle them down to £600 a month but sadly that just about rents a one bedroom flat in a dodgy area around here.

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Inspired by this thread I went and checked out Forest Hill and Honor Oak on findaproperty. When I looked before a three bed house with decent sized garden was a minimum of 1300 pounds a month a short while back. (There was one at that price the rest dearer) Now there is a glut of them for 1000/1100 with one screaming "Offers welcome". Ha, bet they wouldn't "welcome" my offer.

This crash is great!

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Hi M21er, if you have signed an AST the deposit (if there is one) MUST be registered with a deposit agency

EDIT: To add Housing Act 2004 Chapter 4

Section 213 relates to requirements

Section 214 & 215 relates to what can happen if the LL/Agency doesn't comply with HA2004

Hi

Something to bear in mind when I'm looking for a room next time I'm working in London - I didn't realise it could affect lodgers

Thanks for the info Edit: and the Housing Act link

M21er

Edited by M21er

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I pay £350 a month for a room in a two bed flat in zone 6 - (South East London/Kent) on a high street walking distance to station. Its Crayford so not a great place but certainly not the worse place to live in and around London.

35 mins to get to work in London Bridge by train. £130 a month ticket

I decided against paying stupid rental prices in London.

I'm saving over £1k a month which is going towards buying a house in 2 years time.

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Not with Base rate heading to 0%. Should be win-win for everyone (as long as the landlord doesn't have to think about the price of his asset in the short to medium term).

Mortgage rates on BTL will never get anywhere even remotely near 0% I can assure you :)

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Not with Base rate heading to 0%. Should be win-win for everyone (as long as the landlord doesn't have to think about the price of his asset in the short to medium term).

Nope. If the banks have to lend at low rates, they'll go bust again and need more taxpayer bailouts. So we all lose.

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GAWD I must be really out of touch. Those rents are more than take home salaries for most people, in my mind anyway.

Same here - in the southwest. Rightmove shows huge numbers of 2 and 3 bed houses at a £595/month price point, down from £650 in the spring. A flat above that is getting towards the luxury end (or ludicrously overpriced), and houses start getting very nice by £800.

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Mortgage rates on BTL will never get anywhere even remotely near 0% I can assure you :)

Oh yes they will - I'm on a BTL tracker at base rate + 0.5%, with no collar!

My mortgage interest has dropped by over a third in recent weeks. I don't mind cutting my rent to attract tenants in such circumstances: I can afford to, and it's win-win for both tenant and landlord. I haven't seen 125% rental coverage for mortgage since about 2003, so buy-to-let is suddenly becoming worthwhile again on income grounds: it's great!

Yes, my capital is being destroyed by the drop in house prices, but it's no matter - easy come, easy go. I'll just keep dropping my rent until I find a tenant, who will continue to pay my mortgage until the upturn. Some people on this site will claim I'm "stopping" a FTB from buying a house because I own it, but FTB's can't get mortgages nowadays anyway, and I consider I'm performing a social service by providing housing for four people in a houseshare rather than one FTB owner-occupier.

House price falls are great news for landlords too, provided they have cash: I'll be looking to snap up some bargains next year and expand my portfolio.

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Oh yes they will - I'm on a BTL tracker at base rate + 0.5%, with no collar!

My mortgage interest has dropped by over a third in recent weeks. I don't mind cutting my rent to attract tenants in such circumstances: I can afford to, and it's win-win for both tenant and landlord. I haven't seen 125% rental coverage for mortgage since about 2003, so buy-to-let is suddenly becoming worthwhile again on income grounds: it's great!

Yes, my capital is being destroyed by the drop in house prices, but it's no matter - easy come, easy go. I'll just keep dropping my rent until I find a tenant, who will continue to pay my mortgage until the upturn. Some people on this site will claim I'm "stopping" a FTB from buying a house because I own it, but FTB's can't get mortgages nowadays anyway, and I consider I'm performing a social service by providing housing for four people in a houseshare rather than one FTB owner-occupier.

House price falls are great news for landlords too, provided they have cash: I'll be looking to snap up some bargains next year and expand my portfolio.

You've got it in one my son.

Only thing is if rents drop significantly then it won't be so tempting to buy, thus contributing to lowering prices.

Also forced btlers will make a profit of rental income over tracker mortgage costs, thus making it tempting to buy another so making hpi.

Its the savers that are getting screwed

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The seasoned BTL investors know what they are doing. Most of them did not buy big expensive properties or expensive brand new flats off plan, they bought sensibly priced 2 & 3 bedroom semis or terraced houses. These tend to offer a good rental return to mortgage ratio maximising the margin.

These properties also appeal to the widest sector of possible tenants. Small families with one or two children, young professional couples, or work colleagues sharing etc. Basically bread & butter accommodation. Basic housing needs that sort of thing. These landlords will be fine including those that bought at the very top of the housing peak.

I speak professionally as a lettings manager and as a landlord buying two properties in September 2007!

A 5 year fixed interest only mortgage keeps my payments down in the early £400's with rents coming in at £525 a month.

Rents have dropped here slightly on the bigger stuff (4-beds over £1000 P/M) but the 2-beds have remained fixed between £480 & £550 P/M for the last 4-years and this shows no sign of changing for one very important reason. There is a council waiting list in excess of 6000 families/ single parents. The council pay up to £545 P/M for 2-bed houses and as long as landlords are happy to take people on benefits, there is no problem finding tenants here.

As an experienced landlord (And working with landlords everyday) I save part of my monthly margin in a high interest savings account (Well high for now - A&L 5.5%) and at the end of each year, I pay off some of the equity, reducing my mortgage, which also reduces my mortgage payments and increases the margin for the following year. This means that if rental prices hold up, I will be paying even more off at the end of the following year!

In the end, the tenants (Or should I say, the local council or the tax payer or people like you) have provided me with a virtually free house, thank you very much.

I manage over 400 rental properties including 4 of my own and I know that sensible BTL investors will be fine.

Even if a BTL investor starts receiving less rental income than he must pay the mortgage lender, he is still buying a property that is being subsidised by the tenant and if he has been doing it for long enough, he will have much higher margins on other property, which in effect covers those properties he needs to contribute towards!

For accountancy purposes, the landlord adds up all the rental income he has received over a financial year across his portfolio and then deducts all the interest he has paid back to the banks and any costs he has paid out on (I.e. Rental Agency costs, property repairs etc.) If he has a net profit, he pays tax on this, if he makes a loss, he won't pay a thing.

As we are currently sending out our annual lettings statements, most of the landlords I know have been moaning about the tax they must pay in January. This leads me to accept that they are in the same boat as me, doing very nicely!

Many of our regulars are still buying rental properties, so it can't be that bad for them!

Many of the forced landlords with big properties are struggling though, but these are just landlords rather than hardened Buy To Let Investors in my opinion!

Edited by Steamerpoint

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