Wednesday, August 20, 2008
Great summary of the BTL demise
Why buy to let landlords won't profit from the so called 'rental boom'
"Rental demand is rising, but so is the supply of rental properties. So it seems that buy-to-let landlords aren't in for the bonanza the pundits had promised. The number of landlords selling out of the market remains low - it fell to 2.1% according to Rics, in the past quarter. But that's probably got more to do with the collapse in the market"
Posted by confused76 @ 08:08 AM (689 views)
7 thoughts on “Great summary of the BTL demise”
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Babilon says:
I am renting at the mo and my landlord is trying to raise my rent to 525 a month. I can walk down the street nearby and there must be ten or more properties at 495 – told the agent that I wasn’t happy to pay the extra and the agent stuck the ‘to let’ board up. Haven’t received any paperwork. Is this intinidation through their own desperation? Have been on a rolling monthly contract after my first initial contract expired – they rang today to say the landlord will keep the rent at the originla price if I resign another secured short-term lease at the admin cost of 100 quid. Are they taking the mick? I pay my rent and have done without fail by DD every month – the agents seem to be looking at scare tactics to make additional income. Anybody heard of this happening to ongoing renters?
renting2 says:
Admin cost for renewing an AST?? They’ll be trying to charge 2% ‘arrangement fees’ soon, just like lenders.
drewster says:
This article is copied from yesterday’s MoneyWeek
Egomaniac says:
#1 are they taking th mick???
lets say you resign a 6 month agreement and pay £100. you would only be saving £80.
Tell them to bugga off. They would need to give you 2 months notice. anyway.
I would just threaten to leave. if you left they would need to fill the house and they would lose around 6 weeks rent (at around £100pw.) as a rental void.
For 600 quid your landlord would need 20 months at the £525 rent they want to charge. (£525-£495*20months)
I would agree to sign if they keep the rent and drop the £100 admin charge. Or if your happy (and feeling cheaky) say you will sign a twelve month at £450pm with £100 admin charge.
You are in a very strong position.. Don’t let them think it is a LL market anymore.
All the best
Babilon says:
Thanks guys.
Good news the ‘to let’ board blew down. Think I’ll go the cheeky route.
Love all the comments and insights posted on HPC website. Keep them coming….
wiltshire says:
Babilon, I agree with Egomaniac, it’s a renters market. I know the hassle involved with moving is a pain but I think you should call their bluff. They may be greedy but hopefully they’re not stupid because if you leave they have to factor in x amount of time with no tenant (and therefore no rent) and what chance do they have of finding someone to pay their rent when there is plenty of other rentals in the area that are cheaper.
You can play hardball with them too. Maybe the bank should “screw up” your direct debit one month, just for a few days – so they get the rent a little late. This might help remind them of the value of a reliable tenant and also indicate to them what periods of rent payment uncertainty are like for landlords.
Babilon says:
Thanks guys they are useful ideas – will see what their next move is… The ‘to let’ board blew down!!! Even the good old English weather is getting the agents down…