Thursday, August 21, 2008

More bad news for BTL

UK Homes For Rent Exceed Demand

Supply of rental accommodation rose at its quickest pace on record in the three months to July, outstripping the increase in demand from tenants, according to the latest data from the Royal Institution of Chartered Surveyors..........

Posted by aje141269 @ 04:29 PM (908 views)
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6 thoughts on “More bad news for BTL

  • That’s Monday’s story, I think we discussed it to death!

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  • Again this explodes the myth that there is a shortage of housing in th UK.

    The property market experts have been whining for years about the shortage of properties driving up the price. Well the whole things crashing now (so properties must have been greatly over-valued) and now all that can’t sell want to rent. The trouble is the market is already saturated with BTL properties.

    I spent 2 years looking for a new property to rent and I can’t tell you how difficult it was. I needed a largish property as my partner and I work from home. I didn’t want a property with a less than stable history. I wanted a property that wasn’t going to be sold from underneath me. Well I finally moved in December after an agonising time finding anywhere. There were literally hundreds of properties that looked suitable but very few were. The reasons for this were:

    1. The property had only recently been purchased (at the top of a bubble – hardly a recipe for a stable landlord)
    2. The property was also for sale – That inpires confidence don’t it !
    3. The landlord had plans to sell the property within 2 years or less. – Great another few grand moving within 2 years.
    4. The landlord was seeking planning permission for either a building in the garden or had other building plans that would have meant disruption – I work from home I really don’t want to live on a building site.

    There already are too many properties in the BTL market in all but the most commercial places (city centres (i needed a large property) – desirable postcodes) and now we hear on a daily basis “Let the home you can’t sell – it’s easy!”

    I reckon this should easily see of the rest of the BTL market within a year. I’m looking forward to renogotiating my rent at the end of the year , reckon my landlord will be desperate to keep us considering it took him nearly 6 months to let our house last time!

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  • mark wadsworth says:

    Drewster, yes we discussed it to death, but let’s ignore the noise about rising/falling rents!

    The key to this is the basic fact (whether derived from logic or observation) that rents are the most stable factor in the property market. They don’t go up or down much. Don’t worry about rent hikes, and don’t pin your hopes on haggling the rent down, next year’s rent will be pretty much the same as this one.

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  • drewster…..Sorry, it’s just hard to keep up with the torrent of bad news these days.

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  • Agreed mark wordsworth…

    But on the other hand with a glut of properties ‘to let’ renters are in a better position than ever to renegotiate. I’m full prepared and am already eyeing up other properties and if I find what I want for the right price I will give my landlord the oppurtunity to match the rent or I will move.

    And the increased properties in the letting market are hardly going to strengthen rents are they, the net result will be more desperate landlords.

    And you indeed may have discussed this to death but others may have not.

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  • mark wadsworth says:

    Nooneo, from an anecdotal point of view, we moved from one let property to another a couple of months ago because it was nicer and cheaper and the previous landlady refused to come down on the rent. So I’d be delighted if pressure on landlords to give way kept up, but is that realism or wishful thinking on my part?

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