How does Buy to Let END!

[Frank Hovis]

2 hours ago, spygirl said:

He has tenants so terrified their rent will go up they are too scared to ask for repairs, he says.

 

 

 

 

[Noallegiance]

Private rental market shrinking drastically as landlords sell up (msn.com)

[Axeman123]

3 hours ago, Noallegiance said:

Private rental market shrinking drastically as landlords sell up (msn.com)

Rhetorical question: if it is shrinking, who are they selling to?

[Noallegiance]

14 minutes ago, Axeman123 said:

Rhetorical question: if it is shrinking, who are they selling to?

Maybe they're stuck unsold?

[Axeman123]

14 minutes ago, Noallegiance said:

Maybe they're stuck unsold?

That is what I was getting at. I don't see who is buying just now, and therefore prices seem set to drop.

[Lightscribe]

6 minutes ago, Axeman123 said:

That is what I was getting at. I don't see who is buying just now, and therefore prices seem set to drop.

The greater fool.

https://12ft.io/proxy?q=https%3A%2F%2Fwww.telegraph.co.uk%2Fproperty%2Fbuy-to-let%2Fcant-afford-home-london-becoming-buy-to-let-landlord-instead%2F

[Axeman123]

5 minutes ago, Lightscribe said:

The greater fool.

https://12ft.io/proxy?q=https%3A%2F%2Fwww.telegraph.co.uk%2Fproperty%2Fbuy-to-let%2Fcant-afford-home-london-becoming-buy-to-let-landlord-instead%2F

Most of those people are talking about purchases a year or two ago, based on a quick skim. I suspect no-one is rushing to become an absentee landlord in an economically depressed area right now...

[TMM]

1 hour ago, Axeman123 said:

Rhetorical question: if it is shrinking, who are they selling to?

All the FTBs who've been living at home with BOMAD, BOGAG (equity release) in order to lessen IHT

 

[sarahbell]

The rise of Student BTL has fucked over normal working people
https://www.rightmove.co.uk/properties/117610418?

 

• APPROX. £55,000 ANNUAL RENTAL INCOME
• TENANTS SECURED FOR THE 2022/23 ACADEMIC YEAR
• the Lower Ground Floor offers two bedrooms. The Ground Floor offers three bedrooms, lounge, kitchen, utility room and a shower room. The First Floor offers five bedrooms and three shower rooms.

 

600k price tag.

 

[Wight Flight]

1 hour ago, sarahbell said:

The rise of Student BTL has fucked over normal working people
https://www.rightmove.co.uk/properties/117610418?

 

• APPROX. £55,000 ANNUAL RENTAL INCOME
• TENANTS SECURED FOR THE 2022/23 ACADEMIC YEAR
• the Lower Ground Floor offers two bedrooms. The Ground Floor offers three bedrooms, lounge, kitchen, utility room and a shower room. The First Floor offers five bedrooms and three shower rooms.

 

600k price tag.

 

About right. 60-70% of the student loan will go on rent.

It's a good way to prepare them for life in the real world.

[Guest]

2 hours ago, sarahbell said:

The rise of Student BTL has fucked over normal working people
https://www.rightmove.co.uk/properties/117610418?

 

• APPROX. £55,000 ANNUAL RENTAL INCOME
• TENANTS SECURED FOR THE 2022/23 ACADEMIC YEAR
• the Lower Ground Floor offers two bedrooms. The Ground Floor offers three bedrooms, lounge, kitchen, utility room and a shower room. The First Floor offers five bedrooms and three shower rooms.

 

600k price tag.

 

That's 10 adults living under one roof. If instead of going to university they were working full time they would probably be looking to consume a lot more housing than that. If anything student BTL is reducing the competition for housing that normal working people experience by compressing millions of younger adults into such a tiny amount of housing.

Edited June 8, 2022 by Guest

[Wight Flight]

Advert for a housing officer to help find a home for those in need.

https://www.iow.gov.uk/jobvacancies/job_details.aspx?jobId=3926&fbclid=IwAR38nFArxOk1Z4O-aCfjjvKb7MTiKO74B9RAuDBtLdoU20nQxjBZfEscQRk

The irony is that on that salary they will struggle to find a house for themselves.

Physician heal thyself or something like that.

[spygirl]

14 hours ago, sarahbell said:

The rise of Student BTL has fucked over normal working people
https://www.rightmove.co.uk/properties/117610418?

 

• APPROX. £55,000 ANNUAL RENTAL INCOME
• TENANTS SECURED FOR THE 2022/23 ACADEMIC YEAR
• the Lower Ground Floor offers two bedrooms. The Ground Floor offers three bedrooms, lounge, kitchen, utility room and a shower room. The First Floor offers five bedrooms and three shower rooms.

 

600k price tag.

 

Bit suspect.

Why sell at that yield?

Uni of Worcester is a very new one.

Old Teacher training place?

I wonder if the numbers are down. A lot.

Lots of student blocks going up - 

https://www.jtomlinson.co.uk/163-bed-student-accommodation-development-opening-in-autumn-22-to-be-completed-in-worcester/

 

 

[eek]

On 09/06/2022 at 10:12, spygirl said:

Bit suspect.

Why sell at that yield?

Uni of Worcester is a very new one.

Old Teacher training place?

I wonder if the numbers are down. A lot.

Lots of student blocks going up - 

https://www.jtomlinson.co.uk/163-bed-student-accommodation-development-opening-in-autumn-22-to-be-completed-in-worcester/

 

 

He needs to cash out now because next year that house will be empty because the students will have moved into the new purpose built accommodation.

Anecdotally there is a surplus of student accommodation in Leeds - but it doesn't manifest itself in lower rents - just massive bargains as the academic year comes to an end and the chances of a landlord actually letting the property disappears.

[Boon]

One possibility is that the yield never materialises. £55k implies £5.5k each or £550 a month on a student contract (10 months)... seems expensive relative to what is out there.

If you were to buy it at try and let given the competition I would be amazed if £55k could be gotten.

House doesn't seem very optimal for 10...even if the utility room has storage I don't see how 10 people are gonna cook and keep food in that kitchen, it would be a grim experience.

[spygirl]

Literally the end of io btl -

https://www.dailymail.co.uk/news/article-10921407/Landlords-refund-rent-homes-not-kept-good-condition.html

A bank cannot lend large dollops of cash at low rates with these conditions.

 

All the moron challenger banks and daft building socs, who piled in and took the business of tge larger banks dho were glad to get rid.

Fucked.

Check in rates going up.

[Inque]

I think it’s the right thing, but with everything else now we’re going to be heading for a hosing crisis magnitudes higher that it is now?

People not able to meet their mortgage

BTL getting out

lack of Rental properties and rental prices rising

large influx of migrants

 

[Ash4781b]

BTL is imo much more risky as real wages fall at record levels. But the gov’ I expect will provide support for this change in risk 

[Wight Flight]

This is interesting.

BTL landlords are seen as a bad credit risk.

Yet they don't seem to understand why 

https://www.property118.com/i-cant-be-the-only-one-facing-credit-frustration-or-am-i-doing-something-wrong/

[JohnnyB]

3 hours ago, Wight Flight said:

This is interesting.

BTL landlords are seen as a bad credit risk.

Yet they don't seem to understand why 

https://www.property118.com/i-cant-be-the-only-one-facing-credit-frustration-or-am-i-doing-something-wrong/

Imagine if you owned a company that had 1 product to rent, you borrowed almost the full cost of that product and the other company you rent it to could still keep the product for 12 months if they refused to pay. And the other company was certain to have its own cashflow reduction in the next year.

[Wight Flight]

2 minutes ago, JohnnyB said:

Imagine if you owned a company that had 1 product to rent, you borrowed almost the full cost of that product and the other company you rent it to could still keep the product for 12 months if they refused to pay. And the other company was certain to have its own cashflow reduction in the next year.

Odd isn't it.

Personally I would be happy for the eviction process to be much quicker. If the trade off was returning to six months notice for no fault.

[Guest]

4 hours ago, Wight Flight said:

Odd isn't it.

Personally I would be happy for the eviction process to be much quicker. If the trade off was returning to six months notice for no fault.

6 months notice period for no fault eviction, yes absolutely, anything less is barbaric.

I also think landlords should have to financially compensate their tenants for no fault evictions to cover the transition costs they are imposing on the tenant. Something like 1 month of rent for every year the tenant has lived in the property.

[Herby]

Some interesting noise in the landlord world relating to increases in insurance to cover non-payment..

https://www.propertyreporter.co.uk/landlords/rising-demand-for-landlord-insurance-highlights-concerns-in-the-btl-market.html

New data from Quotezone.co.uk highlights an increase of 37% in demand for landlord insurance in the first quarter of 2022, compared with the same period last year. Landlords are rushing to ensure they have additional income protection as they are hit by the highest buy-to-let interest rates in seven years, on top of an increase in buy-to-let tax bills, as they can no longer claim the tax back on mortgage repayments.

[Wight Flight]

1 hour ago, Darude said:

6 months notice period for no fault eviction, yes absolutely, anything less is barbaric.

I also think landlords should have to financially compensate their tenants for no fault evictions to cover the transition costs they are imposing on the tenant. Something like 1 month of rent for every year the tenant has lived in the property.

The current two months just leads to problems. Most properties here are advertised more then 2 months in advance and snapped up immediately. Therefore it you receive 2 months notice, almost everything you could move to has already gone. 

You either become homeless or refuse to move out.

[sarahbell]

https://www.rightmove.co.uk/news/articles/property-news/renters-reform-section-21-to-be-banned-england/

Under the bill, Section 21 evictions – also known as no-fault evictions – will become illegal in England, and landlords will need to provide a reason for reclaiming the property. Section 21 evictions are already illegal in Scotland, while Wales and Northern Ireland are looking to extend no-fault-eviction notice periods.

It will be illegal for landlords to impose blanket bans on tenants who are in receipt of benefits, or families with children. It will also be easier for tenants to share their homes with much-loved pets, with all tenants having the right to request a pet in their house. Landlords must consider these requests, and cannot unreasonably refuse.