How does Buy to Let END!

[Wight Flight]

And yet another one. I think the sixth today.

https://www.rightmove.co.uk/properties/140041184?

Far more than in previous yers, but i think this one, and many others, are second homes being let, not FHLs looking to get money over the winter.

looks like they are starting to feel the pinch.

[GTM]

2 minutes ago, Wight Flight said:

And yet another one. I think the sixth today.

https://www.rightmove.co.uk/properties/140041184?

Far more than in previous yers, but i think this one, and many others, are second homes being let, not FHLs looking to get money over the winter.

looks like they are starting to feel the pinch.

All bills included. Handy for any local cannabis growers.

[Wight Flight]

1 minute ago, GTM said:

All bills included. Handy for any local cannabis growers.

True.

And at that price i wouldn't be worried about being cold this winter.

[Boon]

Doesn't look much like a FHL. 

I can understand the summer, but why would anyone want to rent there for 6 months over winter?

They are asking for a bumming really, because someone could just turn up with a load of computers and mine some crypto for a few months.

[One percent]

6 minutes ago, Wight Flight said:

And yet another one. I think the sixth today.

https://www.rightmove.co.uk/properties/140041184?

Far more than in previous yers, but i think this one, and many others, are second homes being let, not FHLs looking to get money over the winter.

looks like they are starting to feel the pinch.

How much a month?  And they expect you to vacate at the start of the season.   Greedy feckers

[GTM]

1 minute ago, Boon said:

Doesn't look much like a FHL. 

I can understand the summer, but why would anyone want to rent there for 6 months over winter?

They are asking for a bumming really, because someone could just turn up with a load of computers and mine some crypto for a few months.

The crypto miners could keep the cannabis plants nice and warm.

[Wight Flight]

Just now, One percent said:

How much a month?  And they expect you to vacate at the start of the season.   Greedy feckers

£1,800 but knock of £300 rates, £400 gas and leccy and it is cheaper than my place.

[Wight Flight]

1 minute ago, GTM said:

The crypto miners could keep the cannabis plants nice and warm.

And you could put a public EV charging point on the parking space.

[GTM]

Just now, Wight Flight said:

And you could put a public EV charging point on the parking space.

Is it really necessary to burn the place to the ground? 

[One percent]

5 minutes ago, Wight Flight said:

£1,800 but knock of £300 rates, £400 gas and leccy and it is cheaper than my place.

Ah didn’t realise it was all in. Toasty.  🔥 

[Plan-b]

17 minutes ago, Wight Flight said:

And yet another one. I think the sixth today.

https://www.rightmove.co.uk/properties/140041184?

Far more than in previous yers, but i think this one, and many others, are second homes being let, not FHLs looking to get money over the winter.

looks like they are starting to feel the pinch.

I don't know why winter tenants don't just squat it out for the summer, it takes many months to evict these days they could just do a moonlight flit before the forced eviction.

Edited September 15, 2023 by Plan-b

[Wight Flight]

1 minute ago, Plan-b said:

I don't know why winter tenants don't just squat it out for the summer, it takes many months to evict these days they could just do a moonlight flip before the forced eviction.

I think many will. The desperate are taking these, and therefore about 500 families will all be looking for their next home at exactly the same time.

Without doubt a lot of them won't find another place, and I guess some will decide staying is their only option.

It is a very dangerous strategy by the owner.

[One percent]

2 minutes ago, Wight Flight said:

I think many will. The desperate are taking these, and therefore about 500 families will all be looking for their next home at exactly the same time.

Without doubt a lot of them won't find another place, and I guess some will decide staying is their only option.

It is a very dangerous strategy by the owner.

Is it a new thing?  If done in the past and it hasn’t caused problems…. Or. Is it desperation as they have had a poor season? 

[Wight Flight]

3 minutes ago, One percent said:

Is it a new thing?  If done in the past and it hasn’t caused problems…. Or. Is it desperation as they have had a poor season? 

Both. A fair few of the FHL bunch have done it before, but it was maybe only 30% of what I am seeing this year.

I do know of one FHL that had such a bad season they are going to normal rental (and that is 100% of the FHLs I know)

[spygirl]

https://www.thisismoney.co.uk/money/buytolet/article-12496683/amp/Rents-rise-five-times-house-prices-2026-warns-leading-estate-agent.html

Rents are set to rise by almost five times more than house prices between now and 2026, according to leading estate agent group, Hamptons.

It is forecasting that rents will rise 25 per cent between start of this year and 2026, outpacing the 5.5 per cent average growth in house prices during that same period.

An easy one to check on.

[jamtomorrow]

33 minutes ago, spygirl said:

the 5.5 per cent average growth in house prices during that same period

I think Hamptons are in for a bad correction, it's barely got going and they're already on the extra-strong crack

[onlyme]

37 minutes ago, spygirl said:

https://www.thisismoney.co.uk/money/buytolet/article-12496683/amp/Rents-rise-five-times-house-prices-2026-warns-leading-estate-agent.html

Rents are set to rise by almost five times more than house prices between now and 2026, according to leading estate agent group, Hamptons.

It is forecasting that rents will rise 25 per cent between start of this year and 2026, outpacing the 5.5 per cent average growth in house prices during that same period.

An easy one to check on.

London had a flurry of increases thanks to end of WFH for many and response by landlords to raise rates to try to match their inreasing mortgage payments, if they are simply expecting an extrapolation of those trends they may be in for a surprise.There is only so much you can soak renters until they find alterntives and they were caught on the hop with these recent raid changes.

[onlyme]

1 minute ago, jamtomorrow said:

I think Hamptons are in for a bad correction, it's barely got going and they're already on the extra-strong crack

Same with the builders (land bankers) all humming a positive tune to clear the decks of as much as possible to the gullible. Main indices now heading down so getting more difficult to fool the new buyers they need every month,.

[Ash4781b]

1 minute ago, onlyme said:

London had a flurry of increases thanks to end of WFH for many and response by landlords to raise rates to try to match their inreasing mortgage payments, if they are simply expecting an extrapolation of those trends they may be in for a surprise.There is only so much you can soak renters until they find alterntives and they were caught on the hop with these recent raid changes.

Doesn’t seem to match with Zoopla survey. Rental affordability is at worse in decade. 

https://www.zoopla.co.uk/discover/property-news/rental-market-report/#

 

 

[onlyme]

8 minutes ago, Ash4781b said:

Doesn’t seem to match with Zoopla survey. Rental affordability is at worse in decade. 

https://www.zoopla.co.uk/discover/property-news/rental-market-report/#

 

 

 

Yes affordability is worse thanks in part due to the post covid rebound, the renters were bascially caught on the hop and had to eat whatever rises they were faced with, I expect a lot more resilience to further increases, especially as the job market worsens.

If you look at the first graph for London in your link and the posititve hump 2021/2  the backdrop to that for London was a 50% increase in potenital letting applicants, that is a huge number and why there was so much traction for rent increases. Suggest the factors that led to that are out of the way.

 

https://thenegotiator.co.uk/agent-blog-the-light-at-the-end-of-the-tunnel-moment-has-not-yet-arrived-property/

The number of new lettings listing in the capital was 13% below the five-year average (excluding 2020) in August, Rightmove data shows. That compares to a decline which was closer to a third during most of last year. Meanwhile, the number of new lettings applicants was equal to the five-year average, after spending most of 2022 more than 50% higher, as the chart shows.

 

[tank]

3 hours ago, onlyme said:

 

Yes affordability is worse thanks in part due to the post covid rebound, the renters were bascially caught on the hop and had to eat whatever rises they were faced with, I expect a lot more resilience to further increases, especially as the job market worsens.

 

Worsening affordability is largely down to the post Brexit Tory immigration policy which has tripled our net intake since 2020.

The moment interest rates go down and they probably will in 2024, there'll be rocket fuel under the UK housing market with net immigration running at over one million a year.

Prices have barely moved an inch despite big IR hikes and it is largely due to this unprecedented influx. Same story in Australia and Canada. Brexit was essentially about copying their mass immigration models, so I fully expect similar outcomes now that the UK isn't shackled to the EU project. Many people voted for Brexit foolishly thinking it was about lower immigration but that was never the plan. 

Edited September 16, 2023 by tank

[Plan-b]

3 hours ago, Ash4781b said:

Doesn’t seem to match with Zoopla survey. Rental affordability is at worse in decade. 

https://www.zoopla.co.uk/discover/property-news/rental-market-report/#

 

I wouldn't put too much confidence into anything produced by Zoopla, Its property rampers central for distorting data regarding housing. Richard Donnell has been called out numerous times for the way his algo works.

It's a bit like estate agents who value property too high just to get the sellers business both should be avoided.

[onlyme]

18 minutes ago, tank said:

Worsening affordability is largely down to the post Brexit Tory immigration policy which has tripled our net intake since 2020.

The moment interest rates go down and they probably will in 2024, there'll be rocket fuel under the UK housing market with net  immigration running at over one million a year.

Prices have barely moved an inch despite big IR hikes and this is largely due to the above immigration hike. Same story in Australia and Canada. Brexit was essentially about copying their mass immigration models, so I fully expect similar outcomes now the the UK isn't shackled to the EU. Many people voted for Brexit foolishly thinking it was about lower immigration but that was never the plan. 

For sure over the longer term, plus ultra low rates, specifically though in this case the last year of rent increases was the flow of renters back into London for work (for the London market specifically) and the pressure to match interest rate rises with rents. 

Canada and Australia - huge sums from China, absolute racket in some Canadian areas where whole cities have been blighted by Chinese hot money.

Prices have moved but it takes a long time for them to adjust, they don't do it in months and  the official figurs are way behind the market.

[Plan-b]

 

17 minutes ago, tank said:

Prices have barely moved an inch

Really? possible if you only look at a specific area/s that are exceedingly popular with the wealthy with cash to burn.

Spread you wings a bit and view lots of different areas, if you don't already use propertypal or patma browser Extensions add these to see pricing history, or simply go over to HPC and checkout the posts of Roman Roady any and anywhere is featured and theres thousands of posts showing falls.

[Boon]

If you're in London there are falls in most places although the big falls they are contained in flats.
And many of the falls are merely deferred because they won't sell so they end up being taken off and put on the rental market instead.

For example this came up today

https://www.rightmove.co.uk/properties/136391510#/?channel=RES_NEW

I quite like these ones with videos because sometimes it gives away the flat number, so you can see here this sold for £460k.

Even if you stuck £200k as a deposit I think you'd be making a small loss after tax and lettings commissions.
Given the excess of flats around there and the general shitness of the area I don't think this will sell beginning with 3, and even £275k might not be it. Even at this price with no mortgage the net yield is gonna be less than what some FSCS accounts pay.

If we go countrywide though I can see the smaller starter homes being more resilient price-wise; people that were sold the dream in these new builds might have to downgrade to one as well. And so the overall percentage HPI figure will be more muted.