Property - Good news for a change
Discussion
It always happens in a falling market. People are reluctant to buy or cannot get a mortgage to buy therefore they rent. Plus you have the people who would normally rent, and then you have the people who are trying to cash in, by selling up and renting to let the market fall.
Therefore demand increases and supply remains static, so you get increased rents.
Add to this BTL landlords who cannot afford repayments now having to sell and supply decreases as they are forced to sell, increasing rental levels further still.
Therefore demand increases and supply remains static, so you get increased rents.
Add to this BTL landlords who cannot afford repayments now having to sell and supply decreases as they are forced to sell, increasing rental levels further still.
Any increase certainly doesnt apply to London flats (and I suspect other city centres). My rent has gone down in real terms upon renewal, plus we are looking to rent another place and prices around docklands and other decent areas are in real terms 10-20% cheaper than 2-3 years ago.
Now commerical property, plenty of vacant/new lease A1s coming on the market in London. Will only take one year or so before the upward-only reviews of the last 10 years are wiped back.... and that will feed into the rent reviews on existing leases (if the lease holders have any sense).
Now commerical property, plenty of vacant/new lease A1s coming on the market in London. Will only take one year or so before the upward-only reviews of the last 10 years are wiped back.... and that will feed into the rent reviews on existing leases (if the lease holders have any sense).
johnfm said:
Hi Hobo
How did that development go in Leeds? You manage to finish & sell them - or are you letting them?
Agree with rental boom around here - just let a 5 bed house at a premium - it was advertised for 2 days, had two viewings and both offered.
Just about to finish. We have not advertised them at all yet & have sold 2 (out of 7). We were planning to sell 5 & keep 2, however think we will keep 4 & sell 1 more.How did that development go in Leeds? You manage to finish & sell them - or are you letting them?
Agree with rental boom around here - just let a 5 bed house at a premium - it was advertised for 2 days, had two viewings and both offered.
Things definately don't seem bad as have had plenty of interest, hence the reason for keeping more than originally planned.
New developments starting in July, 5 new build houses & 4 new build apartments, followed by another site of 4 new build houses later in year.
We also recently have been speaking with someone about the purchase of a commercial property, just less than 2 acres, which is going for planning for 25 houses. Its a bit big for us to undertake solely & so have been speaking to a couple of developers I know about a joint venture. Figures stack up well, with expected returns just over 35%. Just over £6.7 million to build (including land & all proffessional fees/interest charges) & value upon completion of £9.1 millin (including relevant 106 housing at set rates). Don't suppose you'd be interested or know anyone who may be ?
Ade355 said:
Any increase certainly doesnt apply to London flats (and I suspect other city centres). My rent has gone down in real terms upon renewal, plus we are looking to rent another place and prices around docklands and other decent areas are in real terms 10-20% cheaper than 2-3 years ago.
Not my experience - I've been renting out a 1 bed flat in Fulham for the last four years and have just achieved a 10% increase on what we were getting last year. Also rented out very quickly (three days). Maybe case of oversupply in Docklands?chris_w said:
Ade355 said:
Any increase certainly doesnt apply to London flats (and I suspect other city centres). My rent has gone down in real terms upon renewal, plus we are looking to rent another place and prices around docklands and other decent areas are in real terms 10-20% cheaper than 2-3 years ago.
Not my experience - I've been renting out a 1 bed flat in Fulham for the last four years and have just achieved a 10% increase on what we were getting last year. Also rented out very quickly (three days). Maybe case of oversupply in Docklands?I'd love to see a similar situation myself when the tenants move out of my 2-bed flat in Gravesend in August. Rather different market, though.
Saied said:
I'd love to see a similar situation myself when the tenants move out of my 2-bed flat in Gravesend in August. Rather different market, though.
The Gravesend agents are begging for property at the moment, a number of them can't satisfy demand for good property. Who do you have it on with. if you dont mind my asking?scotal said:
Saied said:
I'd love to see a similar situation myself when the tenants move out of my 2-bed flat in Gravesend in August. Rather different market, though.
The Gravesend agents are begging for property at the moment, a number of them can't satisfy demand for good property. Who do you have it on with. if you dont mind my asking?My managing agents are Amax. They're OK, if not outstanding. There's certainly a few shocking cowboy estate / lettings agents in Gravesend, though.
I want to sell ideally, but values seem to be dropping by the week.
I may be forced to re-let the bugger. Hopefully will be able to get a little more rent when the tenants vacate in August. £675 or perhaps even £700pcm if i'm lucky.
If I do so, I really need to obtain a more competative mortgage.
Saied said:
My managing agents are Amax. They're OK, if not outstanding. There's certainly a few shocking cowboy estate / lettings agents in Gravesend, though.
Oh yes, I bet I know who you are talking about...... Saied said:
I want to sell ideally, but values seem to be dropping by the week.
I may be forced to re-let the bugger. Hopefully will be able to get a little more rent when the tenants vacate in August. £675 or perhaps even £700pcm if i'm lucky.
That end of town does seem to have a fair bit of proerty on, and the parking at Baltic wharf does upset a fair few peopleI may be forced to re-let the bugger. Hopefully will be able to get a little more rent when the tenants vacate in August. £675 or perhaps even £700pcm if i'm lucky.
Saied said:
If I do so, I really need to obtain a more competative mortgage.
Drop me a line if you do want to remortgage. S'what I do see.(Although BTL and competitive........hmmmmmm.
Hobo said:
Bit behind the times, but I was hearing yesterday that rental prices (especially in my region) are increasing rapidly.
How is that good news? All it means is that people are worse off because a bigger proportion of their take-home pay is consumed by keeping a roof over their head. It only benefits people who can afford more than one house and does so at the expense of those who can't afford a single house.Still, in my area rents aren't budging at all though. Rents are dictated by what people can afford to pay to put a roof over their head... which is why they haven't moved for about three years. Anything that people see added to their pay is quickly taken away several times over by rises in food, energy, transportation and taxes, and as house prices start to slide less people are priced-out of the market so rents have to become more competitive.
Now that's good news... if you're a pleb like me!
MitchT said:
and as house prices start to slide less people are priced-out of the market so rents have to become more competitive.
the flip side of that Mitch is that whilst people are waiting for the "bottom" of the market they will rent, so demand increases so prices rise. ETA thats rents rising not housing prices.
Edited by scotal on Friday 20th June 21:42
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