Rents Falling - FT

Gorgeous_George

Surely this thread is on the wrong forum. Renting is on t'other one.

That said, if house prices fall it is natural that rents can also fall. Most long term LLs need to maintain profitability and if they can buy a house for 30% less than before, it follows taht they can let it for less.

I know two brothers who had a house left to them in a Will. Marketed for 6 months at £279,950 and a month at £260,000. No offers so they've decided to rent it out. Probably get about £700 - £800 tops. Absolutely barking but they won't listen. Anfd they live over 200 miles from the property.

I'd have got shot of it at £200K.

GG

EdInvestor

Generali wrote: »

The mortgage market has gone back to normal in terms of total lending, it's the past 2 years that have been abnormal.

That will explain why it's now easy for FTBs to buy property then.:rolleyes:

Generali

EdInvestor wrote: »

That will explain why it's now easy for FTBs to buy property then.:rolleyes:

Ha ha, very true.

If you've got a minimum 10% deposit, reasonable credit rating and are looking to borrow 3.5x income or less then it's not a problem. The trouble is that 3.5x salary doesn't take you that far at present.

chrisandanne

EdInvestor wrote: »

That will explain why it's now easy for FTBs to buy property then.:rolleyes:

They are NOT first time buyers...they are people with NO DEPOSIT and INSUFFICIENT INCOME

Just because over the last few years ANYBODY who wanted to buy a house
REGARDLESS of their financial circumstances was lent the money to do so does not mean that those people should be buying houses.

These people are now WANABEES and will remain so unless they save a deposit and meet sensible income/ lending criteria.

Ax

fc123

Generali wrote: »

I think I posted a few times about how I felt that rents would rise as FTBs can't afford to buy and then fall pretty soon after as economic hard times set in.

From the FT today



Where London leads today, the rest of the country will follow tomorrow.

The letting agent who manage the property we rent (Brighton area) is full of chit chat. She said they were overwhelmed with rentals that they couldn't find tenants for..this was 4 months back....they aren't selling anything either.
One office has shut and hers is being run on skelton staff levels too.
Houses are seem to be still in short supply though....must be the 1 and 2 bed stuff.

:T I will quote this if our LL tries to put rent up again. Want it to stay as it is + a bit of inflation if neccessary, for 4 years.

Walletwatch

Gorgeous_George wrote: »

I know two brothers who had a house left to them in a Will. Marketed for 6 months at £279,950 and a month at £260,000. No offers so they've decided to rent it out. Probably get about £700 - £800 tops. Absolutely barking but they won't listen. Anfd they live over 200 miles from the property.

I'd have got shot of it at £200K.

GG

That's more a pricing mishap IMHO. In a moderately falling market, a place that is initially set at 280 grand levels starts with a disadvantage, as the moment it gets repriced at 260k, stamp duty considerations take over, driving it down further to 249,999 levels.

WTF?_2

EdInvestor wrote: »

That will explain why it's now easy for FTBs to buy property then.:rolleyes:

The problem for FTBs comes out of the fact that daft sellers refuse to cotton on to the new reality that people can't pay the stupid prices which typified the peak of the boom last Summer.

Don't worry - unless sellers can afford to hold on to their property ad-infinitum the logjam will resolve itself sooner or later. The longer sellers take to adjust, the longer this slump is going to last and the more they are going to lose.

EagerLearner

chrisandanne wrote: »

They are NOT first time buyers...they are people with NO DEPOSIT and INSUFFICIENT INCOME

Just because over the last few years ANYBODY who wanted to buy a house
REGARDLESS of their financial circumstances was lent the money to do so does not mean that those people should be buying houses.

These people are now WANABEES and will remain so unless they save a deposit and meet sensible income/ lending criteria.

Ax

I guess even though sellers prices have been over the top for years, it's the FTB fault now that they are priced out, and aren't meeting 'sensible' criteria and earning the 'right' amount to afford what that the seller desires for their property :rotfl: I had it wrong all along, all I need to do is ask my boss to meet the banks sensible 3.5 criteria - I'll get a pay raise!

OK I'm being a bit silly but the problem is, hardly anyone can meet the current criteria if the average property price is still to high for the 3.5 ratio.

lynzpower

Funnily enough, as I was wandering around knightsbridge last week, I noted that winkworths were advertising on their to let boards around there that if you take up a rental contract with them - then you get a free IPOD.

Cue irony about FTB not saving deposits having spent it all on IPODs & the like :rolleyes:

Generali

lynzpower wrote: »

Funnily enough, as I was wandering around knightsbridge last week, I noted that winkworths were advertising on their to let boards around there that if you take up a rental contract with them - then you get a free IPOD.

Cue irony about FTB not saving deposits having spent it all on IPODs & the like :rolleyes:

The great thing about window shopping in Knightsbridge is that you can save thousands by looking in a shop window but not actually going in.

Mrs Generali tried the same thing with the local pound shop and only saved a tenner by staying outside.

That's not going to bring back the Generali family fortune.