Rents Falling - FT

Gorgeous_George

I'm sure rents will be falling in areas where the rents are too high. Places where yields against current value are 10%+. Plqces where there is a deluge of new builds.

I regularly check rental asking prices of properties with at least one bedroom less than my property (i.e., 3 bedrooms or more) in my BTL area. Currently, there are just 5 properties within a quarter mile of my postcode.

One (3 bedrooms) is cheaper but fronts onto a main road and is regularly coming available for rent. Let agreed.

Another has 5 bedrooms and is also 'let agreed' at £30 per month more than my rent. This one alse fronts onto a main road.

The 3rd has three bedrooms and is similar to my property. Also 'let agreed' at £55 per month more than my 4 bedroom property.

The final two are both 4 bedrooms and both still available at £155 and £180 per month more than my rent.

If rents were to fall, I am confident that my tenants would stay put without the need for me to lower the rent. I plan to raise the rent by £30 - £40 next April (just under 10%).

GG

Generali

Gorgeous_George wrote: »

I'm sure rents will be falling in areas where the rents are too high. Places where yields against current value are 10%+. Plqces where there is a deluge of new builds.

I regularly check rental asking prices of properties with at least one bedroom less than my property (i.e., 3 bedrooms or more) in my BTL area. Currently, there are just 5 properties within a quarter mile of my postcode.

One (3 bedrooms) is cheaper but fronts onto a main road and is regularly coming available for rent. Let agreed.

Another has 5 bedrooms and is also 'let agreed' at £30 per month more than my rent. This one alse fronts onto a main road.

The 3rd has three bedrooms and is similar to my property. Also 'let agreed' at £55 per month more than my 4 bedroom property.

The final two are both 4 bedrooms and both still available at £155 and £180 per month more than my rent.

If rents were to fall, I am confident that my tenants would stay put without the need for me to lower the rent. I plan to raise the rent by £30 - £40 next April (just under 10%).

GG

A big reason rents seem to be falling is that sellers can't sell so are putting the house up for rent instead, putting downward pressure on prices.

neverdespairgirl

pickledpink wrote: »

You want to keep all your 'well-informed' info to yourself, Carol,.................. [rest of abusive nonsense snipped]

Can't be bothered with replying to all the abuse, won't go there.

But it's not remotely weird.

In the long term, OH and I would rather buy a house or flat and own it. At the moment, and for the past couple of years, doing so has made no sense to us. In the future, it will.

What's odd about that?

neverdespairgirl

No, it isn't.

There's nothing odd, though, about thinking now's a crap time to buy a house, but wanting to buy one in the fullness of time.

paintpot

I can only go from my own experience but with the properties I have let over the last couple of months they have been taken on the first viewing with rents having been increased from that of previous tenants. I generally put the rents up on a relet to test the market having seen what else is about with a view to coming down a little if need be for the right tenant. To date, no one has even tried to negotiate and that has been with 3 properties so I've achieved the increase I've asked for despite other properties being on the market at cheaper rents.

I have just put one on the market and it seems dead with viewings (agent said it is due to the school holidays etc) and it is a 3 bed family home but I have rent paid on it until September despite it being empty. Again I have increased the rent from last time and might reduce it if no joy but no panic at the moment. The areas I am letting properties in there is very little around and I am confident that mine are generally of better quality than those that are available. To date I have experienced no void periods at all in the last few months (not even a day) despite the "credit crunch" and have increased rent on existing tenants without a word of complaint albeit only small increases from say £575 t0 £595.

I think it depends on your area, the number of properties on the market, the quality of what you are offering and the relationship/service you offer your tenants. And I can safely back up that my properties are available on long term let if that is what somone wants, I'm not trying to sell, renting as I can't sell etc which is generally what my target market is looking for.

drc

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.

I haven't seen any evidence of this. We are looking for a new flat to rent in N.London and there aren't that many flats to start with and certainly the prices have not come down, they are mostly the same, some higher than what we would have paid about this time last year

mewbie_2

drc wrote: »

I haven't seen any evidence of this. We are looking for a new flat to rent in N.London and there aren't that many flats to start with and certainly the prices have not come down, they are mostly the same, some higher than what we would have paid about this time last year

Property Bee have asked me to point out their servers are now struggling to cope with demand as MSE'ers check out the state of the market in N. London in order to prove a point.