Tenants 'haggling' as rents fall

carolt

http://news.bbc.co.uk/1/hi/business/7963271.stm

The cost of renting a home has continued to fall as UK householders let out their homes in a bid to beat the recession.
Two surveys suggest that there has been a surge in properties available to rent, pushing down costs for tenants.

Tenants, aware of the falling prices, have started to haggle.

Supply levels vary across the various regions of the UK, research from property websites Globrix and Findaproperty.com found.

...According to Globrix, the number of new rental properties coming onto the market rose from 98,841 in the final three months of 2008 to 155,499 in the first quarter of 2009 - a 57% increase.

...The surge in supply means that average monthly rents have dropped to £795 at the start of March, down from a peak of £950 in May 2008.

..The poll by Findaproperty.com said that in March the average property had been listed for 65 days before being filled by tenants, down five days on the previous month, but up 17 days compared with a year ago.

Heyman_2

Got to admit, I argued against this possibility a few months ago but it looks like it is coming to fruition given the number of new amateur landlords bringing their properties to the rental market. :rolleyes:

I guess an unexpected knock-on effect of this is an increase in the number of BTL landlords which will no doubt bring much joy to certain regulars on this forum

ad9898_3

It just shows the lie that is being pedaled about the shortage of housing, all these people who are letting their place out have to live somewhere, yet their is no fields of tents, no families sleeping in bus shelters. The proof of it in my area is more houses coming up for rent, and more houses up for sale. If I wanted to buy now, I could choose from at least 50 houses within 1.5 miles of me, with NO chain !, nevermind the other 160 that have chains.

carolt

Heyman wrote: »

Got to admit, I argued against this possibility a few months ago but it looks like it is coming to fruition given the number of new amateur landlords bringing their properties to the rental market. :rolleyes:

I guess an unexpected knock-on effect of this is an increase in the number of BTL landlords which will no doubt bring much joy to certain regulars on this forum

It's a 2 -way thing - on the one hand, falling rents and greater choice of rental properties is a good thing. Plus I have nothing personally against people who rent their properties out because they can't sell them - they're not doing it out of greed, but because that's the only way they can move.

On the other hand, amateurs often make lousy landlords because they have no idea what they're doing or what their legal responsibilities are. Then again, that applies to plenty of so-called 'professional' landlords too....

ad9898_3

Heyman wrote: »

I guess an unexpected knock-on effect of this is an increase in the number of BTL landlords which will no doubt bring much joy to certain regulars on this forum

I think there is a difference between these 'new' landlords who are either deluded in thinking 2007 will come back or need to move and would like to sell but are buried under a high LTV

and

The general LL who is in it to make a profit.

Heyman_2

ad9898 wrote: »

It just shows the lie that is being pedaled about the shortage of housing, all these people who are letting their place out have to live somewhere, yet their is no fields of tents, no families sleeping in bus shelters.

Ah but that isn't a lie - I think that's more about SOCIAL housing. I think we had a debate here about this a few months ago, about the number of empty, disused properties in England and yet the government still green-lighting the development of rabbit-hutches.

Heyman_2

ad9898 wrote: »

I think there is a difference between these 'new' landlords who are either deluded in thinking 2007 will come back or need to move and would like to sell but are buried under a high LTV

and

The general LL who is in it to make a profit.

True, but they're all part of the same statistic.

I think the former group will believe they have no option but to rent their property out, but it will be interesting to see what happens long term.

chucky

i'm finding that rents have dropped about 10% putting them to a late 2006 value in my area.

reasons -
1. people are putting less disposable income towards rent and reducing their potential budget.
2. more property on the market so people have more choice.

i have had no problems with voids. they are as they were in the last few years. had a two week void in February and a 2-day void in December.

however if i had priced them at 2007/2008 levels the voids would have been longer.

pickles110564

carolt wrote: »

On the other hand, amateurs often make lousy Renters because they have no idea what they're doing or what their legal responsibilities are. Then again, that applies to plenty of so-called 'professional' Renters too....

Yes Carol you are right, we are now getting an even worse type of renter, ones that had their dreams of owning a home but still cant and have become very bitter and twisted.:rolleyes:

ruggedtoast

pickles110564 wrote: »

Yes Carol you are right, we are now getting an even worse type of renter, ones that had their dreams of owning a home but still cant and have become very bitter and twisted.:rolleyes:

Why don't you lay off her for once?

Wookster

ruggedtoast wrote: »

Why don't you lay off her for once?

I've just put that Pickles tw@ on my ignore list. It doesn't have anything of value to contribute.