Buy to let: double whammy for amateur landlords as flat rents fall

silvercar

Dithering_Dad wrote: »

I hope so, otherwise we would be in the ludicrous position where the tax payer is paying more for tenants to be housed, than it would cost for them to house themselves.

Think that is happening in some areas.

Round here the 2 bed LHA would get you an OKish 2 bed house in a OKish area, suddenly the private landlords start raising the rent of the not so nice 2 bed flats to the LHA levels. Only attractive to benefit recipients, so the LL think the rent may as well be at LHA level.s

System

I'm surprised rent hasn't fallen further than that. Never really looked into this before, would I be right in guessing Landlords are making more profit than ever right now?

Dithering_Dad

Joeskeppi wrote: »

I'm surprised rent hasn't fallen further than that. Never really looked into this before, would I be right in guessing Landlords are making more profit than ever right now?

I guess so. My mortgage is 105k and I'm paying about £330 a month.

If the landlords had any sense, they would be overpaying like mad to sustain those profits when mortgage rates eventually start moving back up. From the financial figures I've seen, they're doing just that (along with other home owners).

Seems unfair that the whole country is paying for a few people to have low interest rates and to be able to overpay their mortgages massively, but there you go.

geoffky

HERE are the rentals where i live.. all have had to drop their prices....taken from my property hive

3 bedroom town house ; £595 pcm; (£-55)
2 bedroom flat; £650 pcm; (£-50)
3 bedroom semi-detached; £650 pcm; (£-10)
; 2 bedroom semi-detached; £600 pcm; (£-25)
3 bedroom end of terrace house ; £575 pcm; (£-25)
; 2 bedroom flat; £595 pcm; (£-5)
; 3 bedroom semi-detached; £595 pcm; (£-30)
3 bedroom semi-detached house ; £525 pcm; (£-50)
3 bedroom terraced house ; £525 pcm; (£-50)
; 2 bedroom apartment ; £550 pcm; (£-45)
; 2 bedroom apartment; £475 pcm; (£-75)
]; 3 bedroom terraced; £550 pcm; (£-75)
; 4 bedroom detached house ; £1,600 pcm; (£-325)
4 bedroom detached house ; £825 pcm; (£-70)
; 4 bedroom property ; £1,750 pcm; (£-750)
; 4 bedroom house; £1,600 pcm; (£100)
; 4 bedroom barn conversion ; £1,950 pcm; (£-550)
4 bedroom detached; £1,500 pcm; (£-250)

Harry_Powell

Our rent hasn't fallen, but then it hasn't gone up since we first rented our place. I suppose the landlord is just happy to have decent tenants. He doesn;t bother us and we don't bother him, which I suppose is a pefect relationship .

Thrugelmir

Dithering_Dad wrote: »

I guess so. My mortgage is 105k and I'm paying about £330 a month.

If the landlords had any sense, they would be overpaying like mad to sustain those profits when mortgage rates eventually start moving back up. From the financial figures I've seen, they're doing just that (along with other home owners).

Seems unfair that the whole country is paying for a few people to have low interest rates and to be able to overpay their mortgages massively, but there you go.

But how many of these Landlords are able to overpay like mad? Ok so some people are lucky to be on very low rates but this is is the minority of mortgage holders.

DD is your mortgage interest only? As seems very low in terms of capital repayment?

Topov_3

Dithering_Dad wrote: »

I guess so. My mortgage is 105k and I'm paying about £330 a month.

If the landlords had any sense, they would be overpaying like mad to sustain those profits when mortgage rates eventually start moving back up. From the financial figures I've seen, they're doing just that (along with other home owners).

Seems unfair that the whole country is paying for a few people to have low interest rates and to be able to overpay their mortgages massively, but there you go.

bye bye blathering dad. your ban will teach you to a lesson for trying to stop legitimit discussion on imigration. tee hee :rotfl::D:D

this is best day ever, exsept for that day when martin threatened to move you all to the Arms. now that day was great, shame he didnt do it but give him time.

kennyboy66_2

penguine wrote: »

Not sure if you're right about this. Can you explain your reasoning?

It would be more correct to say that rates would go up if inflation looked like a serious risk - which despite all the zaNuLabour nonsense and comparisons to Argentina & Weimar Germany, it doesn't.
Sterling has fallen fairly significantly, despite this, the rate of inflation is actually falling.
At the moment it would take another big fall in Sterling and an Oil price jump to cause inflation without a UK economic recovery.

kennyboy66_2

carolt wrote: »

Excellent advice - so, what do people have to say about the fact that rents for flats are falling?

Tragic, isn't it?

I'm looking forward to my rent dropping very, very soon - don't believe the hype - rents for houses have dropped too.

FACT rents for flats are falling?

HYPE rents for houses have dropped too


Do you not feel even a little embarrassed for your selective use of facts and hype?

Thrugelmir

kennyboy66 wrote: »

It would be more correct to say that rates would go up if inflation looked like a serious risk - which despite all the zaNuLabour nonsense and comparisons to Argentina & Weimar Germany, it doesn't.
Sterling has fallen fairly significantly, despite this, the rate of inflation is actually falling.
At the moment it would take another big fall in Sterling and an Oil price jump to cause inflation without a UK economic recovery.

Rates will be determined by the need to raise borrowing by the issue of Gilts. General market rates will be determined by finance houses having the capital to fund their lending by offering depositors competitive rates.

To cover losses margins will also be increased.

A whole generation is going to find that cheap credit doesn't exist.