Downward trend in UK rents 'ends'

purch

Dear oh dear - presumably you'd be happy if there was no rental property at all?

I thought he meant the Landlord would get drunk on Scottish Lager and forget to pay the Mortgage !!!!

My Crystal Ball needs a service :eek:

abaxas

Stupid question (or maybe not)

Are these asking rents or the actual PPM on the contract.

System

Are we about the enter the realms of "LOLOL ASKING RENTS MEAN NOTHING, VILE DELUDED LANDLORDS!!!one"?

ad9898_3

All I can say is downward trend isn't ending in my area, they are still reducing, I guess at some point all those LL's that bought in 2003-2007 with a high LTV will not be able to drop them anymore, and after 3-4 months will get repossessed, shame.

Just to edit, I think it's common knowledge that most of the LL's that frequent this board are doing ok for themselves, however I bet out there in the real world they are outnumbered significantly by ones that are in deep sh*t, or have lost everything already. This board isn't particularly sympathetic to over-leveraged LL's who are just about to hit the wall, and so we are only likely to see the guys who are doing ok like the OP, chucky...etc.

IveSeenTheLight

ad9898 wrote: »

All I can say is downward trend isn't ending in my area, they are still reducing.

Thi may be so. If it is and the report showing on average rent decreases have stopped, would you agree that in some areas rents must be increasing in order to support the average stabalisation?

lostinrates

If rents are increasing is that because there is more demnd? Increased people hvein to sell/being repossesed for example, contributing to the figures?

ad9898_3

IveSeenTheLight wrote: »

Thi may be so. If it is and the report showing on average rent decreases have stopped, would you agree that in some areas rents must be increasing in order to support the average stabalisation?

I'm not sure, unless the report takes a whole of market view, which is pretty impossible, it would be hard to say. What I would say, is given the economic conditions/outlook, I doubt the trend has ended, however, if you can report back each month over the next 3-4 months and the reports are still saying decreases have stopped, then I will give way to you.

chucky

ad9898 wrote: »

I'm not sure, unless the report takes a whole of market view, which is pretty impossible, it would be hard to say. What I would say, is given the economic conditions/outlook, I doubt the trend has ended, however, if you can report back each month over the next 3-4 months and the reports are still saying decreases have stopped, then I will give way to you.

at a guess Ad, you're based in the Midlands where unemplyment is worst and the recession will/has hit hardest. if you do it probably distorts your view of things as there are other areas that aren't doing as badly. am i wrong?

http://news.bbc.co.uk/2/hi/business/7789784.stm

IveSeenTheLight

lostinrates wrote: »

If rents are increasing is that because there is more demnd? Increased people hvein to sell/being repossesed for example, contributing to the figures?

I'm not sure, dont know enough about these specific areas.
On the VI area and property type I have, I've seen rental rates rise in the last 2 1/2 years, although recently there has been a stabalisation.

julieq

At the risk of repeating myself endlessly, everyone has to live somewhere, there isn't a lot of empty housing stock in this country, and yields for debt financed landlords are up significantly because interest rates are down.

It's a pretty good time to be a BTL landlord I'd say. Had we not had the banking troubles, a long period of stagnation at 4-5% interest rates would have wiped many of them out. As things are there's some breathing space.

I don't know why there is so much moral outrage about BTL. It's really just another form of investment, in common with a lot of popular investment it formed a bubble via a feeding frenzy. If you're of the STR brigade, the BTL people are doing you a favour by renting you somewhere to live. For quite a number of years they were doing everyone renting a favour by accepting rents below the levels of a mortgage on equivalent houses.

Yes they were generally clueless, and bears of one idea, but on the other hand that's true for many of the regular posters here too, it's just that the idea is the opposite one