BTL is in desperate need of reform

Thrugelmir

IveSeenTheLight wrote: »

Sure house prices may temporarily go down, but I ask again, with limited rental supply, what's the likelyhood for rents?

Within a mile. There are 29- 3 bed properties available to rent. So plenty of choice. Rent between £595pm and £950pm.

A couple of properties I know have been on sale on the market recently. Interestingly they are also at the higher priced end of the market.

The most expensive has a gross rental yield of 3% on selling price (£300k property), the other 4% (£285k property).

Seems as if the market is on a knife edge. Will rents rise or prices fall?

wotsthat

Graham_Devon wrote: »

If there was a drop in rental supply, there would be an increase in properties for sale, which would, most likely, see price falls.

You simply cannot get your head around anything but prices = up.

This relies on a narrow view of supply and demand.

A drop in the number of houses available for rental will increase the properties available for sale but not the total housing stock.

There will be the same number of people competing for the same number of houses. All that changes is the ratio of renters to buyers.

geneer

julieq wrote: »

Graham, I think for a living.

Makes me think of good ol' dubbya.
"I'm the decider". :rotfl:

Wee_Willy_Harris

IveSeenTheLight wrote: »

In these area's your saying it's a requirement to be registered.
Who's governing the fines for those not registered?

I've posted a link to the legislation, as requested, and posted a list of some of the areas covered, as requested. I think maybe it's your turn to have a little look into the details if your interested. Google is your friend too!

Wee_Willy_Harris

IveSeenTheLight wrote: »

You started debating for it in post 99, referencing the saavings in LHA to subsidise the procurement of all rental stock

http://forums.moneysavingexpert.com/showpost.php?p=43134048&postcount=99

Post #99 was a reply to your post #96 regarding funding. The issue of nationalisation was brought up in #75 by a poster other than I. Do you always have this much trouble following quite simple conversations?

Wee_Willy_Harris

wotsthat wrote: »

This relies on a narrow view of supply and demand.

A drop in the number of houses available for rental will increase the properties available for sale but not the total housing stock.

There will be the same number of people competing for the same number of houses. All that changes is the ratio of renters to buyers.

There may be the same NUMBER of people, but they aren't all the same people. House prices fall, those who are motivated will buy, leaving the remaining BTL brigade to fight over the dross of society.

Wee_Willy_Harris

Thrugelmir wrote: »

Within a mile. There are 29- 3 bed properties available to rent. So plenty of choice. Rent between £595pm and £950pm.

A couple of properties I know have been on sale on the market recently. Interestingly they are also at the higher priced end of the market.

The most expensive has a gross rental yield of 3% on selling price (£300k property), the other 4% (£285k property).

Seems as if the market is on a knife edge. Will rents rise or prices fall?

Hmmmm. The traditional BTL model relies on capital growth to subsidise negligable rental yield. Many landlords can't afford to drop rents for fear that their many houses of cards simply collapse. But drop them they must, if they want to avoid even more costly void periods or scraping the bottom of the tenant barrel and all the issues that presents.

IveSeenTheLight

Thrugelmir wrote: »

Within a mile. There are 29- 3 bed properties available to rent. So plenty of choice. Rent between £595pm and £950pm.

A couple of properties I know have been on sale on the market recently. Interestingly they are also at the higher priced end of the market.

The most expensive has a gross rental yield of 3% on selling price (£300k property), the other 4% (£285k property).

Seems as if the market is on a knife edge. Will rents rise or prices fall?

Maybe the market is not so great within a mile of you.
Many other areas are prime rental markets.
Your small area, may not be representative of the UK majority.

IveSeenTheLight

Wee_Willy_Harris wrote: »

I've posted a link to the legislation, as requested, and posted a list of some of the areas covered, as requested. I think maybe it's your turn to have a little look into the details if your interested. Google is your friend too!

I'm not really that interested in the councils in England that run a LL register by requirement.
I'm surprised as many comments in here are calling for such a scheme.
As you were aware I simply asked you to share with the wider audience and educate them on the information you knew.

I'm not interested, but do prefer when I post somethinf factual to post links to the said facts.
Your link to the legistlation didn't answer the question about regulated authorities in England or who governs such schemes.
I've clearly showed such for Scotland, you have yet to for England despite your claims they do.

IveSeenTheLight

Wee_Willy_Harris wrote: »

Post #99 was a reply to your post #96 regarding funding. The issue of nationalisation was brought up in #75 by a poster other than I. Do you always have this much trouble following quite simple conversations?

Indeed, post 96 was my reply to post 75 askeing where the funding would come from to support the nationalising of ALL rental stock.

Post 99 was from you alluding to the saving in LHA.

I've yet to bo convinced this is sufficient for the government to proceed with such a radical thought.
If it is so simple and easily budgetted for, I'm sure we'll see this follow through which is why I said I would look forward to seeing this come to fruition. I just wont hold my breath waiting for it.