Time to start whacking those rent prices up?

jebervic

With a slowdown in the housing market and people looking to rent reather than buy, is this a good opportunity for the BTL'ers to increase the rents to more realistic levels?

PasturesNew

No. While people will stretch themselves to buy a house, with the help of family/parents/whatever ... they don't do the same to rent.

Different ball game.

The current levels are realistic... and in many cases the BTL properties are empty at their current levels as your average man in the street can't afford them.

SquatNow

Only if they want a very long void.

Check Rightmove... there is a massive glut of rental properties at the moment. I could explain why, but no-one listens. Suffice to say, there will be even more rental properties ready for occupation in the next 3 months.

I expect to see rents drop quite a bit as landlords compete for tennants, especially as every man and his dog are now looking to take in a lodger.

dolce_vita

jebervic wrote: »

With a slowdown in the housing market and people looking to rent reather than buy, is this a good opportunity for the BTL'ers to increase the rents to more realistic levels?

:rotfl: :rotfl: :rotfl: :rotfl: :rotfl:

Is this a joke?

jebervic

I wouldn't say there is a glut of rentals in London and the South East, so I'm looking forward to current tenancies ending so that I can get tenants in at increased prices, with an influx of eastern europeans, rental properties are in short supply, they also make for good tenants.

jebervic

dolce_vita wrote: »

:rotfl: :rotfl: :rotfl: :rotfl: :rotfl:

Is this a joke?

Actually, not at all, the housing market doom and gloom merchants can't have it all ways. If there is a slowdown in the housing market then it stands to reason people will be renting in the meantime.

Gorgeous_George

Just had a quick look on Rightmove.

Within half a mile of my BTL there are 19 properties (i.e., 2 pages) including 'Let subject to contract'. When I have looked in the past there has been normally 5 pages (upto 50 properties). Two bed terraced houses are up from £350 to £425 over the last 12 months. My 4 bed BTL looks to be a bargain at £420.

Maybe not typical.

Tighter lending will lead to ever greater demand for quality rentals. That said, demand has never be a problem for mine. With less people buying there must be more people renting. Why would this extra demand not lead to higher rental costs?

GG

Biggie

jebervic wrote: »

I wouldn't say there is a glut of rentals in London and the South East, so I'm looking forward to current tenancies ending so that I can get tenants in at increased prices, with an influx of eastern europeans, rental properties are in short supply, they also make for good tenants.

this was exactly what was going through my mind as I was reading this thread....

dolce_vita

So during the rising market, you reduced the rent did you?

SquatNow

As I pointed out, there are a lot of new rentals coming onto the market, mostly new-builds bought by BTLers off plan but also a lot of houses belonging to Expats who are retiring to spain and renting their house out. The ex-pats arn't bothered about getting a high rent, they just want a regular rent with no voids.

Add in the fact that half the country has just, or is about to, put an ad in the local paper for "Room for rent, £250pcm inc bills" and you're gonna be $h!t out of lucky mate... sorry. Lots of people with spare rooms who've just come off fixed rate mortgages are suddenly finding they need to get an extra £200 a month to cover the mortgage.

jebervic

SquatNow wrote: »

As I pointed out, there are a lot of new rentals coming onto the market, mostly new-builds bought by BTLers off plan but also a lot of houses belonging to Expats who are retiring to spain and renting their house out. The ex-pats arn't bothered about getting a high rent, they just want a regular rent with no voids.

Add in the fact that half the country has just, or is about to, put an ad in the local paper for "Room for rent, £250pcm inc bills" and you're gonna be $h!t out of lucky mate... sorry. Lots of people with spare rooms who've just come off fixed rate mortgages are suddenly finding they need to get an extra £200 a month to cover the mortgage.

Thats a pretty weak argument in my opinion, I don't go with the new build theory at all. As for the room to rent/lodger theory- well sorry that just doesn't wash.