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Housing market

That's shocking! Is this type of landlord behaviour normal or rare?

Daughter is here now, she has told me that the landlord says that £600 is below the area average so the rent is increasing in August to £750. She apparently went to the council to go on the public housing list but they have told her that she needs the letter from the landlord to give the reason she is leaving private rent, she is leaving due to non affordability. He is not giving her a letter till she leaves, they won't register her till she is out, homeless before any help. It is scandalous but those are the rules apparently as was told to her.
 
That's shocking! Is this type of landlord behaviour normal or rare?

VERY very common, more common than it isn't.

Tbf, and I am not discounting that level of rise for her, but it can get worse. I posted earlier on this thread I think, £1000 increases are common in London at the moment. Goes from £1500 to £2500 overnight, and then 'sells' out at offers when its back on the market and ends up at £3k with a years rent paid in advance.

Estate agents and landlords are well known to be cashing in on the situation way above any additional 'costs' they are experiencing. Council waiting lists in some boroughs, 10years+. Some more.
 
Daughter is here now, she has told me that the landlord says that £600 is below the area average so the rent is increasing in August to £750. She apparently went to the council to go on the public housing list but they have told her that she needs the letter from the landlord to give the reason she is leaving private rent, she is leaving due to non affordability. He is not giving her a letter till she leaves, they won't register her till she is out, homeless before any help. It is scandalous but those are the rules apparently as was told to her.

VERY very common, more common than it isn't.

Tbf, and I am not discounting that level of rise for her, but it can get worse. I posted earlier on this thread I think, £1000 increases are common in London at the moment. Goes from £1500 to £2500 overnight, and then 'sells' out at offers when its back on the market and ends up at £3k with a years rent paid in advance.

Estate agents and landlords are well known to be cashing in on the situation way above any additional 'costs' they are experiencing. Council waiting lists in some boroughs, 10years+. Some more.

Shit the bed on both counts :(:mad:
 
got a letter today from mortgage co today saying that their standard variable rate is now 8.4% :eek::eek: and this is one of the cheapest out there . however they are doing deals but here
goes the maths

currently they pay 750 pcm on a nice big 3 bed . interest only mortgage is £145 per month 1.96% [ bear in mind that you have to pay a lot in overpayments to clear the capital ]
125 repairs and insurance per month [ can be way more than this ] and tax 125 tax per month = 395 . 750 -395 = 355 to help payments and fund improvements

costs with new 5 year deal are 460 mortgage 125 repairs /insurance 125 tax = £710 per month leaving just £40 per month to pay off a pretty large capital mortgage and emergencies . well the maths dont work out so folks are selling up. you would get far more in a building society with less risk :D

i would have to raise the rent by around 400 to about 1150 to get back to same situation. [ you pay more tax on more rent ] that is just not possible for families with extra utility bills , extra petrol , 20% more food costs . its pretty grim. current market rent would be about 1000 for this 3 bed
 
Also, related somewhat

Britain's Forgotten Pensioners: Dispatches

More than two million pensioners are living in poverty in the UK. Dispatches follows four older people through the winter as they struggle to make ends meet.


https://www.channel4.com/programmes/britains-forgotten-pensioners-dispatches

some years ago i went to see a place with elderly retired pensioners with poor health . place was pretty bad and needed work . however the risk from these dear souls did not make it worthwhile sadly
 
got a letter today from mortgage co today saying that their standard variable rate is now 8.4% :eek::eek: and this is one of the cheapest out there . however they are doing deals but here
goes the maths

currently they pay 750 pcm on a nice big 3 bed . interest only mortgage is £145 per month 1.96% [ bear in mind that you have to pay a lot in overpayments to clear the capital ]
125 repairs and insurance per month [ can be way more than this ] and tax 125 tax per month = 395 . 750 -395 = 355 to help payments and fund improvements

costs with new 5 year deal are 460 mortgage 125 repairs /insurance 125 tax = £710 per month leaving just £40 per month to pay off a pretty large capital mortgage and emergencies . well the maths dont work out so folks are selling up. you would get far more in a building society with less risk :D

i would have to raise the rent by around 400 to about 1150 to get back to same situation. [ you pay more tax on more rent ] that is just not possible for families with extra utility bills , extra petrol , 20% more food costs . its pretty grim. current market rent would be about 1000 for this 3 bed

What are you going to do, increase the rent to market level?
 
That's shocking! Is this type of landlord behaviour normal or rare?
It depends. In London fairly common although there are some exceptions. Elsewhere some like myself (before I sold up) took a pragmatic view like Ponty does.

I tell you if I were 30 years younger I'd wait for the coming crash in prices then buy a property or several for cash and rent them out at sky high prices. I'm too old now and really don't need the extra cash. Thank goodness!

DV
 
I'm too old now and really don't need the extra cash.

I resemble that remark, Lewis. I'd be happier not to be a landlord, but my tenant etc. situation prob. means I'll carry on well into my 84th year (and suffer the lower CGT allowance). Wish the tenant would see sense and buy the flat from me !;)
 
I tell you if I were 30 years younger I'd wait for the coming crash in prices then buy a property or several for cash and rent them out at sky high prices. I'm too old now and really don't need the extra cash. Thank goodness!

DV

I’ll keep an eye out but it’ll need to be a bloody good proposition to make it worth the agro now.
 
no way . its impossible . they simply cannot pay it . folks are really sqeezed


If I were you, if you are really sure that you can't find a tenant who you can trust to pay the raised rent, I'd speak to the mortgage company and see what they say. They may be able to lower the repayments in the short term -- after all, the last thing they want is to force a sale, because it'll take so long.

The alternatives are

1. Take a hit, maybe subsidising it with a profitable part of your portfolio. Maybe reducing the hit by partly raising the rent.

2. Selling/allowing repossession.

3. Restructuring the debt.
 
I’ll keep an eye out but it’ll need to be a bloody good proposition to make it worth the agro now.
I remember what happened to house prices 1989 - 1993. They dropped 20% and in London 32%. I was looking to sell my house in SW20 and I was forced to lower the price by 25% and the sod of a buyer tried to take another £500 (a relatively small amount) off. I didn't have to sell so I said 'sod it' and took the house off the market. That was when I first became a landlord and let the house out as furnished and went to work for ESA in Germany for 4 years. Whilst living out of the country I looked at new builds during my visits to the UK and at one site I was given a bundle of keys and 14 brand new properties to view alone. At one site in the UK (SE coast) I left my German telephone number (just in case) and was surprised to get a call from the site office about the sale of their largest house which had fallen through. I quickly took off 25% in my head and offered that. Head office excepted it! A stroke of luck as house prices did then recover - and how! I never did go back to my London house and after I resettled back in the UK sold it and moved to an even larger brand new 5 bed detached place by the sea where I still live.

If you keep alert you may yet see "a bloody good proposition".

DV
 
I remember what happened to house prices 1989 - 1993. They dropped 20% and in London 32%.
I remember that, I bought my first house in 1995 for £40k. I knew the street because a colleague had bought an identical place opposite and I had lodged briefly with him. He had paid a good deal more a couple of years previously. The market was slow for the rest of the 90s, I sold in 1999 for £49k, a year later or so it was worth almost twice that.
 
I’ll keep an eye out but it’ll need to be a bloody good proposition to make it worth the agro now.

Yep, nearly 5% pretty easy to get on cash now. I won't be buying anything untill this house of cards takes a significant hair cut.

Ones hoping for interest rates to drop back only need look back at history. We aren't even up to the historical average yet...

Only way they'll drop now is with a significant rise in unemployment. So if people think it's hard to service a mortgage after recent interest rate increases, try and do it without any income at all...that's a whole next level of pain
 
Yep, nearly 5% pretty easy to get on cash now. I won't be buying anything untill this house of cards takes a significant hair cut.

Ones hoping for interest rates to drop back only need look back at history. We aren't even up to the historical average yet...

Only way they'll drop now is with a significant rise in unemployment. So if people think it's hard to service a mortgage after recent interest rate increases, try and do it without any income at all...that's a whole next level of pain
How does the "increse unemployment, reduce interest rates" model work? I know of the inflation-interest rate model but not employment . After all the demographic who are most exposed to unemployment (young, unskilled, etc) are not mortgage borrowers.
 


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