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Housing market

mandryka said:
They have said that they will give landlords a six months notice period before any changes become effective. They = The Conservative Government.
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Yes, very conscious that we could well have a labour govt in May…

If they go for all out war, I’d rather my assets were vacant until sold than put at potential risk. Short lets are looking the best option if keeping. I’ve got a feeling that if labour win and IR’s are seen to have pivoted, there could be some renewed optimism which will soak up some not inconsiderable pay rises into buoyant house prices.
 
Mike Reed said:
Is this on completion? Various market indices have different assessment criteria. If accurate going into December and a cold one at that, sth is out of kilter, I feel.
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A figure reported by Nationwide, who base their house index on informed guestimation.
 
Ponty said:
Yeah, draw no income from April to keep options open I think (aside from actual rental income of course, which can’t be deferred). Can always pay it later in the tax year if property isn’t sold. See what the accountant suggests. Could do short lets to give flexibility whilst it was being sold. It does sound as though AST’s could soon be a whole world of pain and considerable risk, so best avoided if possible I think. Although this will further reduce supply and increase rents…
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Is this based on the bill passing in 2024?
 
been vacillating badly on a lovely place near a hospital that is fantastic to rent for folks , sadly the RR bill , and mainly the interest rates seeming to be remaining high means it will have to be sold . even though still got 3 years cheap mortgage on it , its too much of a risk
 
hifinutt said:
been vacillating badly on a lovely place near a hospital that is fantastic to rent for folks , sadly the RR bill , and mainly the interest rates seeming to be remaining high means it will have to be sold . even though still got 3 years cheap mortgage on it , its too much of a risk
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Well you don't know about the impact of RR because we don't know the details of the bill yet, and there's a tendency to fear the worst -- abolishing s21 and no practical solution in law when tenants become problematic. You will know very soon, when the bill is passed to the House of Lords. Even in the worst case the risks are probably manageable, as I've already suggested. You will just have to be extra careful to only do a deal with good quality tenants.

My strategy is to watch what's happening closely, and be ready to act when I see that how the lay of he land really lies.
 
I've just read that the figure of 6.1% increase in rents over the past year has been revised to 8.??? due to a cock-up. Total crap i.m.o. as it only means that rents have increased nationally; regions will differ considerably.
 
Kirk said:
Is this based on the bill passing in 2024?
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Yes, AST’s will be no more, periodic only but no S21 termination for whatever reason, including not paying the rent. The pendulum is swinging too far to be a fair and reasonable risk, without a considerably greater return. Particularly with a higher, risk free, zero hassle and work return now available from the banks.
 
Jamie said:
How much will this 'plot' sell for...

BBC News - 'Airspace' above Battersea house to be auctioned
www.bbc.co.uk

'Airspace' above Battersea house to be auctioned

Vacant space above a building is offered with a guide price of £10,000, and no planning permission.
www.bbc.co.uk
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The owner of the adjacent property has put in an application involving the demolition of the entire existing three story building and the erection of a new five story building. As far as I am aware, Wandsworth has not made a decision on the application. The new owner of the airspace will not be able to demolish the existing building at 47 -- he'd have to do a deal with the owners, and that would only be possible if either they wanted to demolish and erect a higher building or were willing to let him build on top and he could get it through planning.

The half of Northcote Road furthest from Clapham Junction Station is fashionable. A new 1 bedroom flat there is probably worth £500,000. .
 
Ponty said:
Yes, AST’s will be no more, periodic only but no S21 termination for whatever reason, including not paying the rent. The pendulum is swinging too far to be a fair and reasonable risk, without a considerably greater return. Particularly with a higher, risk free, zero hassle and work return now available from the banks.
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It is. I can understand why so many landlords are calling it a day.
 
Kirk said:
It is. I can understand why so many landlords are calling it a day.
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Many are effectively forced to quit. Others (such as myself) are torn. Yes, long term, the best thing to do is stay in. I’m just not sure I’m prepared to accept the increased hassle and risk of such a hostile environment for a sub deposit account return.
 
Ponty said:
Many are effectively forced to quit. Others (such as myself) are torn
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I'm just slightly frayed; partly as I don't know the full potential fall-out from this looming bill (act) and partly as having equity in property with income simply makes sense and will do so more as inflation and interest rates start to subside (basket of investments, etc.....).

I find it difficult to believe that even Gove will convert what's left of the rental market into a niche product. Yes, the corporations will surely invest in conversions etc. but the private landlord business is essential for an essential, adequate and flourishing rental market, i.m.o.
 
There is a twisted irony in the way consecutive governments have attempted to apply pressure on landlords with the intent of releasing property onto the market. The reason I refer to this tactic as ironic is because the real, core, problem isn’t that people cannot find property to buy, though there is certainly less property than there is people wanting to buy it. The real underlying issue is that people can’t afford to buy and that isn’t the fault of landlords or their influence on the property market. The final irony is that, if you can’t afford to buy you need to rent, and to rent you need a landlord.

I have, very recently, sold a rental property and it sold for more than expected - a direct result of demand within the market. However, the existing tenant could not afford to buy it - they wanted to but their income just didn’t reach. In the end I sold it to someone who was also currently renting, just not the tenant of that property.
 
YNWOAN said:
However, the existing tenant could not afford to buy it - they wanted to but their income just didn’t reach. In the end I sold it to someone who was also currently renting, just not the tenant of that property.
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Similar situation here. Divorced civil service tenant with decree nisi delays/probems. I've suggested his buying my maisonette is a bit of a no-brainer and he agrees and is supposedly fishing around for deposits and mortgage possibilities (we're taking £130K ish here for spacious 3 bed/garden/courtyard). Selling to him helps both of us and I'm keen to stop being a landlord at 83 ! Meanwhile, financially efficient property with income but there comes a time.....!
 
Putting pressure on landlords to sell property isn’t the solution. What is really needed is for more affordable accommodation to be built. There’s no point in bringing housing to the market if prospective buyers can’t afford it!
 
Mike Reed said:
I'm just slightly frayed; partly as I don't know the full potential fall-out from this looming bill (act) and partly as having equity in property with income simply makes sense and will do so more as inflation and interest rates start to subside (basket of investments, etc.....).

I find it difficult to believe that even Gove will convert what's left of the rental market into a niche product. Yes, the corporations will surely invest in conversions etc. but the private landlord business is essential for an essential, adequate and flourishing rental market, i.m.o.
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Yes, we don’t know the full impact but I’d bet the farm it will be net negative for landlords (and tenants as a result of unintended consequences). On the flip side, if thousands of landlords are driven out of the market, those still standing will have a very precious and sought after product, which is likely to increase in price. It‘s fair to say that most who sell property generally regret it through the passage of time.
 
Indeed. My father sold his parents' property out of probate in 1996 for a measly 60k, now worth 340k ish. My brother and I opposed the sale but it wasn't our call. He didn't need the money but didn't want the bother. Crazy decision as we'd now have both the property and over 25 years' rent.
 
Mike Reed said:
Similar situation here. Divorced civil service tenant with decree nisi delays/probems. I've suggested his buying my maisonette is a bit of a no-brainer and he agrees and is supposedly fishing around for deposits and mortgage possibilities (we're taking £130K ish here for spacious 3 bed/garden/courtyard). Selling to him helps both of us and I'm keen to stop being a landlord at 83 ! Meanwhile, financially efficient property with income but there comes a time.....!
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flip , well done mike , being a landlord at 83 !! it can be pretty stressful so can understand you wanting to go
 
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