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The number of available properties to rent in the private rented sector in the UK is falling at an alarming rate, according to new figures.Across mainland UK, the supply of all available homes to rent, including hard to rent properties that have been on the market for more than 20 weeks, has fallen by more than 10,000 since July 2017, from 233,453 to 223,115.
Aside from London, another particularly badly hit area is the South East, where supply of all available rental properties fell from 30,066 in August 2017 to 27,728 in the same month this year.The report by Home.co.uk goes on to mention Section 24 as the main reason, along with other factors such as increasing regulation, and selective and HMO licensing.The report also suggests that landlords who have decided to leave the private rented sector have done their maths and they know that if they continue to let the property, even with a modest rent hike, they will now be losing money overall.Full/source articleSEE ALSO - What causes homelessness in the UK?UP NEXT - 9 reasons Section 24 will be reversedDON'T MISS - 1st "concrete" signs of impact of Section 24NOW WATCH:
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
If landlords can hang in, they will be quids in. If for instance a million people are looking to rent and there are less properties, rents can only move up. The number of people looking will not change and less properties means that landlords can adjust rents to absorb new taxes etc. This will be a great time to buy as well. If institutional developers are flooding the market with apartments, studios etc, aim for family homes as they will not build these. Family homes let easily, have long term tenants and move up steadily in value.
But rents have to be linked to affordability surely? People are already pushed to the limits with wages low, the economy in a mess and Brexit or crashing out on the horizon? What an upside-down world. The irony being that Landlords have traditionally been sceptical of Labour policies yet the last X years of government has been more damaging to the sector that any other time - certainly in my lifetime. What IS their game plan? Do they even have one?
Is that Opportunity I hear knocking????
You can see what’s going to happen here landlord will sell then we have a shortage
Landlords will inflate rents because of S24 and the shortage
Then we will become the whipping boy and rent control will follow because we are seen to be greedy
We can't win - we will get the blame and then we will have a further phase of s24 ...
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.
There is no doubt that LL costs are rising. Selective licences, fire regs and so on. However I have recently switched two mortgages on fixed rates with TMW to much lower rates (!!) even though rates are rising overall.
In cash terms I am at the same profit levels.
The house I purchased for cash in 2016 is pumping cash into my bank account to offset my higher costs. It went against the grain to avoid borrowing, but.........it is working so far
I am thinking of buying another family house to rent out. Rents can be increased and tenants stay put, especially when children are in school
It is worth waiting and paying a little more for a slightly better property. You can then possibly attract tenants who will pay a higher rent
I have just taken 22k out of one property and my monthly payments have gone down 18 quid!
Yes with low interest rates, it takes a lot of capital to make a dent in the interest payments.
That's why it may be better to keep your debt in absolute terms and grow your equity. I am doing this by buying for cash now
Others will decide to sell off
Tough choices lie ahead for LLs
Good luck to all
I recently advertised a vacant flat in Manchester, I was bombarded with interest, most of whom said they needed somewhere to live, because their landlord is selling up.
My friend runs a small lettings agency, with only 350 properties on their books. They are loosing around 8 - 12 properties per month.
" most of whom said they needed somewhere to live, because their landlord is selling up"
I hear this a lot and when I was buying I used to ask for their landlord's details on the hope of being able to pick up the house directly from the landlord. Quite often the request to make contact with their landlord was met with fear. I soon realised that the above one-liner was a convenient excuse to cover a multitude of reasons as to why a tenant may have been asked to move out by their current landlord.
Don't believe anything that you hear and only believe half of what you see.
And this is all before the first S 24 tax bill has even been paid
Imagine 4 years down the line as the screw tightens even further
The LL exodus will only gather pace unless measures are taken to stop it or fill the vacuum left
The vacuum aint being filled and wont be . Time is against the Gov . They haven't got a sustainable answer
Rent controls wouldnt work and would only exacerbate the situation and made the exodus faster
I`ve got a £750 pcm renter leaving next week . The new one will be £850 pcm
There wont be any shortage of takers
It a LL couldn`t put it up as the law says they cant they may easily decide to sell up to add to the crisis
The exodus will stop gathering momentum only when S24 is kept - but made non retrospective
The existing 2 million LL can then continue their business and service to the community
New LL`s will know what they are getting into and can cut their cloth accordingly
The Gov can then save face whilst stabilising the ship and stabilising the excruciating homelessness stats
Its painful to have desperate tenants ring me asking have i got anything as their LL is evicting them
They have 2 kids from a nice family home but the LL had to sell up as the gov `taxed him out of the park `
I had to say no as I have nothing vacant .
The tide will turn eventually but there will be more pain first
And yes I agree big family homes will possibly see a resurgence.
Extra yield without HMO hassle
Extended families are being forced to live together rather than go on the street .
They may work and have 6/7/8K pcm income coming in between them so can pay
I`ve got some with utility rooms 8` x 4` .
One said they didn`t really want their brother living there @ 32 years of age but they are family so couldnt see them on the street
They moved the washing machine back into the kitchen so they could get a single mattress in there and some privacy for all of them
These hidden homeless largely don`t show in the official stats
Our country is meant to be 1st world not 3rd world but then you get this happening
I`ve started looking at loft conversions with an en suite now as a permitted development
20K for an extra 300 pcm - Yield 18%
Jonathan Clarke. http://www.buytoletmk.com