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  • Buy-to-Let

    Where have all the tenants gone?



    I have had a couple of properties available to rent and have therefore been monitoring the market locally - what’s on the market and how quickly they are letting.

    It appears currently, in south Essex, there are very few prospective tenants looking for property, this is also confirmed by local letting agents.

    There also appears to be a shortage of buyers for properties that are going up for sale with estate agents reducing valuations by 10% - 15%.

    What are others finding?

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    I believe we are in a kind of property limbo due to uncertainty surrounding Brexit.

    Most people will stall on making a decision about moving, selling, buying, or renting until things become clearer in March next year.

    It is very bad for the economy that there is so much confusion and uncertainty imho.

    Additional to that, we are in the summer holidays and most people have their mind on spending time with kids, enjoying their break etc. so are not interested in the upheaval of moving.

    All our properties are currently let, so I have no direct experience myself of what tenant demand is in my areas, so can only comment generally.

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    Where have all the tenants gone?

    long lease or AST?

    Where have all the tenants gone?

    freehold preferred

    Where have all the tenants gone?

    HA housed them every one

    When will they ever earn

    enough to buy their own?


    With apologies to the song writer(s)!!

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    This is interesting insight! We have found that our numbers of flatmate searchers are growing steadily at https://www.idealflatmate.co.uk, but we too have seen a slight slow down in recent months. Perhaps it is seasonal, with people on holiday?  Or is Brexit having an impact?

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    I wonder if people are responding to room ads or sharing with friends more than renting their own property.

    The rent a room allowance has probably resulted in more rooms being available and the option discussed more.


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    Perhaps this is also a response to lower wages, particularly in the public sector. When I started in the universities in the mid-1980s, any teacher, even a junior researcher, could afford to buy a 1-bed flat near to Central London or a 2-bed 15-20 minutes commute away.

    As public sector wages have not kept up with inflation, the choice now is a long commute (colleagues travel up to 2 hours each way every day) or a room in a shared house! I stopped renting my 1-bed flats in Zones 2 and 3 to teachers 5 years ago. They have great credit ratings but salary isn't enough to cover rent. It's a shame because they were excellent tenants.

    I recently heard of a Deputy head teacher in Croydon area who can only afford to buy on shared ownership!!

    When I was at school a Deputy Head would have had a large 4-bed house on the best road in an expensive area

    The latest pay award of 2% won't go far. And that is if it is paid. My university unions have rejected the pay award and are calling for strike action.....there goes that tiny 2% off into the sunset....

    Maybe rooms are the future....

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    Nominal wage growth has halved in each decade since the 1970s peak - hence 40 plus years of falling real wages across all sectors - and thus flatshares etc are indeed the likely default for many even in professional jobs

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    hi Landy_Lordy

    This trend, if it is a trend, makes me glad that I stayed with 1-bed flats and smaller 2-bed houses. I agree that it is wages and salaries that ultimately drives rent levels. If you don't make the money at work you can't pay the rent!

    best wishes

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    The Annual Survey of Hours and Earnings publication criteria ensures that all estimates are undisclosive. A number of estimates have been removed from the published tables for these reasons.

    Average gross weekly earnings for full time employees on adult rates whose pay for pay period was not affected by absence
    £

    Average gross weekly earnings at current pricesAverage gross weekly earnings at today's(25) prices
    197441.7287.9
    197554.0306.4
    197664.2306.4
    197770.2285.2
    197879.1297.8
    197989.6306.4
    1980110.2309.6
    1981124.9313.1
    1982136.5312.8
    1983(26)148.3326.7
    1983147.4324.8
    1984159.3333.7
    1985171.0335.0
    1986184.7351.2
    1987198.9362.8
    1988218.4383.3
    1989239.7389.4
    1990263.1390.5
    1991284.7397.2
    1992304.6407.5
    1993316.9418.6
    1994325.7419.4
    1995336.3419.1
    1996351.5427.7
    1997367.6436.7
    1998(27)384.5439.1
    1998392.5448.3
    1999407.8458.4
    2000425.1464.1
    2001449.7482.4
    2002472.1499.0
    2003487.1499.2
    2004(28)504.9504.9
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    In wider picture today - across all 10 million rentals (SRS/PRS) we have 4.7 million HB/LHA claimants

    Some 30% of PRS tenants claim HB (1.5 million claimants)

    Latter may change when UC is fully rolled out as per concurrent PT discussions.

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    Thanks for posting your statistics LandLordy

    I suspect there will be an increase in HB/UC tenants, especially those over 60 years old. HB tenants age 60+ is a market I am considering.

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