Shocking supply shortage still the key factor in rental market

I watched a house just around the corner from one of mine, an ex-rental, go on the market in the New Year. It didn't sell, the price was reduce but it still didn't't sell. After about 4 months it popped up as a rental at full MV & it was let within days! I think this neatly sums up the market at present.

• Ferey Lavassani
• 30 May 2023 06:46 AM

Tricia, I put a two up two down on the market in Stockport and not only I had six viewings, it went within days, In fact I was offered two thousand pounds over the asking price of £180 K. I guess it depends on the locality and the price of the property.

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My sympathies are with renters, but they need to lay the blame squarely at the governments feet 🦶…. We all know this will get worse.

Problem is mass immigration.

Shocking Supply Problem.

Why are they telling us this since we already know, after the Government deliberately caused it, are they boasting about it.

If they want to increase rental supply the government need to address the massive over taxation we currently face.
Reclassifying rental income as earned instead of investment would be a start.
Calculate our taxable profits in the same way as every other business.
Allow us to contribute to SIPPs and get the same tax benefits as everyone else.
Restore indexation relief on Capital Gains so we aren't being double taxed.

• Peter Why Do I Bother
• 30 May 2023 10:05 AM

Excellent comments Jo

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• Frances
• 30 May 2023 17:45 PM

Hi - ‘Hitting the nail on the head’ as always.

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• A Bhalla
• 01 June 2023 18:40 PM

Spot on! 👍

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I'm part way through buying a new btl and my letting agents are ringing me every 3 days asking when it's available to let and telling me they have a list of renters waiting for it to come on the renting market. They have told me there just aren't enough rental properties to go around those who want one.

• Simon Logan
• 30 May 2023 14:05 PM

It will be like a bun fight 🆘🆘

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• Robert Brown
• 30 May 2023 16:55 PM

Don't set a rent. Invite offers. You could be astonished at what rent you're offered.

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..''offers over''

Decided to now rent a large 4 double bedroom house instead of selling, keeping our toes in the turbulent water, so to speak. Sold 8, but keeping 2 to rent ….let’s wait and see whether we will regret it!

Ferey, well done that would probably be the Deposit on a similar property in London or three times the price but not reflected in Rental returns by any means.
Some Scotland Cities seems to be best value, with rents similar to London in many cases but property prices half or less.

There will be a lot of sales when it becomes the only way to get tenants out

The Government and Councils have made their beds, now they must lye in them.
They have taxed and legislated LLs out of the PRS.
Now they will be in dire need to find homes for thousands and thousands of families as they won’t have the PRS LLs to bail them out.
It’s like they get to work each day and the first thing they do is to take their brains out for the day. Dummies could do a much better job.

The crux is who are buying the properties the landlords are selling. I find there are still budding landlords and other existing ones wanting to buy your pirtfolio. Are the buyers owner occupiers, then that property is gone out of rental market but housed one family or individual, who is getting out of the rental market. The problem is there are increasing number of tenants every year, as immigrants, or students finishing their education and wishing to move out and also increasing number of students every year. The problem is going to increase for the government to find workable solutions. That is they build social housing for rental or buy it off the landlords and become responsible for all they are dictating to PRS. Once they do all the practical and the admin work involved in letting, then they can dictate to prs. We all know that admin of social housing has more issues, looking at cases of Grenfell estate and others. Noone has been prosecuted. Govt wish to dictate PRS landlird but cannot and unwilling to dirty their hands in providing social housing to UC, housing benefit tenants. Whenever I have booked viewings for UC or HA tenants with a child, they have failed to come to view the properties. They wish the council to find them some place ready made. I have also had working tenants who wish to stay only one or 2 months when advertised. They could not understand why I am asking all the information about them for reference, when they can pay upfront for 2 months and move on. Mind boggles, would they move on or stay without paying. Some tenants wish to make a career out of paying for 2 ti 3 months a d stop paying untul taken to court. Tbe UC tenants are not bothered about CCJ.

I am selling 2 of my houses by end of this year. Another 2 in the following year. Keep properties that are let to students or young, mature, working people, out of university. One of them has been rented to a homeless charity for a few years, for less rent, but less issues.

John Chart comments:

To my mind the most salient disincentives to LLs are S 24 and proposed abolition of S 21.

As to the latter the prospect of a rogue TT or one who suddenly cannot pay is a huge risk. The most significant factor is the inadequacy of the courts system.

As a lawyer as well as portfolio LL I am privy to info concerning court delays. Both small claims and multi/fast track claims are taking over 18 months to reach trial! One court is running at 27 months!

The Assoc of Consumer Support Orgs state that the figs re delays are the worst on record since data became available 13 years ago. Separate research concludes thatit takes on average 353 days to wait for a hearing. One location in Kent records 825 days !

There is no clear strategy to resolve this issue

So - one can understand the fears of LLs landed with the wrong TT. Only luck and prayer will avail LLs. A powerful reason to exit the market.

I concur with everything v Spalding has written. A lot of people do not pay for anything! They seem to inhabit a different world, l would place Gove in that world, basically he wants to give away someone else's properties for his gain ! As for the courts, l have been sueing a letting agent, and every dirty trick in the book has been employed, the courts are very hostile to landlords, and it's gone on since before covid.