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When will private rents come down?!

(12 Posts)
gaussgirl Fri 16-Jan-09 12:48:48

I am aware that a lot of despairing agents are saying they're tired of trying to market ridiculously overpriced house on the sales market- but I wonder how many are beginning to feel that in the rental one, too?

5 years ago, we were in a situation where we had to find a family home close to the DSs school quickly (prev. landlord decided to sell). It was the devils own job, there were only 2 br flats on the market. The property pages ran to 30 pages each week, but the rentals, maybe a half page? Luckily, literally at the point we were researching plane fares back to Oz, something came up.

Now it's such a very different kettle of fish. The property pages run to maybe 12 , but 11 are renters. We're looking to move into the catchment of the desired secondary. We plan on buying using the proceeds of our Oz house sale but we all know house prices have a way to go yet, but the rental market is a bit of a minefield. We've basically said no to anything that's both for sale and to let. We need to be in catchment for 10 months from now (Oct closing). Trouble is, even the To Lets are still at silly prices! Many 3 b/r end of terrace, no garage, one living area, no ensuite want 950 pcm! (southern Hampshire). Obviously we're going in and offering considerably less but I do wonder who's advising the landlords? I was clearly told by my letting agent who manages our soon to be sold property in Oz the be very sensible about setting the rent. As she so rightly pointed out, if you ask 950 and get no takers for a month, then accept 800 the following month, it'll still take you 7 months to recoup that month's loss! You'd've been far better off getting an immediate renter at 800 from the off!

MY belief is that it's because the UK rental market on this mass scale is still in its infancy and agents are still not being firm with potential landlords about what's attainable; Obviously it'd hurt if you were looking for some other mug to pay your huge mortgage but surely the choice is either lowering the asking rental price or cutting your losses and selling at a loss?! I think we will see this happening but I hope it'll be soon so I can rent a nice house in time at a sensible rate!

pookamoo Fri 16-Jan-09 12:55:00

I think it's because the mortgage payments are still quite high for some of the landlords so they can't afford to lower the rents...
Last year a lot of people came to the end of their low fixed rates and had to accept much higher rates with their new mortgage products. They have to cover the mortgage, insurance and all the agents' fees with the rent, so until there are "new" landlords on lower rate mortgages, and not many around, buy to let is slow at the moment, the rents will stay the same I'm afraid!

Haribosmummy Fri 16-Jan-09 12:56:30

It's happening.

The house I live in now was on for almost double what we actually pay in rent.

A case of get a tennant in or get the house repossessed.

So it's happening...

gaussgirl Fri 16-Jan-09 13:45:16

OK Haribo, that's good to hear! Not, obviously if you are in the position pooka speaks of, but though we are in a position to buy, we were just not prepared to pay the prices asked over the past 5 years- so we rented, and now, as ALWAYS happens in the property market, the shoe is on the other foot! Pooka perhaps overlooks the fact it doesn't matter if the landlords can't AFFORD to lower the rent- if they want tenants, they have to. In the face of ongoing vacancy, the choices are to sell up, lower rent or face repossession.

I have to say, we've been surprised that the rental property we're looking at remain on the market. DH is going to look at one I viewed last week- and the agent basically said we were the only interested party, and the time convenient for DH, end of next week would be fine! 5 years ago DH had to run up the road to withdraw 300 quid whilst I stood practically guarding the door to secure the only suitable property we found, with the next potential viewers waiting on the doorstep!

lalalonglegs Fri 16-Jan-09 15:22:53

I got a press release the other day saying that rents had fallen faster than house prices over the past year. I know places on our road that were asking £475 p/w are now asking £400 and I know people who have sold and negotiated huge discounts on rental places while they look for their next homes.

OhBling Fri 16-Jan-09 15:31:58

what about if you're already renting? How feasible is it to get the price down? Or at the very least, refuse to pay more when the annual assessment comes round?

revjustabouttodosomework Fri 16-Jan-09 15:38:14

Message withdrawn at poster's request.

OhBling Fri 16-Jan-09 15:38:59

London.

Haribosmummy Fri 16-Jan-09 15:43:39

I would def. refuse to pay more on an annual assessment.

And, I think paying less is a real possibility.

revjustabouttodosomework Fri 16-Jan-09 15:49:26

Message withdrawn at poster's request.

OhBling Fri 16-Jan-09 15:56:11

Thanks.
To be fair, landlord didn't attempt to put up rent last year either. But there's a small concern on my part that therefore he'll want it to go up this year. But then, I could also argue that things like paint, carpet etc are all two years less good nick than they were when we moved in so quality has gone down (although agent is doing inspection on Monday and I've asked her to check it out. She hasn't responded but hopefully she will).

revjustabouttodosomework Fri 16-Jan-09 15:58:13

Message withdrawn at poster's request.

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