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Original poster

As the housing market is becoming more unstable does that mean that the rental market will increase?

36 replies

McDreamy · 04/04/2008 15:34

It's just that we have reduced our house price by 5% and are not prepared to go any lower. If, by the time we move back to the UK (July time) we have not sold our house at the price we want we are not prepared to lower the price anymore so we were thinking of renting it out until we want to buy (a year or 2).

It's a 4 bedroomed family house. We were just wondering if renting it out was a good option at the moment as it seems to me more people are renting.

OP posts:
Miggsie · 04/04/2008 15:36

...if it gets harder to get a mortgage people will have no choice but to rent or stay in their existing homes.
Find a specialist agent as the indicators are that the rental market is doing fine.

expatinscotland · 04/04/2008 15:36

It may be difficult to answer that question as you are not in the UK.

Renting in other countries may also carry some important, and rather costly, tax ramifications that are not present in this country.

True, other people rent more in other countries, particularly in the European continent.

noddyholder · 04/04/2008 15:38

Why are you not prepared to go lower.the bannks are sayin g property is at least 30% overvalued atm and the only way forward is a return to traditional lending and multiples.Better to take a 10-15% drop now than 30% in a few years.But like you say lots of people are renting so that is one option

Original poster
McDreamy · 04/04/2008 15:39

Our house is in the UK we just don't live in it at the moment! Sorry I didn't make that clear!

OP posts:
Original poster
McDreamy · 04/04/2008 15:40

Because we will be approaching what we paid for it noddy. We would rather rent it out for a while until the property prices start increasing (they will eventually surely). We are in no hurry iyswim.

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expatinscotland · 04/04/2008 15:42

if the rental market increases, i think it will be largely in the 1 bedroom flat sector, as those are the most traditional first-time buyers who will no longer be able to afford to buy anything.

if someone can afford the rent on a 4bed house, tehy usually have a mortgage.

i wouldn't be prepared to pay rent on a house that size. i'd rather bunk up in a smaller place to save money.

expatinscotland · 04/04/2008 15:43

i wouldn't bank on the prices of homes that size increasing very much over what they have been in teh past two years, tbh.

not for a long, long while.

because they were overinflated and long due an adjustment.

Original poster
McDreamy · 04/04/2008 15:45

That's fine exp, if we can get what it is worth today we would be very happy we are just not prepared to go any lower.

I agree with you about renting - I would not rent my house IYSWIM but would others?

OP posts:
noddyholder · 04/04/2008 15:47

Could you not live in it?

expatinscotland · 04/04/2008 15:48

At that size, McDreamy? I think you'd best speak to an estate agent, because it could be region quite region dependent. Of course, as it is a family home, being in a good catchment area would add value, as well as things like off-street parking and two bathrooms. Many who rent at that size are in partial receipt of DSS as well.

Like I said, given that rent on a property that size is high, it may be that many folks would have opted to mortgage themselves, IYKWIM

expatinscotland · 04/04/2008 15:49

Ah, but a place is only worth what someone can and is able to pay for it.

And this, of course, may change over time.

Original poster
McDreamy · 04/04/2008 15:53

I don't want to live in it. DH job is not nearby, we have decided to get a quarter where he is.

OP posts:
Original poster
McDreamy · 04/04/2008 15:54

We have 2 people that want to buy it (at the even higher price) but they haven't sold their house yet - same story everywhere I think!!!

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hanaflower · 04/04/2008 16:06

This reply has been deleted

Message withdrawn at poster's request.

Original poster
McDreamy · 04/04/2008 16:10

TBH I'm not that bothered about the rental income covering the mortgage completely, it's more about not leaving the house empty - although money towards the mortgage would be gratefully received

I will look into it, thank for all your advice and opinions.

OP posts:
hanaflower · 04/04/2008 16:12

This reply has been deleted

Message withdrawn at poster's request.

expatinscotland · 04/04/2008 16:12

Also, check with your mortgage and homeowners insurance companies about any rules there may be on renting the place out.

expatinscotland · 04/04/2008 16:13

in addition, if you want to rent to a group of unrelated people - such as to students - you may need an HMO license from your council.

Original poster
McDreamy · 04/04/2008 16:22

I don't think we would rent to students, we are not really in an area to appeal to students I don't think but maybe we can't be so choosy! Just had a look at the links and it looks like we can more than cover the mortgage which is great.

Good point Hana but so far we have had no offers and until we do it will sit there empty and according to many keep on reducing in value. I am not bothered about the rent completely covering the mortgage was what I meant, obviously I want the rent to go significantly towards covering the mortgage but according to your links it should be fine anyway.

OP posts:
Original poster
McDreamy · 04/04/2008 16:23

Mortgage company are fine about it as we are unable to live in it.

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expatinscotland · 04/04/2008 17:10

Cool. Let your homeowner's insurance know and get hold of a letting agent or solicitor.

Anytime you are letting out, you do have to follow some simple rules and have an inspection - we're renting from people who are living abroad just now and he had to have teh place inspected for fire code saftey and the like before being able to legally rent it out to us.

Original poster
McDreamy · 04/04/2008 18:00

Of course, I will thanks. We've rented out properties before so am a bit aware of all the faffy bits you have to do, it's been a while though

Thanks once again for all your advice, always good to pass ideas past friends

OP posts:
sparkleymummy · 04/04/2008 18:12

I don't think you'll have a problem renting it. There will be lots of families like mine who have sold their houses and are going into rented to see what happens with the market before buying. We will have two boys, masses of toys and the furniture from our five bed house. Whilst it would be nice to think we can save a bit of money by going into a smaller property, the reality is our furniture and possessions won't fit.

(Your house isn't in Nottingham is it???)

justabouttohavelunch · 04/04/2008 18:18

This reply has been deleted

Message withdrawn at poster's request.

sparkleymummy · 04/04/2008 18:21

Justabouttohavelunch - Will you take two small boys on their own so that DH and I can rent somewhere else and get a bit of sleep?