Weird rental market?

[Askandyforcompo]

We had to move for work 7 years ago. We were selling our house but it fell through on exchange and we had to go to the work, so we rented our house out That's the backstory for landlord haters.

We put the house on 3 weeks ago. We've had 10 enquiries, mostly people who don't meet the minimum earning requirement by quite a large margin. Only 2 have viewed, liked it but it was too small for them. We've had no enquiries for a week.

Where are all the people desperate to rent I read about constantly? It's a lovely detached character cottage in the best area of our town. It's only two bed which obviously isn't great for people with kids, but for a couple looking for something with a garden it's perfect. It's in the Surrey commuter belt. It's on for the same price as other 2 bed houses. It's well maintained.

The tenants move out in 3 weeks. Is the rental market strange at the moment?

Absolutely. But the price has never been an issue before, as I said. The price hasn't changed. The current tenants are leaving and paying £1000 a month MORE to be closer to London. Only one of them works and is only in the office 2 days a week so that doesn't equate to £1000 less in travel.

But as I've also said, I've realised why now. There is an oversupply of leasehold flats because people can't sell them.

Yes I have ro agree about the "property ladder" expression. People forget it goes in cycles of becoming a snake too - and I think thats what's coming in the short term.

A long way down the snake though to get back to more normal wage based house price inflation, I can"t see the cheap mortgage debt coming back TBH.

Most couples without kids I know either buy or rent a room to save money to buy. They don’t rent a two bed cottage when they only need a one room flat or house share.

Well that's not my experience so far. I've had 3 sets of tenants and always at least 5 or 6 who have wanted it, all couples without children.

What about people recently divorced with not enough to buy or a couple setting up home together and not wanting to buy yet? Or people working in London who may relocate in the future? There are lots of reasons people rent. I have a friend who has rented all her adult life. She could afford to buy but doesn't want to.

If what you say were true houses like mine would never rent. I'm asking about the current rental market changing.

Have you put the rent up since last time you advertised it?

There’s only ever one guaranteed reason why a place is not renting and that’s that it is priced too high.

covid drove a lot of people out of the capital but now living in the hustle and bustle is in vogue. Even with sky high rental rates.

you may need to just suck it up and drop the rental price

People have less spare money. Instead of a nice looking property people are more likely to be after something plain but cheaper.

Hang on and hope for a bite or reduce the price and widen your audience.

Pays yer money takes yer chance.

You only need one or two months void to wipe out any profit on higher rent. I thought there was a high demand for rentals with LL leaving on mass right now?

Of course the house will rent, but maybe not at the previous price, there has been a big drop in immigration so more flats etc. available as competition.

Is it fast moving in your town though? I rent out a flat in Fulham and I get tenants quickly. First lot stayed four years, second two years til she got pregnant (it’s a small two bed flat), third I wanted her out so did not renew it after two years. Each time I had a new tenant within a day - last time was this past March. While property prices are stagnating rent is going up.
So it’s demand or price. What does your agent say?

We don't use an agent. We use Open Rent. We've had 4 new enquiries today. When we've advertised before we've found tenants within days, hence my post saying things have changed and the market seems weird.

Do you use the Rightmove option on OpenRent? You probably do, but if you don't, that might help.

Lots of choice these days to rent because of landlords selling up so people who would have rented your house once upon a time may now easily be able to rent a two bed flat for, say, £400 a month less than what you’re offering.

What do you mean, a debt escalator? Of course buying a house is the right thing to do. You can either pay rent forever (that increases every year) or pay a mortgage that you fix and is typically stable, and importantly: will end eventually. And the debt reduces while your wage increases.

I do, yes.

Yes, it seems there is more choice after The Renters Rights Act the opposite of what was predicted.
On Rightmove in my town there are 86 2 bed flats either same price or up to £200 cheaper. 12 2 bed houses same price or more expensive. Only 2 house share £800- £900 a month.
Sales prices are basically what they were in 2018.

Yep all to do with income, my son and his gf have recently rented a house, they both have good income, they applied for 3 houses that would suit them, they were offered them all, they went with the first one they were offered, as she is a HCP and was about to start at a new hospital.

I'm not sure this makes logical sense. Landlords selling = fewer flats for rent = less choice, no?

What I think is making the difference is:

• Fewer people need to commute to London every day.
• Those that do probably don't want to pay train fares vs. London transport capped fares.
• Those that only need to be in 1/2 days a week (or less) can live somewhere much cheaper than London, rather than Surrey which is barely cheaper if at all.
• While I'm sure your town is nice, it may not be what people are looking for, at least when renting a 2 bed house.
• AI has already ended graduate recruitment at a bunch of companies, so there will be fewer young people able to pay higher rents now and in the future.

But landlords aren’t selling in general, one reason why there’s a lot of homes available to rent (mainly flats). So some landlords aren’t selling going back to the private sector - it’s either that or sell at a loss.

'Well that's not my experience so far.'

She says on the thread where she is literally complaining that her experience is no one is doing what she expects them to do.

Its your experience right now, thats why you have made the thread. What happened historically means nothing.

I think house prices for the smaller two bed houses have dropped recently (certainly in our area) as more landlords have sold up because of the new bill. So people have either bought already or are saving furiously still at home, because there is a glimpse of hope for them.
Or are still at home because col means that’s it’s just too expensive to do the traditional flat share when starting out.

And if landlords can't even cover their costs they will sell up, rental properties will become fewer and far between and rents will increase !

Yes, I'm asking what's changed recently. You make general comments about renting, not what's changed or what the current climate is. I got new tenants only 9 months ago who are leaving to pay more, not less.

I've worked out what's changed now- loads of flats.

I'm in West Midlands as Nd the rental market has fewer houses than potential tenants wanting to rent them. I've had 2 unrelated calls in the last month asking if I have any vacanct properties. Both from different tenants wanting a house for their parents and for friends. Houses put up to rent are snapped up within a couple weeks. Rents are rising too. I saw one house 2 doors down from a house I rent out being let for £250 pcm more. It's exactly the same layout and no nicer decor and the garden is not as nice as one I let.