Buy to Let Exodus to flood Housing Market

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    #31
    Large companies aren't making up the shortfall;

    http://www.propertyindustryeye.com/p...downs-kick-in/

    Private rented sector loses 46,000 homes as landlord-bashing tax clampdowns kick in

    There were 23.9m dwellings in England at March 31, 2017, the latest official figures show, with a fall in the number of private rented sector homes.

    The fall suggests that at least some landlords took flight as tax changes either took effect or were announced. It begs the question as to whether more landlords have quit over the last year.

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      #32
      Originally posted by hech123 View Post

      They do not need to build them all. They are just making things so difficult for small landlords they will sell up eventually. If they bring in things like 24 hour repair/emergency lines - Licensing etc.... how many small landlords will want to continue. The large companies will then buy up the properties being sold. This is already happening. Number of landlords is dropping yet the PRS is still growing
      Sorry, this does make me laugh! 24 hour repair?

      I know people who live in HA properties who wait months and months for essential repairs. The state of some of these HA rental properties and the quality of the work carried out by their contractors truly shocks me.

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        #33
        If it’s an emergency they ring agent and gives them out of hours contact, after the obvious if gas leak call gas network or who ever they are called now etc. Then caller deals with it and sends someone if it’s required if not ring me first thing and I send someone or they have me list of people to use and send one of them. They fix it call me and I pay bill simples. Not sure how 24 hr will affect anyone I’m a small landlord and think my tennant deserves emergency repairs if required, not an issue to me at all and I’m sure most other landlords operate in the same way

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          #34
          My tenants have both my Landline and Mobile number and they all know they can ring me. In the 10 yrars I have been renting - I have never once been called during the late eve or during sleeping hours.

          Recently I had a central heating pump go at a rental property whilst I was actually staying there. From the time I reported the problem to the well known gas company it took 6 long days to get the new part and fit. I complained that this was too long to the company and they said this was the best they could do.

          A relative of mine in a HA property went 4 months without hot water.

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            #35
            Originally posted by Claymore View Post

            Sorry, this does make me laugh! 24 hour repair?

            I know people who live in HA properties who wait months and months for essential repairs. The state of some of these HA rental properties and the quality of the work carried out by their contractors truly shocks me.
            Indeed I am assuming you are not renting in any licensing areas otherwise the laughter would of well and truly stopped. Forced licensing already here in many areas and a proposal in a number of jurisdiction's was 24 hr emergency repair lines. I imagine a lot of large letting agents will offer them or some national service will set up a call centre but it certainly looks like at some point in the next 10 years this will be a further development.

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              #36
              I do not think it will be large corporates buying up all of the renting stock I think it is the current base of medium sized landlords with 100+ properties. Recently I met several who have between 200-500 units who are expanding aggressively. To top this off the banks are supporting this sector which is pretty fundamental as wherever the banks send the money will be the growth sector going forward. I think small landlords will still manage if they want to but if I had under 5 properties I would seriously be assessing whether to stay the course. I would be looking in to licensing and what it entails as it is likely to be rolled out further.

              I do think the market will improve a lot as we head in to the second half of the real estate cycle so many people will take large profits when they can. Anyone entering as a newby nearing the top of the next cycle will have an absolute nightmare in my opinion.

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                #37
                If they are buying Hech, it is not enough to make up the shortfall.
                The private rented sector lost 46,000 homes in 2016/17, at a time of a rapidly increasing population. How many were lost last year? How many this year and going forward?
                More to the point, the PRS has stopped creating more housing. (The corporate BTR sector is a drop in the ocean, at least in the medium term)

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                  #38
                  Originally posted by boletus View Post
                  If they are buying Hech, it is not enough to make up the shortfall.
                  The private rented sector lost 46,000 homes in 2016/17, at a time of a rapidly increasing population. How many were lost last year? How many this year and going forward?
                  More to the point, the PRS has stopped creating more housing. (The corporate BTR sector is a drop in the ocean, at least in the medium term)
                  Very true but the PRS sector can not keep growing forever. Chances are as mortgages become more readily available you will also see an increase in owner occupiers. Many banks are re capitalizing and lending is becoming more competitive. Social housing will also increase I think as there is certainly a lot of building by large social landlords at the present time in Cities I see. You will find a combination of all things - Lower PRS sector will a lot less landlords, higher owner occupiers, more social housing - things will continue as always. Owner occupiers are quite often the driving force behind a large boom as they can always outbid a landlord who needs the numbers to add up so to speak

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                    #39
                    Interesting stuff Hech.
                    I would point out though that the social housing sector isn't increasing either (ok, a couple of thousand increase in 2016/17 if being pedantic).

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                      #40
                      Originally posted by boletus View Post
                      Interesting stuff Hech.
                      I would point out though that the social housing sector isn't increasing either (ok, a couple of thousand increase in 2016/17 if being pedantic).
                      Again agreed but they have a hell of a lot either currently being built or in the process of being built. What levels it off is they are also selling huge amounts of older stock in many areas.

                      It will probably be a combination of everything (as it always is). Just google the rise of 100% mortgages and you will see they are back with a vengeance. There may be a mid cycle slow down as there was with the dotcom crash but make no mistakes chance are currently most of the UK is heading in to a time where property is going to do very well. Not sure on London and the South East as looking at traditional rates of growth they have surpassed where they should be.

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                        #41
                        So what's your conclusion Hech?
                        Going all-in? Dipping your beak? Hold? Sell?
                        Personally I'm hold-sell. If you've got enough, why bother taking the risks anymore?

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                          #42
                          Definitely hold for now. Hopefully not an election until 2022 which gives people time. Everyone is different though and I suppose it depends which area you are located in. I am buying quite aggressively which is possibly a risky strategy but I am also selling off other parts of my portfolio's to hedge against something going wrong

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                            #43
                            Every landlord I've spoken to is selling at least part of their portfolios as they become empty.

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                              #44
                              Originally posted by hech123 View Post

                              Indeed I am assuming you are not renting in any licensing areas otherwise the laughter would of well and truly stopped. Forced licensing already here in many areas and a proposal in a number of jurisdiction's was 24 hr emergency repair lines. I imagine a lot of large letting agents will offer them or some national service will set up a call centre but it certainly looks like at some point in the next 10 years this will be a further development.
                              I think the key word here is 'emergency'. If I had a genuine 'emergency' at any of my properties - it wouldn't be a problem to recieve a call at 2'oc in the morning. Most repairs aren't an emergency.

                              I've not had my finger on the ball for the past 12 months but I'm back again now. I will have to check out the licensing etc.

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                                #45
                                Originally posted by Berlingogirl View Post
                                Every landlord I've spoken to is selling at least part of their portfolios as they become empty.
                                Unfortunately most people usually do the opposite of what they should but it is always good to hedge your bets

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