The beginning

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    The beginning

    How will landlords on here react to houseprice declines and renters with lower disposable incomes?

    What strategies do you have in place?

    Are there any landlords to be waiting to pick up some bargains in the short to medium term?

    https://www.thisismoney.co.uk/money/...ationwide.html
    House price forecasts

    Bank of England: Fall of 16%

    Nationwide: Fall of 13.8%

    Cebr: Fall of 13%

    Savills: 5 to 10% fall on thin sales

    Liberum: Fall of 7% in real prices

    Lloyds Banking Group: 5 to 10% fall

    EY's Howard Archer: Fall of 5%

    Knight Frank: Fall of 7%

    #2
    It’ll effect different people in different ways, Landlords that are highly leveraged may struggle just like homeowners may struggle if they work in a sector that has been put on hold due to lockdown.
    Some Landlords will be hoping to pick up a bargain as will some first time buyers with deposits as long as they keep their jobs or find alternative employment if being made redundant.

    Comment


      #3
      Houseprices only matter when someone is buying, selling or borrowing money on a property.

      I don't expect people to have lower disposable incomes.
      In a recession people tend to either have the same income or have a huge change in living standards.
      I'd expect the demand for rental property to increase.
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

      Comment


        #4
        https://www.bbc.co.uk/news/uk-england-52847319

        The supply of new rents is not keeping up with demand, however, prompting fears the surge will push up costs and leave some struggling to find homes.
        Since estate agents were allowed to reopen on 13 May though, demand for rental homes has increased at a quicker rate than the sales market, according to Rightmove.

        Many people have been left with an "immediate housing need" as a result of the pandemic, housing expert Miles Shipside said.
        There is a fine line between irony and stupidity. If I say something absurd please assume that I am being facetious.

        Comment


          #5
          Wow I am amazed people are forecasting massive falls in house prices. I actually had to read the article to believe it. It just goes to show how thick most of these so called experts are. I mean you have to be some kind of thick to believe that there is going to be some kind of huge sell off when interest rates are sitting at 0.1%. I am still trying to comprehend how people like this can actually be writing for financial magazines.

          I suppose you could argue London is over valued and could have an issue but I doubt that as banks are well capitalised and interest rates are 0.1%. I think I need to repeat this again - Interest rates are 0.1% Why on earth would you think there is going to be a market crash in these conditions?? I suppose things could change but I highly doubt these forecasts will come about. May is showing a fall but that is on a very low amount of transactions

          Comment


            #6
            Unfortunately for the housing market it often talks itself into a slide. Buyers who may be already wary are going to consider delaying their purchase now in case of a drop, hoping to bag a bargain. Anybody that HAS to sell may well be forced into accepting lower prices which then re-sets ceiling prices. The question is, are people going to be forced sellers? My guess is not.

            Comment


              #7
              Some people are always forced to sell (the three D's, death, debt and divorce are traditional estate agent's friends).
              But I think most people simply won't do anything - buy or sell
              There's been a plague, people are worried about a recession (and the future of their jobs) and we hard Brexit in January next year.
              There's no reason to think prices will change too much (London and the SE as firms wind down operations and move them to within the EU might adjust down - but it's been a bubble for ages.).

              Lots of relationships will end when the lockdown ends.
              That always increases rental demand.
              It'll be like a super January.

              Estate agents are really busy with a lot of actual sales - but I think that's pent up demand delayed since March and it'll all calm down in a few weeks.
              When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
              Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

              Comment

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