Build to rent

[kanrent]

I'm just wondering whether the build to rent by the large corporations will have an effect on house prices within the the 10 years or so 

[Melboy]

I would have thought it would not make any difference.  I think it is fair to say that it is now common knowledge that large rental property organisations are buying up property to expand an ever growing market of people wanting a rental property from Channel Hoppers to UK Citizens here. SERCO is one such company buying up rental property and Black Rock which is an American global investment company buying and expanding it's huge property portfolio.

Lloyds Bank was another company buying up property for rental purposes I believe.  

[kanrent]

Just thinking if these large build to let corporation force the smaller buy to let out of business there will be a lot of properties on the market hence the property prices will go down, as far as I'm aware they are building apartment type properties which will replace the existing terrace and semi  type properties 

[Richlist]

Before I went anywhere near to worrying about large Corporation portfolios I'd be far more concerned about the following:

* There are already lots of stories in the media about property prices and some predicting a 20% drop. It's difficult to see there not being a price drop given the current situation with the economy, prices, interest rates, Ukraine etc etc. 

* Then there are all the existing problems with the PRS ...affordability, shortage of property, energy efficiency, poor quality housing etc etc

* Then we have Gov' legislation.....always tweaking the industry adversely. Putting more & more obstacles in the way, making it less profitable, more difficult to evict etc etc.

* PRS taxation.....always a first choice for any Gov'. 

Makes me wonder if it's all worthwhile. The last thing I'm concerned about right now is how Serco or Lloyds bank property portfolios might affect me.

[Melboy]

Well, I would agree that being a BTL private landlord has become far more difficult over the past 12 years and this government has certainly gone out of it's way to put more and more obstacles in the way of making it it all worthwhile.

          The problem of falling property prices only becomes a problem if you are banking on an acceptable capital gain or if you want to sell right now because as sure as night follows day in the short to long term property prices will rise again as older members of this forum know only to well. My advice is to try and stick with it if you can through this bad patch of economic turmoil especially in the mortgage market but even this has subsided a bit on higher mortgage interest rates.

[Carryon Regardless]

Mel reasonable points but,

some of the strategy might depend on age and pension desires.

Going in to the last financial crash of 2007 / 08 I stated that we (wife and self) might be working for nowt for 6 years if the prices crashed and took time to recover. Back then the equity gain was my main consideration, largely in recognition that tenants (ours mainly) being amongst the least reliable things on the planet.

I didn't factor in the v low interest rates that really did boost profits. I learned to manage the tenants better some, but as readers here know that has been a continual challenge.

Anyways, the prices remained low for much longer than 6 years. Had we sold the flippin' lot and redirected our efforts I believe we would have come out far better. And that ignores the stress of facing off abusive wuckfits.

So now the prices are set to drop again, I believe we may be on the edge of a precipice, perfect storm sort of thing. What does contradict that thinking is that housing is set to be in higher demand. But there is only so much can be afforded by those needing a roof and walls, and legislators may also increase controls on our charges.

So now I am much closer to a desire of retirement, and I see that if I wait for market recovery, my perception is that, there isn't going to be many years left to enjoy the 'possible' benefits of waiting. Ski and sailing abilities will be less.

I am now looking to secure a basic retirement situation. 1 sold, 1 agreed sale (but only count the chickens in the bank), I've dropped another from offers over £150k to offers around £139.5k yesterday. More keen to exit Wales than England BTL, but don't think over time there will be much difference. BUT the WRA are set to make use of other methods to destroy their own economy (making N Wales a lesser safe and pleasant place to be).

I am more than happy to discuss, debate, and bounce all thoughts, as to the future. I tried that in 2007. Most responded that my thinking was too dire, in fact it wasn't dire enough.

 

Is the property market looking bleak?

For how long?

How far will legislators go in attacking BTL's?

Will they realise they have already gone too far? I don't think so, although some MP's are showing some apprehension. Will there be 'any' reversal of the Landlord attack policies?

[Melboy]

Good points COR............... I am well beyond retiring age but still hanging in there.  😀  I did sell a couple of properties a few years back to celebrate even reaching retirement age and of course to secure the financial future (and hit rock bottom savings interest rates for the next 10 years!! ) which is just as well as the energy crisis is going to bite hard for everyone and the wretched Council Tax which is also going to be out of control come next April and in retirement, you have to budget for these things happening.  

The good news is that savings rates have risen to a much more agreeable rate and anyone sitting on a cash pile would probably benefit from investing even though inflation is at 11% plus.  

[Richlist]

The Gov have a difficult job with this part of the housing market. Most of the council housing has been sold off. There are thousands of people holding private tenancies who are on low wages, have no savings, live week to week, can barely afford the rent let alone the rises in food, petrol and household bills. The Gov can't make changes that adversely affect tenants on the edge.

I don't think the Gov are very concerned about upsetting landlords at the moment because not many are choosing to walk away. Perhaps they would prefer the majority of the PRS to be held by large organisations like Lloyds & Serco. 

I think we are going to see property prices fall (higher interest rates, less mortgage availability, household bills affordability etc) and I think it may last for a few years.

[Richlist]

.......and as far as strikes are concerned.....

I have  lots of sympathy for all the strikers.....post, rail, fireman, NHS etc.....but the country CAN'T afford to give you the pay rise you want.  They could raise taxes to give you a pay rise BUT......everyone else is already being squeezed and doesn't have the money to pay for your pay rise.

[kanrent]

12 hours ago, Richlist said:

.......and as far as strikes are concerned.....

I have  lots of sympathy for all the strikers.....post, rail, fireman, NHS etc.....but the country CAN'T afford to give you the pay rise you want.  They could raise taxes to give you a pay rise BUT......everyone else is already being squeezed and doesn't have the money to pay for your pay rise.

Yes true we all have to pull together and make sacrifices to try and mitigate the mess the government has made of the economy 

[bil8999]

5 hours ago, kanrent said:

Yes true we all have to pull together and make sacrifices to try and mitigate the mess the government has made of the economy 

A lot of these workers are not underpaid, the ones that are should have a wage increase, all i seem to hear is that people on benefits need more, we need to get these people into work, that will not happen while we keep handing out free money.

I can see why young people do not want to be in my industry as a tradesman, its not that well paid, and hard work.

 

[Carryon Regardless]

Personally I don't blame those with what I perceive as an already healthy income wanting more. It's what we are taught.

We watch our money being abused by those at the very top, if Baroness Mone is guilty of pilfering the occasional £29 million during Covid I perceive she is the 1st of many. 

Our Gov't are supposedly protecting us from abuses but large (and small) companies strategise complaints procedures that cause us to give up on our complaints.

It feels like our world and the wider world is in meltdown, and while we might ask what we can do for our country we might find that if we are slow at getting what we can, as those setting an example seem to do, there will be little assistance come a time when we need it.

Personally I feel my social contribution is already too great.

But I do totally agree that the significant wage rises being demanded will only make things worse,long term, if they are satisfied.

[Richlist]

One of the many problems that the strikes create is that of antagonising the general public. My family like to think that we're quite generous at Christmas with cards, cash & gifts to anyone who provides a service to us.....newspaper delivery, dustmen, postie even our lettings agent etc. This year with the postal strikes I've had very important letters delayed and no doubt there will be more delays before Christmas which will cause me major problems & stress. So, the postie will be getting nothing from us this year.

[Carryon Regardless]

From what i see they all earn more than I anyway.

[KFonts]

Great thread! I considered build to rent in the past, but I personally think traditional BTL is best. I've learned much after reading the blog from Pat Harper https://www.totalpropertygroup.co.uk/post/how-does-buy-to-let-work