Property Hawk the landlord's homepage since 2006
Free Tenancy Agreement FREE tenancy agreement
Free Landlord Software FREE landlord software
Home | Property Manager | Free ASTs | Landlord Forms | Mortgages | Insurance | Inventory | Magazine | Landlords Bible | Directory | Forum | Training | News / Blog |

Friday, November 21, 2008

Landlords are in the Middle of a 'Chain Reaction' as Rents Fall and Property Values DIve

I've been discussing the harsh realities of negative cash flow and falling capital values for landlords over the past six months, and questioning the positive picture painted by various surveys and reports from the likes of ARLA and other self interested organisations and companys.

As I predicted the rosy picture of the rental market they have been trying to paint isn't actually true, and things are getting worse and worse for many landlords.

The recent RICS report shows a glut of rental property pushing down rental values and BTL mortgage lenders refuse to pass on decent rate cuts to struggling landlords.

My theories have been echoed in this recent City Wire post focused on the RICS report. It suggests that landlords in the South East could face the hardest time as many in the financial sector face unemployment.

One bit of positive news is that landlords letting to students seem to be holding up with their rental amounts.

However I predict that student landlords may suffer as more and more landlords who were originally aiming for the young professional market with their city centre executive apartments might be forced to take in more and more students into city centre apartments, flooding supply for the student letting market.

As I previously posted many city centre executive apartment blocks could evolve into student halls of residence.

As Diana sang - "We're in the middle of a chain reaction"

No comments: