Thinking of selling a rental property? You should probably get a move on...

The Horseman

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If the houses move from the rental market to the private home market, the occupants will be moving also, with a similar impact on the demand side as the supply side.
Not so. An example may help. A three bed semi currently rented to 4 adults for ease let's say two couples. One of the couples decides to buy the house and start a family.

You still have one property but only two bed spaces available. So from having four bed spaces available you now only have two as the couple who bought don't want to share. Where does the second couple live?

While the above is a simple example it can be extrapolated to the wider rental market if the State continues on with its anti landlord policies.
 
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RetirementPlan

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127
[QUOTE="RetirementPlan, post: 1741534, member: 116621]"

If the houses move from the rental market to the private home market, the occupants will be moving also, with a similar impact on the demand side as the supply side.
Not so. An example may help. A three bed semi currently rented to 4 adults for ease let's say two couples. One of the couples decides to buy the house and start a family.

You still have one property but only two bed spaces available. So from having four bed spaces available you now only have two as the couple who bought don't want to share. Where does the second couple live?

While the above is a simple example it can be extrapolated to the wider rental market if the State continues on with its anti landlord policies.
[/QUOTE]
That can happen, for sure, but not many couples jump into having kids as soon as they've bought a house, so they might well choose to rent out a room or two to get them through those early lean years with lots of set-up costs. I'd guess that many of the rental properties in question, particularly for the 'accidental landlords' will be 1 or 2 bed apartments, so they probably won't have had four adults in them in the first place. You might have apartments on even houses that were being rented to older tenants with low occupancy levels that will switch to being occupied by a full family too.
But they certainly won't disappear off the face of the earth.
 

The Horseman

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Messages
465
Not so. An example may help. A three bed semi currently rented to 4 adults for ease let's say two couples. One of the couples decides to buy the house and start a family.

You still have one property but only two bed spaces available. So from having four bed spaces available you now only have two as the couple who bought don't want to share. Where does the second couple live?

While the above is a simple example it can be extrapolated to the wider rental market if the State continues on with its anti landlord policies.
That can happen, for sure, but not many couples jump into having kids as soon as they've bought a house, so they might well choose to rent out a room or two to get them through those early lean years with lots of set-up costs. I'd guess that many of the rental properties in question, particularly for the 'accidental landlords' will be 1 or 2 bed apartments, so they probably won't have had four adults in them in the first place. You might have apartments on even houses that were being rented to older tenants with low occupancy levels that will switch to being occupied by a full family too.
But they certainly won't disappear off the face of the earth.
[/QUOTE]
Most two bed properties had more than two adults unless they had children. Why would a couple rent a two bed if their is only the two of them. While not unheard of why waste rent on a spare bedroom. Surely that wasted rent would be better utilised towards a deposit to purchase a property.

It is unlikely that older tenants are renting privately and have under occupancy rates. Certainly in public housing this can and does happen.
 

raven

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217
I was hoping for something a bit more reliable than anecdata, to be honest. The example of leaving properties empty is an interesting one, though possibly not unique to institutional landlords. I've seen individual landlords claim online that it's easier to leave a property empty than rent it out, though I've no idea if they actually carry through on this.

If the houses move from the rental market to the private home market, the occupants will be moving also, with a similar impact on the demand side as the supply side.
That's flawed thinking. You are thinking in terms of supply and demand which just one dimension, and fluid.
If you think in terms of rental stock, there were 2, now theres just 1 so rental stock is going down. Ie. Supply is going down and we know there is a constant surplus of demand in the medium term at the very least. Few if any are entering BTL as an investment (I was thinking to recently, but dropped the idea as youd want your head examined ) so rental stock is going down. Demand is going up if anything. People need the flexibility of a functioning rental market to move cities for jobs etc, and just because the commitment of buying does not suit everyone depending on what stage of their life they are at etc.

A functioning rental market is vital for the economy. I can tell you 100% that in the company I work for, quite a few jobs have gone to sites in other countries because accommodation was too difficult to get locally, and its going to get much worse
 

RetirementPlan

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127
That's flawed thinking. You are thinking in terms of supply and demand which just one dimension, and fluid.
If you think in terms of rental stock, there were 2, now theres just 1 so rental stock is going down. Ie. Supply is going down and we know there is a constant surplus of demand in the medium term at the very least. Few if any are entering BTL as an investment (I was thinking to recently, but dropped the idea as youd want your head examined ) so rental stock is going down. Demand is going up if anything. People need the flexibility of a functioning rental market to move cities for jobs etc, and just because the commitment of buying does not suit everyone depending on what stage of their life they are at etc.

A functioning rental market is vital for the economy. I can tell you 100% that in the company I work for, quite a few jobs have gone to sites in other countries because accommodation was too difficult to get locally, and its going to get much worse
There has been considerable activity in the new build rental-only market. We could have a long discussion about whether that is a good idea and whether that is enough, but much of the growth in housing stock in recent years has gone directly into rental stock.
It may well be less attractive for individual investors, but there seems to be no shortage of institutional investors piling in. Again, we could have a long discussion about whether that is a good idea, but we're not exactly short of landlords.
If a landlord sells up and the property is bought by a first-time buyer, that is one less family looking to rent - reduction in demand.
 

Lockup

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25
"If a landlord sells up and the property is bought by a first-time buyer, that is one less family looking to rent - reduction in demand."

Occupancy rates are higher when renting so there is always displacement
 

OMG_OMG

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108
There is an article in today's Independent titled "Ministers face accusations that Budget helps landlords while renters are ignored". It states:

"Housing Minister Darragh O’Brien acknowledged it was “tough” for renters and said that within the next two weeks, he would do more to put in a cap on rising rents.

He also said that tenancies of indefinite duration were “a number of weeks away” and they would be a “very significant” change".

If I were a landlord and thinking i might sell in the next few years, i would be jumping and giving the tenants notice right now after hearing the above.
 

RetirementPlan

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127
"If a landlord sells up and the property is bought by a first-time buyer, that is one less family looking to rent - reduction in demand."

Occupancy rates are higher when renting so there is always displacement
'Always' is a little strong. The FTB may well rent out a room or two to get through those early lean years.
 
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