What happens in six months time

[hissingsid]

I take my hat off to anyone who is hosting Ukrainian refugees it is a big ask to take strangers into your home for six months.   I wonder what will happen at the end of six months where will these poor souls get accommodation I should imagine job wise they will be ok.   I have this week seen an ordinary bungalow, three beds etc up for rent for £1,750 p.c.m.  one near me is £1,250 and I thought that was extortionate but now mortgages are rising ,because of rising interest rates, buy to let landlords seem to have put rents up to meet them.   Who can afford to pay these rents ?

[HeliX]

A big housing sell off of those who's fixed rates expire in the next couple of years, probably.

[2112]

8 hours ago, hissingsid said:

I take my hat off to anyone who is hosting Ukrainian refugees it is a big ask to take strangers into your home for six months.   I wonder what will happen at the end of six months where will these poor souls get accommodation I should imagine job wise they will be ok.   I have this week seen an ordinary bungalow, three beds etc up for rent for £1,750 p.c.m.  one near me is £1,250 and I thought that was extortionate but now mortgages are rising ,because of rising interest rates, buy to let landlords seem to have put rents up to meet them.   Who can afford to pay these rents ?

Some buy to let landlords are selling up as by the time they have cleared their overheads and debts for the property, they can clear their debts and make a good profit, without the aggravating factors of rules and regulations from IOMG in letting a property. You are right in what you are saying, it’s going to get harder and more expensive. 

[mad_manx]

3 minutes ago, 2112 said:

Some buy to let landlords are selling up as by the time they have cleared their overheads and debts for the property, they can clear their debts and make a good profit, without the aggravating factors of rules and regulations from IOMG in letting a property. You are right in what you are saying, it’s going to get harder and more expensive. 

Yes ..friend of mine has sold both buy to let properties that he had .

Both have given him  a very good profit 

He reckons that the market is going to crash hard in the next year or two..

I dont own any but bought our house in 2014 for around 20% less than what the previous owners bought for in 2010.

 

And they had replaced the kitchen / bath etc .

I am not planning to sell but have been asked if i want to sell for around 40% more than what i paid in 2014

 

I think 2010 was the previous market peak ( we kept going even after the markets dumped in the UK) and then it all crashed / slowly deflated by 2014.

Right now may be all time highs for the property market here..But there is still very strong demand in popular areas.. Many sales are glong through well above asking and gazumping is very common as there is no protection for the buyer .

 

[Cambon]

High interest rates will lower house prices. That is what is needed. There will be casualties, one of which could be Dandara! 

[Manxweegie]

15 hours ago, hissingsid said:

I have this week seen an ordinary bungalow, three beds etc up for rent for £1,750 p.c.m.  one near me is £1,250 ......Who can afford to pay these rents ?

No one, this is why young people don't want to stay or move back to the Island. I will happily take my £700 p.c.m. 3 bedroom house outside Glasgow, with garden, driveway and great transport links! 

[Steady Eddie]

6 hours ago, 2112 said:

Some buy to let landlords are selling up as by the time they have cleared their overheads and debts for the property, they can clear their debts and make a good profit, without the aggravating factors of rules and regulations from IOMG in letting a property. You are right in what you are saying, it’s going to get harder and more expensive. 

Interest rates are going up so it’s going to flush a lot of geared BTL investors out. Soon it will be less risk to just take the cash out of the property and put the money on deposit at 5-6% without having to do anything. That will cause a fall in prices. Anyone buying a house now at this part of the cycle is mad.