Landlords with funds to expand their portfolios may be in luck - a growing proportion of properties on sale have reduced asking prices.
New research shows the South East has the highest proportion of asking price reduced properties, accounting for 21 per cent of current market listings with a price reduction; London also ranks high at 15 per cent followed by the North West (12 per cent), East of England (11 per cent) and South West (10 per cent).
Where price reductions have been implemented they have been large - the East Midlands, Scotland, West Midlands and Wales each have average price reductions in excess of 20 per cent.
The research behind the figures was commissioned by House Buyer Bureau; its managing director, Chris Hodgkinson, says: “The market has certainly slowed in recent months and as a result, we’re simply not seeing the same frantic activity from buyers offering way above the odds just to secure their chosen property.
“However, what’s clear from these latest figures is that many sellers haven’t yet accepted this fact and are continuing to enter the market at a very high price point, far above the average sold price benchmark.
“It’s this unrealistic expectation that is forcing them to drop their asking price in order to drum up interest. With many industry sources now showing that sold prices are also starting to slide, sellers are also choosing to slash their asking price to entice buyers at a faster rate to secure the best price they can.
“For buyers, this means there are plenty of potential bargains on offer and this should continue to be the case for the remainder of the year. That said, what we’re seeing currently is very much a house price correction, not a collapse, so trying to strong arm too much of a discount when negotiating will likely see you lose out to another buyer.”
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It’s changing alright, there are still some stubborn sellers stuck in the past, but their properties simply don’t sell.
That big auction in Norwich today, 7 properties have already been 'postponed ' I expect due to poor interest shown in them, let's see how many fail to make reserve, reserves / asking prices need to be sensible now to sell a property
Looking on Allsop and Clive Emsom auction sites there are some surprisingly low property prices. This will only get worse for some where the latest 0.5% base rate increase will add more misery for some Landlords, myself included.
Ironically rates are still low, but section 24 means that unless your around 50% loan to value you are going to be hurting, and if you are a mortgaged Landlord who's sole income is from your portfolio then selling is probably the only option and to sell quickly, hence the auction prices.
I am not convinced we will have a price crash though as a whole. All depends on the B of E whom, if continue with these rate rises, can cause a crash as well as a depression to the UK economy.
I am optimistic that come late Summer the economy will be much healthier and house prices will stabilise. And this will be despite of the government policies and the incompetence of the B of E.
I hope optimisation is rewarded, but to be honest I have my doubts, and don't forget come late summer this year we will only be a year away from a labour government
I'm selliing up regardless and even huge price reductions wouldn't entice me back into this lunatic 'business'! We're losing control more and more each passing month... Especially here on Scotland. Who in their right mind invests in a business then hands over control to a bunch of head cases? No thanks, I'm out!!!
I'm staying but have only let to students since the disastrous SNP December 2017 PRS legislation made long term rentals far too risky.
The recent rent freeze has reinforced my strategy and I am just waiting on this year's student tenants confirming they are not all staying on for next academic year.
Market rents are now 20% higher than they were in December 2017, when they were last increased by about 30% to match the higher market rents after the December 2017 legislation came into force.
All in all, my best properties have had the monthly rent increased from £1500to £2500 per month in under 6 years, thanks to the SNP and their little Green helpers.
At 73, I am now too old to consider buying more rental properties but my 3 grown up children are still adding to their portfolios, although strictly for students as families might outstay their welcome with no easy way to get them out or keep rents up at market rates,
They might not be lucky as any experienced landlord knows how do you know where bottom is ?. seen & lived it many times before.
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