tlb01g

There is talk of a rise in CGT on second homes/developed properties going up to 40% from April 2011 (or sooner?), but there are ways around it by designating it as your own residence, under certain rules and time limits. I dare say some will be able to wriggle out.

If not, and if this comes in, there might be a downward pressure on prices in some areas where property speculators run for the exit pre-CGT deadline.

But what we really need is for base rates to go above 6%, in my day even 6% was a low-moderate rate. Anything below 8% is low, really. Doesn't look likely, does it, they continue to have some magic dust on the eyes of the market and gilt buyers, don't ask me how.

TLB

 

Okay back to house prices. I was just going through the local area using Rightmove with Property Bee and noticed that asking price on rentals are falling as well. Been a while since I have seen that happen in their area?

 

As an anecdote, in the last 5-6 years we have been renting we have never had the rent put up.

It does look like rental prices in my area are declining. I have approached my landlords and presented evidence that I am now overpaying 10% at least on last year's going rate. If they don't budge, I'll be leaving. The only thing I'm unsure of is what rent I have to pay if I overstay while trying to arrange my next place; I assume it will be the rent previously agreed.

I know this 10% drop comment sounds hard to believe, but I base it on 2 places very near me that are superior and let either for the same or less than I pay.

Another fact: my old rented place in Herts - landlord there refused to drop my rent so I moved out. He did some refurb last summer but has been unable to let it since, even at the same asking rent price as I paid from 2005. And that's near trains, buses etc. So, for turning down my rent reduction of 10% a month he has it seems had a void costing him at the very least so far £4K in lost rent, possibly £5K. If we assume he had my old place ready to rent out from one month after I left it, the lost rent due to the void is £4900.

TLB

TLB