Things are largely back to normal right now and man agents are talking about house prices increasing which is totally surreal... but alas... so is the financial markets and in my own circle more staff than ever are wanting to buy their own homes.
Lettings are happening as normal and although many are saying 3-5% increase in House Prices I am not that sure. I still think more like a short term drop of 10% which matches up with my original comments about 4 months ago and more recently that lenders have instructed valuators to do this.
For all Brett's Coronavirus resources https://www.gladfish.com/recession/
Video Transcription:
Hey yo so welcome to this landlord update for the end of July. I am sorry the end of June. What am I saying I've lost track of date but look you know surprisingly things are still pretty good and I think you know the the bounce-back has happened. People thought in fact probably better and it's almost surreal in terms of thinking. Who would have thought that in the worst possible recession you know statistically of 300 years and we're about to hear that on the 1st of July which I said in my last video that this would be the case.
But you know what lettings has not only gone back to normal and really I mean if somebody comes thing we get people in it's you know so vacant periods you know quite now some of these people who are in the middle of it possibly had a longer vacancy period but actually now things are getting back on track and probably last week or two we've seen a lot of properties go and I think if you've had a bit of a long wait because of coronavirus because we couldn't get in there and that we're starting to see the uptake of property is really good now so that's quite good you know the rents have probably dropped around 5% but primarily that's in London not actually everywhere because actually a lot of the places are getting real it at what they were before or maybe you know give or take with even and stuff above so don't believe people saying to the rents have dropped they haven't.
But in places like London that's probably the most prevalent place where they have okay and especially where there was already a lot of properties on the market the market just has to adjust because obviously a lot of people have moved a lot especially international students. London is very internationally there they've gone back to their country and they haven't been able to come back yet but what we're expecting is when they do come back and they're going to go to college or they've got to get back to work or those sort of things if they are doing that well you know that plays into you to further and that could possibly see the bounce back up a rent but obviously if you've got a base apparently now that's worse. Yeah I mean it's interesting you know we've had the worst person was probably five properties all at once had notice all five of those have been rillette again you know so yeah I've had a few pull out and actually be silly about that. I'll just flip them off and got something you in so yeah so it's it's actually it hasn't been as bad as I thought it.
I think the furlough and the things that government has done is worked really well but now the other thing too is guys what I've done now if you go too easy track code at UK forward slash letting dash series you'll see I've done a series of six videos there's only two in there right now but they'll be out there in the next few days as I had them edit them. But it's a whole series on getting it let the first time so if you're not really sure what's happened not really sure the process you're not sure where people say oh we're going to drop the rent you know things like that now's the time to have a look at that because what it'll give you is a really good and you know we've had 3,000 properties that we've let we you know we currently have about 1300 properties we can manage you know so lots of experience you know we're going on 20 years now on that sorry no 15 years you know. 15 years of lettings experience okay so you know there's a bit of wisdom there and there's a bit of thing so what I do in this series is is delve into what it actually is to get your property let and the no bullshit stuff so I should have said be yes. But anyway you know what I mean because there's so much in this industry there's such crap and there's such you know people saying old the belt and he's not there and I like it the bread rooms too small when you all this before you let it. You know so that is a way of selling up managing down sell to have manage up if you don't know what that is. I explain it in the actual on the video series so it's really it's a really insider's view into how we get this done okay and you know you'll see that it is very are treated as a methodical process as a mathematical equation and when you do that you get it let every single time and we do you know it's very rarely that this doesn't happen now there is reasons why now so stuff but have a series if you interesting after about an hour and a half it's broken up into six or seven videos.
But it's worth watching either specially if you're stretching it's stressing and you're not really sure about the process it's the first time you've been through for some of you own cards that have been there for ages and you've seen it come and go and let the tenants over and over again. You'll probably like you know what not even worried about it you know so but yeah look interestingly. There's lots of we're finding lots of desperate agents that are saying really stupid things and making promises that I don't know how they can keep and it's almost like they desperate for the business and I think the reason is is but prior to coronavirus we had there was you know news articles about 7,000 agents you know at risk of going bust because they're in financial difficulty now there's probably even more than that.
So what we start to see some of these comments that are coming out about you know we're seeing people you know in Manchester saying they'll let you know in a day places in London. You're like you're a friggin idiot you know the problem is they're trying to get you on board get you all signed up and then no matter no format they'll deal with that then you know there's just so much BS out there from desperate people you know just be really careful about all that sort of stuff you know you got will tell you what's you know what's real and what's not.
But people are doing that you know they'll be out of business in six months you know or discounting fees down to where you just can't make money you know I mean now the level of compliance that you need to get into you know is so great it's almost ridiculous.
Anyway another one we're back into doing renewal so renewals are back on now we're kind of gone through coronavirus we didn't do them for a while and the reason was quite simply because we didn't suggest you do them reason was quite simple because if you renewed you've literally got four months before you can issue any notices and then another two months you've got under six months so if they went straight into issues of the coronavirus it could be six months down the track before you can actually even do anything about it.
Okay in on that same vein now now it's okay fine you can't actually evict you and that's the next point is the extension eviction through to the 23rd of August so no of issues until then. Remember you got to start the process you can start the process now B can't actually the tank eviction you don't have to take addition the court does social until the 23rd they're in there okay. After that hopefully that should be fine it's disappointing and for a few you guys that are in that situation.
You know one of our landlords I really feel sorry for him he's in Near East two years now I think it is in a London property 1800 pounds rent per month okay we finally got high court judgment against the person she was just terrible the worst possible tenant you know and basically they finally said get rid of her the high court enforcement guys couldn't get in there quick enough before thelockdown. Now she's got she's got an actually six months of rent free well she hasn't been paying for in over two years it's appalling that people like that are allowed to stay in their place. They'll have no problem no sympathy I mean no sympathy for genuine cases she is not a genuine case she is just abusing the situation better I will give you a flop down on that because it's a legal process in that I say too much about my name names or dates but actually I want to do a whole special on her and I'll name names then and everything it songs like the landlord gives me permission but I think it's worthwhile because really that is disgusting and despicable.
Anyway you can see I'm not very happy about that I don't like guys you guys been taken advantage of um the market so the markets are surprised think it's you know it's bounced back and actually people are now saying three to five percent growth this year which I just think is I mean. I'm still a bit more pessimistic than that you know.
I actually think prices realistically are coming off and I think they will come off this year but a lot of people saying that is someone's pent-up demand the end of government programs such as health it helps a by and things like that are actually getting the feedback but the other side which I find interesting could actually be up to is the fact that more of my staff now have come to me because they've saved money through the corona virus being furloughed or being at home. You know that actually for them it's worked out really you know financially well for them which is great news so they're asking how they can get a mortgage and can the mountain you know make the referrals and do all that stuff and so that's been that's really positive and I I love our staff getting houses and getting on the property ladder and becoming in investors and homeowners just in generally.
Finally in this guy plays into the market to what's happening a lot of value is and a lot of lenders are suggesting that they they down value whatever the prices were take 10% off. Now that's a really good indicator for where the muffler is if you remember back to six months ago or five months ago we first went it is four months ago whatever it was when we first started talking about coronavirus and it's part of the impact I'll st. probably 10% as I've thought where it would be okay that's they just said there's no deals now there's deals and now their stomach feels come to the table.
I've actually got a consortium with couple clubs audience actually you know that have 14 million 60 million these so that was 30 million and they're looking to buy property which is great news. But the 10 percent drop is about where I think we will be you know through this arm period so you know you can expect that that we're already negotiating that you know those prices down but you know that for me that could bounce back to the place a lot London we're seeing a lot of values that aren't really dropping much.
Sorry a lot of developers that aren't really dropping much because they know that they can afford to hold out for another six months and the market will probably bounce back because the London market kicks off first and you know if there's a drop it'll come back and now that's probably what we're going to see.
But guys look yeah so that's your update for the night you know for the the would be for the month if you're like you know things are pretty good they're really good if you if you got individual circumstances yeah there's some you know crappy things happening where landlords aren't pass or a tenants are paying and things like that they're you know they're the exception not the rule for the most part tenants of well you know really really well behaved and and you know you go ahead to them and you're headed with government that they have you know produce a environment so good news and of course any questions you've got seven through to me at webinars at glared fish calm or you can speak to your dedicated property manager and they answer anything and you guys have a great day live with passion - I know right.
