Saturday, Apr 14, 2007
BTLers set to benefit from IR rises!
Assetz: Rate rises - do landlords care?
"Perhaps driven by higher rental demand as first-time buyers increasingly feel that the slippery first rung of the property ladder is out of their reach as the rate rises start to bite at the cutting edge of the market. John Heron, managing director of Paragon Mortgages commented: "Llandlords' confidence is a good indicator of current conditions - they know that tenant demand is pushing rents and yields upwards and remain confident in the long-term." So it seems that when it comes to rate rises, buy-to-let investors may be cashing in, rather than pulling out."
Posted by confused76 @ 03:26 PM (172 views) Add Comment
6 Comments
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1. magnifico said...
Sad to say I agree with the fact that even if there was a HPC, BTLerswill be less affected than overstreched FTBs.
A state which allows homes to become a wild speculation targets must be taken to task by the generation missing out on the chance of owning a Property.
2. Redwing said...
There is no evidence where I am of rising rents. Rather the converse - a flood of new one and two bedroom flats is producing a glut of rental properties and a surprisingly large number of rental properties "available now" - in other words with voids.
3. paul said...
This doesn't worry me, in fact I rather like it. The more dependent the market becomes on BTL, the less stable it becomes.
Oh, and increase the supply of rental properties, and the yields get pushed even further downwards.
4. Workingholiday said...
Hmmm - we'll see.
Rent review coming up.
I've never actually had a landlord raise the rent on me in 12 years of house sharing / renting.
That said, I'm only in the current place because the landlady priced out the sitting tenant last year, which doesn't bode well.
That Foxtons's rag under the door the other day, going on about 10 - 20% increases might give her ideas.
If she tries to raise by more than my inflation wage increase then it's back to house sharing - no but's amount it.
Good luck to them.
5. talking rot said...
Paul talks sense.
If Landlords are confident, they are making money. Investors follow where money is made which means more landlords. Laws of supply and demand kick in. Cheaper rents - hopefully. I think Landlords' confidence is a good thing as well.
6. The Baldman said...
Does anyone believe a word of these people at Paragon? Rentals all have ceilings above which people can not afford to pay. There will be no takers and low yields, especially as recession kicks in. Of course what will make yields rise is a HPC!