Thursday, Jun 21, 2007
Even the bulls see it softening
FT.com: B&B stays bullish on buy-to-let
Despite the headline, we see this in the later paragraphs:
"The group said that arrears had risen as a result of rising interest rates but the growth was within its expected range.
Mr Cranshaw warned in April that rising interest rates had begun to dampen demand for mortgages, but the group was upbeat on Thursday, predicting buy-to-let demand would continue to outperform the mainstream market beyond 2007, supported by demographic trends.
Shares in Bradford & Bingley have fallen about 8 per cent this year, underperforming the wider banking sector. They opened on Thursday down 3¾p or nearly 1 per cent at 417¼p."
Posted by dohousescrashinthewoods @ 09:42 AM (160 views) Add Comment
6 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. royston said...
"Iceberg? Oh, don't worry about that! Look at the wonderful shapes we can make by re-arranging our deckchairs", said the Captain of the Titanic.
2. Papabear said...
"... buy-to-let loans, the growth of which is currently outpacing the overall housing market."
"Lending volumes in the first half of this year, particularly in buy-to-let, were well ahead of those seen in the second half of 2006, the group said."
These two sentences scream: speculative bubble!
Mr Cranshaw warned in April that rising interest rates had begun to dampen demand for mortgages, but the group was upbeat on Thursday, predicting buy-to-let demand would continue to outperform the mainstream market beyond 2007, supported by demographic trends.
Oh yes, the old "demographic trends" argument: Polish builders, divorcees, students, blah-blah. No Mr Cranshaw, BTL is supported by incredible stupidity and greed of BTL speculators who interpret your VI spin as the absolute truth. The demand for ANYTHING will keep increasing as long as enough people believe that its price will ALWAYS keep going up.
P.S. I sold my flat in the summer of 2005 (yes, I know!) and have deposited the bulk of the proceeds in a B&B savings account. A few months ago I moved it all to IceSave: better interest rate + knowing that my money won't go directly to finance some idiot's "property portfolio"
3. Hard Cheese said...
This is from a company who were recently relegated to the FTSE 250
4. confused76 said...
"Mr Cranshaw warned in April that rising interest rates had begun to dampen demand for mortgages, but the group was upbeat on Thursday, predicting buy-to-let demand would continue to outperform the mainstream market beyond 2007, supported by demographic trends."
Demographic trends would support both mainstream market and BTLers in the same way!! Mr Cranshaw, stop the b/sh*t !! At best, i can concede that BTLers, being people with lower education, lower labour skills and greater greed, do not know when to stop and the segment will stay buoyant for a few more months.
But the financial market is clearly seeing through it "Shares in Bradford & Bingley have fallen about 8 per cent this year, underperforming the wider banking sector. They opened on Thursday down 3¾p or nearly 1 per cent at 417¼p."
Mortgage companies will be the next victims of the stock market after the constraction companies and the commercial property companies in the past weeks!! Good luck Mr Cranshaw! I am going to short a few of your shares later today
5. dohousescrashinthewoods said...
I have placed spread bets on B&B, Persimmon, Land Securities and Kensington to go down. Shame they are virtual, as I would be making a tidy sum.
6. Seenitallbefore said...
Wow..arrears are rising. Who would have thought it. There they are the hard working, priced out (or won't get involved at such ridiculous prices) tenants paying their rent month on month on the button no worries. When all of a sudden they get notice from the Landlord that they are going to be evicted due to the Landlord being repossessed for arrears. How does this one play out?
What is so awful is that the situation will not be of the tenants making but the greedy landlord who has got his margins wrong on his investment. This could be a repeating scenario all over BTL whether the landlord has 1 or many properties. Untimately, it's the poor tenant who has to share the landlords grief.