Wednesday, Sep 19, 2007
Makes no sense to me
Hot Property: Price drop may be good for landlords
The UK's buy-to-let sector will continue to thrive if house prices fall.
That is according to the Association of Residential Lettings Agents (Arla), which says that a cooling market will lead to increased demand from tenants.
Posted by david20040_0 @ 06:56 PM (386 views) Add Comment
9 Comments
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1. Trebor1 said...
nuclear war is good for landlords too - what rubbish !
2. Music Man said...
tee hee.. lmfao
3. crash bandicoot said...
They really would say that wouldn't they. What next?
Global warming leads to increased rental demand?
Rugby World Cup leads to increased rental demand?
Cheddar cheese leads to increased rental demand?
If they actualy say BTL is a cr@p investment, time to sell up now I'll eat a portion of Kirsty's hat. You may notice that they can only muster a "thriving rental sector" there is no mention of expanding portfolios.
4. inbreda said...
David - no matter how much you claim to want a house price crash you seem to always push the contrary view (with little or no evidence to back it up) in a very similar manner to glorious sunshine, dean, landlord association etc etc
If I was a cynical person I'd say there were less real people visiting this site than there seems.
5. European-bear said...
If peple are not buying rental demand may increase, but the FTB has been dead for a long time so most of them are already in rental accomadation. But most BTL buy for capital gain and when there is not prospect of capital gain the whole business model changes from profit into loss which will haemorrhage cash each time the landlord has the pay the difference between the rent recieved and the interest on the mortgage that must be paid....
6. dugmug said...
They're getting a bit desperate aren't they! I've said this before, but I'll repost it anyway:
"Err, where are those potential FTBs living now, pray tell? And therefore why can't they/won't they stay put? They keep pushing this to try to convince dumb BTLs that there will be some massive increase in rental demand and so rents, but it's a real crock of an argument."
OK, I won't be a total VI (my vested interest being a crash of course) - there is a small grain of truth to this argument. A young couple who are currently living in their respective mum and dad's houses and are desperate to live together might decide they can't wait any longer and so, whilst they aren't going to buy in such a market, they are willing to rent. But what about all the singles - they'll stay put with mum and dad for now, cheaper rent so easier to save a deposit. Or the the less "desperately in love" couples who can cool their ardour a little longer whilst saving a bigger deposit. Or all the thousands and thousands that are ALREADY in rented accomodation - they aren;t going to rent a second house they don't need just because prices are going down are they! In a falling market, most prospective FTBs will sit tight where they already are, so no meaningful increase in demand Mr BTL - I should sell now if I were you.
I like the fact that even Landlord VIs are talking about properties going down in price - warms my cockles! :-)
7. dugmug said...
PS. of late, I sense a real change in David's confidence that a crash may now be occurring. He actually posted this with the comment "Makes no sense to me" rather than "See, told you, the BTLs won't need to sell so prices are going to go up and up and up forever" - so cut him a little slack please.
8. dugmug said...
Only a little slack mind you (just seen the comment on his next post!). :-)
9. dohousescrashinthewoods said...
This is hillarious. I can't face reading the article, but the headline alone is priceless.