Wednesday, Oct 10, 2007
Time to smell the coffee...
Firstrung: Buy to let still attractive for second home 'wanabees' - Nationwide
According to a recent study* by Nationwide Building Society, 10% of those questioned own a second property in the UK and a further 14% would consider buying a second property here. Based on this research, if all these people owned a second property, almost 1 in 4 people in the UK would have a second home. The most popular reason for owning a second property was for buy to let purposes (55%). Almost one third (32%) of people purchased their second home for personal use and 7% let out their second property as a holiday home...
Posted by converted lurker @ 12:34 PM (487 views) Add Comment
5 Comments
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1. Rocko_ftb said...
dated august, seems so long ago now
2. dugmug said...
"According to a recent study by Nationwide Building Society, 10% of those questioned own a second property in the UK and a further 14% would consider buying a second property here. Based on this research, if all these people owned a second property, almost 1 in 4 people in the UK would have a second home."
And yet...
"Two thirds (66%) of those without a second property claimed a lack of finances would prevent them from purchasing a second home."
So two thirds of that 14% who would consider buying can't actually afford to do so, so it wouldn't be 1 in 4 people owning a second home after all, so why even say it? Spin.
"Purchasers of second homes - be they for personal use or to let out - are an important source of housing demand and have probably helped push up prices in many areas of the country."
You can say that again! But then I thought it was all the divorcees and imigrants? Nice to hear the change of tune, even if there is some spin in the article.
"However, current market conditions may have an impact on this part of the housing market."
Nice to hear this admission too. Unfortunately it then goes back into spin mode...
"One must not forget, however, that second home buyers also make important contributions to the local economy through their support of local businesses."
Apart from letting agent fees, why to BTL owners spend any more in the local community than owner-occupiers would? In fact owner-occupiers are liable to spend more money on new carpets, furniture, decking, conservatories, etc, etc, than any landlord is likely to lavish on thier tenants, plus the owner-occupied properties don't have void periods so there's always someone in residence who's spending money in the local corner shop, etc.
3. Icarus said...
Second home buyers make important contributions to the local economy - tell that to the locals who've been priced out of the housing market by these people.
4. uncle chris said...
What I find amusing is how quickly the VIs have given up on FTBs and switched their attention (and advertising) to BTLs in an attempt to keep the bubble inflated. Remember the huge propaganda campaign last year trying to (1) encourage parents to stump up massive deposits for FTBs, (2) encourage FTBs to club together to purchase a shared property, (3) introduce 100%, even 125% mortgage products (still around today), (4) allow parental income to be counted toward the amount FTBs could get ..... and now we see little in the papers about FTB, apart from the continual decline in numbers. The increasingly desperate propaganda these days is all about how BTL is still affordable (honest!) and how they are in it for the long term (honest!), and how few of them want to sell up now and are evn considering new purchases (honest!).
The great BTL con is starting to unravel VI guys and gals, so get used to it and stop trying to drag in 'greater fools'. How long are you going to keep flogging this particular dead-horse.
5. Wilee said...
...and those with holiday homes by the sea that sit empty for 9 months of the year turning the local community into a ghost town.