Wednesday, Nov 21, 2007
BTL to the cleaners
FT: If housing affordability is such a big issue in the UK, why does every man and his dog seem to be a landlord these days?
Buoyed by rising prices and low interest rates, the growth in private residential investment has been extraordinary. But the party could be over. For starters, the numbers no longer add up. Net rental yields are now below financing costs and are likely to stay there. That means landlords have to support their investment from other sources of income while praying that capital values rise. Already demand for buy-to-let mortgages is slowing, and in the third quarter 6 per cent of landlords with tenancies up for renewal chose to sell instead, A THIRD MORE THAN A YEAR AGO AUUUUUUHHHHAHAHHAHHA
Posted by confused76 @ 03:37 PM (331 views) Add Comment
1 Comment
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1. alan said...
BoE Interest rates may fall next month, but this will be compensated for by the rise in interest rates for landlords. Now that Paragon & Northern Rock have been neutralised, there is a lack of quality lenders who have the ability to remortgage BTLs.
However, when inflation kicks in severely, perhaps as soon as February, Interest Rates will go up again leaving landlords in the position of beached whales.
I've seen a number of VI sponsored articles over the past fortnight extolling the joys of being a landlord in the next "up and coming" part of London - I'll be amazed if anyone will look at BTL for a long time.
This might give FTB's a look-in ! About time.....