Thursday, Apr 17, 2008
Nothing new, the usual propaganda
LandlordExpert: First time buyers facing eternal renting nightmare
"(psssst - someone tell the press that buy to let is the main beneficiary, not casualty!) Published this week in a report by the charity Shelter, it showed the average first time property price rose from 52,674 pounds to 159,494 pounds over the past decade"
Posted by confused76 @ 03:31 PM (570 views) Add Comment
6 Comments
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1. hpwatcher said...
I can see the renting market taking a hit as well......I know a number of folks - who own property, but cannot afford their mortgage - who have resorted to slashing their rents to just get someone in, as they attempt to keep the overpriced flat they bought.
2. stillthinking said...
Weird trend but maybe there are some who have waited and have further to wait, and when finally affordability arrives they will be too old to qualify for a standard 25 year mortgage. Probably this is an exaggeration but certainly true that better to buy than rent (at normal prices) for family people.
Labour have failed so badly and as so many levels.
3. letthemfall said...
I would have thought owing a 100,000 or more on housing worth rather less is more of a nightmare.
By the time prices have fallen back to a sensible level, many buyers won't need a 25 year mortgage - money saved renting, which is cheaper at present.
4. Loneranger said...
If the economy is really hit for six then what about unemployment? If this rises then will we not have scenario's where renter's will be relying on state handouts in the event of being made unemployed? And isn't there clauses within tenancy agreements that state 'strictly no DSS'? What about a combination of repossessions and rental defaulters due to job losses, we could experience a complete nightmare scenario! Where are these people going to live?
Full of cheer am I : )
5. new user 2007 said...
The 1m BTL properties bought in 2006 and 2007 at the peak will need as many FTBs as they can get to rent out from them:)
But, oh dear, there are so many BTL that even if no new ones enter they will make losses because 1) capital losses (leverage is scary on the way down) and 2) as they remortgage interest will rise by more than rents:)
All pyramid schemes have to end sometime. I doubt that site really believes it makes sense to BTL unless at least 25% of BTL leave (to allow rents to rise) and prices drop (so yields improve). Are they keeping morale up?
6. Landlord Expert said...
Further to comments from New User 2007:
FYI - Here is latest news informing that rents are on the increase - http://www.landlordexpert.co.uk/index.php?news=1731
In fact, they have been rising much faster than house prices in the past 5 years!
Morale, I can tell you, is as high as ever! And believe me there are enough first time buyers to create a huge rental demand! Otherwise, where are poor FTB's like yourselves going to live - cardboard city????