Saturday, Apr 19, 2008
Tragical Ali: taxpayers' money used as life support for BTL!!!!!!!!!!!!
Herald: Credit fall out lands on buy-to-let. YIEPEEE!
Smart people to drop the Pound and leave the UK before the country turns really nasty. "For landlords facing a hike in interest rates, Private Sector Leasing schemes Landlords looking for certainty could be thrown a lifeline by the growth of private sector leasing (PSL) schemes in Scotland. In return for handing over their property to a council for three, four or five years, landlords get a guaranteed monthly rent - even if their property is empty.Rents typically match what a landlord would get on the private market, less the fee a management agent would take - typically 10-15%.Where landlords who opt for PSL come out better is that in addition to the guaranteed rent, all legal and final redecoration costs will be paid for by the scheme"
Posted by confused76 @ 07:03 PM (226 views) Add Comment
1 Comment
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1. Loneranger said...
I was discussing this possibility with a colleague of mine about two years ago.
I was renting a new build in Woking back in 2006/2007, a six month let. I moved in on the day the purchase was completed (along with about 10 other people renting from the same development), one thing that really surprised me was the type of tennant this development were housing. Having been marketed to me by a local agent as a being an exclusive complex for professional commuters, it was hardly that. At least 50% of the complex was occupied by eastern europeans and single mothers with children and maybe 20% by young professionals, the remaining 30% was empty. I moved out last June and haven't been back since to look around, may do so this week as I am still working in Woking.
On discussing this with a friend we forcasted that all these developments would probably get snapped up by the the PSL schemes or equivalent once the housing market took a tumble and BTL's began their struggle with repaying the mortgage. Following a lengthy period of time tennanted in this fashion, we summised that any development under these circumsances would soon develop a status of social housing and anyone will tell you that once that happens it is very difficult to turn things around for high rise blocks of flats.
I hate to say it but these could easily turn into modern day ghetto's.