Friday, Aug 22, 2008
Falling house prices mean that lots of them prefer letting to selling
Times: Why everyone wants to be a landlord
[Note: same RICS figures as Monday, this time with an upbeat spin by the relentless optimists of the Times' Property section. All is happy in BTL land if you believe these guys!]
As house prices fall and the mortgage drought prevents people from buying, frustrated homeowners are choosing to let their properties rather than sell them at a discount, and are renting other homes elsewhere.
Michael has played the buy-to-let market very well. He bought his first property four years ago, he now owns 21 buy-to-let properties and is in the process of buying three more. Stephanie, pictured, entered the buy-to-let market six years ago. She is not looking to expand her portfolio, however. “I'm happy with the three I have got,” she says.
Posted by drewster @ 12:50 AM (436 views) Add Comment
4 Comments
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1. Confused76 said...
More coverage on Accidental Landlords in the Times, by Anne "CheerBTL" Ashworth
http://property.timesonline.co.uk/tol/life_and_style/property/investment/article4579063.ece
2. Confused76 said...
This is a joy to read!! Same Times source as above: Bye-bye bye-to-let:
"Knight Frank, the estate agent, forecasts that much of this increase could be wiped out, with rents declining by as much as 10 per cent. Tenants, spoilt for choice, are driving hard bargains, with the number of properties for let surging in most regions.
The predicted reduction in rental income presents a dilemma for those ALs whose mortgages remain stubbornly high. How they act next will help to determine the next chapter of the housing market's history.
Will ALs receiving insufficient rent to cover their mortgage payments bow to the inevitable and cut the asking prices of houses, selling them to ALs who have made similar calculations? Will they then buy their next homes from other ALs who have participated in this mass reality check? Will there be a website where they swap experiences and property details? Or will some ALs find that they have acquired such a taste for the bohemian quality of the tenant lifestyle that they are happy to contemplate the new costs and duties soon to be faced by all landlords. Current responsibilities include the tenancy deposit scheme and regular gas appliance maintenance. But from October1, all tenants will have to be given an energy performance certificate for the property. In addition, the Law Commission has recently set out sweeping reforms to improve the condition and management of rented accommodation."
3. shipbuilder said...
"People would rather let than sell at a discount". Err....no such thing as a 'discount', just market reality. Be realistic now or even more realistic later on.....
4. crash bandicoot said...
"82 per cent of the investors surveyed said that they would keep their existing properties."
And the other 18% said that they would have them repossesed?