Friday, Aug 22, 2008
"Frustrated landlords can't get funding - they want to keep buying but are hindered by the dwindling buy-to-let lending market"
moneymarketing: Landlords, landlords everywhere, but not a mortgage in sight
This week the Royal Institute of Chartered Surveyors revealed there has been a record rise in the number of properties available for rent.
Some 43 per cent of surveyors polled by RICS reported a rise in new landlords - a 10-year high. RICS attributed this statistic to the fact that more people are unable, or unwilling to sell their properties right now, choosing instead to let. Many new landlords are taking a ‘wait and see’ approach, preferring to hold on to their assets rather than selling for a potential loss.The study also found rents continued to rise while house prices fell, pushing yields up. Basically RICS reported perfect landlord conditions up and down the country.
Posted by jack c @ 04:26 PM (832 views) Add Comment
12 Comments
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1. fancypants said...
that is one of the most desperate pieces I have read in a long while.
2. Bananasplit said...
we got a reduction in our rent.
sold to rent and rent again and rent once more, the landlords kicked us out to try and sell !
3. paul said...
Fear is going to turn to blind panic soon - many people are still in denial saying "Things should pick up again in a few months", but in reality the "crunch" (which sounds very temporary) is actually a brittle, long drawn our crash..
4. Will said...
I expect that within 6 months the new breed of renters who could not sell will realise they cannot get tennants either.
5. mountain goat said...
"In a recent interview with Money Marketing, Paragon Mortgages chief executive John Heron reported many landlords he talked to remained frustrated that they could not get funding - they want to keep buying but are hindered by the dwindling buy-to-let lending market.
He also predicted that the buy-to-let market would be the first to bounce back thanks to landlords, particularly professional landlords, being the safest borrowers to back."
I thought Paragon was Para-gone?
There is no funding because the huge funds (pension funds and SWF etc) who were supplying the money to these reckless landlords turned off the tap of easy credit. The funds know these landlords are in trouble even if the landlords themselves don't realise it yet.
6. Will said...
Yields are rising because house prices are falling. The rent stays the same.
7. letthemfall said...
Do these people really want to keep on buying when funding is hard to get because prices are too high and falling? Stupid VIs or stupid landlords?
8. drewster said...
Where are these frustrated landlords finding properties with sufficient yield? It's been several years since I last saw a house or flat where rental income exceeds the cost of finance.
9. Yoss said...
Looks like STR might not be such "Dead Money" afterall. Got out before the herd and the herd is looking restless, and all before the unemployment figures go loopy and rental yields take a total kicking. GDP+National Debt+Warpped growth figures means GB+AD are looking at a MASSIVE hole in publc finances (thats before you factor in pension commitments for public sector workers)
Just make sure your pension isn't in comercial UK property, my local high street has 6x soon to be closed EA's, 6x empty units and 2 more closing down sales, amazing given government fig's on retail.
This collapse in housing is only just starting to get rolling. GBP's crucifiction has only received the first nail, good news for not getting out-sourced, bad news for savers/investors.
Yip Yip
10. str 2007 said...
Drewster
I agree, the numbers didn't stack up a few years ago.
11. it_is_going_with_a_bang said...
Pushing yields up lol. Well they have a looooooong way to go before yields get anywhere near. Plain yields for rental died years ago! It's all been about capital gain - I would say for about 5 years!
Banks do lend! they just have reasonable criteria for doing so. If the yield is THAT good then the lending is there. The fact is the yields are not even close.
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