Tuesday, Aug 19, 2008
Interesting disucssion of headwinds facing B2L
Citywire: Morning Line: Could buy-to-let be the UK's subprime?
Rental supply is increasing, while more amateur landlords are coming under pressure to sell. All is not rosy in the buy-to-let garden.
Posted by w smith @ 11:42 AM (345 views) Add Comment
4 Comments
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1. uncle tom said...
"This may spell particular trouble for overextended amateur buy-to-letters, particularly those whose rental income is dangerously close to or even below their mortgage repayments....
.... Most professional landlords, of course, have no such problems."
- Really??
By my reckoning, the only landlords who are definitely in a position to sit out the storm are those who didn't need to borrow to buy in the first place.
Those 'professional' landlords who have big portfolios funded by big loans are likely to be amongst the first to go under - given the rapid rise in BTL defaults, I suspect many have already stopped making mortgage payments, and are putting as much rent money as they can under the mattress before the lenders grab the properties..
2. Minx_man said...
"Rents may also be under some pressure over the next few months and years. RICS today warns that the supply of rental homes is likely to increase substantially, particularly from homeowners unable to sell their properties for the price they want. The ranks of buy-to-letters may yet swell even further in the short term."
Hmm doesn't seem to make sense, if I am selling my home and I can't find a buyer and so decide to offer it up for let then where am I going to live?? If I have to rent a property to live in then the net effect on the BTL market is ZERO. ....In fact chances are I'd have to rent for a few months in order to actually market my property ie show prospective tenants around etc....
3. Will said...
Does anyone know the legal position of homeowners with standard mortgages who are now letting out their homes?
I wonder if the Banks require notification should a mortgagee let out their homes.
4. nooneo said...
I think the sub-prime market is vastly underatted in this country.
Self-certification - Is there anyone actually assessing how many of these there actually are?
Buy-to-plummet - How many of these have used the (imaginery) equity from their portfolios to secure 100% interest only mortgages to buy again and again?
Oh.... The runaway train ran down the track and she blew..........