Monday, Aug 18, 2008
Skandia predicts that the mortgage-backed BTL market will shrink to its average size over the past decade
FT: £18bn to be released from BTL property: Skandia
An estimated £18bn of equity tied-up in property is expected to be released as the mortgage-backed buy-to-let (BTL) market shrinks. Skandia forecasts sliding residential property prices, higher mortgage servicing costs and sluggish rental growth will drive many aspiring landlords from BTL property, releasing much private investment capital that has gone into property speculation in recent years.As a result, Skandia predicts that the mortgage-backed BTL market will shrink to its average size over the past decade.
In recent years stock of BTL mortgages rose from £2bn in 1998 to £120bn by the end of 2007. The BTL share of the total UK mortgage stock also increased, from less than 1 per cent to 10 per cent over the same period.
Posted by jack c @ 02:10 PM (315 views) Add Comment
2 Comments
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1. Confused76 said...
So, where is supply that outstrips demand on a small overcrowded island, with a divorce-prone population of students???
there was never such a high demand of owned residential property, it was just BTL speculation
2. bystander said...
I'd be interested to know what percentage of BTL properties are vacant at any one time, just to firmly put the nail in the supply/demand argument.