Tuesday, Dec 16, 2008
Getting squeezed from all sides
Telegraph: Will 2008 be a watershed for the buy-to-let sector?
2008 has been a grim year for most people who invested in the housing market. The freezing up of credit has sent property prices tumbling, and made it virtually impossible to get a decent buy-to-let mortgage without a deposit of at least 25%.
And while rents initially appeared to be compensating for the falling capital values, it now seems that a flood of extra supply into the rental market has sent rents downwards in many areas.
On top of the worries over the economy, landlords have also had to cope with new legislation, including energy performance certificates and reforms to the housing benefit system. Falling rents and a glut of homes to let in some areas mean many landlords have not been able to find tenants or cover the mortgage costs.
1 Comment
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1. Dude said...
"Research consultancy Capital Economics believes homes are still overvalued and expects prices to fall a further 25pc by the end of 2009."
Nice to see CE now being taken more seriously. Maybe those doom-mongers, for so many years obviously talking rubbish, really do know what they are talking about.