Sunday, Aug 09, 2009
Student landlords to learn about hard times
Financial times: Accidental landlords face ‘double whammy’
Accidental landlords forced to enter the lettings market because they are unable to sell could also find themselves hit with heavy costs if government proposals to redefine rental properties for planning purposes go ahead.
Posted by philip9134 @ 06:17 PM (591 views) Add Comment
6 Comments
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1. Wernerburger said...
"Accidental landlords forced to enter the lettings market because they are unable to sell..."
They aren't unable to sell. They just haven't priced the property correctly and don't have to sell, which is a big difference. Come back 10% interest rates. That will get them to realise that it is a case of won't sell rather than can't sell.
2. paul said...
This is one of the most pernicious and deliberate effects of low interest rates - it has meant that the option to do nothing for the baby boomer property rich is always a cost effective loss avoidance strategy.
Coincidentally enough, the main proponents of ZIRP are also middle aged baby boomers - but of course they will say they're doing it 'to make property ownership cheap for young people'.
>:-(
3. Montecristo72 said...
Aaahh.. Interesting development.. That two bedroom house converted into a 5 room bedsit (sardine can) of thin walls, a home from home for your regular visitor to a HMP resort. Will this apply to perfectly reasonable properties that have been b@stardised by "WONGA GREEDY LANDLORDS" (WONGLE'S).
I hope this proposed change in legislation will be applicable to alterations made from 1997 or from whence the BTL madness was originally engineered.
4. symo said...
Ahhh didums. They have priced out the generation behind them and now they are going to get stung.
My sides have split.
5. doomwatch said...
... and I'm sure all these amateurs have fitted fire escapes to their rental properties, as required by law.
6. need-a-crash said...
@2.Paul
Totally agree. Was waiting for someone to articulate this. People I know who (irresponsibly) bought between 2005-7, and as you say middle aged BTL brigade, are all being "bailed out" by the BoE /govt (let's not pretend boe is independent!) with low interest rates.... Ever get the impression everyone is against you?
Having said that I wonder where this can all end...