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davidhpc

Buy-to-let Landlords 'hit Harder' - Bbc

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Just heard that on R4 this morning.Sad innit?

I think this is preparation for the next wave down.

The Banking Sector and Financial Infrastructure has been saved and they are less worried about damage to the rest of the economy. Without a financial system (ie cheques, accounts etc not hedge funds) the whole economy would collapse, however, the Government are happy for individual businesses to fail and so this looks like preparation for more bad news.

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It's becoming interesting now what will happen to these properties and the subsequent losses on the loans. It's saying the banks are appointing receivers of rents to keep the thing afloat as best it can while deciding what to do with the properties. As we have bailed out the banks, are these just becoming state subsidised housing? A lot of these can obviously only be sold for peanuts, are losses still piling up? None of this junk will make it into haliwide stats or repo stats etc.

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http://www.google.com/hostednews/ukpress/a...e7smm_KZhRXOSuQ

Rental market 'may bottom out'

May 27, 2009

The rental market showed signs of stabilising in May with average rents remaining unchanged for the first time in nine months, research has shown.

The average cost of a rented property was £819 during the month, unchanged from April and the first time since August 2008 that the cost has not fallen, according to website FindaProperty.com.

The rate at which people are putting properties up for rent also eased in May, in a further sign that the bottom of the market may have been reached.

The total number of properties available to let rose by 2.7% compared with the previous month, well down on the 14.5% jump in availability seen in May last year.

The number of rental homes has soared since house prices first started to fall, as people unable to sell their home opted to rent it out instead.

The supply of rental property more than doubled in the past year, leading to a 6% fall in average rents.

The dramatic rise in the number of homes available to rent has increased competition for tenants, leading to the average time a property is empty between lets increasing to 65 days in May, 16 days longer than a year earlier.

Andrew Smith, head of research at FindaProperty.com, said: "A slowing in the increase of supply and signs that asking rents are beginning to stabilise indicate that we may be close to the bottom of the market.

"However, the house and flats markets continue to polarise, with houses starting to show a sustained recovery thanks to falling supply levels and rising prices, whilst the flat market seems to be lagging behind with increasing supply levels and asking rents that continue to fall."

The number of houses available to rent fell for the third month in a row in May, dropping by 1.2%, while the average rent edged up by 0.1% to £848. But the supply of flats jumped by 5% during the month, with a 0.3% reduction in average rents to £758.

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It's becoming interesting now what will happen to these properties and the subsequent losses on the loans. It's saying the banks are appointing receivers of rents to keep the thing afloat as best it can while deciding what to do with the properties. As we have bailed out the banks, are these just becoming state subsidised housing? A lot of these can obviously only be sold for peanuts, are losses still piling up? None of this junk will make it into haliwide stats or repo stats etc.

They will no doubt be in the toxic asset schemes (aka HBOS)

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Another blow for the tax take.

Whats that you say? BTLs failing to declare and claiming their mortgages on expenses?

disgraceful.

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so sad :P

But looking on the bright side the report says :-

This mean that 0.35% of buy-to-let properties were taken back by lenders .

therefor 99.65% of buy to let owners did not have their properties taken back :P

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Our ex-BTL landlord may be fairly representative - 33 days since an end-of-tenancy inspection was conducted (which showed we took good care of the property). Still waiting for our £1000 deposit back. Landlord claiming poverty. Looks like we'll have to make a claim for it through the tenancy deposit scheme. :angry:

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Buy-to-let will be doing just fine.

Borrow-to-let are screwed.

Neat distinction there.

B)

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BTL is an easier target for lenders: fewer hearts bleed for a landlord (let alone a tenant) than for a hard-working family in danger of losing its home.

The numbers will only really become meaningful when interest rates rise.

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It's the tenants that I fell sorry for, not the landlords. Too many "This time next year Rodney, we'll be millya'nays" types gambling with other peoples money, screwing up other peoples lives.

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I hope they end up in the gutter. If they hadn't helped the banksters inflate the heck out of the housing market their debt-gotten gains would have been nice homes for young people, couples and families.

Oi! Wot about us middle-aged singles? We want somewhere too! :angry:

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Can I just say:

tiniest%20violin.jpg

On radio 4 this morning they were talking about something called rental possesion. I was still half asleep but it sounds like basically people renting directly off the banks. Anybody know anything more?

As far as I remember from my time at the arrears department for Mortgage Express (B+B BTL/Self Cert arm), once the landlord was a certain amount behind with his rent, we could go to court and appoint a rent receiver. The rent would then be paid direct to the lender and bypass the owner completely. It was a fairly standard condition in the T+Cs.

I suppose its better than chucking the tennant out but it seemed to me as diguised reposession.

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Just wait until interest rates start to increase. There will be a lot who are currently trapped on SVRs with reduced rental income and unable to find the 25% deposit and the very large arrangement fees to get on to a new fix rate to protect themselves, so a lot of blood to be spilt when IRs go back over 5%.

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The 'successful BTL investor' was as dull as dishwater. Not a person to be stuck in a lift with. It seems his expertice ran to avoiding property clubs.

I would like to see these properties taken into public ownership at fire sale prices so that the tenant has a local authority home and the BTL parasite learns that prices can go down as well as up. Maybe drop the tenants rent a bit, but no more right to buy stupidity.

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