Jump to content
House Price Crash Forum
cashinmattress

Third Of Buy-to-let Investors 'battered'

Recommended Posts

Third of buy-to-let investors 'battered'

The extra checks on tenants made last month appear as a response to the “battering†that some buy-to-let investors are taking in the recession, a new study shows.

Rental arrears, voids, repayment issues and repossessions are among the pressures that landlords have been more likely to have felt in the past 15 months, said BDRC.

In its poll of 500 landlords, the research agency found that less than a fifth suffered rental arrears in March 2008, compared with almost one in three 15 months later.

More than a third were forced to cover the cost of non-payment of rent from their tenants' deposit, and nearly as many (32%) have taken eviction against their tenants.

Add to this “battering [that] some have taken in the recession†with the burden of new legislation for all landlords “and you might ask yourself why anyone would be a private landlord in today’s economic environment.â€

However BDRC added that its research suggests that while there are “undoubted challenges†in the current economy, some private landlords quizzed in June feel that the worst is over.

The economic indicators that the firm’s Landlords Panel has measured since 2006 - capital gains, rental yield and overall letting prospects - suggest confidence is returning for one in five landlords.

For example, 19% of respondents thought the prospect for rental yield in the next three months were ‘very good,’ and 17% said the same about the lettings sector’s prospects over the same period.

Some of the optimism was put down to mortgage finance still being difficult for would-be buyers to secure, amid loan-to-value on mortgages at 25% to 40% as standard.

Reflecting on the findings, Mark Long, BDRC’s director, said: “It is clearly a tough time for private landlords, with many more experiencing arrears and the longest void periods than at any time since we started tracking this market in 2006.

“However there is a feeling amongst some that prospects are good for the next three months as demand for rental property is fuelled by the restrictions on residential mortgage lending, making it hard for many people to buy properties.â€

Can't get blood from a stone, but you can bet that the growing and ever more desperate ranks of BTL property 'investors' are trying.

That's the sad truth about a property gamble... Most will lose.

Share this post


Link to post
Share on other sites
Guest UK Debt Slave
Third of buy-to-let investors 'battered'

Can't get blood from a stone, but you can bet that the growing and ever more desperate ranks of BTL property 'investors' are trying.

That's the sad truth about a property gamble... Most will lose.

We shouldn''t laugh really. A lot of perfectly decent people have been taken for a ride that'll ruin the rest of their lives.

All cos they DIDN'T THINK and they believed in fairy tales.

It's all pretty bloody ghastly really

Share this post


Link to post
Share on other sites
We shouldn''t laugh really. A lot of perfectly decent people have been taken for a ride that'll ruin the rest of their lives.

All cos they DIDN'T THINK and they believed in fairy tales.

It's all pretty bloody ghastly really

And they're being f*cked over by the 'reluctant landlord' too...

Share this post


Link to post
Share on other sites
More than a third were forced to cover the cost of non-payment of rent from their tenants' deposit, and nearly as many (32%) have taken eviction against their tenants.

That will be a court visit then.... you can't do that, the deposit is against damage to the property.

Share this post


Link to post
Share on other sites
Third of buy-to-let investors 'battered'

Can't get blood from a stone, but you can bet that the growing and ever more desperate ranks of BTL property 'investors' are trying.

That's the sad truth about a property gamble... Most will lose.

Hold on a minute as i reach into my pocket to post

The worlds smallest violin there it is --> . <-- right there.

Share this post


Link to post
Share on other sites

I would imagine many new BTLers who remortgaged on their own owner occupied homes to buy their buy-to-let fortune are now subsidizing them with their OO property...if they default things could get nasty. :unsure:

Share this post


Link to post
Share on other sites
I would imagine many new BTLers who remortgaged on their own owner occupied homes to buy their buy-to-let fortune are now subsidizing them with their OO property...if they default things could get nasty. :unsure:

...............but very, very funny!

p-o-p

Share this post


Link to post
Share on other sites

I wonder how many people here, with the unpleasant attitudes to people in financial difficulties ..still live with their mum ?

Share this post


Link to post
Share on other sites
Fixed, as they say.

I suspect the banks would foreclose on the rental property very quickly after a few missed payments, sell it for a loss, then the individuals have to remortgage OO which will not be possible, so they are forced sellers of the OO house to cover the loss. Wipes out all mortgage payments and savings. Nice position to be in I'm sure ... not. If I were BTL I'd be cr*pping myself right about now. No way out and huge risk if you stay in, the potential profits are now far outweighed by the risk. There are much better and controlled investments to be in right now.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   288 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.