Jump to content
House Price Crash Forum
Sign in to follow this  
DaisyB

Buy-To-Let Creeps

Recommended Posts

Article in Telegraph

Article not worth reading but the headline is a classic!

Not worth reading? Its the most bullish artcile I have seen for..well, years:

..../

QUOTE FROM FARTICLE:

There are three reasons. First, mortgage lenders are reintroducing more and cheaper buy-to-let products. Three years ago there were 3,650 mortgages for landlords, falling to under 180 by late last year. Now there are 300 and rising, says financial website Moneyfacts.co.uk, some offering 80 per cent loan-to-value and thus easing cash flow for landlords. Two new lenders have launched buy-to-let products in the past month and others are expanding their range and increasing staff.

“With property prices rising, more lenders are likely to follow suit and edge up their maximum loan-to-values. It is just a question of when this will happen. While there is little choice of remortgage deals [for existing landlords] this isn’t such an issue when interest rates are low,” says Melanie Bien, a director at mortgage broker Private Finance.

Secondly, yields (the proportion of the purchase price of a lettings property recovered annually through rental income) are relatively high. Data from Findaproperty.com shows yields are typically 4.54 per cent across the UK and just over 7 per cent in parts of London — in 2008 they dipped to 2 per cent or less in many places. Rents in most London boroughs and cities have risen over the past year; Havering and Haringey in London have risen more than 10 per cent while Greater Manchester is up 9 per cent.

Thirdly, demand for rental accommodation is strong in much of the country. Large city centres are well supplied with flats to let so some landlords still suffer periods when their properties are empty. But in many other locations, especially where house prices have risen steeply, first-time buyers bolster rental demand.

Share this post


Link to post
Share on other sites

Thirdly, demand for rental accommodation is strong in much of the country. Large city centres are well supplied with flats to let so some landlords still suffer periods when their properties are empty. But in many other locations, especially where house prices have risen steeply, first-time buyers bolster rental demand.

Fourthly, the editor and his friends and family have a load of BTL properties they'd like to sell to a greater fool before TSHTF...

Share this post


Link to post
Share on other sites

Fourthly, the editor and his friends and family have a load of BTL properties they'd like to sell to a greater fool before TSHTF...

Well, they certainly have a VI - witness the squeeling from the Telegraph over CGT.

Share this post


Link to post
Share on other sites

Very BAD news

:(

I guess only a collasped £ & Rates rockets will do it in.

Oh Hum

Mike

HPI is our premier industry--the government and VIs are going to fight tooth and nail to keep BTL and multiple home purchases buoyant. The alternative is too horrible to contemplate--an utter collapse in confidence in UK Plc with lower bond ratings, higher IR, a sinking pound and the coup de grace--a full on HPC to bring prices back to levels that reflect the ability of buyers to pay.

Ozzy must be breathing a sigh of relief that his token CGT hike was well received by the property VIs. They need to make sure now that IR are kept low, credit (debt) flowing freely and a relaxing of lending standards to allow maximum debt creation and demand for property.

IMO the only thing that can slow the HPI juggernaut down is outside factors such as a collapse in the Eurozone or a major downshift in the US economy. Both of which I believe are a dead cert within the next 6 months.

For the short term I am a bullish bear on property.

Share this post


Link to post
Share on other sites

This is modern England, a nation of landlords, desperate for some retirement income.

It's this quest for an alternative to a pension, and the exploitation of the basic human need for shelter that means, as long as the BTL mortgage exists, so will BTL and it's inflationary pressure on house prices, a double whammy for first time buyers.

It's immoral to exploit the fact you are inflating prices out of the reach of the very people forced to rent from you to pay your mortgage and fund your retirement.

Until the BTL mortgage product is legislated out of existence, this will not go away.

Edited by pete.hpc

Share this post


Link to post
Share on other sites

This is modern England, a nation of landlords, desperate for some retirement income.

It's this quest for an alternative to a pension, and the exploitation of the basic human need for shelter that means, as long as the BTL mortgage exists, so will BTL and it's inflationary pressure on house prices, a double whammy for first time buyers.

It's immoral to exploit the fact you are inflating prices out of the reach of the very people forced to rent from you to pay your mortgage and fund your retirement.

Until the BTL mortgage product is legislated out of existence, this will not go away.

This would be like robbing Kuwait of their oil industry.

UK Plc relies on HPI for its viability. It is our premier industry, 40% of our economy (maybe more if you factor in all the ancillary business that feeds off of it).

We have a parasitic industry in our nation that keeps coming up to bite us through each boom and bust. And every cycle gets that much worse to the point where we are now--HPI is TOO BIG TO FAIL FOLKS. The government will have to do everything in their power to keep it propped up.

Its blindingly obvious--just read the ramping in the Telegraph and elsewhere that used to decry HPI as a Labour beast.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 152 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

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.