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Funds To Replace B T L To Keep Hpi Going And Ftbs Out

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http://www.bloomberg.com/news/2010-10-05/investment-funds-may-fill-vacuum-after-collapse-of-u-k-buy-to-rent-market.html

Funds May Fill Vacuum After Collapse of U.K. Buy-to-Rent Market
By Tim "Timothy" Barwell - Oct 6, 2010 12:00 AM GMT+0100 Tweet (12)LinkedIn Share
The HCA aims to lift homebuilding from the lowest level since World War II by touting a 500 billion-pound market that offers better returns than commercial property. Photographer: Chris Ratcliffe/Bloomberg
Investment funds may become Britain’s next generation of residential landlords following a government- backed group’s 17-month campaign to revive the homebuilding market after individual investors were forced out.
Aviva Plc is preparing a 1 billion-pound ($1.6 billion) fund to purchase newly built homes, according to its adviser. The U.K.’s second-biggest insurer is among the institutional investors approached by the state-funded Homes and Communities Agency as it tries to replace small-scale buyers that were pushed out of the market during the credit crisis.
The HCA, responsible for promoting affordable housing in England, aims to lift homebuilding from the lowest level since World War II by touting a 500 billion-pound market that offers better returns than commercial property. Loans for so-called buy-to-let purchases have fallen by 73 percent from their 2007 peak, according to the Council of Mortgage Lenders.
“There’s a gap in the market that could both deliver more housing and a different choice for people who want to rent,” Bob Kerslake, chief executive officer of the HCA, said in an interview. “As it becomes more clear things will not go back to the way they were, it will force people to look more creatively at the options.”

It would be a shame if the benefits of a crash go to the big corporations who are cash rich and see becoming the new landlord class as lucrative business as the priced out have no alternative other than to rent.

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Britain’s buy-to-let market increased 19-fold from 1997 to 2007 as TV programs such as “Location, Location, Location” encouraged individuals to become landlords for the first time.

Interesting how this article puts the blame on the likes of "Location Location" for such a huge increase in BTL.

e bigger U.K. homebuilders have avoided deals with institutional investors because they’re reluctant to share the profits, Lacey said.

“They believe the market will drift back to where it was,” he said. “It’s sort of head in the sand.”

Are they suggesting that the UK homebuilders think we are not heading for any problems in our housing market?

It will investigate offering real estate investment trust status to residential funds, which would bring other taxation benefits.

I thought our Governmnet was supposed to be saving money, not considering offering investors such as this, extra tax incentives?

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I read an article a week or two ago about a couple of REITs that had started up the first had an investment target of something like £20m (can't remember the exact numbers) and had only received something in the region £1m te second had done just as bad. Can't find the article or even remember where I read it unfortunately. Intelligent investors know no is not the time to get into UK property.

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It would be a shame if the benefits of a crash go to the big corporations who are cash rich and see becoming the new landlord class as lucrative business as the priced out have no alternative other than to rent.

Not entirely. It could help pave the way for better legal protection for renters (much longer notice to quit for good tenants), and even under current law the risk of Aviva wanting to sell up or move back in at an inconvenient time must be lower than a private BTL.

And you can share in the returns by investing in your landlord.

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Interesting how this article puts the blame on the likes of "Location Location" for such a huge increase in BTL.

Are they suggesting that the UK homebuilders think we are not heading for any problems in our housing market?

I thought our Governmnet was supposed to be saving money, not considering offering investors such as this, extra tax incentives?

The Govt are paying out maximum payouts to sacked council staff - hundreds of thousands each!

That's how they are part-funding the elites banks thru the next round of house buying!

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At Avivas AGM:

We just lost 50% on Commercial real-estate... what shall we do now? Residential real-estate hasn't fallen much, I know, lets buy new-build houses and rent them out, were bound to make our money back that way.

:rolleyes:

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I read an article a week or two ago about a couple of REITs that had started up the first had an investment target of something like £20m (can't remember the exact numbers) and had only received something in the region £1m te second had done just as bad. Can't find the article or even remember where I read it unfortunately. Intelligent investors know no is not the time to get into UK property.

+1

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I read an article a week or two ago about a couple of REITs that had started up the first had an investment target of something like £20m (can't remember the exact numbers) and had only received something in the region £1m te second had done just as bad. Can't find the article or even remember where I read it unfortunately. Intelligent investors know no is not the time to get into UK property.

Have to agree with this too, companies should stick to what they are good at, once you enter areas you know little about you are going to end up losing money. I also think if we would like a housing market where first time buyers and the like can afford to buy a house then we need to discourage big corporations from buying houses, it will just stoke up prices eventually.

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The Govt are paying out maximum payouts to sacked council staff - hundreds of thousands each!

Rubbish.

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  • 246 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%



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