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Will An Increase Of Reluctant Landlords Have A Knock On Effect On Btls?

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I'm guessing from here on there will be an increase of reluctant landlords (bless them), which will reduce rents. Will the reduced returns deter new BTLers entering the market and so further reduce demand for small properties?

I'm really not sure if BTL are a huge red herring or the lynchpin to the whole market.

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I'm guessing from here on there will be an increase of reluctant landlords (bless them), which will reduce rents. Will the reduced returns deter new BTLers entering the market and so further reduce demand for small properties?

I'm really not sure if BTL are a huge red herring or the lynchpin to the whole market.

I don't know of any recent BTL landlords but know of 3 recent reluctant landlords all of them involved in moving for school catchments areas. In some parts of London a big motivator.

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I'm guessing from here on there will be an increase of reluctant landlords (bless them), which will reduce rents. Will the reduced returns deter new BTLers entering the market and so further reduce demand for small properties?

I'm really not sure if BTL are a huge red herring or the lynchpin to the whole market.

The falling capital values are more likely to frighten off those greedy mothers.

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I don't know of any recent BTL landlords but know of 3 recent reluctant landlords all of them involved in moving for school catchments areas. In some parts of London a big motivator.

Yes moving for schools is getting pretty common, have a mate/colleague who just did this, Muslim guy who wants his girls to go to a girls' only school in Berkshire. He has two properties of his own, an ex-council that he extended for himself that he now rents out - remortgaged interest only so he could take £70k out to buy a new build. He think he's doing well on this place as with low mortgage rates he gets about £500 back after the mortgage is paid - but reality is he'd struggle to sell it and clear the mortgage off now.

His other place, the new build, he paid way over the odds for, it was too small for him already when he bought it for £320k, it's a repayment mortgage and with no voids, he just breaks even on gettting his fixed rate paid. It's all stretched VERY tight and when interest rates rise or the deal runs out, I'm not sure at all what he's going to do.

My advice was sell both and get out of the market for a while, but he has it in his head that he doesn't want to take a loss - the reality is what he would lose is the free money he got via HPI on the ex-council but that's not how he thinks about it. But I can see his point in that 1) he needs the income on the interest only ex-council place; 2) if he sells up and breaks even he'd never get another mortgage without saving for a new deposit. In other words, he's F****D. Short-term thinking though.

These are the 'ordinary people' who got suckered in by the whole thing, just trying to do their best for family (they have 3 kids, youngest about 2) . I remember when he told me he'd bought the new build (in 2007, natch - just before his boy was born) without selling the old place, I couldn't believe he was being so stupid. It's almost driven a wedge between us as he know now that I was right about the crash, and all the TV VIs were wrong.

The place he's renting is 'OK' but l'm sure it's not how he and his wife intended to live when they got on the 'property ladder'.

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Yes moving for schools is getting pretty common, have a mate/colleague who just did this, Muslim guy who wants his girls to go to a girls' only school in Berkshire. He has two properties of his own, an ex-council that he extended for himself that he now rents out - remortgaged interest only so he could take £70k out to buy a new build. He think he's doing well on this place as with low mortgage rates he gets about £500 back after the mortgage is paid - but reality is he'd struggle to sell it and clear the mortgage off now.

His other place, the new build, he paid way over the odds for, it was too small for him already when he bought it for £320k, it's a repayment mortgage and with no voids, he just breaks even on gettting his fixed rate paid. It's all stretched VERY tight and when interest rates rise or the deal runs out, I'm not sure at all what he's going to do.

My advice was sell both and get out of the market for a while, but he has it in his head that he doesn't want to take a loss - the reality is what he would lose is the free money he got via HPI on the ex-council but that's not how he thinks about it. But I can see his point in that 1) he needs the income on the interest only ex-council place; 2) if he sells up and breaks even he'd never get another mortgage without saving for a new deposit. In other words, he's F****D. Short-term thinking though.

These are the 'ordinary people' who got suckered in by the whole thing, just trying to do their best for family (they have 3 kids, youngest about 2) . I remember when he told me he'd bought the new build (in 2007, natch - just before his boy was born) without selling the old place, I couldn't believe he was being so stupid. It's almost driven a wedge between us as he know now that I was right about the crash, and all the TV VIs were wrong.

The place he's renting is 'OK' but l'm sure it's not how he and his wife intended to live when they got on the 'property ladder'.

What are his plans long term? Seems absolutely bizarre set up I take it all 3 are girls, so could be looking at renting for 14 years!.

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These are the 'ordinary people' who got suckered in by the whole thing, just trying to do their best for family (they have 3 kids, youngest about 2) . I remember when he told me he'd bought the new build (in 2007, natch - just before his boy was born) without selling the old place, I couldn't believe he was being so stupid. It's almost driven a wedge between us as he know now that I was right about the crash, and all the TV VIs were wrong.

The place he's renting is 'OK' but l'm sure it's not how he and his wife intended to live when they got on the 'property ladder'.

This is going to replay itself over and over again. This friend is likely to not be the only one of your social circle to be badly affected when this has all played out. I think the best thing to do is to not mention it and only offer advice / opinion if it is genuinely sought for. Otherwise lend a gentle ear and help out if possible, otherwise the wedge may well be driven in permanently.

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  • 145 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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