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Jimmy_James

Btl Booms As Ftbs Struggle To Get Mortgages

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http://www.dailymail.co.uk/money/mortgageshome/article-2017558/Buy-let-booms-time-buyers-struggle-mortgages.html

Britain is in the grip of a buy-to-let boom while first-time buyers still struggle to get mortgages, the Bank of England said yesterday.

Official figures show the number of mortgages for would-be landlords has reached an all-time high of 1.3million, while the number of ordinary buyers managing to get a loan for their home is plummeting.

Now experts warn a generation of young people are being forced into renting.

The Bank's lending report said: 'Some major UK lenders attributed the rise in tenant demand to the effect of discouraged first-time buyers turning to the private rental market.'

The Bank also quotes from research which found 'that the most common prospective tenants are first-time buyers who cannot obtain a mortgage'.

Between January and March, the number of buy-to-let loans rose by 25 per cent, according to the Council of Mortgage Lenders. By comparison, the number of house purchase loans was down 15 per cent. Matt Griffiths, from the campaign group Priced Out, accused mortgage giants of 'shamelessly putting investors before would-be young homeowners'.

He said: 'The situation is deeply concerning. Many young people are being effectively disenfranchised from the property owning democracy by buy-to-let investors.' The number of households that are privately renting has jumped to 3.4million from 2.4million in 2005.

This means the number of households renting from a private landlord is the highest since the 1970s.

It comes as figures show the cost of renting has never been higher.

The average rent is a record £701 per month per property, according to LSL Property Services, owner of the country's largest chain of lettings agents.

In London, the situation is even worse, with rents averaging £1,000 per month.

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Fear mongering is the best propaganda tool.

In this case, it is the fear that if you don't load up with as much debt as possible now and buy a property, any property, you will never be able to step on the housing ladder because the BTLs will make prices unreachable for ever.

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The Daily Mail is just a scary ball of impotent ignorant lower-middle class rage directed at anything within reach

I occasionally read it when I step on a plane and its given away free in departures

I never really get very far into it...

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See I never understand the logic of more BTL landlords, means more rentals available, which means more supply = higher rents?

Surely an increase in rentals would equal lower rents as the market would be over supplied.

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The Daily Fail have stories like this all the time and they are invariably followed a few days later by another stories bemoaning the feckless 20 somethings who won't buck their ideas up enough to move out from the folks' house to get a mortgage.

Then a bit before the next MPC meeting they start to put out a bunch of stories about how the low interest rates keeping hard-working families in their houses and saying that savers are being selfish by not spending every penny they have as soon as they get it.

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Last week was talking to a Scots bloke on a Transocean Rig in the Gulf. He has been buying 2 houses a year on 50% LTV for the past 5 years. Another 5 years he will have accumulated his 20 house pension fund. All rent going into paying down mortgages ASAP.

I said have you thought about shares, bonds etc. His answer nope - you cannae go wrong with bricks and mortar.

At this rate most of Britains housing stock will be owned by Expats by 2020 :lol:

Edited by Kurt Barlow

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Last week was talking to a Scots bloke on a Transocean Rig in the Gulf. He has been buying 2 houses a year on 50% LTV for the past 5 years. Another 5 years he will have accumulated his 20 house pension fund. All rent going into paying down mortgages ASAP.

I said have you thought about shares, bonds etc. His answer nope - you cannae go wrong with bricks and mortar.

At this rate most of Britains housing stock will be owned by Expats by 2020 :lol:

Im sure he pays tax on his rents too <_<

No doubt if things turn hairy in said Gulf country he will be expecting an RAF rescue plane...

twit, deserves to get shafted :angry:

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Fear mongering is the best propaganda tool.

In this case, it is the fear that if you don't load up with as much debt as possible now and buy a property, any property, you will never be able to step on the housing ladder because the BTLs will make prices unreachable for ever.

+1

It's completely shameless too as the people with the most to lose are FTB's. It only takes a few months of beefy falls and their equity goes up in smoke, which will most likely be 98-100% of their entire wealth.

All ponzi participants are the same, forever wanting new suckers to join their scheme so they can keep their place up the pyramid, ideally while lording it over the fools at the bottom. The sooner the whole retched lot comes down the better, just a shame there is no way to turn the pyramid upside down so the ass holes at the top lose the most and the fresh meat comes out unscathed.

Edited by MrFlibble

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I wonder what age demographic reads the Mail. I suspect 50+ year olds, with mildly 'c'onservative views

I have a feeling that they will start to haemorrhage readers as the boomers start to die off in big numbers.

There's a kind of Golf County Club feel to it, with an ever aging patronage, not being replaced by a younger generation due to changing lifestyles and values....

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....ignorant lower-middle class rage directed at anything within reach...

...your obviously part of the class set....are you English Upper Middle or Working or Upper Class....just give us some context in your classy world.... :rolleyes:

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Im sure he pays tax on his rents too <_<

No doubt if things turn hairy in said Gulf country he will be expecting an RAF rescue plane...

twit, deserves to get shafted :angry:

Actually this guy was on a 28/28 rota so was paying full Uk tax on his earnings as well as his BTL's

I make sure I stay outside the UK for at least 275 days a year to qualify as tax exempt.

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All ponzi participants are the same, forever wanting new suckers to join their scheme so they can keep their place up the pyramid, ideally while lording it over the fools at the bottom. The sooner the whole retched lot comes down the better, just a shame there is no way to turn the pyramid upside down so the ass holes at the top lose the most and the fresh meat comes out unscathed.

wretched.

But yes - I concur 100%.

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Having said that I am seeing a lot of 'no chain' properties coming to market - BLT getting out - and it's in London which is apparently different than everywhere else.

I think it's the banks getting out of the massive blt debt as much as the BTL on their own.,

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  • 284 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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