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Landlords Leap On Cheap Loans As First-Time Buyers Falter

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Landlords leap on cheap loans as first-time buyers falter

Buy-to-let mortgage applications have soared by 26pc in the past year as landlords seek to take advantage of the “perfect conditions” created by low interest rates and state-subsidised lending.

By Philip Aldrick

http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/10081917/Landlords-leap-on-cheap-loans-as-first-time-buyers-falter.html

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Help(landlords)2buy is the policy which will sink the political class.

MP expenses proved they have nothing but contempt for the taxpayer.

Help(landlords)2buy proves they're happy to destroy the next generation.

The conservative leadership has no morality at all.

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perfect conditions?

surely, buying a leveraged asset when the cost to buy it with finance is at a seeming minimum, is the time the price of the asset will be at maximum.

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Help(landlords)2buy is the policy which will sink the political class.

MP expenses proved they have nothing but contempt for the taxpayer.

Help(landlords)2buy proves they're happy to destroy the next generation.

The conservative leadership has no morality at all.

I am thinking they are feeding all this money to the BTL Landlords so helping more of them to

pile in which in time will bring down rents as more will be on the market looking for tenants.

I am seeing property advertised staying longer on there books in my area.

So let the suckers pile in.

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Danny Gabay, a director of Fathom Consulting, has described FLS as “funding for letting” and claimed it is contributing to growth in “the buy-to-let sector at the expense of first-time buyers”.

Insanity all around.

I just hope banks are at least asking for a good deposit, 20% or more. If so, then fvck these BTL idiots. When IRs go back up they will be totally fvcked. Just deserts then.

Last week, the International Monetary Fund warned that government efforts to kick-start mortgage lending by making borrowing cheaper would only lead to higher prices, locking first-time buyers out of the market, unless they were also accompanied by efforts to increase supply.

As I keep saying, our price correction would have been deeper by now if we hadn't had this planning bottleneck. And if we keep restricting new builds the correction will be slow and shallow.

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Meh, let them buy it up.

Our sound economic policy can only see things go down the toilet, with private landlords holding up what used to be the governments responsibility.

Anybody who doesn't see that needs to get into BTL right now.

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04 June 2013 The buy-to-let boom has left some smarting: one in five repossessions during the first three months of this year were investors’ rental properties, according to the Council of Mortgage Lenders. That’s almost doubled from the last quarter of 2012, when landlord properties made up less than 13% of the repossessed total.

No real data to extrapolate, but hidden cost revelation, houses cost money. Landlords need to spend occasionally to maintain their homes at a good rental standard. I guess too many landlords couldn't have foreseen that, the victims ect.

http://www.standard.co.uk/business/money/on-the-money-beware-the-hidden-costs-in-buytolet-8644110.html

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Hope they know what they are getting into

According to figures from the Council of Mortgage Lenders (CML), one in five repossessions in the first quarter of 2013 were buy to let properties.

Linky

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No real data to extrapolate, but hidden cost revelation, houses cost money. Landlords need to spend occasionally to maintain their homes at a good rental standard. I guess too many landlords couldn't have foreseen that, the victims ect.

http://www.standard.co.uk/business/money/on-the-money-beware-the-hidden-costs-in-buytolet-8644110.html

Genuine question - how many landlords "maintain their homes at a good rental standard"?

According to Shelter, over one third of private rented homes fail to meet the Decent Homes Standard.

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According to Shelter, over one third of private rented homes fail to meet the Decent Homes Standard.

I wonder what the proportion for privately owned homes is. I wouldn't be surprised if it was similar.

Many new build rabbit hutches would arguably not meet this standard. This is one reason why on mixed developments containing "normal" and "affordable" (read social) housing; the affordable housing would often be of higher spec, as a key part of DHS compliance is a meeting the legal requirement for social housing (whereas no such legal requirements exist for private housing).

The other issue is that DHS, includes factors such as decent and functional appliances and suitable furnishings - most private rentals are unfurnished, so this clouds matters somewhat.

Edited by ChumpusRex

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Genuine question - how many landlords "maintain their homes at a good rental standard"?

According to Shelter, over one third of private rented homes fail to meet the Decent Homes Standard.

When I was a "shopkeeper" my stock was of "interest" to "landlords".............

less than 5% of my landlord "customers" gave a shi*..............

95% of them moaned about "oppressive" rules and regulations................

Repairs! .....................Ha!

go figure :angry:

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Make mortgages on new property purchases by landlords illegal! IMPO if they want to buy more homes to rent out then they can buy them outright.

Give FTBs and house movers a chance!

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My brother was paying £550 a month to rent a 3 bed semi in 1999, I'm renting 4 bed detached in the same area for £725 now. The housing benefit squeeze will keep pushing downwards.

Prices = sentiment + credit availability

Rents = available income + benefit cash

Its still only heading one way?

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perfect conditions?

surely, buying a leveraged asset when the cost to buy it with finance is at a seeming minimum, is the time the price of the asset will be at maximum.

Shhhh, we don't want to discourage them ;).

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If there are any candidates for "LibLabCON" reading this, please be aware I will never vote for any of you, for as long as I live.

:rolleyes:

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Another problem is high selling costs (not recouped by weak rising prices and mortgage capital repayments being low in early years) leads to a rational position to "rent it out". To get the market going would need somepne like google homes or something to drive down costs but Ea's are an extraordinary powerful lobby group. I belive google and Tesco tried. What's the typical selling coste?

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If there are any candidates for "LibLabCON" reading this, please be aware I will never vote for any of you, for as long as I live.

:rolleyes:

So they have no interest in you, which is not what you want.

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  • 258 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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