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peter_2008

BTL selling up?

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Where I am (SW), I am seeing a substantial increase (not flooding, but a big increase) of obvious BTL houses (mostly 2 beds flats or terraced house) coming on to the market. The ones actually have sold, were about 10% - 15% below recent peak price (back to 2016 level).

A few seem to be landlord got repossessed; and some seem to be the case where the amateur landlords with homeowner mortgage let the property out without telling the bank; and the bank found out and called in loan. I wonder how wide spread this kind of fraud went on? i.e. landlords lied to get/retain a homeowner mortgage (i.e. lower deposit and cheaper rate ). I have seen one example that the landlord got caught by the bank, got repossessed, then stripped and trashed the whole house in anger.

Despite BTL insisting they have not unfairly disadvantaged FTB, it is FTB are buying these type of properties (particularly 2 bed terraced). So my scenario is that these BTL  sales will lead the fall and once they reach a level that could be afforded by FTB, say a young couple with a joint income of £40K ish, that's where the market will stablise, which in turn will dictate how much further up the chain will fall.

Anyone seeing the same? 

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I've got some searches set up for Buckinghamshire and Bedfordshire but I'm not seeing much ex-BTL fodder on the market. What I am seeing is owner-occupier homes sitting on the market unsold and then the same homes appearing on the "to rent" pages when they don't sell.

Also seeing homes in newer developments come on to the market where there was a lot of HTB initially (around £ 350- 400,000+).

Also properties which would have been bought by Landlords previously are no longer selling. 

There is a market sub-250,000 but I don't know if these are being bought by LL's or FTB'ers. As I am not seeing these on the "to rent" pages they may be the FTB'ers? Also, I don;t know enough locally to be able to see if these are ex-BTL properties.

In a way I think the market here is going to fall "from the top down" - if that makes sense. With a glut of properties in the >£350 - 450 band and it being a case of who blinks first. The first sold at a realistic price may push all the other prices down maybe?

Edited by Flopsy

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There was a 9 flat/bed house up for sale where I live. I know it's a BTL, local landlady, she has lots of properties in this area. It's disappeared off Rightmove however, came on in October and I just checked now and it's gone, not listed as sold or under contract; appears to have been withdrawn. I'm not sure how to interpret this...

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On 21/11/2018 at 19:16, EnglishinWales said:

came on in October and I just checked now and it's gone, not listed as sold or under contract; appears to have been withdrawn. I'm not sure how to interpret this...

you can't - you have n o idea what the circumstances are 

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None in the (admittedly tiny) area I check regularly.

Small town in midlands. Not many flats in this area anyway ... but 2 and 3 beds aplenty .. no real change in the market here yet (that I can see).

*depressed*

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  • 259 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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