spyguy Posted July 1, 2019 Share Posted July 1, 2019 (edited) Nod to jiltedjen. As ive repeated multiple times over the last 15 years, BTL mortgage providers do not grasp the risks theyve got into. Labour is planning to introduce draconian new restrictions on buy-to-let property owners in desperate bid to tackle soaring house prices https://www.dailymail.co.uk/news/article-7202337/Labour-planning-introduce-draconian-new-restrictions-buy-let-property-owners.html Basically a bunch of over excited EAs came up with a gormless wheeze in 99, which was grossly oversold and grossly under priced, risk wise. And now the political parties are competing to tax btl LLs. And any restriction on a bank being able to repo means that Btl mortgages are now a totsl no no. All btl loans will end up with specialist finance houses, wholl beed to raise the cash - no io, no drawing down from BoE. Any Btl lender whos not cranking btl svr to insane levels - 10%+ is an idiot. You want this business off your books asap. Hit the panic SVR. Edited July 1, 2019 by spyguy Quote Link to comment Share on other sites More sharing options...
APerson Posted July 2, 2019 Share Posted July 2, 2019 I lurk Property Tribes and various LL facebook groups to get a feel for what they are thinking. A few are taking this seriously, but I believe the majority will not sell or attempt to get out of the BTL game until they are actively failing and have been doing so for a few months. They have been trained to believe BTL has always been propped up by the government and they won't be allowed to fall. Quote Link to comment Share on other sites More sharing options...
rantnrave Posted July 2, 2019 Share Posted July 2, 2019 Landlords holding back from further purchases over next 12 months July 2, 2019 https://www.propertyindustryeye.com/landlords-holding-back-from-further-purchases-over-next-12-months/ Fewer than a third of landlords would add to their buy-to-let portfolio over the next 12 months, research claims. A survey of 5,000 landlords by letting agent Benham and Reeves, assessed sentiment in the property sector amid tax and regulatory changes. The majority (83%) said they were unlikely to sell up this year, but just 28% said they would consider investing in a property in the next 12 months. Half said they would consider expanding their portfolio within the next five years. Two thirds of landlords said the proposed changes to Section 21 notices made them more cautious about investing in a further property, while opinion was divided over changes to mortgage interest relief and whether the sector still provided a good investment as a result, with 49% believing it is and 51% no longer sure. Despite this uncertainty, 73% considered property is still the best and least volatile long-term investment when compared to all other asset classes. More than a third (37%) felt very confident that they will see an adequate return on their portfolio over the next ten years, with a further six per cent stating they were extremely confident and 51% not as confident. Marc von Grundherr, director of London-based Benham and Reeves, said: “The Government has really gone to war with buy-to-let investors of late and a consistent string of detrimental changes to the sector through Stamp Duty increases, tax relief changes and a ban on tenant fees has had the desired impact of denting industry sentiment and dampening appetite for future investment due to a reduction in profitability “However, for the institutional buy-to-let investor, this is but a mere blip on a much longer timeline, and the overwhelming overtones are that while Brexit poses a challenging obstacle for the immediate future, the market remains the investment option of choice with many confident on a return further down the line. “This is a testament to the durability of buy-to-let bricks and mortar in the UK as, despite a Government-backed clampdown, it remains a lucrative business and one that continues to gain the backing of those that are on the frontline.” Quote Link to comment Share on other sites More sharing options...
Burbujista Posted July 2, 2019 Share Posted July 2, 2019 I like the objectivity of the questionare. It’s like asking people: Do you think Boris will be. Good PM? A - Extremely confident. B - Very confident. C - Not as confident. They should add: D - I am confident it’s going to be a nightmare. Quote Link to comment Share on other sites More sharing options...
Flopsy Posted July 2, 2019 Share Posted July 2, 2019 I think this is really showing up in a lack of sales to BTL investors in Milton Keynes. Over the past couple of years I saw a steady stream of small or medium size houses being bought (didn't look at flats so no idea) and then appearing on the rental market. This included houses that I viewed and made offers on. It's not happening to that extent any longer and been the case for the last 6 months. Quote Link to comment Share on other sites More sharing options...
Confusion of VIs Posted July 2, 2019 Share Posted July 2, 2019 12 hours ago, spyguy said: Nod to jiltedjen. As ive repeated multiple times over the last 15 years, BTL mortgage providers do not grasp the risks theyve got into. Labour is planning to introduce draconian new restrictions on buy-to-let property owners in desperate bid to tackle soaring house prices https://www.dailymail.co.uk/news/article-7202337/Labour-planning-introduce-draconian-new-restrictions-buy-let-property-owners.html Basically a bunch of over excited EAs came up with a gormless wheeze in 99, which was grossly oversold and grossly under priced, risk wise. And now the political parties are competing to tax btl LLs. And any restriction on a bank being able to repo means that Btl mortgages are now a totsl no no. All btl loans will end up with specialist finance houses, wholl beed to raise the cash - no io, no drawing down from BoE. Any Btl lender whos not cranking btl svr to insane levels - 10%+ is an idiot. You want this business off your books asap. Hit the panic SVR. You have been banging this particular drum for years now but the banks don't seem to be listening. E.g the Nat West is actively pushing 2% ish BTL loans. Quote Link to comment Share on other sites More sharing options...
Dorkins Posted July 2, 2019 Share Posted July 2, 2019 (edited) 14 minutes ago, Confusion of VIs said: You have been banging this particular drum for years now but the banks don't seem to be listening. E.g the Nat West is actively pushing 2% ish BTL loans. Same dynamic as RBS up to 2008, senior management pursue a 'growth' strategy by handing out credit to anybody who wants it, award themselves lots of cash for expanding the business, credit crunch comes and they say sorry then walk away with their wealth while taxpayers foot the bill for another bust bank. No incentive to be fearful. Edited July 2, 2019 by Dorkins Quote Link to comment Share on other sites More sharing options...
regprentice Posted July 2, 2019 Share Posted July 2, 2019 8 minutes ago, Dorkins said: Same dynamic as RBS up to 2008, senior management pursue a 'growth' strategy by handing out credit to anybody who wants it, award themselves lots of cash for expanding the business, credit crunch comes and they say sorry then walk away with their wealth while taxpayers foot the bill for another bust bank. No incentive to be fearful. Natwest IS RBS. I remember going to work for RBS and family in England saying, wow...the royal bank of Scotland, that sounds posh...not realising it was just the Scottish brand of NatWest. At various points they've spoken about doing away with the 'tarnished' RBS brand and calling them all Natwest. Quote Link to comment Share on other sites More sharing options...
Dorkins Posted July 2, 2019 Share Posted July 2, 2019 4 minutes ago, regprentice said: At various points they've spoken about doing away with the 'tarnished' RBS brand and calling them all Natwest. Just like some dodgy construction company which keeps going 'bust' to stiff the suppliers and then relaunching under a new company name. Quote Link to comment Share on other sites More sharing options...
spyguy Posted July 2, 2019 Author Share Posted July 2, 2019 57 minutes ago, Confusion of VIs said: You have been banging this particular drum for years now but the banks don't seem to be listening. E.g the Nat West is actively pushing 2% ish BTL loans. Well ...... dumb money goes for the dumbest investment. IO BTL is unregulated investment - classed as commercial loans. Too many hurdles with regulated/consumer loans. So banks push their cheap mney into something they can get a few extra basis points over resi lending. Idiots, as the S24 and now this, which appear to be the start of UK political parties starting to comepte over who can punish BTL owners the most. IO BTL will turn out to be a disaster for the majority who've took out the loans. Tough. Quote Link to comment Share on other sites More sharing options...
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