Jump to content
House Price Crash Forum
Sign in to follow this  
Guest Cletus VanDamme

Resurgence Of Btl

Recommended Posts

Guest Cletus VanDamme

-- sorry, posted this in wrong forum! =--

If newspaper reports are to be believed and we are seeing 'strong growth' in London, and the resurgence of BTL, what do people think the implications will be.

Here's one scenario:

House prices remain unaffordably high for those not already on the ladder. The result is that we return to the social situation seen in Victorian and earlier times: buying is out of reach for the majority, who rent instead. The majority of housing ends up in the hands of the few. There is no such thing as today's concept of the FTB, instead, you own property either because you inherited it, or because you were a successful member of the merchant class.

Could we return to these times?

Edited by Cletus VanDamme

Share this post


Link to post
Share on other sites

-- sorry, posted this in wrong forum! =--

If newspaper reports are to be believed and we are seeing 'strong growth' in London, and the resurgence of BTL, what do people think the implications will be.

Here's one scenario:

House prices remain unaffordably high for those not already on the ladder. The result is that we return to the social situation seen in Victorian and earlier times: buying is out of reach for the majority, who rent instead. The majority of housing ends up in the hands of the few. There is no such thing as today's concept of the FTB, instead, you own property either because you inherited it, or because you were a successful member of the merchant class.

Could we return to these times?

This was the situation up to the 1960's. HP ownership for people with average incomes is a relatively recent phenomenon. House prices were out of reach for people of average means and yet prices remained buoyant. A lesson from the past is that it is not necessary to have FTB's to maintain property values.

Edited by nodumsunreader

Share this post


Link to post
Share on other sites

There is a firm in Liverpool trying to bag up as many properties as possible at the moment. Full page ads in the local free sheets proclaim that they've been in property for more than 20 years and have cash waiting to buy "your" house and stop repossession and then rent it back to you. It sounds like a large portfolio trying to get bigger. The cash they've got could well be MEW from other properties they own. I can't imagine that they have much leverage to drive down the prices of the properties they are advertising for if people are already up to the hilt with their mortgage or other debts. Goes with your arguement that a low return on BTL could be managable if you have a large number of properties and are prepared and able to take a very low return or even a small loss on some of them.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 302 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.