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Realistbear

Mortgage V I Admits Btls Are Dropping And Yields Are Down

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http://www.mortgageintroducer.com/news/new...p?unqueid=17064

Paragon reveals healthy BTL market

Paragon Mortgages Buy-to-Let (BTL) Index has revealed the market remains strong, despite a drop in property prices paid by landlords during March.
Investors continue to
snap up
properties at attractive prices
As activity in the buy-to-let sector remains strong, the average price at which landlords acquire investment properties eased slightly in March, reflecting the sustained tenant demand particularly for properties at the lower end of the price spectrum and a
surge in activity
on the part of smaller scale investors.
After three months of rising house prices,
March saw a 1.5% drop in the average price paid by landlords, from £163,417 to £161,039.
Nevertheless, property values are still 5.5% higher than they were a year ago.
John Heron, managing director of Paragon Mortgages, commented: "At the end of 2005 and especially the start of 2006, we witnessed a significant pick-up in activity in the buy-to-let sector, with professional and smaller scale landlords alike purchasing additional properties in response to identified demand from tenants. Since November, property values had been rising steadily, but this month saw an easing in prices paid. This reflects the fact that tenant demand is strongest for smaller homes, as singletons and young couples look for clean, simple rental properties to fill their accommodation needs. As serious investors buy in response to actual tenant demand, average prices paid have eased a little."
In line with the easing of property values, rents are slightly lower
, at £10,082, while yields now stand at 6.26%.

Apart from the usual bluster of "surges" and "snapping up" it shows a shift toward admitting prices and rents are actually falling. A BIG step for this VI. :)

Edited by Realistbear

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After three months of rising house prices, March saw a 1.5% drop in the average price paid by landlords, from £163,417 to £161,039. Nevertheless, property values are still 5.5% higher than they were a year ago.

It can't be just me, but this doesn't make sense? Ok, I bought a place for 200 grand last month and now it's only worth 197 grand (3k loss = 1.5%).

But that's ok because it's still worth more than when I didn't buy one last year???? :blink::blink:

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I think this goes against what some btl bulls seemed to of thought would happen (and do correct me if im wrong)

Prices falling and rents falling too. I think that some folks were thinking that prices may fall and rents would rise or atleast stay level, falling prices and falling rents.

Out of interest and i genuinly dont know is the 6.26% yield higher or lower than thier previous estimates? It may be used a measure of how far rents are falling in relation to prices in the wonderful world of btl creative calculations :)

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  • 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%



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