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New Sipps An Emerging Unseen Malignant Threat?

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I'm seeing something very unusual going on at the moment, a lot of two bedroom houses in prominent catchment areas that have been on the market since the beginning of the year with no interest so far, have all just been sold in a matter of the last couple of weeks.

I know Sipps has been widely discussed on here already and Gordon Brown's initial step down on the matter hailed as a victory. Then came the news he was again considering yet another U-Turn, back to the original understanding most pension holders had of first concept.I know the talk was that residential property could only be purchased by syndicates of 11 or more people and in thus doing so would not have a big impact on supply of properties availability and prices etc.

However if you think about it, will this not have a more damaging effect? People who would not have necessarily had the funds to go solo before can now muck in with others buying into big corporate run financial syndicates with infinite buying power?

Alternatively people who have the funds may at present only be allowed to hold a ten per cent share of an individual property but what is to stop them owning individual ten per cent shares in say one thousand properties?

I hope to god I'm wrong and please somebody convince me that I am just being paranoid. If what I'm seeing is just a lot of delayed overstretched first time buyers coming into the market or even home owners seeing the light and now down sizing, then fine. If what I am seeing is the start of syndicate portfolio building on a grand scale then something needs to be done.

Is anybody else currently witnessing this happening? :angry:

Edited by Paperclip

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:angry: I’m seeing something very unusual going on at the moment, a lot of two bedroom houses in prominent catchment areas that have been on the market since the beginning of the year with no interest so far, have all just been sold in a matter of the last couple of weeks.

I know Sipps has been widely discussed on here already and Gordon Brown’s initial step down on the matter hailed as a victory. Then came the news he was again considering yet another U-Turn, back to the original understanding most pension holders had of first concept.

I know the talk was that residential property could only be purchased by syndicates of 11 or more people and in thus doing so would not have a big impact on supply of properties availability and prices etc.

However if you think about it, will this not have a more damaging effect? People who would not have necessarily had the funds to go solo before can now muck in with others buying into big corporate run financial syndicates with infinite buying power?

Alternatively people who have the funds may at present only be allowed to hold a ten per cent share of an individual property but what is to stop them owning individual ten per cent shares in say one thousand properties?

I hope to god I’m wrong and please somebody convince me that I am just being paranoid. If what I’m seeing is just a lot of delayed overstretched first time buyers coming into the market or even home owners seeing the light and now down sizing, then fine. If what I am seeing is the start of syndicate portfolio building on a grand scale then something needs to be done.

Is anybody else currently witnessing this happening? :angry:

You don't think the Chancellor is going to let the housing market die do you?

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You don't think the Chancellor is going to let the housing market die do you?

Well depends in what context you mean by die......because it could be the case there is no hope for anybody, FTBers,and Independent BTLers, bears, bulls alike, the only winners being corrupt ministers and the super rich.

If big corporate run financial syndicates with infinite buying power move in then they will have the monopoly. Because its linked to pensions people involved won't be screaming for their yeilds straight away, they will have to wait untill they retire. Plenty of time for future stealth taxes to be invented and manipulated against them.

Its quite possible that rents will be forced down in the short term and house prices up. BTL Bulls will not be able to compete with this and tempted to sell. Though albeit with a massive capital gains bill. The only buyers with the funds still able to buy will be the syndicates, continually hoovering up any scrap of property becoming available.

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I have seen something similar in Bath. All the cheaper property has been flying 'off the shelf', just lately, straight on the Rent market. Empty! Personnelly I think it is the BLT brigade thinking the market bottomed late 2005.

If the market resumes its fall later this year they will get serious burnt IMO.

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Guest Fiddlesticks

All the cheaper property has been flying 'off the shelf', just lately, straight on the Rent market. Empty! Personnelly I think it is the BLT brigade

All dashing out in the lunch hour after their visit to Pret a Manger and buying whatever they can find ;)

You ain't seen nothing, just wait until the bruschetta and poached salmon crowd get going.

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You ain't seen nothing, just wait until the bruschetta and poached salmon crowd get going.

Or that nasty MPC crowd jump on the central bankers band wagon and put interest rates up 25 basis points.

Talk about walking into a trap with your eyes open. Like lambs to the slaughter! :huh:

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The profitable area of BTL is no longer in the new build apartments but in the bottom end of the market apparently. Locally small 'cheap' terraces in the not too good areas are flying off the shelves - and according to one local EA they are being sold to 'Southern money' who still see growth in this area and where yeilds are still above 5 or 6%.

After all many other small Northern towns have seen a marked increase in population (Crewe 6,000 plus for example) due to EU immigration and they all have to live somewhere. My local town now has little or no spare accomodation, a huge change from only 5 years ago!

I suspect that eventually the lack of housing and subsequent overcrowding will reach a point where the UK govenment of the day will have to take action - perhaps relaxing planning laws or rather insisting Local Authoritiess do?

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The profitable area of BTL is no longer in the new build apartments but in the bottom end of the market apparently. Locally small 'cheap' terraces in the not too good areas are flying off the shelves - and according to one local EA they are being sold to 'Southern money' who still see growth in this area and where yeilds are still above 5 or 6%.

I know that alot of banks and building societies have tightnened their lending critea against new build apartments so perhapes you are right...maybe it is a second wave of individual BTLers still lending money from them but on alternative properties.

If thats the case then they will all have varying financial pain thresholds and any inbalance in the market would send the narrow minded ones to the wall.

However I would still like to see some proof that its not the sindicates moving in...any way of finding this out...would it need to recorded anywhere, accessable if this were the case?

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I know that alot of banks and building societies have tightnened their lending critea against new build apartments so perhapes you are right...maybe it is a second wave of individual BTLers still lending money from them but on alternative properties.

If thats the case then they will all have varying financial pain thresholds and any inbalance in the market would send the narrow minded ones to the wall.

However I would still like to see some proof that its not the sindicates moving in...any way of finding this out...would it need to recorded anywhere, accessable if this were the case?

I think syndicates or RIETS would find these, mainly individual, properties too costly and therefore unprofitable (for them) to manage and it's probably individuals dabbling in this end of the market.

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  • 301 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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