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Realistbear

Falling Prices Are Boosting B T L Sales

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http://www.mfgonline.co.uk/story.asp?story...sectioncode=110

BTL returns boosted

29 August, 2007

Paragon’s July Buy-to-Let index has reported that brokers have been enjoying increased business from the buy-to-let (BTL) sector.
Strong tenant demand
on the back of the growing weakness in the wider housing market
has led to rental incomes accelerating in recent months. A series of interest rate rises has made it more difficult for first-time buyers to step on to the property ladder, so demand for rented accommodation continues to grow.
Over the past year rents are up 5.0 per cent but the majority of that growth has occurred in the past three months, which has experienced a 3.04 per cent rise in rental incomes. On an annualised basis, that equates to an annual growth rate of 12.7 per cent. Landlords’ ability to increase rents has enabled yields to remain consistent at around six per cent for the year.

:lol::lol::lol: catch breath :lol::lol::lol:

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Guest d23
http://www.mfgonline.co.uk/story.asp?story...sectioncode=110

BTL returns boosted

29 August, 2007

Paragon’s July Buy-to-Let index has reported that brokers have been enjoying increased business from the buy-to-let (BTL) sector.
Strong tenant demand
on the back of the growing weakness in the wider housing market
has led to rental incomes accelerating in recent months. A series of interest rate rises has made it more difficult for first-time buyers to step on to the property ladder, so demand for rented accommodation continues to grow.
Over the past year rents are up 5.0 per cent but the majority of that growth has occurred in the past three months, which has experienced a 3.04 per cent rise in rental incomes. On an annualised basis, that equates to an annual growth rate of 12.7 per cent. Landlords’ ability to increase rents has enabled yields to remain consistent at around six per cent for the year.

:lol::lol::lol: catch breath :lol::lol::lol:

Landlords are also benefiting from increased bargaining power when looking to add property to their portfolios. The price landlords are paying for property has risen by 5.5 per cent over the past 12 months, compared to 10.7 per cent in the general housing market.

presumably you meant falling sales volumes rather than prices RB?

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presumably you meant falling sales volumes rather than prices RB?

As I see it the "growing weakness" in the housing market is really an admission that prices are falling. For years the BTL brigade have said they can put up with low yields so long as capital appreciation made up for the negative cash flow. So now they are saying BTL is "boosted" as house prices fall. If they think they will get a 12.4% increase in rents with the world headed into recession................... :P

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As I see it the "growing weakness" in the housing market is really an admission that prices are falling. For years the BTL brigade have said they can put up with low yields so long as capital appreciation made up for the negative cash flow. So now they are saying BTL is "boosted" as house prices fall. If they think they will get a 12.4% increase in rents with the world headed into recession................... :P

Perhaps I can help you here.

Your own quote says

Strong tenant demand on the back of the growing weakness in the wider housing market has led to rental incomes accelerating in recent months. A series of interest rate rises has made it more difficult for first-time buyers to step on to the property ladder,

No. Boosted because there is increased demand from FTBs who can't afford to buy.

It says SFA about falling capital values.

Tell me, is your parallel universe real, or is it a chemically modified version of the one the rest of us are living in? :P

[edit]Later on the article says

The price landlords are paying for property has risen by 5.5 per cent over the past 12 months, compared to 10.7 per cent in the general housing market.

[/edit]

Edited by JohnG

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Isn't that just likely to be Joe Public jumping on the bandwagon (too late)

And/or newish BTLers that don't keep abreast of their business by reading news items ... and not doing the figures properly?

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