Tuesday, Aug 01, 2006

Antisocial BTLers

guardian: Landlords boosting house prices

Can house prices march ever onwards solely on the back of BTL? More and more people are forced to rent as BTLers push prices out of reach, so why not?

Good reason to organise a national 'non-payment of rent month' protest.

Posted by inbreda @ 01:50 PM (452 views)
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4 Comments

1. paul said...

"Fionnuala Earley, Nationwide's group economist, said a booming buy-to-let market was one of the drivers to price growth, as people who have been priced out of the market are forced to rent instead."

I don't buy this at all. If you stop and think about it, to have a significant impact the BTL market would need to buy up the entire spare capacity of FTB housing in order to influence the price upwards collectively. This is obviously impossible, and rental yields would have to drop much further for a far more sustained period for the effect to be viable.

Speculative (and rather desperate) claptrap.

Tuesday, August 1, 2006 07:12PM Report Comment
 

2. Delboypass said...

obviously if all these FTB'er houses are bought by BTL'ers there will be increased demand for the remaining houses therefore artificially pushing up demand and prices.

I believe Paul is either a Landlord or an estate agent with the harsh total disregard of this article.

About time the Government came down hard on BTL'ers and let hte market reurn to normal...since when is it normal for everyone in hte nation to be a landlord backed by cheap credit on the back of the countrys youngsters!!

Tuesday, August 1, 2006 08:03PM Report Comment
 

3. paul said...

Haha. Delboy you shouldn't be so suspicious.

I'm a FTB and not a young one at that. I agree that there should be a clampdown on BTL. The problem is that the government is quite happy to let the whole thing go unchecked. All I'm saying is that BTL cannot possibly take up all of the slack from the lack of FTB.

And at the current prices, if they do, they're welcome to that overpriced housing stock. The more they buy, the lower rents will go and the less attractive it will become. Delboy, we're in an advanced stage of the market cycle now, where only fools rush in (BTL or FTB)!

So don't worry - our time will come.

Wednesday, August 2, 2006 09:20AM Report Comment
 

4. Rich said...

I agree with Paul. The more people BTL, the lower rents become, and the less profitable BTL becomes. With the trigger of rising interest rates, bills, and council tax, BTL investors will start to sell up, which will push the market back down again.

We're at that stage now, all we're waiting for is the trigger to change investors perception of the market from bull to bear.

Wednesday, August 2, 2006 04:05PM Report Comment
 

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