Saturday, April 14, 2007

BTLers set to benefit from IR rises!

Rate rises - do landlords care?

"Perhaps driven by higher rental demand as first-time buyers increasingly feel that the slippery first rung of the property ladder is out of their reach as the rate rises start to bite at the cutting edge of the market. John Heron, managing director of Paragon Mortgages commented: "Llandlords' confidence is a good indicator of current conditions - they know that tenant demand is pushing rents and yields upwards and remain confident in the long-term." So it seems that when it comes to rate rises, buy-to-let investors may be cashing in, rather than pulling out."

Posted by confused76 @ 03:26 PM (474 views)
Please complete the required fields.



6 thoughts on “BTLers set to benefit from IR rises!

  • Sad to say I agree with the fact that even if there was a HPC, BTLerswill be less affected than overstreched FTBs.
    A state which allows homes to become a wild speculation targets must be taken to task by the generation missing out on the chance of owning a Property.

    Reply
    Please complete the required fields.



  • There is no evidence where I am of rising rents. Rather the converse – a flood of new one and two bedroom flats is producing a glut of rental properties and a surprisingly large number of rental properties “available now” – in other words with voids.

    Reply
    Please complete the required fields.



  • This doesn’t worry me, in fact I rather like it. The more dependent the market becomes on BTL, the less stable it becomes.

    Oh, and increase the supply of rental properties, and the yields get pushed even further downwards.

    Reply
    Please complete the required fields.



  • Workingholiday says:

    Hmmm – we’ll see.
    Rent review coming up.
    I’ve never actually had a landlord raise the rent on me in 12 years of house sharing / renting.
    That said, I’m only in the current place because the landlady priced out the sitting tenant last year, which doesn’t bode well.
    That Foxtons’s rag under the door the other day, going on about 10 – 20% increases might give her ideas.

    If she tries to raise by more than my inflation wage increase then it’s back to house sharing – no but’s amount it.
    Good luck to them.

    Reply
    Please complete the required fields.



  • Paul talks sense.

    If Landlords are confident, they are making money. Investors follow where money is made which means more landlords. Laws of supply and demand kick in. Cheaper rents – hopefully. I think Landlords’ confidence is a good thing as well.

    Reply
    Please complete the required fields.



  • Does anyone believe a word of these people at Paragon? Rentals all have ceilings above which people can not afford to pay. There will be no takers and low yields, especially as recession kicks in. Of course what will make yields rise is a HPC!

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>