Saturday, September 22, 2007
BTL is the UK subprime
"Unofficial numbers suggest BTL lending has become yet more relaxed than this suggests. It seems BTL largely replaced traditional first-time buyers in the market a long time ago and, more than simply not selling, BTL investors now need to keep buying to support the lower end of the UK’s residential property market. The party has gone on far longer than I could have predicted but the fallout from the US sub-prime market is leading to a severe readjustment in risk appetites and ‘the price of risk’. A BTL might be a sensible part of an overall pension plan but now does not look like the time to buy it and investors who did in recent years may have plenty of time to regret it ahead of them." Ah aha hahhah ahahah!