Wednesday, September 5, 2007
Suspending belief?
Buy to let landlords confidence at record levels - Paragon Mortgages
Research by Paragon Mortgages has shown landlords' confidence is at record levels, as average rental yields increase... Paragon's buy-to-let trends survey of landlords shows that despite rising interest rates, landlords are more confident than ever in their property investments. The index - based on the value of their property portfolios now and the expected value of their portfolios in twelve months' time - stands at 160, up from 155 last quarter and from 150 this time last year.
Posted by converted lurker @ 09:27 AM (1613 views)
19 thoughts on “Suspending belief?”
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benedict says:
LOL “Young people are choosing to stay in rented accommodation for longer”
I think not all are choosing, many probably have that choice made for them
Davidr says:
Perhaps BTL landlords are right after all! They have backed their judgement with their own money. (This is the case even if they have borrowed money. Even Ambrose Evans Pritchard admits that central banks could keep the credit fire alight for another two years!
Ihopeitgoeswithabang says:
The 3 Bed bungalow I am just about to rent the Landlord increased the rent by £50 a month after the last tenant left. He had not takers.
After 2 months he has decided to reset it back to what it was. Didn’t really work out for him did it.
Research by a company which relies on BTL landlords for its very existence is harldy likely to report anything else,
confused76 says:
paragon’s surveys are not worth commenting
uncle tom says:
I’ve never heard of this index before – funny how it gets publicity now…
Where do Paragon get their money from?
Not from savers I think – so their mortgage rates will be forced sharply upward by the credit crunch – that won’t do much for BTL confidence!
confused76 says:
“Despite ill-placed criticism of the buy-to-let sector, rented accommodation is becoming an increasingly important part of the UK housing market – providing homes for the growing number of people who do not want the commitment of owning their own property – and this is reflected in landlords’ confident outlook for the sector.”
what does this mean? any clue?
David90210 says:
A total load of tosh in this article.. it ends by implying we should be thankful to BTLs for helping the younger generation.. Laughable!!!
Surfgatinho says:
You really should just take my advice and stop reading an article upon the first ocurrence of ‘Paragon’!
confused76 says:
I found an interesting concept at the link below:
Interest rates ”should not rise again” – buy to let mortgages
http://www.mortgagesforbusiness.co.uk/corporate-information/latest-industry-news/news-article/newsarticleid/29199/
It sounds a contraddiction, if (and I am not convinced that will be the case) interest rates do not rise again is because salaries, prices etc are predicted to stagnate for a while. So should rental yields and consequently house prices.
So why would it be so exciting to jump into the btl fray with a subdued economic outlook ahead?
dohousescrashinthewoods says:
Is this because sensible landlords have left so the survey captures the opinions of happy muppets left behind?
sold 2 rent 1 says:
All bubbles show maximum record confidence at the top of the market.
By definition, the market would not be at the top if confidence wasn’t at record levels.
It was the same in Nasdaq 2000, wall St 1929 and every other asset bubble in history
This bubble will be no different.
sold 2 rent 1 says:
It is like saying “Day traders at record confidence in February 2000”
An Bearin Bui says:
“Research” at “Paragon Mortgages”: I think that’s all most of us need to read before realising that this is a press release intended to buoy up the share price of Paragon who are dependent on the BTL and subprime sector. Yawn…
Davros says:
I can’t see much future for buy to let.
If in 20 years time, when people cash in their investment, prices are at their current record levels, all they would have done is kept up with inflation. Not much cop compared to a savings account. What happens when everyone else tries to cash theirs in too?
If something seems to good to be true, it is.
garch says:
I’m glad someone pointed that out S2R1…
shipbuilder says:
Of course they’re confident – they’re the idiots left when the savvy/sensible ones have cashed in!
Alan says:
Perhaps landlords feel that IR are about to fall!
US interest rates are set to drop like a stone (read between the line’s of Ben’s statements). When that happens UK interest rates will follow suit.
If UK Interest rates go down – UK housing bubble grows….. Econony suffers, landlords are (temporarily) saved from a HPC. Heads go back into sand!
wiltshire says:
Genuine frontier gibberish…..
uncle tom says:
I have not checked that they are one and the same, BUT
Paragon group of companies share price dropped by 5.6% today
Oh dear… :))