Tuesday, December 18, 2007

pedal to the metal

More landlords 'leaving market'

The percentage of landlords selling their properties is at a three-year high, according to a surveyors' group. The Royal Institution of Chartered Surveyors (Rics) blamed the move on previous interest rate rises and a more cautious stance from lenders.

Posted by seanb303 @ 11:29 AM (1125 views)
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7 thoughts on “pedal to the metal

  • On the radio yesterday a chap said his last two landlords had gone bust, they both had roughly 7 properties each in their buy to let portfolios. It seemed that once they defaulted on one of their properties the rest fell like a line of dominos.

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  • I see RICs are blaming IR rises and lenders. Not on the BTLetters themselves whose greed helped fuel this whole sorry mess.

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  • BTLers are a bunch of greedy speculators and deserve everything they have coming to them however they are operating within a framework that the Government allows.

    It is the Government that has sat back and let the housing bubble continue (much to it’s advantage), and they must be made to carry the can when it all goes belly up.

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  • Because so many FTB’s are priced out, the market has a dependency on BTLers adding a little over 20k properties to their portfolios each month (the mortgage numbers are slightly smaller, but some properties are bought outright)

    At the moment, working from the best available data, I reckon the number is currently somewhere between 0 and +5k pm. At the same time, FTB’s who can afford to buy appear to be no longer panicky about ‘getting on the ladder’

    The result is a massive stock build (check out the Rightmove graphs) – and unless someone finds a sudden magic solution to the woes of the credit markets, the build up will continue.

    The new year will see a succession of stats appearing that are bound to dent the confidence of the BTL camp – HPI figures that first fall below BTL mortgage rates, then fall below inflation and then, probably in April, go negative YoY.. This will probably propel the BTL crowd into a net disposal position – even if rising rents provide a little cheer..

    These stats will also instill more caution in FTB’s

    Next year will be a full-on buyer’s market, but caveat emptor…

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  • Our landlord has said he’s putting the flat we’re renting, and the one he owns directly below, on the market in April. I have to laugh. How many landlords will be doing exactly the same when the CGT changes come in? He appears to be typical of the BTL brigade who bought over the last five years – owns multiple properties but in debt up to his eyeballs and desperate to get his capital out before it all comes crashing down. We laugh to ourselves that it’s too late for him, the crash has already started!

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  • it_is_going_with_a_bang says:

    Theres no blame really is there… just common sense easing its way into the situation like a bull in a china shop.

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