Friday, February 1, 2008

Industry in better zhape than reported

Buy to Let long-term sztability confirmed

This news may not be much of a revelation to those who have seen the optimistic outlooks presented by the recent surveys from Bradford and Bingley, Alliance & Leicester and ARLA, all of which have shown high levels of investor optimism. In the announcement by Nationwide of its latest monthly house price index, which showed a 0.1 per cent drop in January, senior economist Martin Gahbaur said: "We do not believe that the long-term fundamentals of buy-to-let are as poor as recent commentary suggests." It is clear the buy-to-let property market is still healthy for longstanding landlords, especially for those in the south-east.

Posted by little professor @ 10:36 AM (701 views)
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9 thoughts on “Industry in better zhape than reported

  • Conveniently, no-one is defining ‘long term’. If the Japanese house price collapse is anything to go by, long term could be decades.

    Regardless, anyone who thinks that buying at the top of the market is a sound investment is an idiot.

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  • disillusioned says:

    It’s almost as if this company deliberately report the EXACT opposite of what’s actually happening. AFAIK, the south east is one of the most over-inflated and risky areas in the country!

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  • ”After all the recent negative press about buy-to-let in the UK, the industry may be in better shape than some imagine, it seems.”

    Better shape, but it’s still terrible….

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  • I would really like to know the exact spread of LTV’s across people in BTL. An average of 60% doesn’t mean much. What proportion of housing stock owned by amateur BTL is LTV of 80% or more

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  • >>senior economist Martin Gahbaur said: “We do not believe that the long-term fundamentals of buy-to-let are as poor as recent commentary suggests.” It is clear the buy-to-let property market is still healthy for longstanding landlords, especially for those in the south-east.

    Mr Gahbaur then promptly raised his hands to the sheep-like assembled VI crowd and said, “you must believe because I’m God”. Gahbaur then relieved himself into a teacup.

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  • Maddison – Wouldnt we all! I would like to extend that to the loan books of the boyz. Whats the LTV of the loans from B&B / A&L, by aggregate size and rate.

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  • The clue is in his words “longstanding landlords”. If you got into BTL in 1996 then your initial investment is fairly safe. If you got into BTL in 2006 (and there were record numbers of BTL mortgages sold that year) then you’re in trouble.

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  • new user 2007 says:

    Wow. He always ,manages to say so much without ever saying anything.

    Nationwide is being used as evidence by Mr ASSetz, but they are only mentioning it as they themselves are getting desperate.

    He was saying in October that rates would have come down by now. Since then there are even fewer BTL products and they are even more expensive.

    He seems quite panicked though:)

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  • Landofconfusion says:

    > 4. maddison said…
    >
    > I would really like to know the exact spread of LTV’s across people in BTL.

    After last nights’ Panorama I would imagine the banks would too.

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