Tuesday, February 5, 2008

Poor BTLetter, used, abused and thrown into the garbage bin!

Buy-to-let lifts house prices 7 per cent

“In any analysis of BTL, it is important to consider the wider benefits [to the economy],” said Stephen Nickell, chairman of the NHPAU. “Together with the regulatory changes in the 1980s, the expansion of BTL lending has supported growth of the private rented sector, which now provides homes for 3m households. Increased competition has kept rents low relative to house prices.” The studies also examine how buy-to-let investors might behave if house prices start to fall. Without the assumption of continued increases, investors may chose to sell. “Given that BTL investors have boosted house prices during the boom, the likely drying-up of new investor demand is another reason to expect house prices to fall back in the coming years,” What an [email protected] MAU HAHAH HAHAH AHH

Posted by confused76 @ 09:18 PM (609 views)
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2 thoughts on “Poor BTLetter, used, abused and thrown into the garbage bin!

  • new user 2007 says:

    Just so we are clear on this….

    The 2mn plus BLT purchases over the last decade have in no way priced out FTBs, even though they compete in the same property segment?

    The incredible circular logic that they have provided housing to FTBs defies anything. FTBs need rental accommodation because they have been priced out by BTL i.e. BTL is the cause of a lack of affordability they are solving.

    The difference in opinion it seems is BTL impact on prices…I would say they do not have to raise prices significantly in the overall market to impact FTB as the groups compete in a limited range of housing. The experts obviously disagree.

    The argument that this is down to rising family units and lack of building is the usual red herring….popn growth has been far slower than BTL rental supply. And we have more housing units now per person than in 1991, admittedly of a different composition i.e. more flats have been built than housing (but that should make sense, given family units have increased as families have split and so become smaller i.e. need less room).

    I would love to know what cowboy methodology they used.

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  • Here's Johnny says:

    True, BTL investors may have boosted house prices during the boom if only by adding a new element of demand, however, since it is likely that weakening confidence in housing as an investment may lead some to carry on renting while they think prices could fall further it is likely that the demand for rental properties will remain bouyant providing continued opportunity for the BTL investor, which could in turn help to limit the decline in prices, in other words the presence of BTL investors is likely to moderate any fall in house prices

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