Tuesday, September 30, 2008
Amongst the gloom some GOOD news
The collapse of Bradford & Bingley sounds the death knell for buy-to-let. More than 1.1million British investors put their money into property for rent, borrowing against the value of their family homes. The hope was that the rental income would cover the mortgages, while they would cash in from the supposedly inevitable rise in house prices. However, the market has now been hit by a double-whammy which threatens mass repossessions and an even bigger property market collapse than the 1990s bust.