Thursday, February 26, 2009
Another nail in the BTL coffin
'Rents down' amid flooded market
Many BTLers were so indebted with their 'portfolios' that the very fact that could no longer liberate equity from them by re-mortgaging has forced them to default on their loans. But then there were those who had been a little more cautious, and thought they could ride out the storm. Many of those will now be crucified, as rents fall and voids increase...
Posted by uncle tom @ 05:56 AM (1446 views)
6 thoughts on “Another nail in the BTL coffin”
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quiet guy says:
So after comprehensively hammering the BTL market based upon two national surveys, the BBC gives the last word to an estate agent fom Dreweatt Neate?
little professor says:
Wonder what happened to Paragone – they used to issue a monthly buy to let index telling us that rents were soaring, but mysteriously stopped releasing the index last summer.
paul says:
Come now little professor. There’s a perfectly rational and sufficient explanation on the site for the temporary suspension of their index:
“Please note – Paragon has temporarily suspended its Buy-to-let Index as it is difficult to define accurate property valuation information in current market conditions. We are currently reviewing alternative approaches and will look to resume the Index as soon as possible.”
See? Publishing the index has become ‘difficult’. Presumably Paragon only likes to do ‘easy’ stuff.
str 2007 says:
This article appears 2 below, the system always tells me if an article is a repeat and I can’t put it on. I’ve noticed this alot lately.
Anyway if you’re going to double up on articles I’ll double up on posts.
Anecdotal
Just agreed a new rent for a new place.
There did seem to be a flood of rental property around Christmas, the majority of these have now been taken up.
The current landlord went for a rent increase, but is now re-marketing below that rent increase level (only £15) but clearly not a bullish landlord.
Got new place down from £900 to £850 per month ( started at £750 but they weren’t having it ).
The ones left on the market now are over priced or nails or both. I have been watching closely and ‘good’ houses to rent have become few and far between in the last month.
Area (Winchester Hampshire).
peter_2008 says:
Anecdotal
My colleague just moved house and negotiated a 10% discount. His ex landlord (A director of TESCO) sold his Porsche to make up the devaluation, so he can renew to a lower rate to cover the mortgage. But 20% – 30% of his “investment portfolio” is lying empty. Both he and my landlord are begging us to advertise in our company, since we are one of the major employers in the area.
Location: East Anglia
inbreda says:
Hi Peter, sorry to hear your sad story.