Saturday, February 21, 2009

Bash a BTLer

Buy-to-let landlords hit hard by recession

The number of buy-to-let landlords unable to keep up payments on their mortgages more than doubled during the second half of last year, hitting record highs of almost 27,000. Meanwhile, the number of repossessions of privately owned homes rose by 55%. The number of landlords who are three months or more behind on their mortgage payments rose by 257 per cent between the end of 2007 and the end of 2008, as landlords failed to secure the rents they needed to meet their loan payments. New lending in the buy-to-let sector has also plummeted, falling by 56 per cent in the final quarter of last year.

Posted by little professor @ 08:23 AM (1151 views)
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11 thoughts on “Bash a BTLer

  • the trend is your friend?

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  • Good.
    When the “It’s my pension pot brigade” get the feck out, house prices will return to somewhere near (oops, below) normality. (but what is normal)

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  • The fact that tenants can just find themselves evicted with little or no notice is disgusting. These tenants are likely to be renting as they have been priced out of the market because of the inadequacies of this government in allowing the greed of the buy to letters distort the market to such a huge extent. Just imagining getting a letter, out of the blue, stating that your home is being reposessed in a week through no fault of your own, makes me really angry. The tenants who are the victims of this situation, will be forced to find new accomodation in days, find a deposit, removal costs etc. The government needs to provide secure rented accomodation through housing associations, renters need to be properly protected from this fiasco.

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  • Hang the scum out to dry – I’m glad

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  • Look at the timeline here – any BTLer who threw in the towel and stopped making payments after Oct 1st last year is not included in the stats.

    At that time, most BTLers were still deluding themselves that the HPC was just a small correction that would rebound..

    .. also remember that this is 27,000 landlords, not properties..

    It’s just beginning – I stand by my prediction of 500,000 BTL repos..!

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  • Some really cheap houses about at the moment. The figures are stacking up again. I’m starting to build my portfolio up again. Some real negative people on this forum.

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  • Some really cheap houses about at the moment. The figures are stacking up again. I’m starting to build my portfolio up again. Some real negative people on this forum. Picked up a 3 bed semi the other day for 80k. It rents for £550 per month.

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  • Even if repossessing I think they needto give you the normal notice.

    Basically I’m quite sure you can speak to the repossessors and agree to pay them the rent for a month or 2 while you find elsewhere.

    Now where the real problem comes is if your own circumstances change.

    IE you’ve been made redundant. Your existing landlord would be unlikely to chuck you out as he now knows you to be of good character and he’ll still get paid by DSS.

    Try finding a new house though in the same location (schools etc.) if your landlord gets repo’d and you’ve recently lost your job.

    I think there are alot more deserving people on the Government help list than over indebted homeowners who’ve had an instant handout of several hundred a month whether they are in difficulty or not.

    For renters out there and this isn’t fool proof, but, when checking out a new rental property look it up on Nett House Prices or similar and see when it was last purchased and for how much.

    Anything purchased after 2004 then tread with caution, there will be a large mortgage out on the property.

    Obviously a landlord could still have raided the equity of a house purchased pre 2001 so still beware.

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  • Nowisthetime

    You clearly sold out before the drops in house prices and have cash deposits.

    The typical BTL model of realising deposits from existing properties is now dead.

    As a matter of interest, I assume you’re putting down roughly 25% as a minimum deposit ?

    What rates of interest are you currently being offered ?

    Oh and you didn’t say where your £80k 3 bed semi was ?

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  • Nowisthetime, unfortunately for you, rents are on the way down, there is an over supply of rental propertys, housing associations are buying up new build and then renting them at reduced costs, property will drop at least another 20% due to the recession, interest rates will have to rise at some point, so now is not the time. Anyone who would rent a grotty semi for £550 wants their head looking.

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  • Letsgetreadytotumble says:

    Nowisthetime. Well done. Go out and waste you money now, so that when prices have dropped another 30%, you won’t be competition when I’m looking to buy.

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