Rents fall at fastest rate on record

lynzpower

Gorgeous_George wrote: »

Interest rates are not low for BTL mortgages with 6% - 7% being typical.

Reluctant LLs with residential mortgages should be selling now or battening down the hatches with a a fixed rate. They may well think that they are doing ok for now (when comparing BTL rates with their residential mortgage rate) but when rates rise it will be too late to grab that fix. With no sign of a return to hideous property prices, the pain will be unbullable.

GG

Im sure most of the properties for rent in London are not on BTL. Round here its 100% clear so many are people just renting thier houses out.

mbga9pgf

Wonder how long banks try to skim the profits and clamp down on this?
After all, the landlord will be invalidating any houses insurance or liability cover by holding tennants in the property without the lenders permission...

once things get tight in the next down wave, wouldnt be surprised at all to see this sort of thing eing stamped on.

lynzpower

mbga9pgf wrote: »

Wonder how long banks try to skim the profits and clamp down on this?
After all, the landlord will be invalidating any houses insurance or liability cover by holding tennants in the property without the lenders permission...

once things get tight in the next down wave, wouldnt be surprised at all to see this sort of thing eing stamped on.

I would be surpruised to be honest.

As long as the mortgage is being paid its better to have that than an empty house possibly stagnating month on month at auction.

Thrugelmir

lynzpower wrote: »

Im sure most of the properties for rent in London are not on BTL. Round here its 100% clear so many are people just renting thier houses out.

Around 16-18% of all mortgages in London and the South East are estimated to have been granted specificially for investment in the period 2003-2007. Around 25% for all mortgages in that period were I/o.

Draw your own conclusions.

1echidna

I wonder what the Gov't's attitude will be to houses bought for investment, perhaps one of neutrality ie not rescuing the owners but perhaps not actively trying to penalise them with increased taxation etc. I say this because it is not in the Gov'ts interest as taxpayers money is propping up the banks and further falls in the housing market can only make the financial situation of the banks worse. They won't, if they can prevent it, wish to see distressed BTLers flooding the housing market and depressing prices.

Thrugelmir

1echidna wrote: »

I wonder what the Gov't's attitude will be to houses bought for investment, perhaps one of neutrality ie not rescuing the owners but perhaps not actively trying to penalise them with increased taxation etc. I say this because it is not in the Gov'ts interest as taxpayers money is propping up the banks and further falls in the housing market can only make the financial situation of the banks worse. They won't, if they can prevent it, wish to see distressed BTLers flooding the housing market and depressing prices.

The Irish Government had no qualms in restricting interest relief to 75% against rental income.

More of a vote winner than loser.

1echidna

Thrugelmir wrote: »

The Irish Government had no qualms in restricting interest relief to 75% against rental income.

More of a vote winner than loser.

Agreed I don't think landlords are a particularly popular segment of society and helping them not a vote winner. On the other hand they do have the state of the housing market to consider and may not follow the Irish example of making things hard for them and the banks which have loaned them money.

lynzpower

1echidna wrote: »

Agreed I don't think landlords are a particularly popular segment of society and helping them not a vote winner. On the other hand they do have the state of the housing market to consider and may not follow the Irish example of making things hard for them and the banks which have loaned them money.

especially when so much of our tax money is going to prop up these lending institutions.

silvercar

1echidna wrote: »

Agreed I don't think landlords are a particularly popular segment of society and helping them not a vote winner. On the other hand they do have the state of the housing market to consider and may not follow the Irish example of making things hard for them and the banks which have loaned them money.

I think the government is relieved that there is a rental sector; so that not everyone is relying on social housing while they are priced out or credit crunched of buying a home. At least there are plenty of rental properties around so the FTB wannabees and the STRs have somewhere to live while the housing market sorts itself out.

MissMoneypenny

silvercar wrote: »

At least there are plenty of rental properties around so the FTB wannabees and the STRs have somewhere to live while the housing market sorts itself out.

The renters gain is the accidental landlords and me-too BTLers, loss:D