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FT: BTL lending to triple, in just 4 years...

HAMISH_MCTAVISH
HAMISH_MCTAVISH Posts: 28,592 Forumite
Part of the Furniture 10,000 Posts Name Dropper Photogenic
in Debate House Prices & the Economy
The key findings from independent market analyst Datamonitor predict that gross advances will remain flat this year, but will rise to £15.8bn in 2012, £20.2bn in 2013 and £25.6bn in 2014.

This comes after the Council of Mortgage Lenders figures showed that buy-to-let gross advances totalled £8.5bn in 2009.

However, Paul Monk, partner of Merseyside-based Balmoral Associates, warned this could spell bad news for the property market. He said: "This will be good news for landlords, but it's not good news for the economy because we need first-time buyers. Rental markets will continue to be buoyant as first-time buyers are struggling to borrow. If rental yields go up then more developers will buy properties so they can put them on rent and there will be fewer properties for the average man on the street."

Interesting.....

This crash certainly does seem to have backfired badly on the housing bears.....
“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
«134

Comments

  • nearlynew
    nearlynew Posts: 3,800 Forumite
    If only you had the money and/or bottle to go for it McTittish.


    You could make a killing.
    "The problem with quotes on the internet is that you never know whether they are genuine or not" -
    Albert Einstein
  • Rinoa
    Rinoa Posts: 2,701 Forumite
    nearlynew wrote: »
    If only you had the money and/or bottle to go for it McTittish.


    You could make a killing.

    He's certainly killed the bears off on here.

    He's running rings round you.
    If I don't reply to your post,
    you're probably on my ignore list.
  • nearlynew
    nearlynew Posts: 3,800 Forumite
    Rinoa wrote: »
    He's certainly killed the bears off on here.

    He's running rings round you.


    Nice one tonto
    "The problem with quotes on the internet is that you never know whether they are genuine or not" -
    Albert Einstein
  • Rinoa
    Rinoa Posts: 2,701 Forumite
    nearlynew wrote: »
    Nice one tonto

    For every post you've made on here house prices have gone up a tenner.
    If I don't reply to your post,
    you're probably on my ignore list.
  • IveSeenTheLight
    IveSeenTheLight Posts: 13,322 Forumite
    Rinoa wrote: »
    For every post you've made on here house prices have gone up a tenner.

    Now he's in a quandry.
    For every post Hamish makes, he'll now consider if he should reply or not.
    He can;t be labled as the reason house prices have risen now can't he ;)
    :wall:
    What we've got here is....... failure to communicate.
    Some men you just can't reach.
    :wall:
  • DaddyBear
    DaddyBear Posts: 1,208 Forumite
    The UK property Market doesn't need first time buyers, and hasn't for about 4 years, so I disagree there.
    I also don't see how rents are going to rise. Unemployment is rising, public sector cuts are coming in huge numbers and housing benefits are being reduced. Doesn't add up.
  • HAMISH_MCTAVISH
    HAMISH_MCTAVISH Posts: 28,592 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    DaddyBear wrote: »
    The UK property Market doesn't need first time buyers, and hasn't for about 4 years, so I disagree there.

    They're still around a quarter to a third of the market.

    I also don't see how rents are going to rise. Unemployment is rising, public sector cuts are coming in huge numbers and housing benefits are being reduced. Doesn't add up.

    Rents are already rising.

    With the supply of rented stock decreasing, and the number of renters increasing, the only possible outcome is higher rented household density. Which equals more earners per household, thus higher average household income, thus higher rents can be charged.
    “The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.

    Belief in myths allows the comfort of opinion without the discomfort of thought.”
    -- President John F. Kennedy”
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    But the same old chesnut arises. Where's the funding going to come from:-

    As at the end of 2007, top 10 lenders by balance outstanding were:

    1. Mortgage Express ( B&B)
    2. BM Solutions (HBOS)
    3. Paragon Group
    4. Bristol & west (bank of Ireland)
    5. C & G (lloyds)
    6. Northern Rock
    7. Capital Home Loans( Irish Life & Permanent)
    8. Mortgage Works ( Nationwide)
    9. Mortgage Business (HBOS)
    10. Barclays - Woolwich

    Included in the Top Ten Gross lenders for advances in 2007 were also Alliance & Leicester, RBS and Abbey.

    Demand might be there but the funding isn't.
  • treliac
    treliac Posts: 4,524 Forumite
    DaddyBear wrote: »
    The UK property Market doesn't need first time buyers, and hasn't for about 4 years,

    And for how long do you think it can [STRIKE]thrive[/STRIKE] survive without fresh blood entering?
  • IveSeenTheLight
    IveSeenTheLight Posts: 13,322 Forumite
    Thrugelmir wrote: »

    Demand might be there but the funding isn't.

    I'm wondering, if the funding is not there, why are mortgage rates becoming more competative and more higher LTV products being available?
    :wall:
    What we've got here is....... failure to communicate.
    Some men you just can't reach.
    :wall:
This discussion has been closed.
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