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Generation Rent Fuels Buy-To-Let Boom
HAMISH_MCTAVISH
Posts: 28,592 Forumite
http://www.dailymail.co.uk/money/article-1394298/Rent-generation-fuels-buy-let-bonanza.html#ixzz1OP85y6E2Rising rents, cheaper mortgage deals and positive house price forecasts are behind a huge resurgence of interest in buying property to let.
Mortgage lenders, brokers and estate agents are reporting a sharp upturn in business as investors take note of Britain’s growing army of tenants.
The appeal is clear – rental returns of ten per cent or more are not uncommon, even before hoped-for price increases.
First-time buyers in today’s tougher mortgage market need to find a deposit of £30,000 – or £50,000 in London.
As a result, lending to first-timers has slumped to a record low. Lending to cash-rich investors, on the other hand, is rising.
Both the number of lenders offering landlord loans and the volume of landlord lending grew by 20 per cent last year.
Nigel Terrington, chief executive of specialist landlord lender Paragon, says: ‘We are in the midst of a significant change in housing ownership, with the proportion of households in privately rented homes growing.
‘This is not a short-term blip. Landlords are benefiting from unprecedented levels of tenant demand, resulting in improved pricing power and rental yields.
The current environment is attracting experienced landlords who may have been inactive during the credit crunch back into the market. It is also appealing to new landlords.’
Housing shortages are expected to increase rental demand and prices.
The Centre for Economics and Business Research think tank last week predicted annual price rises of four per cent over the next four years because not enough homes are being built.
Oh dear....
Contrary to geneer's much-repeated idiocy, it looks like the "BTL muppets" are indeed buying up all the housing stock.
Ah well, it's not like we didn't try to warn you often enough that this was the absolutely inevitable outcome.
“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”
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
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Comments
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HAMISH_MCTAVISH wrote: »http://www.dailymail.co.uk/money/article-1394298/Rent-generation-fuels-buy-let-bonanza.html#ixzz1OP85y6E2
Oh dear....
Contrary to geneer's much-repeated idiocy, it looks like the "BTL muppets" are indeed buying up all the housing stock.
Ah well, it's not like we didn't try to warn you often enough that this was the absolutely inevitable outcome.
Who are these BTL muppets anyway? Seems like property investment is remaining a favoured option of the cash-rich and the wealthy, same as it's ever been. I always picture BTLers as people who aren't wealthy and borrow to invest.0 -
Who are these BTL muppets anyway? Seems like property investment is remaining a favoured option of the cash-rich and the wealthy, same as it's ever been. I always picture BTLers as people who aren't wealthy and borrow to invest.
Apparently geneer has a slightly different interpretation...“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”0 -
HAMISH_MCTAVISH wrote: »http://www.dailymail.co.uk/money/article-1394298/Rent-generation-fuels-buy-let-bonanza.html#ixzz1OP85y6E2
Oh dear....
Contrary to geneer's much-repeated idiocy, it looks like the "BTL muppets" are indeed buying up all the housing stock.
Ah well, it's not like we didn't try to warn you often enough that this was the absolutely inevitable outcome.
:rotfl::rotfl::rotfl:Are they Spamish?
Are they indeed buying up ALL the housing stock.
Think before you answer.
A few gems from the article.But investors still need substantial deposits to get mortgages. In the current patchy property market they also need to identify the areas and types of property where tenants want to live.
:rotfl: Does he now. What a shocker.Nigel Terrington, chief executive of specialist landlord lender Paragon, says...But Lynsey’s experience, like that of most serious landlords, has not been one of easy riches. Buying two properties at high 2006 prices means she is heavily mortgaged – about 70 to 80 per cent – across her portfolio. One-off costs, such as refurbishments, bite into returns.
‘It is a good market right now,’ she says. ‘If I had available money, I would invest further. But currently my rental income covers my costs, nothing more. And with interest rates likely to rise I am being cautious.’
Not much sweeping in going on there.
Now then, when do the housing benefit changes come into effect again?
Anyhow, back to my rather obvious observation, or as Hamish puts it in his standard napoleonic stylemuch-repeated idiocy
Mortgages are harder to get, Owner Occupier demand falls, more people rent.
Welcome to the new new paradigm. If I'm not mistaken not that much different from the old paradigm.
Poor bulls, constantly mistaking short term transitory stages for long term trends (read "interest rates", "recovery")
Status quos need time to adjust. The market will find its balance.
Misguided individuals will inevitably suggest that all houses not bought by FTBs will be bought by Landlords, and that landlords will be able to afford to buy because they will be able to charge what they feel like, rather than some kind of market rate. Oh dear.0 -
Both the number of lenders offering landlord loans and the volume of landlord lending grew by 20 per cent last year
Woo hoo. Yeah! Go BTL Landlords.
Erm. What was the volume of landlord lending last year then?0 -
HAMISH_MCTAVISH wrote: »http://www.dailymail.co.uk/money/article-1394298/Rent-generation-fuels-buy-let-bonanza.html#ixzz1OP85y6E2
Oh dear....
Contrary to geneer's much-repeated idiocy, it looks like the "BTL muppets" are indeed buying up all the housing stock.
Ah well, it's not like we didn't try to warn you often enough that this was the absolutely inevitable outcome.
I never use the smiles icons but if there was one with a little yellow man sticking one finger up I might be tempted occassionally.0 -
I never use the smiles icons but if there was one with a little yellow man sticking one finger up I might be tempted occassionally.
Aww, diddums.....
Never mind macaque, there must be a zoo somewhere where you can live rent free.....;)“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”0 -
HAMISH_MCTAVISH wrote: »Aww, diddums.....
Never mind macaque, there must be a zoo somewhere where you can live rent free.....;)
Not answering the question then.
Allow me. :rotfl:(Courtesy CML)2007: The number of loans (including remortgages) to buy-to-let landlords in the second half of the year was 179,100.
or averaging 89550 per quarter.1st Quarter 2008: 724004th Quarter 2008: 380001st Quarter 2009: 224001st Quarter 2010: 22,0001st Quarter 2011: 27600
Oh yeah. That BTL is sure making a comeback. :rotfl:
And just as a little cherry, again thanks to CML.The repossession rate on buy-to-let mortgages remained higher than in the mainstream market0 -
Referring to my other thread (which was a take on this story). This is what I find wrong about the whole situation. The glee that people are struggling and are having to hand over more and more cash each year, which leads to more glee.0
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HAMISH_MCTAVISH wrote: »Aww, diddums.....
Never mind macaque, there must be a zoo somewhere where you can live rent free.....;)
In a cage next to yours ?
30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0
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