The Buy-to-let boom is back

Turnbull2000

http://www.independent.co.uk/money/mortgages/the-buytolet-boom-is-back-as-lenders-return-2299587.html

One person's misfortune is often another's opportunity: this is perhaps truest in the property market.


Since the crash of 2007-08, millions have been thwarted in their efforts to buy their first homes. A mortgage tap which was flowing at a heady rate was abruptly turned off and has only of late started to flow at a much reduced level. But fewer first-time buyers means more competition for rental properties – particularly in the overcrowded London and the South-east, but now more recently the once moribund northern cities. Rents are rising at close to double digits in many parts and this has brought back the buy-to-let investor. "Undoubtedly, we are seeing the first-time buyer being augmented and indeed supplanted by the buy-to-let investor. This is reflected in the number of providers that have re-entered the market of late," said Ray Boulger, technical director at broker Charcol.


Financial information service Moneyfacts says that a year ago there were 295 buy-to-let mortgages available. Today the figure is 481. In fact, there are more buy-to-let mortgages available than at any time since the summer of 2008, before the world financial crisis went into overdrive.

First-time buyers may as well not exist in my area. Any 1 or 2 bedders seem to be falling into the hands of small time investors. The ultra-low rates (that are here to stay for a good while yet) must be a factor in this, never mind the collapse in house building and !!!!!!ed pensions. A new, sizeable generation of landlords look set to do very well over the coming decade. Though luck on masses of young renters though.

Sibley

Heart warming post. Thanks for putting it up

chucknorris

In the last year or so I have been saying that I wouldn’t buy another house. But yesterday we went to look at one that interests us. We are now thinking it over.

HAMISH_MCTAVISH

Yes, it's the inevitable result of the crash.

Fewer FTB-s able to buy, and a generation doomed to enrich their landlords instead of themselves.

Soaring rents, record low house building, and the return of the buy-to-let boom as yields increase and FTB-s are locked out by ridiculous deposit requirements.

Absolutely inevitable result.... As frequently mentioned by many of us.

Matt1977

I wonder, is it time to abolish Buy To Let mortgages? :think:

Graham_Devon

Matt1977 wrote: »

I wonder, is it time to abolish Buy To Let mortgages? :think:

Nah, just tax it. But it won't be done. Makes the property market look rosy at the moment, and it helping out VI's.

Something may be done. But it will be way too late. Bit like house prices really.

Generali

Matt1977 wrote: »

I wonder, is it time to abolish Buy To Let mortgages? :think:

Why would you want to do that?

michaels

So tax a business based on turnover rather than profit - would that really make sense? The problem (high housing costs whether for renting or buying) is a shortage of homes, increasing tax on the supply of homes doesn't sound like a solution that will increase the supply.

Graham_Devon wrote: »

Nah, just tax it. But it won't be done. Makes the property market look rosy at the moment, and it helping out VI's.

Something may be done. But it will be way too late. Bit like house prices really.

Blacklight

HAMISH_MCTAVISH wrote: »

Absolutely inevitable result.... As frequently mentioned by many of us.

It's been repeated over and over and over. Once prices drop everyone will jump on the BTL bandwagon.

This shouldn't be a surprise to anyone.

nearlynew

Buy to let will always be popular.


It's borrow to let which is f*cked.

Cleaver

Graham_Devon wrote: »

Nah, just tax it. But it won't be done. Makes the property market look rosy at the moment, and it helping out VI's.

It is taxed. When I rented out a house I was paying 40% on any profit I made. Do you mean a different tax regime for people who rent out a house compared to any other form of income?