BTL market expanding (so its not "toast" after all)

Pimperne1

Pinched from another site but I suspect I will be able to post a link later to the Today programme on Radio 4.

Anyway, it wasn't long ago that the BtL market was being described by many (including Jonathan Davis) as "toast". Sounds like that was a little premature. Anyway, here is what one poster took from the programme:

"Just listening to Today on Radio 4 and there was a 5 minute discussion between representatives of 1st Time Buyers and some Landlords Association about the news that Yorkshire Building Society is going to offer BTL mortgages, initially in the south and south east.

Interesting facts came out:

200 BTL mortgages products in 2009, 500 btl mortgage products today
High Demand for Rented property
BTL accounts for 11% of the total mortgage market
Landlords have better financial firepower than 1st Time buyers
Landlord have access to interest only mortgages and get tax breaks for maintenance and interest payments


The points that occurred to me were

the BTL brigade are likely to capture more of the bottom end housing market and let it out to 1st Time buyers so compounding housing problems for the young

It is not a level playing field as the tax breaks give the landlords an advantage

The finance companies seem to be using the landlords to reduce their risk of default on payments as 1st time buyers have lower job security

I can't see the Government doing anything as the MP's are all into it anyway

The only thing I can think of is that parents should, if they are able, buy property for their kids and then put them in as tenants and then sign over to them for a price at a later date so getting the tax breaks for maintanance and mortgage interest".

Anyway, with the availability of IO mortgages for BtLers but not for FTBs might it be an idea for potential FTBs to buy a BtL and live in it?

Kennyboy66

It make me despair that mutuals like YBS are chasing the BTL market.

BTLers are perceived as a lower risk (as they have higher deposit / other equity), but its hardly in the spirit of what mutuality is supposed to be about.

Graham_Devon

I think it's time for a Jonathan Davies / HPC sub forum.

HAMISH_MCTAVISH

Graham_Devon wrote: »

I think it's time for a Jonathan Davies / HPC sub forum.

Great idea.

Then maybe you and geneer could continue your little JD love-in without the rest of us having to watch.

doire_2

Another thread nicked from HPC. Different day same sh.it

geneer

HAMISH_MCTAVISH wrote: »

Great idea.

Then maybe you and geneer could continue your little JD love-in without the rest of us having to watch.

Oh look. Hamishes forum "jonathan Davis" search string alarm must have alerted him that his presence was required. :rotfl:.

wotsthat

geneer wrote: »

Oh look. Hamishes forum "jonathan Davis" search string alarm must have alerted him that his presence was required. :rotfl:.

Is it that time already? Greggs again today I think.

JonnyBravo

wotsthat wrote: »

Is it that time already? Greggs again today I think.

:rotfl:

Greggs? That's "healthy living" in Scotland.

geneer

wotsthat wrote: »

Is it that time already? Greggs again today I think.

Oh. You lunch with your partner.
How sweet.

wotsthat

geneer wrote: »

Oh. You lunch with your partner.
How sweet.

Don't be like that.

If you want to meet up sometime for a Sausage & Bean Melt then I'll bring my calculator, a pen and paper and we can have a nice lunch and look through some of your life choices.

I'll pay for lunch - you'll be feeling slightly less well-off when you've got your numbers corrected.

Pimperne1

Oh dear. Jonathan's not happy that the PricedOut guy didn't come along for a brief before the show ("Och Aye, BtL is toast, there isnae any shortage of hooses, prices are gonna slump this year/ next year/ sometime, etc, etc).

http://www.housepricecrash.co.uk/forum/index.php?showtopic=167451&st=11