Good-buy-to-let? Channel 4 video on buy to let crises

brit1234

Here is a good video on the state of buy to let in the UK where they compared it to the US subprime.

http://www.channel4.com/news/articles/business_money/goodbuytolet/1913447

By: Katie Razzall An exclusive Channel 4 News investigation has discovered fresh evidence that Britain's biggest buy-to-let lenders are tightening the screws and not just by hiking interest rates.
In a survey of the top 10 buy-to-let lenders, we found that most are demanding more equity, higher rental income, and bigger arrangement fees.

Some aren't accepting any new business at all and today two big high-street names, Natwest and RBS, have increased the size of the deposits they demand for mortgage borrowers from 15 to 25 per cent, effectively pulling out of most of the buy-to-let market.

BenL

Is this part of the news at 7 tonight? or a standalone show?

brit1234

I think its for tonights 7 o'clock news, however all the TV channels are doing stand alone shows on the subject at the moment, so I believe the research will be rehashed.

Microstar_2

I'm in the East Mids and have been a LL for about 20 years (all bought and paid for now). I've been observing the BTL craze with increasing nervousness and to be honest its just got totally ridiculous. All kinds of people piling into BTL ownership without a clue as to what they are taking on. My gut feeling is that things are going to get REALLY REALLY bad. I don't want a crash any more than any other property owner, but I can't see any other outcome. Once punctured, bubbles don't reflate and don't go down slowly, they tend to burst very quickly.
From my own observations things started to stall around June last year, but the impact is slow to feed through.
Its like one of those kids cartoons where the character runs off a cliff edge and keeps running in thin air. Then he looks down, realises there's nothing underneath and suddenly drops. Right now we're in the 'looking down' phase.

motch

watched the part where the Lady was renting one of 3 flats that her boss had bought for £212,000 each for 800 a month, he wanted nearer 1100 for it.
Still luckily he's in it for the longterm................

WTF?_2

Anyone interested can catch it again on C4+1 at around 8:25 (if they have digital telly)

Great report: An absolutely massive oversupply of flats.

Now many will say that it's flats not houses and there is some sort of mythical housing shortage which will somehow keep house prices high and save them from price drops - but is it just me or is an empty 'luxury apartment' not capable of housing many sorts of people as effectively as a house can? Not so attractive to a family with kids but singles and childless couples could certainly find an apartment just as good for the purpose of living in as a house is.