17% of BTL LLs have missed a mortgage payment in the last year....

WTF?_2

Slightly old news, but worth highlighting:

http://firstrung.co.uk/articles.asp?pageid=NEWS&articlekey=9822&cat=44-0-0

Buy to let landlords are 'feeling the pinch', according to new research from market research agency BDRC. More than 50 per cent of landlords admitted having experienced a void, (a time when their property did not generate rent), according to the survey; which comprised more than 500 30-minute online interviews with residential property landlords...
As a result of these voids, 17 per cent of landlords missed a mortgage payment in the past 12 months, up from 9 per cent in quarter four 2007 and the highest level since the research began.


Oh dear, not much sign of those green shoots, is there?

lonestar1

Arent these voids meant to be factored intot he rents so as to avoid these kind of problems ?

I'm guessing mostly inexperienced LL's who havent done there sums properly

WTF?_2

lonestar1 wrote: »

Arent these voids meant to be factored intot he rents so as to avoid these kind of problems ?

I'm guessing mostly inexperienced LL's who havent done there sums properly

Yep, this is the amateur market that us 'doom-mongers' like to bang on about.

People who didn't do their sums before paying silly (borrowed) money for residential properties to use as BTL thus driving prices up for regular buyers and pricing many out of the market.

mr.broderick

!!!!!!? wrote: »

Yep, this is the amateur market that us 'doom-mongers' like to bang on about.

People who didn't do their sums before paying silly (borrowed) money for residential properties to use as BTL thus driving prices up for regular buyers and pricing many out of the market.

What so people who had the balls to make a gamble on btl are now to blame for high house prices, i definitely do not agree with that reason..totally unfounded and from someone who likes to think he is the economic genious of mse..

WTF?_2

mr.broderick wrote: »

What so people who had the balls to make a gamble on btl are now to blame for high house prices, i definitely do not agree with that reason..totally unfounded and from someone who likes to think he is the economic genious of mse..

Hello Mr. B. You're off my sh1tlist as it's been long enough so you deserve another chance. However, judging from the tone of your post maybe you'll be going back on it soon enough :rotfl:

Yes - IMHO amateur BTLs who greedily bought into the whole 'property only ever goes up' myth to make money without doing their sums first do share an awful lot of blame for the disastrous boom in prices.

Round my patch, the market was driven by BTLs and speculators for a good 9-12 months after FTBs dropped out en-masse.

Alan_M_2

I really don't think BTL has driven this market, sure it's helped it along but BTL are such a small proportion of total house sales it can't be solely responsible.

I feel many people who choose to post and read on these forums give far too much credit (no pun intended) to the financial intelligence of the populous in general.

The average Joe homeowner simply won't spend time reading or writing on forums such as this, they base their decisions on what the nice man in the bank says, the 9 O'Clock news, The Sun/Guardian/Express/Mail etc and wouldn't dream of any form of investment more risky than an ISA.

Amateur BTL is a consequence of HPI, the numbers started to look so attractive to the uneducated masses they felt they were in a no lose situation.


As a result there was a short period of time where this form of BTL has made an impression on the market as a whole, if we're brutally honest about it, this after the fact and contributed to the continuation of an unsustainable economic situation.

BTL, specifically non professional BTL occurred as a result of the availability of credit, suggesting it's responsible for the situation is a little naive, it is certainly a consequence and more fuel for the fire. But responsible, no, certainly not from my perspective.

mr.broderick

Alan_M wrote: »

I really don't think BTL has driven this market, sure it's helped it along but BTL are such a small proportion of total house sales it can't be solely responsible.

I feel many people who choose to post and read on these forums give far too much credit (no pun intended) to the financial intelligence of the populous in general.

The average Joe homeowner simply won't spend time reading or writing on forums such as this, they base their decisions on what the nice man in the bank says, the 9 O'Clock news, The Sun/Guardian/Express/Mail etc and wouldn't dream of any form of investment more risky than an ISA.

Amateur BTL is a consequence of HPI, the numbers started to look so attractive to the uneducated masses they felt they were in a no lose situation.


As a result there was a short period of time where this form of BTL has made an impression on the market as a whole, if we're brutally honest about it, this after the fact and contributed to the continuation of an unsustainable economic situation.

BTL, specifically non professional BTL occurred as a result of the availability of credit, suggesting it's responsible for the situation is a little naive, it is certainly a consequence and more fuel for the fire. But responsible, no, certainly not from my perspective.

Alan, spot on...

mr.broderick

!!!!!!? wrote: »

Hello Mr. B. You're off my sh1tlist as it's been long enough so you deserve another chance. However, judging from the tone of your post maybe you'll be going back on it soon enough :rotfl:

Yes - IMHO amateur BTLs who greedily bought into the whole 'property only ever goes up' myth to make money without doing their sums first do share an awful lot of blame for the disastrous boom in prices.

Round my patch, the market was driven by BTLs and speculators for a good 9-12 months after FTBs dropped out en-masse.

Why thankyou !!!!!!...You will agree i cannot be ignored forever welcome back, without me it's like not being here at all...top man.Just remember it's not mse without mr.b ..

BTLNEWbie_3

!!!!!!? wrote: »

Slightly old news, but worth highlighting:

http://firstrung.co.uk/articles.asp?pageid=NEWS&articlekey=9822&cat=44-0-0

Buy to let landlords are 'feeling the pinch', according to new research from market research agency BDRC. More than 50 per cent of landlords admitted having experienced a void, (a time when their property did not generate rent), according to the survey; which comprised more than 500 30-minute online interviews with residential property landlords...
As a result of these voids, 17 per cent of landlords missed a mortgage payment in the past 12 months, up from 9 per cent in quarter four 2007 and the highest level since the research began.


Oh dear, not much sign of those green shoots, is there?

So are you saying that 83% have not missed any payments? I bet more people have missed an episode of eastenders.:rotfl:

Trollfever

The average Joe homeowner simply won't spend time reading or writing on forums such as this, they base their decisions on what the nice man in the bank says, the 9 O'Clock news, The Sun/Guardian/Express/Mail etc and wouldn't dream of any form of investment more risky than an ISA.

And on last night's Location, Location, Location how many times was the word investment used in relation to property?

MissMoneypenny

I wonder if the law will be changed, to allow a tenant to claim against a LA if they have failed to ensure that the LL doesn't have mortgage arrears when they rent out the property?

There is a bit on BTL repossessions on this blog:-
http://landlordlaw.blogspot.com/