How does Buy to Let END!

[JoeDavola]

1 hour ago, Don Coglione said:

Yep. The house I bought in Chorlton in 1992 for £54,000 (and sold in 1997 for £60,000) would now go for £400k, maybe more.

The very fact that the house went up in value less than 3% a year during 92-96 is so foreign a concept to those who have only known rampant HPI. It is of course the kind of rises we should actually see in a sane market.

Edited July 25, 2022 by JoeDavola

[Noallegiance]

2 hours ago, JoeDavola said:

The very fact that the house went up in value less than 3% a year during 92-96 is so foreign a concept to those who have only known rampant HPI. It is of course the kind of rises we should actually see in the upward leg of a sane market.

For the pedants. Or maybe just me.

[spygirl]

On 20/07/2022 at 22:27, JoeDavola said:

Really? Has the great HPI of the last 20 years just bypassed that little corner of England?

Post an example or two of what a nice house costs there if you can.

Manchester prices will be distorted by a load of blingy new build flat.Once these come to resale, and  IRs, HTB n all that end, then they'll be back to 2002ish prices.

[JoeDavola]

47 minutes ago, spygirl said:

Manchester prices will be distorted by a load of blingy new build flat.Once these come to resale, and  IRs, HTB n all that end, then they'll be back to 2002ish prices.

Oh, well that's that sorted then.

[Don Coglione]

48 minutes ago, spygirl said:

Manchester prices will be distorted by a load of blingy new build flat.Once these come to resale, and  IRs, HTB n all that end, then they'll be back to 2002ish prices.

Bollocks.

[spygirl]

25 minutes ago, Don Coglione said:

Bollocks.

Wait n see.

[spygirl]

‘I can’t sell my buy-to-let – my tenant will have nowhere to go’

Landlords who want to exit the market are facing ethical dilemmas given the chronic shortage of homes

ByMelissa Lawford25 July 2022 • 7:00am

The South West has been hit by the worst property shortage CREDIT: Matt Cardy /Getty Images Europe

Landlords who want to sell their properties face an ethical dilemma as a chronic shortage of rental and social housing means their tenants face homelessness.

Record rent rises and a lack of social housing mean renters have nowhere else to go when their existing deals end.

Sandra Taylor*, 54, owns a three-­bedroom cottage in Cornwall. She lets the house to an NHS nurse and single mother who is bringing up three children after she escaped an abusive relationship. Her rent is supported by housing benefit.

Mrs Taylor described her as “an absolutely fantastic tenant”. But she herself is seriously ill and can no longer look after the property, so she needs to sell it.

She said she was extremely worried about what would happen to her tenant. “She has nowhere else to go,” Mrs Taylor said.

“There is such a shortage of properties in Cornwall. There are not enough houses for the people who want to live there.”

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Not only are there not enough homes to rent but there are not enough local authority properties, which means her tenant will have to move into temporary accommodation. “She will end up in a B&B with three kids,” Mrs Taylor said.

Mrs Taylor, who asked for her name to be changed, is trying to sell her cottage to an investor who will allow her tenant to remain. But any buyer is likely to raise the rent to unaffordable levels because Mrs Taylor lets the property for £650 a month – about a third less than the market rate.

There is also no guarantee that an investor would keep the tenant. “They could agree, then buy the cottage and evict her the next day,” she said. “My main worry is that she is made homeless with three children.”

The property is now on the market for £200,000. “I offered the house to her at a £20,000 discount, but she can’t get a mortgage,” said Mrs Taylor. Her tenant works part-time and her salary is not large enough to take out the ­necessary loan.

“If I had the money I would just give her the house, but I can’t afford to drop the price any more. I need to be able to get back the money I put in,” she added.

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Mrs Taylor’s situation illustrates the central contradiction of the Government’s crackdown on buy-to-let. According to the housing charity Shelter, a third of private renters are on housing benefits, meaning 1.8 million households rely on landlords in lieu of social housing.

“The Government relies on landlords but doesn’t support or help us,” said Mrs Taylor. “They come down very heavily on landlords, who are helping ease the pressure on social housing waiting lists.”

Britain suffers from an extreme shortage of rental properties as landlords have sold up in the wake of the Government’s buy-to-let crackdown, which has included huge reductions in tax relief on buy-to-let mortgages. The supply of properties has fallen by 26pc year-on-year, according to property website Rightmove.

The South West has been hit by the worst property shortage in the wake of lockdowns as buyers raced to coastal areas and investors bought properties to cash in on the “staycation” boom. House prices in the region rose by 16.9pc in the year to May, the highest rate in the country, according to the Office for National Statistics.

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“It has become massively worse since the pandemic. It’s people buying holiday homes and properties they can turn into Airbnbs, and people who have realised that they can work from home and move from London to the seaside,” said Mrs Taylor.

“My tenant worked all through the pandemic, with three children. She deserves a home. Why is she not able to have one?”

 

Sells a bit too contrived - nurse...3 kids ...Cornwall ... claiming a 200k property in Cornwsll is prime fhl....

A 200k seaside home in Cotnwall...

This story sounds fabtucste. Or at least musing a lot of detail.

Ukgov cracked down on leveraged ie io btl; she's not put any money in the house.

To the last but of bold - cos you io btlers bid  house price up.

[One percent]

1 minute ago, spygirl said:

‘I can’t sell my buy-to-let – my tenant will have nowhere to go’

Landlords who want to exit the market are facing ethical dilemmas given the chronic shortage of homes

ByMelissa Lawford25 July 2022 • 7:00am

The South West has been hit by the worst property shortage CREDIT: Matt Cardy /Getty Images Europe

Landlords who want to sell their properties face an ethical dilemma as a chronic shortage of rental and social housing means their tenants face homelessness.

Record rent rises and a lack of social housing mean renters have nowhere else to go when their existing deals end.

Sandra Taylor*, 54, owns a three-­bedroom cottage in Cornwall. She lets the house to an NHS nurse and single mother who is bringing up three children after she escaped an abusive relationship. Her rent is supported by housing benefit.

Mrs Taylor described her as “an absolutely fantastic tenant”. But she herself is seriously ill and can no longer look after the property, so she needs to sell it.

She said she was extremely worried about what would happen to her tenant. “She has nowhere else to go,” Mrs Taylor said.

“There is such a shortage of properties in Cornwall. There are not enough houses for the people who want to live there.”

Advertisement

Not only are there not enough homes to rent but there are not enough local authority properties, which means her tenant will have to move into temporary accommodation. “She will end up in a B&B with three kids,” Mrs Taylor said.

Mrs Taylor, who asked for her name to be changed, is trying to sell her cottage to an investor who will allow her tenant to remain. But any buyer is likely to raise the rent to unaffordable levels because Mrs Taylor lets the property for £650 a month – about a third less than the market rate.

There is also no guarantee that an investor would keep the tenant. “They could agree, then buy the cottage and evict her the next day,” she said. “My main worry is that she is made homeless with three children.”

The property is now on the market for £200,000. “I offered the house to her at a £20,000 discount, but she can’t get a mortgage,” said Mrs Taylor. Her tenant works part-time and her salary is not large enough to take out the ­necessary loan.

“If I had the money I would just give her the house, but I can’t afford to drop the price any more. I need to be able to get back the money I put in,” she added.

Advertisement

Mrs Taylor’s situation illustrates the central contradiction of the Government’s crackdown on buy-to-let. According to the housing charity Shelter, a third of private renters are on housing benefits, meaning 1.8 million households rely on landlords in lieu of social housing.

“The Government relies on landlords but doesn’t support or help us,” said Mrs Taylor. “They come down very heavily on landlords, who are helping ease the pressure on social housing waiting lists.”

Britain suffers from an extreme shortage of rental properties as landlords have sold up in the wake of the Government’s buy-to-let crackdown, which has included huge reductions in tax relief on buy-to-let mortgages. The supply of properties has fallen by 26pc year-on-year, according to property website Rightmove.

The South West has been hit by the worst property shortage in the wake of lockdowns as buyers raced to coastal areas and investors bought properties to cash in on the “staycation” boom. House prices in the region rose by 16.9pc in the year to May, the highest rate in the country, according to the Office for National Statistics.

Advertisement

“It has become massively worse since the pandemic. It’s people buying holiday homes and properties they can turn into Airbnbs, and people who have realised that they can work from home and move from London to the seaside,” said Mrs Taylor.

“My tenant worked all through the pandemic, with three children. She deserves a home. Why is she not able to have one?”

 

Sells a bit too contrived - nurse...3 kids ...Cornwall ... claiming a 200k property in Cornwsll is prime fhl....

A 200k seaside home in Cotnwall...

This story sounds fabtucste. Or at least musing a lot of detail.

Ukgov cracked down on leveraged ie io btl; she's not put any money in the house.

To the last but of bold - cos you io btlers bid  house price up.

She lets her cottage to a nurse and single mother. Are they lesbians or is it just piss-poor grammar?   

[Frank Hovis]

17 hours ago, spygirl said:

Mrs Taylor described her as “an absolutely fantastic tenant”. But she herself is seriously ill and can no longer look after the property, so she needs to sell it.

She said she was extremely worried about what would happen to her tenant. “She has nowhere else to go,” Mrs Taylor said.

“There is such a shortage of properties in Cornwall. There are not enough houses for the people who want to live there.”

 

Or....  appoint a letting agent and lose a small cut to them.  There is no need to sell just because she is no longer able to look after it herself.

Journalists never ask the obvious questions these days.

[Guest]

I wonder how many BTLers have sat down with a crayon and paper and worked out what gas and electric bills going from £1k pa to £4k pa is going to do to the amount of rent their tenants can afford to pay.

[Wight Flight]

48 minutes ago, Darude said:

I wonder how many BTLers have sat down with a crayon and paper and worked out what gas and electric bills going from £1k pa to £4k pa is going to do to the amount of rent their tenants can afford to pay.

Think about those that include utilities in their student lets.

[Guest]

26 minutes ago, Wight Flight said:

Think about those that include utilities in their student lets.

Yes, and the amount of rent landlords can charge students is heavily constrained by what students can borrow plus what their parents (themselves paying rising utility bills) can afford to chip in.

Seems to me that a lot of downward pressure on rents is coming down the pipeline.

Edited July 27, 2022 by Guest

[Wight Flight]

11 minutes ago, Darude said:

Yes, and the amount of rent landlords can charge students is heavily constrained by what students can borrow plus what their parents (themselves paying rising utility bills) can afford to chip in.

Seems to me that a lot of downward pressure on rents is coming down the pipeline.

They will just increase the student loans and LHA rates.

Just keep those rents coming in.

To be honest any landlord renting to a salaried normie is probably a mug.

[Guest]

26 minutes ago, Wight Flight said:

They will just increase the student loans and LHA rates.

With the NHS in slow collapse and energy bills spiking any spare cash the Treasury has is going towards those two and nothing else I suspect.

[Wight Flight]

4 minutes ago, Darude said:

With the NHS in slow collapse and energy bills spiking any spare cash the Treasury has is going towards those two and nothing else I suspect.

Just think how much the NHS energy bills have gone up by.

[Ash4781b]

2 hours ago, Darude said:

I wonder how many BTLers have sat down with a crayon and paper and worked out what gas and electric bills going from £1k pa to £4k pa is going to do to the amount of rent their tenants can afford to pay.

It does look the risk is miss-priced on BTL. Next steps might be lenders pulling back on lending. Although I’d expect emergency intervention. Banks are ruthless and will switch. BTL looks in trouble.

[Wight Flight]

3 minutes ago, Ash4781b said:

It does look the risk is miss-priced on BTL. Next steps might be lenders pulling back on lending. Although I’d expect emergency intervention. Banks are ruthless and will switch. BTL looks in trouble.

Just off the top of my head but I can see the banks giving 100% mortgages to tenants to allow them to bail out their landlords.

It would make a lot of sense in many ways.

[spygirl]

4 minutes ago, Wight Flight said:

Just off the top of my head but I can see the banks giving 100% mortgages to tenants to allow them to bail out their landlords.

It would make a lot of sense in many ways.

The banks lending to today's buyers arnt the banks who lent to yesteryears BTLers.

They have no interest in bailing out either the LL or the BTLer.

[spygirl]

1 hour ago, Darude said:

Yes, and the amount of rent landlords can charge students is heavily constrained by what students can borrow plus what their parents (themselves paying rising utility bills) can afford to chip in.

Seems to me that a lot of downward pressure on rents is coming down the pipeline.

High leveraged IO BTL have no risk bearing.

The one and only payment risk happens at tge end of the mortgage term.

Io btl mortgages will go rapidly sour and the risk premium go up like a rocket.

 

[Wight Flight]

3 minutes ago, spygirl said:

The banks lending to today's buyers arnt the banks who lent to yesteryears BTLers.

They have no interest in bailing out either the LL or the BTLer.

They do.

They don't want to be repossessing half a million homes. Easier to pass the debt on to the tenant, which should help avoid a price crash.

[JoeDavola]

3 hours ago, Darude said:

I wonder how many BTLers have sat down with a crayon and paper and worked out what gas and electric bills going from £1k pa to £4k pa is going to do to the amount of rent their tenants can afford to pay.

And often times btl’s are badly insulated ancient terrace houses that were expensive to keep warm before these energy price increases.

[spygirl]

21 minutes ago, Wight Flight said:

They do.

They don't want to be repossessing half a million homes. Easier to pass the debt on to the tenant, which should help avoid a price crash.

Theres no 'They'

Theres banks with a good mortgage book.

And theres banks with a shit mortgage book.

 

[Wight Flight]

3 minutes ago, spygirl said:

Theres no 'They'

Theres banks with a good mortgage book.

And theres banks with a shit mortgage book.

 

And how do you think the latter will escape their predicament?

And will the gov. allow mass homelessness?

[Option5]

2 hours ago, Wight Flight said:

Think about those that include utilities in their student lets.

How many Universities have borrowed vast sums to build student accommodation? 

Can they up the rent to cover their costs as they usually agree fees in advance?

[Guest]

20 minutes ago, JoeDavola said:

And often times btl’s are badly insulated ancient terrace houses that were expensive to keep warm before these energy price increases.

Yes, good point. Many BTLers are renting out energy-inefficient properties to relatively low income households. I'm sure it will all work out fine for them.