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Nope, I am not buying and yep I am selling some property to pay down my mortgages and I am putting up my rents too. So, it’s time to batten down the hatches and ride this storm out. However, that said, I am definitely remaining in for the long term. The basics still apply as follows:
Supply comfortably exceeds demand and the situation looks set to get even more favourable for those landlords that remain in.
As supply dynamics worsen the gov will eventually wake up to the Sec 24 idiocy and some ‘ back peddling ‘ will be inevitable. Witness the reversal of a similar taxation incompetence in Ireland.
Houses don’t just happen overnight and it will take years for gov to build their way out of this huge crises. Even then, housing will never be ‘affordable’ for all as rising land, construction and labor costs alone will see to that.
The build to rent sector is not flying despite Gov incentives at the tax payers expense. Corporate penetration has been largely confined to city centre higher yielding density models such as student accommodation and high end city block based rentals. There is simply not enough money to be made in the regular rental markets to attract them. They always do their sums and some!
I just hope that when the turn comes as it surely will, that Gov will realise what a complete mess they have presided over and do some much need bridge repairs!
The number of buy-to-let purchases continues to fall, as reflected by a further drop in new buy-to-let mortgage lending.
Fresh data from UK Finance shows that landlord investors took out just 6,100 new buy-to-let mortgages for acquiring properties in November, down 9% compared with the same month a year earlier.
The total value of BTL loans dropped 11.1% to £800m, according to the data from the industry body.
Meanwhile, there were 15,000 new buy-to-let remortgages completed in November, up 9.5% compared with the corresponding month in 2017.
“In the buy-to-let market new home purchases remain subdued, while remortgaging continues to grow as landlords lock into attractive rates,” said Jackie Bennett, director of mortgages at UK Finance.Full/source article
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
Never Let it be said that a Govt Policy is not working
The Osborne Magic show goes on and wont stop
The Govt should be proud of what they have achieved Its just a shame our rule makers could not have the same effect on the UK today
S24 is the most cunning tax there has ever been In point of fact we tell you only very few will be effected and very few Landlord will pay more Tax
Of course Stamp duty is in full sight most Landlords understand it and some Landlords say it makes no difference
I think the figs You Have shown Vanessa show Taxation has a major effect
We can see landlords looking for better Re mortgage Deals and why not Its good Business sense to pay less Interest
There will be a knock on effect and its this I believe the PRS has been holding up the Property Market for some time our haters would say we have inflated House Prices and maybe in the SE its true
But I am not sure the rest of the UK is the same Most UK prices are still lower than 2007 prices
Can you imagine the Market in two more years
Interest Rates are going to rise S24 will have full effect
What we are seeing may well see Very Very few Landlords buying who have experience and hold the wealth at present
and with PRA ect I don't see enough New Landlords taking up the slack
and also I don't think the Rush of FTB can fill the gap either
we are in for a Torrid time Well Done George every home owner will come to hate to when they try to sell there homes to move up the ladder or downsize
Retrospective Taxation is Evil Taxation
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.
The number of buy-to-let mortgages used for purchasing new properties fell by nearly 8 per cent in February compared to the same month last year, according to the latest UK Finance figures.Full/source article
The Times:Banks are cutting the cost of buy-to-let loans in an attempt to rouse demand from landlords, many of whom may be more minded to quit the business rather than add to their portfolios.Full/source article
The number of mortgage approvals for all types of house purchase has dropped sharply, with a drop of almost 10% in buy-to-let loans.
Approvals for home movers have slid 6% annually to 25,280, while approvals for first-time buyers have dropped for the first time in six months.
Data from banking trade body UK Finance shows there were 28,800 first-time buyer mortgages approved in March, down 2.4% annually, the first time this figure has dropped since last September.
Buy-to-let purchase mortgage approvals fell 9.1% during March.
In contrast, remortgage approvals in both the residential and buy-to-let sector increased.Full/source article
The drop in BTL will be seen as a triumph of policy, the other falls will be blamed on brexit then as a sign that prices are stabilising and in some areas starting to ease off their highs so also a good thing.
where as in reality from what i see near me, there is a fair bit of property being offloaded by landlords who previously would have been holding the market up by buying instead, help to buy has definitely distorted the market, there seems to be a lot of property that is being sold as “no forward chain” , estate agents are still overvaluing property to get it on their books, price reductions on righmove are high ( just now a 10 mile 24 hour search shows 20 of 63 listings are reductions, 7 of the 63 look to me like rentals being offloaded)
However being on the kent coast , we’d benefited from lots of london money coming down, so at the moment more a case of the froth coming off the market, which here will be a good thing , local wages are nowhere near good enough for most to realistically have a chance of buying.
Driving round it looks like there is loads of building going on, but most appears to be for housing associations as rent and part rent/buy, anecdotally this is primarily by london boroughs looking to deal with their housing lists.
Small private developments seem to have a pattern of sold boards going up very quickly , then sales falling through and properties sticking for a while. An aquaintance built 4 good quality detached houses, the land cost him very little and he’s not been greedy on price, all 4 had sold but 2 fell through. Buyers very wary, he had a snagging company come in for 1 buyer, they came up with a 17 page list of defects. Pretty much a forensic inspection of every surface, 60% of defects were paint blemishes for which you needed a bright light and be closer than a foot to even see. Lots of property has gone multiagency. A couple of refurbs are going to auction after only 3 months on market.
I’d buy if i could get decent yields, possible on leasehold flats but service charges/mangement soon kill it. Houses that will return 5% don’t hang around long, but getting them upto a standard i want and keeping them there needs nearer 8%, as yet they aren’t out there.
If the market keeps dipping to the point of 8% yields i see landlords with cash stepping back in and slowing any great slide developing.
Philip 8% yield is my bench mark for buying too
I think is a sensible yield to do business
There is not alot around at present
But if markets fall it could be the time to buy again
Ideally i want 10% , but that really is a diamond encrusted unicorn. Only way thats achievable is finding a small tired block of converted flats , which has scope for added value after a bit of work. But even then they are a very risky prospect if pre 1991 conversions , ideally i want post 2000. Though by the time s24 fully bites and the current easing of prices stops , i’ll hopefully find a home for some cash, a bit of guidance from government on the prs future should help bring a bit more to market, imrather suspect i need a bigger portfolio to stay in the game longterm.