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Should I believe the news that BTL is growing again? What hope for the FTB if ever greedy newbie landlords start another land grab?« back to list
The evidence of house price falls this week has been compelling. The peak of BTL lending ironically dovetailed with the peak of mainstream lending, last summer. That suggests that far too many new landlords entered the arena far too late. Prices, as proven by the most recent hometrack report, are now year on year negative by 3.7%.
The suggestion was also made that prices have fallen, on average, by £12,000 if you take into consideration that most sellers are only achieving 93% of their asking price. Deposits BTL landlords placed down last year have perhaps been evaporated.
If you were a small BTL investor would you, on the basis of your last twelve months experience be rushing to expose yourself further? More likely the news leaked re. re-investment in BTL has been a combination from the weight of opinion from lobbyists close to main media sources.
It defies belief that small BTL players would rush back into a market place that has enjoyed no growth in the past twelve months. Similarly the supposed increase in rents reported by the RICS does not take into account those properties that lie vacant or the amount of refurbishment a landlord has to undertake on a regualr basis. It reports asked rental figures, not those actually acheived. In short this increase cannot be trusted as credible evidence.
Even if it is to be believed, a 3.75% return on your investment is poor, on line deposit bank accounts currently return more.
Consider this alternative news that perhaps did not quite hit the national news "radar" yesterday.
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