Thousands of Buy-to-let landlords face negative equity
It's common knowledge amongst estate agents, that First Time Buyers fuel the real estate market. With mortgage providers tightening their lending restrictions, Buy-To-Let investors who purchased residential property in the last few years are seeing Capital Growth & Rental Yield plummet as rental income falls and mortgage rates rise.
Private landlords consider increasing their potential market
More than 23,200 people with 100% mortgages could owe more than their home is worth, the BBC learns. But the forecast isn't all doom & gloom. Smarter investors are looking at multi-lets as a way of increasing rental yield and reducing vacant periods. Whilst Buy-to-let landlords in suburbia are considering niche property markets such as 'pet-friendly-rentals' which increases your potential market.
Landlords search for tenants
The smartwaytorent.com recently reported a strong increase in demand for rental property in the Thanet area of Kent, which is an encouraging sign for landlords with property to rent in Thanet
Whilst demand is still strong in The City
With all the national news focusing on the downturn in the property market, London Property Consultants, Callum Roberts are finding an unexpected upturn in rentals in The City and The City fringe areas of London.
*Source: hotpropertywebsites.co.uk/propertynews...Labels: landlords, tenants
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5 Comments:
People are still buying houses, whether it's because of change in circumstances or to take advantage of what many percieve is a competitive market.
Just because their is an abundance of stock, doesn't mean you should lose your head. The same rules apply in a bear market.
Think location, location, location (it's important to look at any plans for the area your buying into)
Ask your solictor to check whether the property is on blighted land or on a flood plain. Keep your head about you and check out the neighbourhood at different times of the day as well as weekends.
It pays to be cautious
House rents fall as unsold properties flood market
Live in a budget hotel and beat the recession, according to Lorne Spencer, who co presents BBC's Cash In the Attic"
It's a tenants market as tenants exploit the oversupply of rental properties to drive down their rent.
It's no surprise; with so many accidental landlords coming into the lettings market (a result of plunging house sales).
Tenants are in the driving seat for the first time and they are pushing hard to force down their rent, according to RICS.
Can't sell? Must Move? is the marketing slogan from a leading UK Estate Agent. Yet there is a growing number of accidental landlords being repossessed because they can't keep up mortgage re-payments.
So where does this leave the tenant I hear you ask? Up a creak without a paddle! The tenants are often the last to know. Finding out the hard way, when a bailiff knocks on the door. There is so much talk of Landlord rent guarantees and income protection for Landlords, but what about the rights and protection of the tenant? It's wrong and something needs to be done about it.
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