The Property Boom of 2012

It would appear that this gloating protaganist is unaware ot the potential crisis coming to the residential rental idustry if the EU gets away with enforcing the regulation preventing BTL mortgages being obtained on rental income criteria.
Even if you have 20 million pounds that will only buy about 80 properties at £250000.00 each with no mortgage required.
This person would have to use all his cash to buy as he WILL NOT be able to obtain BTL mortgages as he will only have an income of about £190000.00 per year.
This would only be sufficient to buy about 5 properties including his residential property and his unsecured debts.
So he WILL NOT be able to gear up and therefore his 20 million will have little impact on the market.

The 'banker' refers to the BTL mugs, it would appear he has a grudge for what ever reason against us. He refers to his buddies, he obviously has no friends. If he is as financially aware as he protrays, why does he not put himself forward to put the countrys dire financial problems straight and come out of his closet!

I have to wonder how this person knows so much about our industry? Perhaps he's one of the failed "underground property guru's" with a chip on his shoulder now that he's gone bust because nobody wants to know about his "secret underground BMV master classes? I'll bet he doesn't even have 20 quid to his name, let alone 20 million! Does he really believe that that there will be a massive property crash for the reasons he's stated and that lenders, government, regulators, etc. will make such idiotic choices to allow this to happen? Not a chance! If he's so confident, perhaps he should invest whatever dosh he has got with his local bookie on his predictions? I reckon he'd get such good odds he might even make his 20 mill of the back of his 20 quid is he wins his bet LOL. Even if he did, his arrogance would still not be acceptable. Why did Property118 decide to post his email? If it was to wind us up, his intention I'm sure, it's worked on me! Maybe I should have a pint of what Tina has been drinking 🙂

What if you have a large LTV that is about to revert to the lenders “SVR” and you can’t re-mortgage to a better rate due to a small drop in the value of the property. (You re-mortgage to up the full “value” to get out your deposit to buy the next one)

What if your properties are in high yield areas that only people on housing benefits are willing to live in?

What if the housing benefit rules were change, so that it was capped at 70% of the average cost of a shared room in a HMO for everyone without children?

What if you had 30 properties with the above issues?

(Think of how this will change prices/rents at the bottom end of the market for all landlords, even if only 25% of large landlords get into problems and become forced sellers – are you cash positive over all sourced of income to come with a “meld down”)

He may just be right…

I see possible long term housing benefit rules changes as being the biggest long term risk to most of the “high yield” deals being done in the North.

I am STILL waiting for a reply from Grant Shapps as to whether this EU BTL regulation is going to be introduced to the UK.
You would have thought a simple yes or no would have been forthcoming; but no word yet!!

Falling house prices also effect remortgaging. Diminishing equity raises mortgage costs, this is likely to be magnified by higher Libor rates in the coming months/years.

How can anybody with any common sense give a thumbs down for the fundamental response required from the Housing minister as to whether BTL mortgages are to be prevented from being facilitated on rental income criteria.
These thumbs must be trolls as only and idiot landlord would thumb this comment down; showing a complete and utter lack of understanding of the industry he is in.

Your point about housing benefit is so valid.
Have you hads a chance to look at what the UC amount for housing is going to be.
I read on some govt report that it will be £380.00 along with other lumped in benefits!!!
Your secenario of lower LHA looks even worse with UC.
What do you think?

The 'baker' chooses to remain anonymous for the obvious reason we landlords will be laughing like drains at the arrogant,self satisfied prick in twelve months. Thankfully I live near a small town without a wine bar,so am unlikely to have the 'pleasure' of listening to the pontificating prat or his cronies.

I watch this and other sites and get very confused with all the information available.
Firstly we have a growing population due to immigration, life expectancy growing, marriage break up and or more single households. With this demand the housing stock of the UK is under pressure in normal times(at least since the last war).
For the last 5 years housebuilders have been building the lowest number of units since records began.
Planning & inspection costs have risen, building standards have risen, environmental charges(section 106) have been introduced, in fact every part of building houses,flats etc. has increased.
Now the experts continue to tell us the cost of property will fall again. Please advise when the cost of existing property will be so low that new property will be affordable, considering most builders cannot at present sell their new properties for what they cost to build.