A specialist mortgage operator is warning letting agents and landlords to gear up for a winter of discontent as a result of a flurry of challenges.
Private Finance says there’s likely to be a slew of bad publicity for the rental sector if there are substantial numbers of evictions once the ban ends on September 20, while mortgage rates are rising and are likely to discourage new landlords.
To avoid some of these difficulties there may be many landlords who will sell up, while buy to let products - especially mortgages - are likely to be in less demand in the months to come.
These problems are because of a flurry of events in the next few months - falling rents in London because of the pandemic, Brexit confusion if No Deal remains likely, the end of the evictions ban, and the winding down of the furlough support through the Coronavirus Job Retention Scheme.
“June and July were our busiest months on record and this also spilled over into August, following this spike created by the Stamp Duty Holiday in combination with the re-opening of the housing market. However, demand now seems to be levelling off with enquiries for mortgages for purchase down on July so far this month” warns the mortgage firm.
It continues: “The uncertainty in the economy and the housing market never went away and we may see the market readjust itself to reflect the new economic reality over the coming months.”
And it cautions that the higher loan-to-value segment of the market is in a state of flux currently, both for buy-to-let and residential purchases, and the rates are correspondingly high reflecting the uncertainty in the market and the potential for significant falls in property prices.
%20-%20IMAGE%20Client%20Accounting%20%E2%80%93%20what%20are%20your%20options.jpg)
Join the conversation
Jump to latest comment and add your reply
LL wakeup time to get out of the ASzt PRS.
Govt seeks destruction of LL engaged in AST letting.
Perhaps very lightly mortgaged LL will survive.
LL make no mistake Govt is out to eradicate you.
Let them.
It really isn't worth the bother anymore.
Invest in another resi property and take in lodgers or go for FHL.
AST lettings are a bankrupt business model especially if leveraged
Forget AST letyings
I don't see where the slew of bad publicity will come from. Those thrown out because they chose not to pay the rent wont jump up and down and bad mouth the PRS as they will be busy busting a gut to get another property. Those who were successful in getting possession of a property that had a non paying tenant will not bad mouth the PRS they might bad mouth the court system. Landlords who get back the property and get a paying tenant in place will not produce bad publicity. If mortgage rates increase a bit with a tenant who actually pays rent landlords will have the income to cover any increase.
The only bad mouthing will be from landlords about the system taking far too long to evict a criminal non paying tenant.
All in all a non news story merely to fill up these columns.
Please login to comment