National Homebuyers: Buy-to-let in crisis

The UK buy-to-let sector is in crisis, according to a new report by the Telegraph.

[UKPRwire, Thu Oct 04 2007] It shows that the average new-build buy-to-let property has decreased in value by around 40 per cent in the last 12 months.
It means that investors are losing thousands of pounds on their properties, which is likely to lead to large numbers of people running into financial difficulty.

Julian King of National Homebuyers, the UK's leading fast property purchase firm, says "We have received so many calls recently from landlords looking for a fast sale that it is obvious that the BTL market was unstable.

"The Telegraph's figure of a 40 per cent fall is astronomical. BTL landlords currently clutching tightly to their would-be profit centre would be advised to sell the property quick".

National Homebuyers guarantee to make a formal offer to purchase any property in the UK from vendors who need a quick property sale.

The Telegraph also reports that repossessions of new-build buy-to-let flats are on the increase in prominent areas such as Manchester, Leeds and Birmingham.

The apparent crisis could lead to a surge in quick property sales as investors attempt to recoup as much of their investment as they can.

"I think there are tens of thousands of people out there who like me jumped on the apartment bandwagon thinking they were on to a winner. Now they are feeling the pain," Matthew Loades, a buy-to-let investors who is losing cash on his property, told the newspaper.

It is thought that much of the problem is down to high interest rates which have left landlords unable to cover their buy-to-let mortgage costs with rent alone.

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