Buy to Let Property Crisis Explained

In this property education video Simon Zutshi, shares details around what many people are calling the UK Buy to Let Property Crisis. First he starts by explaining the Buy to Let Basics, and fact that most property investors who have Single Let Property, now have a problem if they also have Variable Interest Rate Buy to Let mortgages, because their properties no longer make positive monthly cash flow, due to the interest rate hikes over the past 18 months. This is one of many reasons why we are seeing many landlords selling up.

The Interest rate hikes don’t just effect property investors. Many home owners who are coming to the end of their fixed rate mortgages this year, might see the monthly mortgage payments triple, which could cause affordability issues and ultimately lead to more people having to sell their homes, or even an increase in house repossessions.

If all of this extra housing stock comes onto the property market for sale, and there are not enough buyers who can obtain finance, due to high interest rates, then simon predicts that property prices will continue to fall in 2023. Although he does not believe there will be housing price crash, certainly not as bad and the property market crash in 2008.

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