Wednesday, 23 January 2013
Buy to Lets to replace new builds.
For the next few years repossessed Buy to Lets are likely to replace new build semi’s/terrace’s as the property of choice for first time buyers according to Harry Sothern, Chairman of REA. With the banks/Building Societies less willing to tolerate interest only payments, the numbers of buy to let style properties coming to the market is set to increase dramatically. Many of these will be in unfinished estates and will be priced very much to sell. Purchasers who are interested in more mature areas will find a considerable price discrepancy between the stressed/repossessed properties and those in the more mature locations. Interestingly the level of repossessed/stressed sales are likely to roughly equate to the housing need in this area for the next few years. The net result will be an obvious lack of new build (other than one off housing) in the near future.