Concerns that landlords who bought buy-to-let flats are expected to “begin panic selling” could conspire alongside other elements in 'bankrupt Britain' to an almighty property crash.
I have been posting for the last six month about this 'bubble' of landlords sat on loss making property investments.
The report by Numis talks of the concern that the 'city centre flats' will see the worst falls, commenting on the poor unfortunate landlords who were sold the Buy-to-Let investment dream based on unrealistic capital growth predictions and not a traditional rental profit model.
“It is the action of these amateur investors over the next few months which we are most concerned about,” the report says. “We expect some to begin panic selling their portfolios, with the peak volume as is almost always the case with private investors, being at the market trough.”
The report predicts that the average price for a property in Britain could fall below £100,000.
See some of my earlier posts about the landlord bubble that could pop.
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