The UK's Buy-to-Let Bomb!

Charles of Dawson & Associates has previously raised his concerns about projected rental yields. 

Having been involved in the UK property industry since 1970 (frequently advising portfolio managers with regards to Buy-to-Let investments) he has warned a cautious approach to property investment returns that initially appear large but, in truth, only reflect the current low interest rates. This is an opinion shared by many other property industry professionals and savvy investors who have also witnessed a volume of individuals releasing pension funds to take advantage of this apparent opportunity. An occurrence that could result in an inflated and volatile market, removing first-time buyers from the equation.

With 40 years of property experience, Dawson has seen it all happen before. 
And it is a point well discussed in Simon Watkins' article in The Mail on Sunday...

"It seems that we are suddenly a monopoly-playing nation divided into two tribes: those who have a gleaming, shimmering BTL property and those who do not."

Those 2 million private investors who have ventured into the BTL territory are apparently identifiable by an inherent smugness only achievable by those who have done very well. But Watkins and Dawson agree, once the smoke clears, the mirror may reflect quite a different expression. Because the bank rates are expected to go up 
– what will happen to vulnerable landlords then? 

Watkins hypothesises that with a rise of just 1%, rental profits could easily be wiped out entirely. Should interest rates rise further, the new landlords will soon look to sell which could flood the market with an excess of properties, leading many into negative equity. 

Dawson states that this is just another example of where solid professional advice should be sought before a commitment to the investment is made. The property market does tend to have a cyclical nature so those who have been working in it for many a year, are likely to have seen similar circumstances. A true case of "invaluable experience". 

As a chartered surveyor Dawson can assess the condition of a property and therefore judge its purchase potential. But it is the working expertise of UK and international property development, construction, leasing and sales that will provide a well-rounded prognosis of what the future may hold...


Charles of Dawson & Associates works with highly qualified, senior personnel who are members of the following institutions: • RICS • ASI • CIOB • RIBA • I of C Mgrs • FPWS • CIBSE

Please feel free to contact Charles or any other member of the Dawson & Associates team for instant survey quotes or property advice. Initial consultations are free of charge.

Will Sealed Bids Help or Hinder UK Property Purchases?

The Telegraph reports this week that with the UK property market showing signs of the anticipated property boom coming to fruition, sealed bids might be the fairest way forward for prospective buyers.

This fingernail-biting process functions on secrecy. It means that the interested parties write down their offer and hand it over without any knowledge of what other interested parties might be prepared to pay.

What are the upsides for the purchaser?

The highest offer may not be the one that is accepted as the bidder is given the opportunity to provide details of their buying/financial position (speed and solidity of the offer will play a part in the decision-making process).

Your offer should be one that you have carefully considered to be within your reach. Sealed bids should mean that you are making a carefully considered offer that you can afford based on your current circumstances.

What are the downsides for the purchaser?

Sellers don’t like any offers that are “subject to…” so you need to be 100% sure beforehand that you are happy to progress. It is essential that a thorough property survey is carried out prior to the submission of a bid. Do not let the pressure over-rule good judgment and make an offer that hasn’t considered the possible requirement for future construction or maintenance works.

Sealed bids do involve a lot of game-playing. You don't want to act too quickly, nor too late if you are to get the best response.

Dawson Surveyors are property professionals and are therefore fully qualified to provide independent advice and valuations on your prospective property. We help you to make the right decisions.

Contact us now.

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