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Scepticism over B2L buyouts says its research shows a surge in enquires from sitting tenants looking to buy their rented properties as landlords struggle to meet their repayments since interest rates climbed to 5.50%.

The website says these enquiries soared from just a couple per month to more than 100 in April and May. It also predicts that the number of enquires will continue to grow in the next two years.

The Royal Institution of Chartered Surveyors recently reported that the percentage of landlords selling their properties increased to 5.2% in Q1 2007, the highest level for two years. says landlords selling up often offer discounts to tenants.

But Andy Young, chief executive of TBMC, says he is sceptical about the research.

He says: “We have not come across landlords trying to offload stock onto their tenants. Most landlords are in the buy-to-let market for the long term and don’t react to short-term events such as rising interest rates.”

“If tenants are looking to buy out landlords, I would suggest they tread carefully and think about whether it is the right route to take – buying a property with friends is risky.”

But David Whittaker, managing dir-ector of Mortgages for Business, says: “This trend is logical for landlords and tenants.”


Mixed messages

An experiment to discover the consistency of sourcing systems’ results shows the difficulties brokers face when using them, says Rob Roberts

Swift updates its ID system

Swift has revamped its electronic identification facility to allow the inputting of applicants’ passport and driving licence details.

B&B says it’s had a good start to 2007

Bradford & Bingley has predicted that its net residential lending in the first half of this year will be almost double the level it achieved in the same period in 2006. In a pre-close trading statement, the lender reported a good performance in the first half of 2007 with new organic lending volumes well ahead […]

Should paying Stamp Duty be the responsibility of sellers or buyers?

EARLIER this month, Peter Hain, MP for Neath and a candidate for deputy Prime Minister, called for Stamp Duty to be the burden of sellers rather than buyers. Some pundits have backed his proposal as a way to help first-time buyers onto the property ladder. But what do members of the public think?

So, this week Mortgage Strategy asks…


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