View more on these topics

Landlords lose £52.8bn in equity year-on-year

Landlords have lost £52.8bn in equity from their property portfolios this year, reveals Managing Partners Limited

The fund manager compared the portfolios of English and Welsh landlords between October 2007 and October 2008 and found the loss that equates to £144.77m a day or £6.03m an hour.
 
MPL’s British Property Opportunities Fund, which aims to take advantage of the deep discounts that are appearing in the market as a result of forced sales, is buying properties from landlords at around 30% below their list price. 

London landlords have seen the biggest loss in equity from their properties – an estimated £16.23bn between October 2007 and October 2008, followed by the South East – £9.16bn – and the South West – £5.88bn. 

In total, MPL estimates that the value of property belonging to landlords was £537bn in October 2007, but this fell to £484.20bn by October 2008.   
 
Jeremy Leach, managing director of MPL, says: “Some landlords have overstretched themselves financially and a combination of rising mortgage repayments and a decline in the value of their property portfolios means that many wish to sell. 

“However, it is not a sellers market at the moment, so in many cases they need to accept lower prices if they want to sell.”

Recommended

LIBOR falls to 3.37%

3-month LIBOR has fallen today by 0.34% to 3.37% following yesterday’s 1% interest rate cut

Borro.com launches £1m loan

Pawn broker Borro.com has upped its maximum loan value to £1m to meet the increasing demand for credit.

Newsletter

News and expert analysis straight to your inbox

Sign up