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Negative Equity Trap for Landlords say NHF if you bought in the Boom 


According to a forecast by the National Housing Federation (NHF), if you bought in the boom, you may well be trapped by negative equity for four years.

Landlords that purchased a property at the top of the market in 2007 would have paid an average price of £216,800.  The NHF have said that they will have to wait until 2014, when average prices should hit £226,900.

Oxford Economics have forecasted prices could increase 22 percent over the next five years, due to an under supply of new build housing.

The report by the NHF details how the country is in the worst housing crisis for generations.

This could be good news for Landlords though.  With a lack of supply of mortgages, a lack of supply of housing and a low interest rate, allied with a pent up demand for rental, could then see a far greater yield from the rental income.

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Added By: gbressington on 13th Sep 2010 at 10:29
Number of Views: 279

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