If I could speak to my Dad now, I'm sure at some stage, he'd have come out with the old Chinese curse "May you live in interesting times". It was one of his favourites.
And interesting times they indeed are.
Now I can remember working through interest rates at 15% - I recall a colleague triumphantly telling all who would listen that he'd fixed his mortgage rate at 9%! But of course back then, mortgage holders were a lot less geared than today. So the rises we are now seeing in interest rates, and will in all likelihood continue to see, have much greater impact.
Landlords, just at the time when we need more, are leaving that investment class. Years of tax benefits eroded, greater legislation and now higher rates mean it no longer makes sense. The other issue on the horizon is further expenditure on rental properties to the required EPC ratings.
Any sympathy for landlords? Probably not. Rents are increasing rapidly with, in many cases, multiple potential tenants for every property that becomes available. But will this increase in rent match the increase in mortgage costs? Has the smaller landlord got the financial capacity to absorb these cost increases - and budget for ongoing maintenance costs/EPC costs - plus rising costs generally?
Now I was a landlord. I'd like to say I was clever enough to say I knew what was coming. Its a long story I may tell one day, but as of today, I'm relieved that's a headache I don't have.
Like many I saw this as part of my pension - and something to leave for my sons. The reality is I will be working longer - and guess what? My boys will be ok.
Like many of the older brethren in the short term lending industry, we have lived through similar situations. As always the market will innovate and adjust - and adapt to the changing financial landscape.
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