the end of buy to let?

Buy to let has been a huge success. It has largely driven first time buyers out of the market. It no longer stacks up though.

see http://news.bbc.co.uk/1/hi/business/7083446.stm

This shows to be a buy to let investor you need a 30 % deposit. You also need to be investing in the long term 5 - 25 years.

How many people will invest in a product where they expect below average returns for the next 5 years.

This causes a huge risk that many people will sell. There are almost 1 million buy to let properties out there and as it becomes obvious many will fall in value many will look to sell. Many will have to sell as they can't afford the shortfall between trent and mortgage. If and it is still (just) an if a large number of forced sellers come on the market prices are f**ked.

Many do not understand the difference between a forced seller and a normal seller. If you are forced to sell you have to accept what any one will pay. A normal seller (who lives in the property) will wait untill they get the price they expect.

Buy to Let owners are likely to be forced sellers. If they rent it they cannot sell (at least at a reasonable price as tenants dont make the most of a property so they can be thrown out on the street) or they suffer an income loss and have a property empty with a mortgage going out each month and no income.