"But many of these views are based on the assumption that there is only one such kind of investor"
"the opposite of the scenario envisaged by the gloom-mongers. "

You mean the doom mongers who have been predicting a house price crash for the past 5 years didnt have all the facts?
Who'd have thought

Dominic, Manchester, UK

Who will pay the higher rents?
There is a reason they haven't moved in 5 years.

Jeff Smith, London, UK

There was a quite amusing quote from the Campaign of Mortgage Lenders last week: "BTL is now only for the rich", because, I paraphrase, prices are high, the average yield does not cover the mortgage and there is little expectation of further capital growth.

"For the rich"? Sounded like "for the financially illiterate" to me!

I relocated in January and sold my home but decided to rent rather than buy a new house, as I foresaw price fals. I'm beginning to feel glad I did!

David, Chester,

BTL is a now a mug's game and I sold my two rental properties in anticipation of what is clearly now happening all over the country - falling property values.

BTL may be propped up a little longer by the financially niave, but the smart money left the scene two years ago. There are far more imaginative ways of investing money than in dead duck enterprises like property investment.

Peter Kiddle

peter kiddle, horsham, west sussex

its a funny old game property, now the down turn is approaching btl is dead in the water, prices are going down poeple are going to be hurt however i never took out a loan and iam going to get the benefits of being Patient and racking up the money in a boom.

mike, london,

I am beginning to think the new mantra of rising rents is an effort to now talk up rents as it is now so difficult to talk up house prices.

It seems a bit strange to be saying that new rental demand is being created by FTBers not being in the buying category anymore (they were already renting so they do not add to new rental demand). It is probably true that this group is still renting while new renters are entering the market BUT the fact that FTBers have been wiped out by BLTers means there will have been at least as many new rental properties added so supply has gone up.

I am renting and my rent has not gone up for 2 years. This does not match what agents are saying (I live in SW London i.e. a very desirable area both by national and London standards). The reason my rent has not gone up is that there are so many rental properties on the market (and this is despite there being so many city types renting here).

Raj, London,

BTL is not a rich man's game - it's an amateur's game. Anyone with serious money knows of far better and more tax efficient ways to mind their money than ploughing it into an illiquid asset with poor growth that can be devalued at any time by random strangers who live in it. Apart from owning residences to live in, the last thing any rich person will buy is property. What truly rich person wants to be a landlord and deal with tenants and rent collection and maintenance problems and letting agents' fees?

MB, Edinburgh,

I also predict an oversupply of BTL property being put up for sale post April 2008.

Im selling now, as sale prices WILL dip next year and a better price now will out weigh the extra tax I would pay next year. Sell, sell, SELL!!!

John R, Newcastle,

I went though the same process as Doug, but my portfolio was smaller. Two properties in London, one in Ealing, one in Finchley. Sold through the summer. A small price reduction was needed but I am glad it is over since now other BTLers I know are having problem disposing their assets.
I felt a bit sorry for the buyers, a young couple totally overstretched with debt. He works for the BBC and later I learned that was made redundant.
My other property went to a BTLer so obsessed to put a foot on the "BTL ladder". I could not stop him, I should have asked for a higher price.
lesson learned: I am glad I am out of property investment, houses are assets but can be huge liabilities as well.

Maureen, London,

I must confess that most of my clients have sold theirs!!!

Pete Balchin, Solicitor , Bristol, UK

I firmly believe that the 2007/8 CGT reduction from 40 to 18% will fundamentally impact on the housing market around mid 2008. Anyone who sells a BTL property before April 2008 will suffer the higher tax rate so I don't see any sense in selling now unless the Capital gain is minimal. I think investors will hold on until next year and then 'flood' the market with ex BTL's thereby further depressing the housing market. Should be a great time to buy for those witha little nerve (as was the early 1990's). On the positive side, this will stabilise the rental sector by reducing over supply thereby increasing rents toward the more realistic levels of the late 1990's. Today's returns of 5 or 6% can only be sustained in times of high capital growth. This downturn in the market will sort the men from the boys.

Paul Broderick, Alton, Hants, UK

Up till spring this year I had 6 BTL properties. In the spring I could see many signs of economic and property market problems developing so I put 3 of my BTL houses on the market. By the autumn they had sold but not without serious price reductions from the asking prices advised by the various Agents I went to. I wish I had put all 6 up for sale in the Spring!! I put the remaining 3 BTL properties on the market in the Autumn to realise as much profit as I can. Like many other BTL'ers I need to do this before all the capital appreciation profit evapourates. There is not much interest out there and it is necessary to reduce prices drastically to get the interest and potential of an actual sale. I'm willing to do this so that I won't have to chase the market down once price falls get into full motion next year. No doubt some people will be taken in by the - 'in it for the long term' - hype from Estate Agents and mortgage lenders. Don't risk losing your money!!! Sell now.

Doug, Birmingham, UK