The party's over for buy-to-let royalty

Here's a sign of the times. Two ex maths teachers who have long been the poster couple of the buy-to-let bubble, are selling up.

Here's a sign of the times. Judith and Fergus Wilson, two ex-maths teachers who have long been the poster couple of the buy-to-let bubble, are selling up. Over the last few years the two, in what The Guardian calls a "frantic series of deals" that often saw them buying several houses a day, have bought over 900 houses, mostly around Ashford inKent. They now reckon their portfolio is worth around £250m and that their typical loan to value is around 65%. This suggests an "equity cushion" of around £90m.

That sounds nice who wouldn't be happy to feel worth £90m? but it also means that the Wilsons have mortgage debt of not far off £160m, at a time when the property market is barely budging and when refinancing mortgages is getting more expensive by the day. Not long ago you could get a buy-to-let loan fixed at well below 5%. Now you'd be lucky to get one for under 7% and to get that you'll have to pay a whopping fee. Yet at the same time you'll find that you are making regular capital losses and your tenants are either defaulting as unemployment rises or demanding lower rents as the flood of once-for-sale, now-for-rent properties on the market bumps up their bargaining power. No wonder the Wilsons want out. It's "been a nice ride", says Fergus, but "the party's over". Indeed it is. The question now is just whether he and the rest of the nation's legion of disappointed buy-to-let investors can get out with their party bags intact.

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Ruth Jackson-Kirby

Ruth Jackson-Kirby is a freelance personal finance journalist with 17 years’ experience, writing about everything from savings accounts and credit cards to pensions, property and pet insurance.

Ruth started her career at MoneyWeek after graduating with an MA from the University of St Andrews, and she continues to contribute regular articles to our personal finance section. After leaving MoneyWeek she went on to become deputy editor of Moneywise before becoming a freelance journalist.

Ruth writes regularly for national publications including The Sunday Times, The Times, The Mail on Sunday and Good Housekeeping, among many other titles both online and offline.