Anarchy In the UK R.E.
Richard Lee spent 5.3 million pounds ($10 million) buying 20 rental homes across the U.K. with just 150,000 pounds of his own money.
Today, the properties are worth about 60% less and owned by the banks that financed the purchases.
Lee was one of thousands enticed by one of Europe's top five best-performing residential property markets during the past decade.
Now repossessions are mounting and properties stand empty as many investors fail to find the tenants needed to cover their mortgages
after a building boom flooded cities, especially Leeds and Manchester, with apartments.
Home purchases by investors such as Lee helped triple housing prices between 1997 and 2007.
The virtuous circle of rental investment that powered the U.K. housing market was broken by falling property values and banks' retrenchment following record mortgage-related losses.
Hattip to Bloomberg.
Today, the properties are worth about 60% less and owned by the banks that financed the purchases.
Lee was one of thousands enticed by one of Europe's top five best-performing residential property markets during the past decade.
Now repossessions are mounting and properties stand empty as many investors fail to find the tenants needed to cover their mortgages
after a building boom flooded cities, especially Leeds and Manchester, with apartments.
Home purchases by investors such as Lee helped triple housing prices between 1997 and 2007.
The virtuous circle of rental investment that powered the U.K. housing market was broken by falling property values and banks' retrenchment following record mortgage-related losses.
Hattip to Bloomberg.
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