Inside Track forced into administration

Wednesday, 30, Apr 2008 06:00

Buy-to-let investment specialist Inside Track has gone into administration, as the credit crunch continued to wreak havoc on the property market.

As the credit crunch makes borrowing harder and falling property prices knock the stuffing out of short term property investor, Inside Track has shut its doors.

The firm, specialising in weekend courses providing tips on property buying in the UK and abroad, seems to have become the first company to be forced into closure as a result of the credit crunch.

This follows the nationalisation of Northern Rock, the near collapse of Bear Sterns and billions of pounds worth of rightdowns from leading banks, including Royal Bank of Scotland, Barclays and Lloyds.

With courses costing up to £2,500, the property slump has seen demand taper away.

While profits in 2005 stood at £12 million, last year they were down to £6.9 million amid reports customers were threatening legal action as property values fell.

In particular the firm seems to have been hit by the fall in prices of city centre new build properties, which Inside Track advised investors to buy off-plan for greater discounts.

David Salusbury, chairman of the National Landlords Association, said: "Inside Track promised to make the UK a country of property millionaires.

"However, there is a real danger in encouraging such massive speculative investment in residential accommodation.

He added: "Investors in residential property should be focused on the provision of affordable and decent homes over a much longer period of time and not just capital growth."

Daniel Barnes