Inside Track placed in administration

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by Gill Montia

Inside Track, the controversial property investment company, has been placed in administration.

The firm built its reputation by encouraging buy-to-let investors to purchase new-build flats and apartments, through its property seminars.

However, an oversupply of this type of accommodation in city centres has led to falling rents and plummeting property values.

Inside Track has been criticised for its hard-selling approach to novice landlords, who were offered properties off-plan and apparently at substantial discounts.

Some members of its property club, Inside Access, have since found themselves in negative equity and have been threatening to sue the company.

Inside Track’s business model was flawed because it assumed property values would continue to rise and that buy-to-let mortgages would remain readily available.

The company blames the credit crisis for its demise, which has been accelerated by the withdrawal of 100% mortgages in the buy-to-let lending sector.

Three years ago profit for the group reached £12 million but it is reported to have declined to around £239,000 in the 12 months to the end of January 2008.

Inside Access is a sister company to Inside Track and operates three businesses: Access Properties (estate agents), Fuel (mortgage brokers) and AfterCare Solutions (property management).