Inside Track enters administration

Inside Track, the company which enticed potential buy-to-let entrepreneurs via its property seminars, has gone into administration.

The firm pledged to transform a generation of Britons into ‘property millionaires’. However, before the company was placed into administration, a number of its customers had threatened legal action against it after losing thousands of pounds on failed investments.

Its business model was in serious trouble before the credit squeeze took over last summer. It was based on property values continuing to increase and the easy availability of buy-to-let mortgages.

However, an over-supply of flats in UK town centres led to falling resale values and rents not meeting expectation which led to lenders withdrawing mortgage financing from new-build apartments in 2005.

A spokesperson for the company said due to the continuing sustained difficulties arising from the credit crunch, Inside Track has been placed into administration.

Last month, the company announced it was ending its workshops as interest in buy-to-let diminished. Its last seminar at Warrington attracted less then 12 people.

Back in 2005, Inside Track made profits of £12 million, followed by £10.8 million in 2006 and finally £6.9 million last year.

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