New EU mortgage rules to hit btl

geneer

macaque wrote: »

Speaking as a long time renter myself I certainly 'wish for' larger more professional landlords. Amateur landlords are not all bad by any means but what we need is the Sainsburys or Morrisons of rental properties. Sustainable rents, better certainty of tenure and no surprise visits when the family are having dinner.

Good OP Geneer.

Given the state the banks are in, I foresee no return to the metal lending of the bubble for a very long long time.

As Hamish has suggested its inevitable that more people end up renting. (as an aside no one has argued with Hamish on this, yet he keeps restating it like its some kind of silver bullet).

This is all well and good. Not everyone can or should be home owners. Though of course as house prices fall back to their long term norms (even if just in real terms) more will get the chance.

Anyway, given that we are becoming a rentier society, there will be political pressue on the government to ensure the renter (i.e. their voters) are better protected against the greed and exploitation of rogue landlords.

heathcote123

Julie is very right on this.

Think of the banks - PPI, premier accounts etc. They can and do take every single opportunity to maximise profit, regardless of any kind of morality. They have offices of highly paid people who are paid solely to think up new methods to screw you out of every possible penny. 'Amateur' landlords dont have this kind of overhead.

You really dont want people like this providing the rental stock, unless you want to be renting forever, because they will engineer that.

Didn't think I be seeing people hailing the promotion of corporatism round here....

heathcote123

Road_Hog wrote: »

when not dealing with amateur landlords that understand if the rent is a week late, and will be happy with the big boys, who'll put a neg on your credit file and issue you with an eviction notice.
QUOTE]

And the £125 admin fee. But don't worry, you'll be able to buy admin fee protection as well, for a very reasonable monthly sum.

geneer

heathcote123 wrote: »

Julie is very right on this.

Think of the banks - PPI, premier accounts etc. They can and do take every single opportunity to maximise profit, regardless of any kind of morality. They have offices of highly paid people who are paid solely to think up new methods to screw you out of every possible penny. 'Amateur' landlords dont have this kind of overhead.

You really dont want people like this providing the rental stock, unless you want to be renting forever, because they will engineer that.

Didn't think I be seeing people hailing the promotion of corporatism round here....

Never heard of housing associations Heathcote.
That surprises me, I thought one owned half your house.

Not everyone has to be as greedy as your typical BTL muppet.

There are a lot of individuals and organisations that do a good job without feeling the need to exploit the situation.

And for those that do.....mhhhh....Whats the odds that rent control will be reintroduced into the uk?

andybenw

It all depends on whether the mortgage regulation the EU is planning for domestic properties is extended to BTL mortgages. The way I understand it is that nothing has been decided yet.

Remember also, that if the regulations talked about do come in they will only affect new mortgages. So BTL empires that stand at present as well as all current amateur landlords will be fine unless they require to re-mortgage. So anything it does to housing prices would be slow and drawn out. And it won't affect anyone like myself who is planning to buy cash.

I think the poster who wrote about large companies as landlords has a point. I'd imagine that a non payment of rent to these would harm your credit score. Also they would have a duty to shareholders to be making as much money as possible so rents would be squeezed up I feel. Without extra tenant protection it could be a case of 'turkeys voting for xmas'.

heathcote123

geneer wrote: »

Never heard of housing associations Heathcote.
That surprises me, I thought one owned half your house.

Not everyone has to be as greedy as your typical BTL muppet.

There are a lot of individuals and organisations that do a good job without feeling the need to exploit the situation.

And for those that do.....mhhhh....Whats the odds that rent control will be reintroduced into the uk?

Ah of course, if BTL's are mortgage rationed, the government have billions of spare cash to throw at HA's don't they?

Social housing is not going to be rapidly expanding any time soon.

ILW

heathcote123 wrote: »

Ah of course, if BTL's are mortgage rationed, the government have billions of spare cash to throw at HA's don't they?

Social housing is not going to be rapidly expanding any time soon.

Most BTLs will not take social tenants and the ones that do are massively subsidised with government money anyway.

I believe that some sort of rent control could save taxpayers a fortune.

geneer

heathcote123 wrote: »

Ah of course, if BTL's are mortgage rationed, the government have billions of spare cash to throw at HA's don't they?

Social housing is not going to be rapidly expanding any time soon.

renters = voters heathcote.
The more renters, the more powerful the lobby.

The right to buy has done enormous social damage to this country.
I can readily see social housing making a comeback.

ILW

I get the impression that if any party stood on a platform of reducing rents by 50%, they could be onto a winner.

Jimmy_31

Social housing could make a comeback but it wont be for a long time.

The HAs i work for cant afford to build any new houses because they are constantly paying out to repair and maintain their existing properties.

Lots of HA housing stock is coming to the end of its life, lots of them need to be demolished and rebuilt but where do the tenants live whilst they are being rebuilt.

The government would do well to start sorting this countrys housing problems out FAST as its only a matter of time before people say enough is enough and revolt against them.

Do BTL landlords think people will keep paying whatever price they come up with for rents. Like i have said before, its got to the stage in some places that tenants have to decide what bill to pay from their shrinking wage packet. The landlord gets paid last as far as i can see.