Rent trap confounds dreams of a generation - landlord greed grows

ILW

CLAPTON wrote: »

I am comparing 150,000 spent by a landlord with 150,000 spend by a owner occupier.
In both cases 150,000 of capital is used that could in principle be used to create the next big thing.

Also of course when one person uses capital to buy a property that money goes to some-one else (the seller) who may be about to invest in some new venture.

I would also contend that how much 'work ' is involved is pretty irrelevant; how much work is involved putting one's money into a savings a/c or even buying shares?


Maybe the dislike of landlords clouds the economics of the situation.



I can't really agree that providing homes for people who need them is somehow bad for the economy.

As far a work involved, I mean employment created.

Regarding providing homes, that would be the case if the majority of BTL involved building homes for rent. Currently it appears that the vast majority is just a matter of redirecting existing stock though from OO to rental.

I do not dislike landlords at all, just wouild rather see all that money going to something that would help grow the economy.

IveSeenTheLight

Percy1983 wrote: »

Its much like the good 'service' ticket touts do.

The save me 10 minutes buying tickets and change £50+ for it, what a bargain.

The same reasons I never pay anything to touts or landlords, I refuse to fund such wrong behaviour.

Hmmm, comparing landlord to ticket touts is laughable really.

ticket touting is illegal, renting a property out is a legal business.

Percy1983 wrote: »

The bigger problem is with the touts you can choose not to go to a concert, with a landlord the choice is be homeless or pay which isn't really much of a choice is it.

There are many other options: -

1. Live with parents
2. Share with friends / partner
3. Seek Council housing
4. Seek social housing
5. Buy.
6. Choose another property which is more competative
7. Choose a smaller property which is affordable
8. Choose a different area.
9. B&B
10. Renta a room instead of a house

There are many options ahead of being homeless

ruggedtoast

http://www.dailymail.co.uk/news/article-2246106/Generation-Rent-stake-community-housing-market-means-frozen-out.html

A generation of young people is being frozen out of the housing market and failing to put down roots, a report has found.
It said soaring numbers of young workers are being forced to rent, giving them little stake in their neighbourhood and a reduced sense of community spirit.

Their inability to get a foot on the housing ladder also means putting their career ambitions and family plans on hold.


The analysis by the Institute for Public Policy Research found that 51 per cent of 18- to 30-year-olds believe they will not be able to buy a property for at least a decade.

It also suggested that a renter needed to live in an area for 14 years to achieve the sense of belonging immediately conferred by owning a property.

Dalia Ben-Galim of the IPPR said: ‘Insecure renting stops them from putting down roots, but it is also bad for society too.

‘Our analysis finds that home ownership has a big effect on people’s sense of belonging to their neighbourhood.’

The report recommends freeing more land for development, more home building and protecting tenants from rogue landlords.
House prices are now 11 times the average salary compared with seven times in 2001.

Figures from the housing charity Shelter show that three million young people aged 25 to 34 live with their parents – half a million more than in 1997. ‘Generation Rent’ is predicted to have grown by another half a million by 2020.

Miss Ben-Galim added: ‘Our analysis shows that the lack of houses is dragging young people down.

We found it is stopping many of them from building their careers and starting a family.

‘A huge majority of today’s younger generation want to own their home, just as most of their parents have done. But the prospect is slipping ever further over the horizon.’


Around 100,000 young people are thought to be locked out of the property market every year, due to a lack of affordable housing, calls for large deposits and job insecurity.

Rising house prices and the economic slump have changed the landscape for first-time buyers.

In 1997, fewer than 10 per cent of first-time buyers under the age of 30 had help from family and friends, but by 2005 it was 45 per cent.

The report acknowledges this was partially to do with ‘unsustainable’ mortgage lending.

The IPPR report says: ‘It is not the case that the young people we spoke to want everything, with no sacrifice immediately.
‘They just want a chance to grow up, develop their lives, build careers and form relationships – and they need decent quality, affordable homes in which to do so.

I fail to see how this benefits anyone other than the narrow interests of landlords. Why has this group suddenly become so privileged that 33% of the country has to turn out their pockets to them just to keep a roof over their heads?

Percy1983

IveSeenTheLight wrote: »

Hmmm, comparing landlord to ticket touts is laughable really.

ticket touting is illegal, renting a property out is a legal business.




There are many other options: -

1. Live with parents
2. Share with friends / partner
3. Seek Council housing
4. Seek social housing
5. Buy.
6. Choose another property which is more competative
7. Choose a smaller property which is affordable
8. Choose a different area.
9. B&B
10. Renta a room instead of a house

There are many options ahead of being homeless

Goes back to a point I made long ago, just because a type of robbery is legalised, it doesn't make it right.

I agree there is other options to renting, how many of them lead to a stable home?

ruggedtoast

Being a rent raising landlord in the midst of a housing crisis is akin to being the person auctioning one loaf of bread between two starving people in a famine.

Cynical parasitism of the lowest order.

Domfrizby

ILW wrote: »

So this bloke earns a good salary, has two children and chooses to rent a four bed house (with views over rolling hills) in an expensive area. Don't think buying is much of a priority for him or he would have been renting something cheaper to save for a deposit.

Good point, he has funds but wants to wait for cheaper prices before buying property.

IveSeenTheLight

ruggedtoast wrote: »

Why has this group suddenly become so privileged that 33% of the country has to turn out their pockets to them just to keep a roof over their heads?

If you look back in history at the turn of the last century, only approx 10% (IIRC) were homeowners.

The rest rented.

If you look at Europe, there are many countries which renting is a preference i.e. Germany.

There is no right to ownership, it's something that needs to be earned.

IveSeenTheLight

Percy1983 wrote: »

Goes back to a point I made long ago, just because a type of robbery is legalised, it doesn't make it right.

I agree there is other options to renting, how many of them lead to a stable home?

So now you think renting property is robbery.

You may be surprised to hear that council housing is also renting from the government.

The same government that sold off their stock under the right to buy scheme at huge discounts, allowing many tenants at the time the opportunity to own their own home which they might otherwise not have been able to.

BTL has only partially filled the gap left by the council housing sell off.

BTL are providing an option that the governments largely took away.

Yet BTL Landlords are the bad guys in this redistribution.

Ok, it's prooving that BTL can be a good investment, partly as a result in the lack of "affordable" alternative options.

Is that really the fault of the BTL LL, or is it really the fault of the government for not maintaining / profiding affordable homes?

Try looking deeper into the cause and effects.

IveSeenTheLight

ruggedtoast wrote: »

Being a rent raising landlord in the midst of a housing crisis is akin to being the person auctioning one loaf of bread between two starving people in a famine.

Cynical parasitism of the lowest order.

Oh, the similies just keep getting better and better.

In this similie (where there is a lack of alternative options), why don't the two share the loaf of bread.

I could show many instances in our history and elsewhere in the world where a number of generations lived under the same roof.

I repeat, housing ownership is not a right.

It was quite often warned to those wanting a house price correction the impacts it would have, yet, these points were naysayed.

Owner occupancy was higher at the peak of 2007, yet I suppose BTL LL's are to blame for the economy as well aren't they?

Percy1983

IveSeenTheLight wrote: »

If you look back in history at the turn of the last century, only approx 10% (IIRC) were homeowners.

The rest rented.

If you look at Europe, there are many countries which renting is a preference i.e. Germany.

There is no right to ownership, it's something that needs to be earned.

If we had the same rental controls as Germany then even I would have considered renting, as it is we are far from that.

IveSeenTheLight wrote: »

So now you think renting property is robbery.

You may be surprised to hear that council housing is also renting from the government.

The same government that sold off their stock under the right to buy scheme at huge discounts, allowing many tenants at the time the opportunity to own their own home which they might otherwise not have been able to.

BTL has only partially filled the gap left by the council housing sell off.

BTL are providing an option that the governments largely took away.

Yet BTL Landlords are the bad guys in this redistribution.

Ok, it's prooving that BTL can be a good investment, partly as a result in the lack of "affordable" alternative options.

Is that really the fault of the BTL LL, or is it really the fault of the government for not maintaining / profiding affordable homes?

Try looking deeper into the cause and effects.

I agree there is a gap cause be government, but does that cause LLs to abuse that gap and squeeze every drop out of it to feed greed?