Two thirds of private rental landlords will leave sector if Labour win

Graham_Devon

Two thirds? Really? Sounds a bit alarmist.

Two thirds of UK landlords will leave the private rented sector if Labour wins the general election in May and a rent controls policy is introduced, limiting the number of affordable rental properties, according to new research from the Residential Landlords' Association (RLA).

Is this just the industry squealing? Apparently three year tenants and controlled rental increases will make things worse for tenants and open up the market to rogue landlords. I can see the theory, but can't really see it in practice.

Seems a somewhat bizarre article. It suggests that rent controls capping rent increases will mean higher rent increases for tenants (based on the fact they have found two years recently where rents rose less than inflation). They also suggest it's a bad thing that investors will stop buying up properties in London.

So, lots of long term landlords on here. Will you be selling up should labour win the election?

http://www.telegraph.co.uk/finance/property/11388685/Why-a-Labour-win-is-a-disaster-for-homeowners-landlords-and-tenants.html

michaels

Do you know why utility companies haven't cut their prices with the fall in wholesale prices? It is because Labour have threatened a price freeze and the suppliers don't want to risk bankruptcy if prices rebound.

Guess what, if you interefere with the markets don't be surprised if you don't like the consequences.

Generali

If I was sitting on a multi times profit and was facing what, if you believe the rhetoric, will be the most anti-business Government since the 1960s, I'd probably be thinking about selling up. Why not take your profits off the table?

Marktheshark

Labour and anyone else could help the "housing crisis" by shutting the bloody door.
We are full.

WestonDave

I think the article may be alarmist - although there is an Indie article which suggests when rent controls have been introduced in the past this sort of sell off has occurred. That said I wonder if this is another Labour "energy" type policy whereby they meddle in a market with unintended consequences. 3 years without a rent increase sounds great - but in reality that will be factored into the starting rent by all landlords in the same situation. So the upside will be limited. The downsides to a 3 year contract are that if you decide to buy, split up with your partner, need to move for work or discover the neighbours are a nightmare, you are stuck for 3 years rather than 6 months.

Some of the other stuff maybe more helpful - banning agents billing tenants rather than their clients might lead to it being hidden in the rent but it could mean less pressure to renew periodic tenancies just to generate another letting fee.

Graham_Devon

WestonDave wrote: »

I think the article may be alarmist - although there is an Indie article which suggests when rent controls have been introduced in the past this sort of sell off has occurred. That said I wonder if this is another Labour "energy" type policy whereby they meddle in a market with unintended consequences. 3 years without a rent increase sounds great - but in reality that will be factored into the starting rent by all landlords in the same situation. So the upside will be limited. The downsides to a 3 year contract are that if you decide to buy, split up with your partner, need to move for work or discover the neighbours are a nightmare, you are stuck for 3 years rather than 6 months.

The policy isn't that there will be no rent increases for 3 years. Landlotds will be able to adjust the rent annually, but not past a specific inflation index (RPI I believe?)

Secondly, tenants will still be able to move as they wish and won't have to stay for 3 years. It's landlords who would need to offer 3 year tenancies to give some kind of security to tenants.

Graham_Devon

Generali wrote: »

If I was sitting on a multi times profit and was facing what, if you believe the rhetoric, will be the most anti-business Government since the 1960s, I'd probably be thinking about selling up. Why not take your profits off the table?

Maybe.

But wouldn't you be doing it now? Why wait until loads of others are selling with you, flooding the market?

TickersPlaysPop

The more that our government can do to discourage landlord'ism and encourage investment in things that create jobs and economy growth the better.

This is needed alongside building more properties private and social, reducing UK property purchases from over seas

Anybody disagree?

Generali

Graham_Devon wrote: »

Maybe.

But wouldn't you be doing it now? Why wait until loads of others are selling with you, flooding the market?

Well you don't know whether or not Labour are going to get in at the moment and it's a very different thing, responding to a survey and actually performing an action that will trigger a capital gain event.

If you really want to know the answer you'll have to ask the original respondents.

Jack_Johnson_the_acorn

TickersPlaysPop wrote: »

The more that our government can do to discourage landlord'ism and encourage investment in things that create jobs and economy growth the better.

This is needed alongside building more properties private and social, reducing UK property purchases from over seas

Anybody disagree?

How dare people offer property for rent!! Landlord'ism more evil than Satan.

DaveTheMus

michaels wrote: »

Do you know why utility companies haven't cut their prices with the fall in wholesale prices? It is because Labour have threatened a price freeze and the suppliers don't want to risk bankruptcy if prices rebound.

Guess what, if you interefere with the markets don't be surprised if you don't like the consequences.

Look at the bail out of 2008...should have protected the savers and let the cards fall where they may.