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

PasturesNew

There will be no less houses/housing, so who owns it is pretty much irrelevant. If they give up, they won't knock it down and take it with them.

Generali

PasturesNew wrote: »

There will be no less houses/housing, so who owns it is pretty much irrelevant. If they give up, they won't knock it down and take it with them.

It is most likely to end up negative for renters (less rental stock) and existing owners (lower house prices), positive for new buyers (lower house prices).

So a plan to help renters actually helps FTBs instead!

Graham_Devon

Generali wrote: »

So a plan to help renters actually helps FTBs instead!

Many of whom will be current renters...

Generali

Graham_Devon wrote: »

Many of whom will be current renters...

Yes they will but I'm not sure the idea of the plan is to force renters into becoming buyers.

Are you seriously trying to argue that the Labour plan is stated as being to help renters but is really an attempt to encourage Landlords to sell to FTBs?

PasturesNew

Generali wrote: »

It is most likely to end up negative for renters (less rental stock) and existing owners (lower house prices), positive for new buyers (lower house prices).

So a plan to help renters actually helps FTBs instead!

I bet a huge percentage of renters are wannabe FTBs though. There is a shortage of housing that FTBs can buy before BTLers have snapped them up.

If you have a dozen LLs in an area in touch with the EAs, they'll keep them in the loop when something's coming up and, given two offers on the table, the FTBs are probably at their max point and the LLs can squeeze a few extra quid out of their pocket if they choose to ... and, from the EAs perspective, they'll know the LL is more likely to be able to complete without so much hassle -and- they not only get the sales commission, but ongoing fees and rental %age if it's placed with them.

Generali

PasturesNew wrote: »

I bet a huge percentage of renters are wannabe FTBs though. There is a shortage of housing that FTBs can buy before BTLers have snapped them up.

If you have a dozen LLs in an area in touch with the EAs, they'll keep them in the loop when something's coming up and, given two offers on the table, the FTBs are probably at their max point and the LLs can squeeze a few extra quid out of their pocket if they choose to ... and, from the EAs perspective, they'll know the LL is more likely to be able to complete without so much hassle -and- they not only get the sales commission, but ongoing fees and rental %age if it's placed with them.

That's all very well but if you want to institute a policy of encouraging first time buyers, perhaps it's better to do that directly rather than as a policy failure that is baked in to the plan!

BobQ

Graham_Devon wrote: »

Two thirds? Really? Sounds a bit alarmist.



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

That should help house price affordability.......

PasturesNew

Generali wrote: »

That's all very well but if you want to institute a policy of encouraging first time buyers, perhaps it's better to do that directly rather than as a policy failure that is baked in to the plan!

It's not just FTBs, I struggled to find a house to buy because nearly every house was being sold to BTLers before I could even spot it on RM and get a viewing! Most of the houses in my price bracket were being snapped up by LLs. They snaffle a huge percentage of the lower priced places (say up to £200-250k in most areas). HUGE.

Mostly, it used to be that if you wanted to be a LL you were usually in one of the trades and bought wrecks and did them up - and/or you had houses built. Now they're just out there hoovering up anything with 4 walls and a roof.

When I bought this one a BTLer had already made an offer on it. The one that's sold since I bought this one was another BTLer.

Generali

BobQ wrote: »

That should help house price affordability.......

Unless you can't afford the deposit to buy so are stuck using the ever declining rental pool.

Generali

PasturesNew wrote: »

It's not just FTBs, I struggled to find a house to buy because nearly every house was being sold to BTLers before I could even spot it on RM and get a viewing! Most of the houses in my price bracket were being snapped up by LLs. They snaffle a huge percentage of the lower priced places (say up to £200-250k in most areas). HUGE.

Mostly, it used to be that if you wanted to be a LL you were usually in one of the trades and bought wrecks and did them up - and/or you had houses built. Now they're just out there hoovering up anything with 4 walls and a roof.

When I bought this one a BTLer had already made an offer on it. The one that's sold since I bought this one was another BTLer.

So make it easier to buy: get rid of SDLT for OO purchases for example, don't introduce a law to help renters that will make renting worse for the majority as they won't be able to find a place.