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

BobQ

Speaking personally, I would be happy if my tenants would sign up for 3 years at a time. Continually pushing up rents usually encourages people to leave anyway and what you make on the increases you lose on the empty periods.

Graham_Devon

Generali wrote: »

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?

No, not at all. Not entirely sure where you got that from either, as I've not stated anything remotely like that.

I simply made a statement saying many of those who would benefit from the lower prices (FTBs) will be current renters.

Generali

Graham_Devon wrote: »

No, not at all. Not entirely sure where you got that from either, as I've not stated anything remotely like that.

I simply made a statement saying many of those who would benefit from the lower prices (FTBs) will be current renters.

It seemed inferred, it seems it wasn't meant.

Yes, this crackpot scheme will probably help FTBs, many or most of whom currently rent. It will not help the majority of renters however. I remember what renting was like as BTL came in and BTL has improved the standard and quantity of available rented accommodation no end. Yes, it may have been sometimes at the expense of FTBs but for private sector renters, BTL has been a huge success.

chucknorris

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

It sounds alarmist to me too, I would welcome 3 year tenancies but we have never been able to convince tenants to sign up for that long, I don't think a labour Gov would force our tenants to take them, so I wouldn't anticipate any change.

What would concern me though is:

1. Rent controls, if we had a labour Gov I would have to think seriously of raising our rents to full market value (soon after they get in) to reduce the effect of any future rent control. Which is a pity for me and my tenants, currently they get reduced rents and I get a good wider choice of tenant, it suits both parties. I might even think of calling it a day (at the point of a labour Gov introducing rent controls), I'm not sure, it depends how I feel at the time.

2. Future CGT changes (not mentioned in the article), this might make me wary of holding onto all of my properties. I might consider off loading one or two while CGT is at a more reasonable level.

If I did get out it wouldn't so much be a serious over reaction to a labour Gov, they might just be the final straw. As every year passes I do feel less inclined to hold onto property, and I am warming to the idea of eventually switching to holding hassle free equities (which also allow CGT mitigation). Property has been a great investment, but it dos come with its baggage, and I am beginning to wonder if London property can increase any more in real terms (who could afford to buy it?).

purch

Graham_Devon wrote: »

Will you be selling up should labour win the election?

I've managed to operate through 6 years of a Conservative government, 13 years of Nu-Labour and a further 5 years of this coalition..............so no.

Rent control should only be an issue to those LL who need the rent to pay the mortgage.........shame but it's a risk that they should have thought about when they did their business plan..............oops sorry forgot, most of them didn't have one, they just thought it would be an easy way to make a quick profit.

TickersPlaysPop

The future is a squeeze on landlords.

You have all had a very lucrative ride so far.... and unsustainable gains by definition do not last....

It is all a matter of how quickly that tight squeeze will happen... a quick throttle will result in house price crash.... but the more likely slowly tightening grip will prevent any over reactions.

That grip could be in many different and combined forms....

..all you LL know that it is coming......

ruggedtoast

Graham_Devon wrote: »

Two thirds? Really? Sounds a bit alarmist.

Sounds a bit optimistic to me. Britain's awful landlords need booting to the backside.

Homes for humans not hedge funds!

chucknorris

TickersPlaysPop wrote: »

The future is a squeeze on landlords.

You have all had a very lucrative ride so far.... and unsustainable gains by definition do not last....

It is all a matter of how quickly that tight squeeze will happen... a quick throttle will result in house price crash.... but the more likely slowly tightening grip will prevent any over reactions.

That grip could be in many different and combined forms....

..all you LL know that it is coming......

You are of course assuming that labour (currently the 2nd favourites) win the election.


For me CGT is the issue, it might prove more tax efficient to bite the bullet now, then reinvest the equity In a business and/or investment that allows or facilitates better future treatment of capital gains tax, e.g. retirement relief and reinvestment relief.

antrobus

Graham_Devon wrote: »

Two thirds? Really? Sounds a bit alarmist. ...

Ya think?

The RLA survey actually said that "Three out of five landlords would leave, or consider leaving, the private rented market if rent controls were introduced."

Actual survey asks 'If some form of rent controls were introduced would you? and 8.06% ticked the 'Definitely leave the market' box and 54.85% ticked the 'Consider leave the market' box.

Not really that much of a shocker. And no actual reference in the question to 'if Labour win'.

chucknorris

antrobus wrote: »

Ya think?

The RLA survey actually said that "Three out of five landlords would leave, or consider leaving, the private rented market if rent controls were introduced."

Actual survey asks 'If some form of rent controls were introduced would you? and 8.06% ticked the 'Definitely leave the market' box and 54.85% ticked the 'Consider leave the market' box.

Not really that much of a shocker. And no actual reference in the question to 'if Labour win'.

The thing is though, the possible rent controls that labour are considering aren't like the rent controls of the past, where the tenancy can't be ended. Of course if labour did introduce something, it might only be the thin end of the wedge. But they would probably have to stay in power for a few more elections to get to a point where they totally destroyed the private rental market (again)