Milliband promises rent controls

cifpower

If I own a house and am leaving the country for a year, will I be able to rent my house for that period of time?

If interest rates go up (and, as a result, my mortgage repayments) so the rent no longer provides a yield, am I able to reclaim the property by serving a section 21 to sell the house during the 3 years?

I can imagine that, prior to this law coming into force, a lot of tenants will be given notice to quit with the properties involved being put up for sale which, in turn, will lower house prices in general, limiting available rentals.

Do most of the people who rent in the UK want to buy a house? Would most of the people who rent BE able to rent a house taking into account their credit history and affordability with repayments and deposits?

Why would anyone voluntarily invest their capital if the government wants to limit the return you could get on that capital?

lawriejones1

The issue is the relationship of mortgage rates to rents. Professionals understand the risk, amateurs want to pass this risk on to tenants. It's not fair at all.

If interest rates go up and your yield goes down, deal with it - it's the risk you take. Any of us in business had to cope with the VAT rise etc.

tom9980

I am just coming to the end of the first year renting out our first property, It is my understanding the tenant wishes to stay 10+ years and it is my intention to keep the property 40+ we are both happy and have a good relationship.

This announcement has made me shelve plans to upgrade and improve the back door and refurb the windows. I now will only do this when they break and it counts as tax deductible.

Further my tenant has been great I was not planning on raising the rent until next year, however I will if Labour win the election, and indeed raise it by the maximum possible every year under any new law passed. The irony of this is bad landlords ignore existing legislation so this new idea won't stop them they will prey on the tenants on the lower end of the market while good landlords and tenants have to suffer the unintended consequences.

cifpower

lawriejones1 wrote: »

The issue is the relationship of mortgage rates to rents. Professionals understand the risk, amateurs want to pass this risk on to tenants. It's not fair at all.

If interest rates go up and your yield goes down, deal with it - it's the risk you take. Any of us in business had to cope with the VAT rise etc.

Any other business would be able to increase prices by passing on that VAT rise. The business of renting would be forbidden from doing so.

cepheus

Gangaweed wrote: »

Typical ignorant politicians idea.

Just get enough houses built and the problem will sort itself out.

Or place a tax on second homes and reduce subsidies to landlords, freeing up housing and making it cheaper to buy for the owners.

CLAPTON

interesting

According to the government's latest English Housing Survey (pdf), published in February 2014, the average length of time a private renter had lived at their current address was 3.8 years (for social renters it was 11.3 years, and for owner-occupiers, 17.3 years). However, it also found that a third (34%) of private renters had been in their home for less than a year, and 80% had lived in their home for less than five years.

Generali

cepheus wrote: »

reduce subsidies to landlords, freeing up housing and making it cheaper to buy for the owners.

What subsidies do you think landlords get?

tom9980

CLAPTON wrote: »

interesting

Makes perfect sense.

Owners have long mortgages, they have chosen location due to work and school catchment areas.

Social renters are generally poor and had to have real need to get a property which has secure tenure and cheap rents. Nobody gives that up easily even when they no longer need it.

Private renters include all the groups like low skilled workers moving for work and students who don't want or need long tenancy agreements. Then you have the saving to buy young professionals so the figures are no surprise.

michaels

Here in Venezuela I can confidently say that govt control of prices has brought untold benefits to everyone, and I certainly wouldn't dare say otherwise. However if anyone could suggest where I could spend the day queuing for toilet paper I would be very grateful.

IronWolf

Generali wrote: »

What subsidies do you think landlords get?

He thinks getting tax relief on expenses such as repairs and interest amounts to 'subsidies'