Why do people resent buy-to-letters so much?

michaels

AG47 wrote: »

If there is a cap on rents for each area, then only the nicest places would be that maximum rent, the more humble places would have to be less or they will never find tenants.

So deluded I don't know whether to laugh or cry

Generali

michaels wrote: »

So deluded I don't know whether to laugh or cry

I love some of the economics we get on here, it's brilliant.

CLAPTON

AG47 wrote: »

Rent caps would be a vote winner, the small group of btlers would hate it, but they would be wise to sell up now before the crash.

If there is a cap on rents for each area, then only the nicest places would be that maximum rent, the more humble places would have to be less or they will never find tenants.

several things would happen if there were rent caps (depending how they were set)
good but relatively cheap flats would never come on the market as
-people would be reluctant to move for obvious reasons
- flat that do be vacant will be passed from friend or relative to friends and relative so it would become who you know
-many of the 'rest' would float up to the max as fewer would be on the 'open' market
-no incentive to 'downsize ' as a smaller grotier place would only be marginally cheaper
plus all the usually disadvantages

chucknorris

Generali wrote: »

I love some of the economics we get on here, it's brilliant.

Even Homer Simpson couldn't have performed better, I'm sure there must be a comedy story in this thread somewhere.

mwpt

There is a lot of cognitive dissonance going on in this thread, probably from BTL landlords, multi property owners or simply people who now feel rich from their property.

Did you actually read and think about the article or did you just do it on autopilot letting your predisposed view shape the content?

If there has been a bigger transfer of wealth in generations, I'd like to know what it is. People see this as incredibly unfair. They then tend to resent the recipients of this transfer of wealth, particularly the foremost face of it, BTL landlords. I am not sure this view is particularly helpful but it does seem as though politicians are starting to listen (obviously will do increasingly as demographics change).

ukcarper

We need rental properties social housing lists are way oversubscribed and most of the new rental properties are BTL so if they go where is the rental property going to come from?

Jason74

wotsthat wrote: »

I'd guess it's jealousy.

Personally I think that view is at best a massive oversimplification. While there are people for whom it's true, I don't think that's by any means the main reason that many people feel an element of disdain towards BTL landlords.

The reality is that for many people, the way BTL works fundementally offends their sense of "fair play". Mwpt has it right when he points out the huge and unhealthy transfer of wealth that is benefiting older people at a direct cost to those younger than them. BTL is probably the most visible example of it.

At its core, BTL involves people who already have a secure home buying up other homes and in doing so preventing other people enjoying the security and asset ownership that they already enjoy. Having done so, they then extract profit from people who in some cases are frozen out of home ownership in part by their actions.

Now of course the situation in individual cases is more nuanced than that, not least as there will always be a need for some form of private rented sector, and some landlords are doutbtless very decent people (Chuck Norris on here always seems like a good example of just that). But it's a simple statement of fact that the paragraph above broadly has a large element of truth to it given the current size of the BTL sector, and it's something that disturbs many people. That number includes many like me, who as homeowners do not lose out personally from BTL, but see the inherent unfairness in it.

To dismiss all of the above as just jealousy is a long way wide of the mark imho.

Jason74

ukcarper wrote: »

We need rental properties social housing lists are way oversubscribed and most of the new rental properties are BTL so if they go where is the rental property going to come from?

Well that is of course why large scale social house building must become part of the housing mix again if we're ever going to solve the problem, regardless of how uncomfortable that fact is to those who believe the free market is the solution to everything.

ukcarper

Jason74 wrote: »

Well that is of course why large scale social house building must become part of the housing mix again if we're ever going to solve the problem, regardless of how uncomfortable that fact is to those who believe the free market is the solution to everything.

I agree but it's not going to happen.

Jason74

ukcarper wrote: »

I agree but it's not going to happen.

In the short term, you're right of course. But ten or even five years ago, who would have predicted the kind of anti BTL measures that we are now witnessing. As the realities of the situation become more apparent, solutions that would have been considered unpalatable previously become accepted.

The need for greater social house building is so blindingly obvious to anyone with even a basic understanding of housing issues that sooner or later the wheel will have to turn back in that direction. The question is how long that will take, and how more much damage will be done in the meantime.