Generation Rent = Generation Homeless?

andy5000

I spoke to my landlord while he was here yesterday, and he said that if Labour win the election he's going to sell up. Bit of a shock as he'd previously catagorically said the house I live in was a long term plan, ten years plus. Dead happy here, affordable and an area we know well. We've done the garden, decorated, spent quite a bit to get it nice. Our agreement is a rolling one, started off as a 12 month agreement then it went to rolling month by month, so I know we could be moving on within 2 months.

My question is, if Labour do win, it'll mean the same extra costs for all landlords - so there will literally be nowhere to rent. He said there'd be the new land tax which would cost him 5000 a year on our house, so there'd be no point in him continuing. Is he right? I've looked it up, it is in the labour manifesto and it would replace the council tax we pay, so we could pass that on to him monthly to continue to rent but it would nowhere near cover 5000 a year and we obviously can't afford that
Longterm this could be a really good thing for us as we'd always planned to buy again and have been saving towards a deposit, so if house prices drop even a few percent it'd speed our buying plans up but in the short term surely we'll struggle if there's nothing out there decent to rent. What do you think? Am I right on this that everyone will sell up? If we can stick it out house prices might get more sensible, but its the short term that's worrying me.

dares_uk

Labour wont win, dont worry about that.

SerialRenter

Better start saving for a deposit then!

If the landlord wants to sell, they'll probably ask you first.

Guest101

If everyone sells up - then prices will be incredibly low.


I mean it's moot anyway, Jeremy Corbyn has more chance of winning the lottery

andy5000

SerialRenter wrote: »

Better start saving for a deposit then!

If the landlord wants to sell, they'll probably ask you first.

We discussed this and it is an option, we do love the house and the kids are settled but it's not cheap and we're way off a proper depsoit yet - question is, if they do win (yeah yeah I know) I'd want to stick it out for a bit to see how much prices drop or if they do at all. Am I worrying over nothing here? LL was proper worried. Unless he's changed his plans and using labour as an excuse..

hazyjo

And Katie Hopkins said she'd leave the UK if Trump became president.


People are often full of hot air. I very much doubt there will become a point where "there will literally be nowhere to rent".


There's enough to worry about in life without worrying about the what ifs. Try to deal with things as they happen. If labour do get in, I doubt very much that the sale board will be up within a day so I'm sure you'll have plenty of time to worry once you know one way or the other...


Jx

andy5000

I'm probably not allowed to say what I think about Katie Hopkins.
Yes, it's not a life and death problem, but it's worrying me. Really don't want to be forced into moving because of an election. Labour have good plans overall but I'm wondering whether they haven't thought about what could happen in the meantime. Could definitely be good for house prices long term as a buyer but short term things could really be up in the air.

juniordoc

Whilst it's unlikely that labour will win with any significant majority, a hung parliament is more probable.
This would prolong the recent political and economic uncertainty and likely deter buyers which may help bring prices down.
Try not to worry about the many factors which are out if your control, and focus on the ones that are. Keep saving for your deposit, and if you really want to, keep your eye on the local rental market so if it comes to your landlord selling up then you know what's out there.

Pixie5740

There will always be a market for private rental properties and there will always be people who can make money from BTL or at least some eejits who go into BTL with their eyes shut.

poppasmurf_bewdley

Well, you know which way to vote then, don't you.

steampowered

andy5000 wrote: »

He said there'd be the new land tax which would cost him 5000 a year on our house, so there'd be no point in him continuing.

This is simply untrue. It is a lie that your landlord has swallowed hook, line and sinker.

What the Labour manifesto actually says - the only thing it says on the subject of land value tax - is this:

We will initiate a review into reforming council tax and business rates and consider new options such as a land value tax, to ensure local government has sustainable funding for the long term.

Given that council tax is based on the imagined value of your property in 1991 - and that massive business rates under the Conservatives are forcing many small business owners out of business - having a review of the system is completely sensible.

The £4,000 figure was made up by the Conservatives and published by the Daily Mail. There is no basis for it. If your landlord believes it I have some snake oil I would like to sell him.