Any long term renters in? Do you worry about your future?

AFF8879

TripleH said:

The problem isn't a UK wide one. 

It’s interesting… during the pandemic, and it’s longer term effects, I expected the shift to remote working to create a regional redistribution of house prices as people are no longer tied to their commutes. Unfortunately, it seems to have pushed prices up everywhere (though I do question how much of that is based on economic fundamentals vs house price fever). The only areas lagging are London flats, which were near the top of the price distribution to begin with.

[Deleted User]

What it boils down to is houses are seen as an investment, not somewhere to live. They also last far too long, and don't get significant renovation work done so become unsuitable. A combination of ridiculous prices driven by investors and poor housing stock has created a toxic enviroment.

michael1234

Here is a different perspective. I retired early and am moving abroad. Ideally, I'd like to rent my house out for a few years. I started looking into it and then I realised I'd be entirely at the mercy of a potential tenant as to how well the let proceeded. In particular, I just can't get my head around the fact about what do I do if the tenant loses their job and can't pay the rent?

I'd only have one property and that would be providing me an income. If the tenant either through no fault of their own or for some other reason stops paying the rent and won't move out there's nothing I can do. Well I think there are things but they take more than a year and a lot of time, work and more expense (court fees etc). I'd also worry about what if they were just "wrong-uns" and decided to trash the place? That'd be most of my life savings up in smoke.

Yes I know tenants are vetted and credit-checked etc but these things still do happen and I can't afford to take even a 2% risk of it happening to me. Maybe if I was a big landlord with a dozen or more properties then you could balance the risk. But the rules at present don't really allow an individual with one property to let it out safely.

So I plan to sell my house and buy flats in the place I'm moving to as over there a landlord can repossess his property more quickly if the tenant can't pay.

I'm obviously not looking for any sympathy whatsoever but just explaining one person's perspective as to why he won't at his property on the rental market. 

Gavin83

michael1234 said:

Here is a different perspective. I retired early and am moving abroad. Ideally, I'd like to rent my house out for a few years. I started looking into it and then I realised I'd be entirely at the mercy of a potential tenant as to how well the let proceeded. In particular, I just can't get my head around the fact about what do I do if the tenant loses their job and can't pay the rent?

I'd only have one property and that would be providing me an income. If the tenant either through no fault of their own or for some other reason stops paying the rent and won't move out there's nothing I can do. Well I think there are things but they take more than a year and a lot of time, work and more expense (court fees etc). I'd also worry about what if they were just "wrong-uns" and decided to trash the place? That'd be most of my life savings up in smoke.

Yes I know tenants are vetted and credit-checked etc but these things still do happen and I can't afford to take even a 2% risk of it happening to me. Maybe if I was a big landlord with a dozen or more properties then you could balance the risk. But the rules at present don't really allow an individual with one property to let it out safely.

So I plan to sell my house and buy flats in the place I'm moving to as over there a landlord can repossess his property more quickly if the tenant can't pay.

I'm obviously not looking for any sympathy whatsoever but just explaining one person's perspective as to why he won't at his property on the rental market. 

I do think we’re only a couple of years away from a real serious rental crisis. We’ll end up in a situation where demand massively outstrips supply as more and more landlords leave the market. This will inevitably drive rent prices up and leave a lot of people unable to afford housing. I can only see a few potential choices to fix this:

1) Stick laws in place for rent ceilings or increase tenants rights further. This will however just drive even more landlords to back out and leave even less rental options on the market.

2) Reduce tenants rights or at least make it easier to evict non paying tenants. The tenancy groups will lose their minds over this though and I expect the press will tear the Tories apart for suggesting it, therefore it won’t happen.

3) Build more social housing. With what though given the country has no money.

Ultimately there isn’t an easy solution to this.

This is the problem with Government policies. On the surface some seem OK but the reality can cause serious issues. 

JJC1956

For anyone on LinkedIn there is an article today, ‘Housing Crisis Goes Global’, Doesn’t make great reading for renters.
In the UK I would advise young people to stay at home with their parents for as long as they can.
Personally I don’t think there is a shortage of affordable housing, I think there is a Glut of Greedy Banks, Greedy Landlords and Greedy Landowners.

jimbog

[Deleted User] said:

What it boils down to is houses are seen as an investment, not somewhere to live. They also last far too long, and don't get significant renovation work done so become unsuitable. A combination of ridiculous prices driven by investors and poor housing stock has created a toxic enviroment.

Have to disagree with this. The majority of people buy their house to live in 

jimbog

Gavin83 said:

michael1234 said:

Here is a different perspective. I retired early and am moving abroad. Ideally, I'd like to rent my house out for a few years. I started looking into it and then I realised I'd be entirely at the mercy of a potential tenant as to how well the let proceeded. In particular, I just can't get my head around the fact about what do I do if the tenant loses their job and can't pay the rent?

I'd only have one property and that would be providing me an income. If the tenant either through no fault of their own or for some other reason stops paying the rent and won't move out there's nothing I can do. Well I think there are things but they take more than a year and a lot of time, work and more expense (court fees etc). I'd also worry about what if they were just "wrong-uns" and decided to trash the place? That'd be most of my life savings up in smoke.

Yes I know tenants are vetted and credit-checked etc but these things still do happen and I can't afford to take even a 2% risk of it happening to me. Maybe if I was a big landlord with a dozen or more properties then you could balance the risk. But the rules at present don't really allow an individual with one property to let it out safely.

So I plan to sell my house and buy flats in the place I'm moving to as over there a landlord can repossess his property more quickly if the tenant can't pay.

I'm obviously not looking for any sympathy whatsoever but just explaining one person's perspective as to why he won't at his property on the rental market. 

I do think we’re only a couple of years away from a real serious rental crisis. We’ll end up in a situation where demand massively outstrips supply as more and more landlords leave the market. This will inevitably drive rent prices up and leave a lot of people unable to afford housing. I can only see a few potential choices to fix this:

1) Stick laws in place for rent ceilings or increase tenants rights further. This will however just drive even more landlords to back out and leave even less rental options on the market.

2) Reduce tenants rights or at least make it easier to evict non paying tenants. The tenancy groups will lose their minds over this though and I expect the press will tear the Tories apart for suggesting it, therefore it won’t happen.

3) Build more social housing. With what though given the country has no money.

Ultimately there isn’t an easy solution to this.

This is the problem with Government policies. On the surface some seem OK but the reality can cause serious issues. 

     4) As in some developing countries, renters would be only able to afford HMOs 

strawb_shortcake

Not a renter but I'm amazed by how many of my renting friends haven't even considered how or where they are going to live post retirement, mostly aged late 30's to 50, and all bar one they don't even have much of a pension in place either. 
Lots of people I know are dependent on either an inheritance or benefits in their old age

[Deleted User]

annabanana82 said:

Not a renter but I'm amazed by how many of my renting friends haven't even considered how or where they are going to live post retirement, mostly aged late 30's to 50, and all bar one they don't even have much of a pension in place either. 
Lots of people I know are dependent on either an inheritance or benefits in their old age

Bit like myself, I have no pension either, although being an only child in theory I should be in line for my parents house however I;m not expecting it so full expect to be working until I kick the bucket.

theartfullodger

Think this is tied in with Thatcher's cunning plan for section 21 permitting any landlord (AST tenancy) to evict for no reason at all.  

The s21 equivalent has been abolished in Scotland: The sky did not fall in.  Landlords did not run screaming off cliffs.  I am a scottish landlord am quite happy with s21 abolition & the Scottish PRT.

Best wishes to all.