Rents Frozen In Scotland From Today

MobileSaver

Sarah1Mitty2 said:

AJRBADGER said:

Sarah1Mitty2 said:

born_again said:

It's crazy..
Perhaps all private landlords in Scotland need to sell these & leave the Government the task of finding all the renters new homes. 

Who are they going to sell to with tenants in place? And if they all sell there will be a lot less renters for the government to house.

Say there are 1,000,000 houses in the rental market 1,100,000 people wanting to rent - 10% more demand than supply.

Where does the extra 10% in your imaginary scenario live at the moment?

Do you really need this spelling out for you? If this scenario is "imaginary" perhaps you can explain why average rents have increased by more than 20% over the last few years? Surely that can only happen if demand is more than supply?

There are loads of people living in less-than-ideal housing situations; for example, adult children still living at home and couples splitting up but still having to share a home.

Sarah1Mitty2 said:

Alderbank said:

A common example is an older couple having to share their two bedroom house with their son, his wife and their two children.

How many people do you know that are doing this?

You mustn't have got the HPC memo; @Crashy_Time used to claim that huge numbers of adult children would move back in with their parents rather than pay ever-increasing rents.

ProDave

[Deleted User] said:

ProDave said:

[Deleted User] said:

AJRBADGER said:

Sarah1Mitty2 said:

born_again said:

It's crazy..
Perhaps all private landlords in Scotland need to sell these & leave the Government the task of finding all the renters new homes. 

Who are they going to sell to with tenants in place? And if they all sell there will be a lot less renters for the government to house.

One of the reasons for well above inflation house/rental price growth is demand outweighs supply. Undoubtedly both are a problem, although far less so in much of Scotland than further south in the UK.

Say there are 1,000,000 houses in the rental market 1,100,000 people wanting to rent - 10% more demand than supply.

If 500,000 were sold to people already renting, we'd have 500,000 in the rental market with 600,000 wanting to rent - 20% more demand than supply. 

Less people renting doesn't make the problem smaller. The issue is a lack of houses.

The thing is that many of those people who "want" to rent actually want to buy, but can't afford it because landlords bought up all the property and helped push prices even higher.

Spare a thought for landlords who are only landlords because when i tried to sell my house, in a depressed market nobody wanted to buy it.  Now the sales market is bouyant I might be prevented from evicting the tenant so I can sell it.

You can sell it with tenant in situ, or sell it to the tenant at a reasonable price.

What you mean is you want more money.

The original deal was the tenant would buy it, and I still hope he will pull a rabbit out of the had and make his offer before the end of the year, but one way or another we need it sold. It was never intended to be a long term let.

The sweetener for the tenant is we are still prepared to sell it to him at the valuation when he moved in, so we would be in the same financial position as if we had been able to sell it 6 years ago.  If we were really greedy we would insist on selling it at todays valuation.

TripleH

There are many situations behind people becoming a landlord.

Demand and Supply is key.

We could argue the moral rights and wrongs all day and get nowhere.

If people follow the rules and meet all their obligations as landlords then they are doing nothing wrong.

I do think it unfair that the government put rules on landlords and set the bar high (the rules put in place are fine) but yet can be far less stringent with tenants when they err.

Whilst there will always be a demand for private housing, I think the 'government' (people who run the counties of this island) have failed in their obligations for housing but deflect the blame onto others because 'it wasn't them who made the decisions'

Retireby40

If they want/are going to freeze rent increases for landlords, then it's time to freeze price rises in every commodity where people make money.

Price freezes at Tescos, price freezes on gas/electric/petrol/school products/transport/hotel prices you name it.

AJRBADGER

k12479 said:

AJRBADGER said:

My main issue, I'm wanting to sell my flat, and that this government decision may effectively force me to continue being a landlord until the eviction ban is lifted... 

Stick it into an auction. Let properties with existing tenants are commonplace.

In doing that you are excluding so much of the market. It's a perfect flat for a single first time buyer.

The flat is worth about £55k, and well..... I probably want about £55k for it. £55k is a good bit below the inflation adjusted number I paid for it (£44k in 2007, then £4k changing from storage to central heating + £4k modernising and insulating it + £2k flooring the attic/cladding and plastering the beams to make it a usable - albeit inhabitable - space).

Putting it up for auction, I might be voluntarily giving away £10-20k as I'd only expect it to make £35-45k being sold tenanted (you almost never see tenanted properties being sold in my area, and advised not to sell it tenanted by estate agent quoting those valuations). I don't think it is realistic to ask somebody to potentially take that hit.

I don't think it's an attractive proposition as the tenant pays £275 a month, so would undoubtedly sell low at auction.

martindow

Retireby40 said:

If they want/are going to freeze rent increases for landlords, then it's time to freeze price rises in every commodity where people make money.

Price freezes at Tescos, price freezes on gas/electric/petrol/school products/transport/hotel prices you name it.

Looks like  start has been made on your list!

newsgroupmonkey_

Sarah1Mitty2 said:

Alderbank said:

Sarah1Mitty2 said:

AJRBADGER said:

Sarah1Mitty2 said:

born_again said:

It's crazy..
Perhaps all private landlords in Scotland need to sell these & leave the Government the task of finding all the renters new homes. 

Who are they going to sell to with tenants in place? And if they all sell there will be a lot less renters for the government to house.

One of the reasons for well above inflation house/rental price growth is demand outweighs supply. Undoubtedly both are a problem, although far less so in much of Scotland than further south in the UK.

Say there are 1,000,000 houses in the rental market 1,100,000 people wanting to rent - 10% more demand than supply.

If 500,000 were sold to people already renting, we'd have 500,000 in the rental market with 600,000 wanting to rent - 20% more demand than supply. 

Less people renting doesn't make the problem smaller. The issue is a lack of houses.

I do have a big issue with the government moving the goal posts on a whim, particularly with an eviction ban. Already it is being said in parliament that this ban will go on to March and 'possibly longer' - obviously there is a lot of concern there. I did find myself in a situation that wasn't great with a tenant during covid, costing thousands, and I fear it can happen again. I fear that once again - as a landlord - I'm hamstrung to do anything about it.

Say there are 1,000,000 houses in the rental market 1,100,000 people wanting to rent - 10% more demand than supply.

 Where does the extra 10% in your imaginary scenario live at the moment?

You don't need any imagination. The concept of overcrowding is a real one.

A common example is an older couple having to share their two bedroom house with their son, his wife and their two children.

How many people do you know that are doing this?

My son, for one. Living with his girlfriend's parents and his son.

Loads of people are in this situation - you read it here all the time.

Retireby40

martindow said:

Retireby40 said:

If they want/are going to freeze rent increases for landlords, then it's time to freeze price rises in every commodity where people make money.

Price freezes at Tescos, price freezes on gas/electric/petrol/school products/transport/hotel prices you name it.

Looks like  start has been made on your list!

What have they capped it at £2500 a year or so? Still ridiculous the hike in prices. 

AJRBADGER

newsgroupmonkey_ said:

Sarah1Mitty2 said:

Alderbank said:

Sarah1Mitty2 said:

AJRBADGER said:

Sarah1Mitty2 said:

born_again said:

It's crazy..
Perhaps all private landlords in Scotland need to sell these & leave the Government the task of finding all the renters new homes. 

Who are they going to sell to with tenants in place? And if they all sell there will be a lot less renters for the government to house.

One of the reasons for well above inflation house/rental price growth is demand outweighs supply. Undoubtedly both are a problem, although far less so in much of Scotland than further south in the UK.

Say there are 1,000,000 houses in the rental market 1,100,000 people wanting to rent - 10% more demand than supply.

If 500,000 were sold to people already renting, we'd have 500,000 in the rental market with 600,000 wanting to rent - 20% more demand than supply. 

Less people renting doesn't make the problem smaller. The issue is a lack of houses.

I do have a big issue with the government moving the goal posts on a whim, particularly with an eviction ban. Already it is being said in parliament that this ban will go on to March and 'possibly longer' - obviously there is a lot of concern there. I did find myself in a situation that wasn't great with a tenant during covid, costing thousands, and I fear it can happen again. I fear that once again - as a landlord - I'm hamstrung to do anything about it.

Say there are 1,000,000 houses in the rental market 1,100,000 people wanting to rent - 10% more demand than supply.

 Where does the extra 10% in your imaginary scenario live at the moment?

You don't need any imagination. The concept of overcrowding is a real one.

A common example is an older couple having to share their two bedroom house with their son, his wife and their two children.

How many people do you know that are doing this?

My son, for one. Living with his girlfriend's parents and his son.

Loads of people are in this situation - you read it here all the time.

My figures are pulled out of the air, but they were not meant to be anything other than to demonstrate the mathematical concept behind getting more people, whom are renting, to buy - actually makes the rental market worse for renters. Less people wanting to rent but it worsens the supply to demand ratio, which usually only means one thing!

The problem is a housing shortage, be that for renters or buyers. It's the driving force behind house affordably being eyewateringly expensive with both rents and house prices going to the moon in many areas of the UK. The government(s) of the last 30-40yrs have to shoulder the blame for this.

The problem isn't solved until supply and demand are balanced. Unless of course you don't think the UK has a housing shortage.

newsgroupmonkey_

AJRBADGER said:

newsgroupmonkey_ said:

Sarah1Mitty2 said:

Alderbank said:

Sarah1Mitty2 said:

AJRBADGER said:

Sarah1Mitty2 said:

born_again said:

It's crazy..
Perhaps all private landlords in Scotland need to sell these & leave the Government the task of finding all the renters new homes. 

Who are they going to sell to with tenants in place? And if they all sell there will be a lot less renters for the government to house.

One of the reasons for well above inflation house/rental price growth is demand outweighs supply. Undoubtedly both are a problem, although far less so in much of Scotland than further south in the UK.

Say there are 1,000,000 houses in the rental market 1,100,000 people wanting to rent - 10% more demand than supply.

If 500,000 were sold to people already renting, we'd have 500,000 in the rental market with 600,000 wanting to rent - 20% more demand than supply. 

Less people renting doesn't make the problem smaller. The issue is a lack of houses.

I do have a big issue with the government moving the goal posts on a whim, particularly with an eviction ban. Already it is being said in parliament that this ban will go on to March and 'possibly longer' - obviously there is a lot of concern there. I did find myself in a situation that wasn't great with a tenant during covid, costing thousands, and I fear it can happen again. I fear that once again - as a landlord - I'm hamstrung to do anything about it.

Say there are 1,000,000 houses in the rental market 1,100,000 people wanting to rent - 10% more demand than supply.

 Where does the extra 10% in your imaginary scenario live at the moment?

You don't need any imagination. The concept of overcrowding is a real one.

A common example is an older couple having to share their two bedroom house with their son, his wife and their two children.

How many people do you know that are doing this?

My son, for one. Living with his girlfriend's parents and his son.

Loads of people are in this situation - you read it here all the time.

My figures are pulled out of the air, but they were not meant to be anything other than to demonstrate the mathematical concept behind getting more people, whom are renting, to buy - actually makes the rental market worse for renters. Less people wanting to rent but it worsens the supply to demand ratio, which usually only means one thing!

The problem is a housing shortage, be that for renters or buyers. It's the driving force behind house affordably being eyewateringly expensive with both rents and house prices going to the moon in many areas of the UK.

Unless of course you don't think the UK has a housing shortage.

Oh I absolutely know there is a shortage. It's Sarah that believes there isn't.