Renters' Rights Bill - Will it screw me over?

caprikid1

"If that is the case loads of landlords will be going out of business in the coming years, this means more housing supply so a good thing really. "

Sorry am I missing something ? I appreciate you are constantly trying to push a single narrative.

How can Landlords going out of business increase the supply of property ? Do houses suddenly breed or get turned into Flats ?

Landlords are exiting the market , new landlords are not coming in, if Landlords going bust was a good thing why are rents soaring ?

All the reforms and changes are a renters nightmare, the supply of rental accommodation is decreasing, not everyone wants to own or can afford to own.

ReadySteadyPop

caprikid1 said:

"If that is the case loads of landlords will be going out of business in the coming years, this means more housing supply so a good thing really. "

Sorry am I missing something ? I appreciate you are constantly trying to push a single narrative.

How can Landlords going out of business increase the supply of property ? Do houses suddenly breed or get turned into Flats ?

Landlords are exiting the market , new landlords are not coming in, if Landlords going bust was a good thing why are rents soaring ?

All the reforms and changes are a renters nightmare, the supply of rental accommodation is decreasing, not everyone wants to own or can afford to own.

You are saying that landlords who stop being landlords keep all their properties?

ReadySteadyPop

Mr.Generous said:

I'm afraid that what people have done in the past won't help much. They may have taken students without rent in advance or a guarantor but they could evict, and they couldn't always choose a tenant so easily.

Despite what posters with no experience as a landlord say it's a sellers market. Massively skewed in the landlords favour. They will probably get between 20-50 applicants and they will take what they believe is the best one. 

Landlords are going to be more cautious and risk averse. Most will not shortlist you for a viewing I'm afraid. The new laws are going to impact tenants far more than landlords. Some will indeed sell up because of the new rules, including the new EPC rules not yet in force, and this really won't help. Supply and demand imbalance doesn't just drive up rents it gives landlords carte blanche to select tenants. 

A landlord mate has just taken a couple from Hong Kong and an Indian Dr in 2 houses. Both unable to pass affordability tests because no UK employment history, both got tenancy with 12 months up front. In future these people won't be able to rent. If you fail affordability checks then usually landlord insurance won't cover you. Policies require tenants to be vetted and pass checks.

If that was the case landlords wouldn`t be trying to exit the market, they would be buying more properties, but the reality is that many landlords (especially recent heavily indebted entrants to the market) are barely breaking even each month.

[Deleted User]

spoovy said:

I think the idea is to not make perfect the enemy of good. Yes of course in the short to medium term disruption will impact renters and that's not ideal, but that's not a good reason to allow the current parasitical and abusive system to carry on unchanged forever.
We'll have to see how it pans out in practice.
If the landlords do all sell up then sale prices at the bottom end will come down, a bit at least, and many FTBs at the low end will benefit and escape the rent trap, also reducing demand on rental stock at the same time; the impact on rental prices might not be that great. 

You are more interested in penalising landlords that helping tenants.

Section62

ReadySteadyPop said:

caprikid1 said:

"If that is the case loads of landlords will be going out of business in the coming years, this means more housing supply so a good thing really. "

Sorry am I missing something ? I appreciate you are constantly trying to push a single narrative.

How can Landlords going out of business increase the supply of property ? Do houses suddenly breed or get turned into Flats ?

Landlords are exiting the market , new landlords are not coming in, if Landlords going bust was a good thing why are rents soaring ?

All the reforms and changes are a renters nightmare, the supply of rental accommodation is decreasing, not everyone wants to own or can afford to own.

You are saying that landlords who stop being landlords keep all their properties?

No, they were saying that your claim "...landlords will be going out of business in the coming years, this means more housing supply..." is wrong.  "Housing supply" means the total availability of houses. A landlord owning one property 'going out of business' means there is one property up for sale - either to an owner occupier or another landlord.

The one property doesn't become two, 1 is still 1.  The housing supply doesn't change for the better or worse.

Landlords selling up could mean more houses for owner-occupiers to buy, but only if other landlords don't purchase them.  Personally I expect the rental market will shift from individual landlords over to company landlords - we'll see a shift from people investing directly in rental property over to investing in companies owning property.  Some might feel a more commercial (less amateur) approach in the rental market will be a good thing.  I'm not one of them.

[Deleted User]

Landlords typically rent to tenants who primarily pass affordability and referencing checks. That being said, you might still secure a rental if you have a homeowner guarantor or are willing to pay six months of rent upfront.

Generally, landlords/agents will review your payslips and bank statements during the application process.

Many landlords are increasingly cautious now, especially if they have had negative experiences in the past.

FlorayG

Zoe02 said:

Landlords typically rent to tenants who primarily pass affordability and referencing checks. That being said, you might still secure a rental if you have a homeowner guarantor or are willing to pay six months of rent upfront.

Generally, landlords/agents will review your payslips and bank statements during the application process.

Many landlords are increasingly cautious now, especially if they have had negative experiences in the past.

This is the OP's whole point - this will not be legal with the new bill so they won't be able to offer it even if they can afford it

saajan_12

In a word, yes - there will still likely be houses you can rent, but likely at a higher price or restricted to the less desirable properties. 

Previously, I'd see a working tenant vs non working with a strong guarantor vs student / recent graduate and able to pay a couple of months ahead as relatively even, and I might choose based on other smaller things eg start date, likelihood of staying longer, or rent amount offered. With the changes, paying ahead won't be allowed so that candidate would be a last resort and unless they offered a chunk more rent, it wouldn't make sense to pick them. If I had a less desirable property, perhaps that's the only person looking as those with a stronger income or guarantor are now first in line for the more desirable properties. 

There are things that are wrong with the rental market.. having an initial fixed term or rent upfront is not one of them. 

caprikid1

ReadySteadyPop said:

caprikid1 said:

"If that is the case loads of landlords will be going out of business in the coming years, this means more housing supply so a good thing really. "

Sorry am I missing something ? I appreciate you are constantly trying to push a single narrative.

How can Landlords going out of business increase the supply of property ? Do houses suddenly breed or get turned into Flats ?

Landlords are exiting the market , new landlords are not coming in, if Landlords going bust was a good thing why are rents soaring ?

All the reforms and changes are a renters nightmare, the supply of rental accommodation is decreasing, not everyone wants to own or can afford to own.

You are saying that landlords who stop being landlords keep all their properties?

OK, I know you have an agenda here.

Let me do that maths for you.

5 Rental Properties + 5 Privately owned properties = 10 Properties

No Landlord

10 Privately Owned Properties = 10 Properties ?

or 7 Privately Owned Propertied + 3 empty for sale = 10 properties but 3 families with no home.

Not sure how the supply of properties increases.

The challenge is though.

5 Rental Properties of which 2 tenants are able to buy 3 are not, where are they living ? 3 properties are sat empty as they are being sold ?

What happens is rent goes up due to a lack of Rental properties, the system broke when Thatcher sold all the council houses.

Landlords are existing the market and rents are going up IF you were right they would be going down !

ReadySteadyPop

Section62 said:

ReadySteadyPop said:

caprikid1 said:

"If that is the case loads of landlords will be going out of business in the coming years, this means more housing supply so a good thing really. "

Sorry am I missing something ? I appreciate you are constantly trying to push a single narrative.

How can Landlords going out of business increase the supply of property ? Do houses suddenly breed or get turned into Flats ?

Landlords are exiting the market , new landlords are not coming in, if Landlords going bust was a good thing why are rents soaring ?

All the reforms and changes are a renters nightmare, the supply of rental accommodation is decreasing, not everyone wants to own or can afford to own.

You are saying that landlords who stop being landlords keep all their properties?

No, they were saying that your claim "...landlords will be going out of business in the coming years, this means more housing supply..." is wrong.  "Housing supply" means the total availability of houses. A landlord owning one property 'going out of business' means there is one property up for sale - either to an owner occupier or another landlord.

The one property doesn't become two, 1 is still 1.  The housing supply doesn't change for the better or worse.

Landlords selling up could mean more houses for owner-occupiers to buy, but only if other landlords don't purchase them.  Personally I expect the rental market will shift from individual landlords over to company landlords - we'll see a shift from people investing directly in rental property over to investing in companies owning property.  Some might feel a more commercial (less amateur) approach in the rental market will be a good thing.  I'm not one of them.

People have been saying this for a long time, I think the commercial property meltdown will make many (sensible) companies wary of getting into rentals (less sensible companies no longer have the same access to cheap debt that they once had and will probably go out of business anyway) I mean there will be more supply for sale, there is no shortage of supply, you don`t think that if 20 (or 50 people as some landlords are claiming) people view a flat and one gets "chosen" that the other 19 are homeless do you? All that happens is that they go on living where they already live and didn`t get a particular flat that they wanted for some reason.