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TODAY'S OTHER NEWS

Government urged to ‘stimulate’ rental home supply with ‘pro-growth taxation’

The UK is facing a private rented housing crisis unless the government takes rapid action to stop landlords selling up, according to the Residential Landlords Association (RLA).

A quarter of private landlords are looking to sell at least one property over the next 12 months, according to fresh research published yesterday.

Of almost 2,500 landlords who responded to a survey by the RLA, just over 25% said that they were planning to sell at least one property over the next year, the highest proportion since the RLA started asking this question regularly in 2016.

The survey also reveals that 23% of landlords report an increase in the demand for rental property over the previous three months, with 57% reporting it to be stable.

More than a third of landlords reported low levels of confidence in the PRS over the next 12 months.

The fact that so many private landlords are thinking about decreasing the number of properties they rent out is a major concern, given the existing supply-demand imbalance in the market, which will inevitably lead to rents increasing in the near term.

The Royal Institution of Chartered Surveyors has warned that the imbalance between supply and demand in the rental market is expected to see rents increase by an average of 15% over the next five years.

The RLA is now urging the government to address the growing crisis by ensuring that new regulations governing how landlords can regain possession of their properties in legitimate circumstances are fair and effective both for landlords and the tenants.

David Smith, policy director for the RLA, said: “All the talk of longer tenancies will mean nothing if the homes to rent on not there in the first place.

“The government's tax increases on the sector are already making it difficult for tenants to find a place to live, with many landlords not renewing tenancies. If rushed and not thought through, planned changes to the way landlords can repossess properties risk making the situation even worse.

“Action is needed to stimulate supply with pro-growth taxation and a process for repossessing homes that is fair to all.”

Poll: Are you looking to sell at least one property over the next 12 months?

PLACE YOUR VOTE BELOW

  • SCN Lettings

    Too little too late. Section 24 tax increases, extra stamp duty, tenant fee ban ( putting more pressure on landlords to pay the lost fees) and now Section 21 being lost means buy to let is, if not dead, is dying. Look out for rent caps next by both major political parties in the quest for Generation Rent votes. PRS is a slow burner until it reaches the tipping point of no return. We are very close to that and this will become evident when interest rates rise. Then see what the politicians do to house the people who want to rent.

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    Couldn’t agree more

     
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    Full disclosure I’m a small private landlord with 3 properties with mainly long term tenants , my properties are well maintained and I keep my rents reasonable , in fact a little lower than what allot of other landlords charge. In the last few years I feel like we are getting hammered with new legislation, rule changes, costs and taxes and it’s got to the stage it feels socially unacceptable to be a landlord . I currently have 2 of my properties on the market as I’ve had enough. Soon availability will be a problem as I’m sure allot of private landlords are feeling the same .

    SCN Lettings

    Same here.

     
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    I have 75 units ran professionally and will be selling at least half over the next few years had enough

     
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    "Socially unacceptable" is an understatement. It seems that the word "landlord" has to be preceded by "rogue" and/or "greedy" these days. I have 1 house and 5 flats rented out; 2 of which i used to live in. I keep rents lower than market to keep the tenants long-term; I attend to repairs immediately and do preemptive maintenance. I've had to evict just one over the 13 years and it cost me around £7000 in lost rent/repairs/legal. None of which I've got back as he can't be found by any search. Don't hear much in the media about "rogue tenants" do we?

     
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    Why so much doom and gloom? How about recording the numbers of PRS landlords who aim to increase their portfolio? I will be doing so. Rental income beats pension provision any day!

    Paul Barrett

    If you aren't a S24 LL then agreed though going corporate at the outset has its issues.
    Mainly getting at the rental income tax effectively.
    If you don't need the rental income then ploughing it into a pension is the best thing to do.
    But most LL want jam today NOT in 40 years time!
    Plus if you can keep your income below £50000 when the HRT kicks in then fine
    There can't be many mortgaged sole trader LL whose income and mortgage interest combined is less than this and of course there is the tax free allowance available to everyone which I think will be £12000 in a year's time.
    Though even with this you don't want to exceed the HRT level as withdrawal of child benefit and pension allowances occur once reached.
    Providing you ensure you don't earn more then this keeps you out of the S24 clutches.
    If Govt wants to restore the PRS then it needs to abandon the bonkers S24 policy and reform SDLT and certainly get rid of the SDLT surcharge for 2nd properties.
    If it wants I would suggest Govt imposes a 50% LTV requirement for all new mortgages required for any property purchased by a LL for the first time.
    Most LL would have £50000 for a deposit.
    They might buy 2 properties with this.
    Well now they could buy one.
    Still worth doing and from the Govt perspective far more resilient at 50% LTV than 75% LTV.
    No LL has the right to credit and it would give the Govt some brownie points as far as GR etc is concerned as it would prove to GR that Govt was restricting the ability of LL to maximise deposits if LTV is reduced compulsorily.
    It wouldn't have deterred me from buying except I could have only bought 2 properties rather than the 4 I bought with the same deposit pot.
    Govt could also offer a free pass to LL who wish to incorporate.
    So give every LL for say the next 5 years the opportunity to incorporate tax free though of course if S24 is abolished why would incorporation be necessary anymore!?
    The Irish Govt is desperately unwinding its S24 version as a housing crisis persists.
    A 3 year experiment with taxing LL turnover has proven disastrous in Ireland.
    Rents have increased by 50% and there is now a substantial shortage of rental properties.
    Irish LL are showing great reluctance to return to the market.
    Who can blame them!?
    However this Govt will do nothing.
    It is an ostrich Govt and is on it's deathbed.
    The drubbing it received in the Council elections is just the start.
    It only takes about 12 Tory marginal seats to go and you get a Labour/SNP coalition Govt!!
    Govt won't do a single thing to undo its bonkers anti-PRS policies; it is in a death spiral.
    It has set its path and is determined to hit the buffers.
    Make sure you are in the last carriage and NOT the first!!

     
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    The governments intervention in the PRS was designed to result in exactly what is being described, namely the selling of houses by landlords to allow those tenants losing their home the opportunity of buying one instead of renting another one. Too many landlords depriving first time buyers the opportunity of owning their own home was the starting point and it will be interesting to see if the governments efforts are rewarded or back fire and the housing crisis continues with further meddling by government making the landscape difficult for both landlords and tenants a like but one must hope they know what they are doing albeit it doesn’t look like they do!

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    Very few young people will ever own their own home, unless they are lucky enough to be left one in a will, low wages, zero hours contracts, and of course their excessive life styles of have today pay later attitude rules most of them out of home ownership.

     
    Paul Barrett

    Absolute twaddle.
    You have bought into the lie that LL have been preventing anyone buying.
    NO they haven't
    There have been thousands of properties available for purchase well before LL started selling up because of S24 etc.
    FTB have not bought for a wide variety of reasons.
    LACK OF SUPPLY IS NOT ONE OF THEM!!

     
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    No, the government interventions in the PRS are designed to get the votes of renters. Most tenants cannot afford to buy, that’s why they rent. Evicting them will not enable them to buy.

     
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    Paul i have not bought into that lie at all, there are properties available for them, but while they don't save and spend their wages like water they are never going to own a property, it's self inflicted .

    Paul Barrett

    @ townshend
    Didn't mean YOU.
    Meant
    R Feast.
    Something going wrong with post order!!

     
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    Properties are selling and being purchased by all sorts.
    B2L is only dead for those dont self manage. We have over 12m portfolio yet below s24 concerns. Yes will sell only because of stupid silly regs and rules, we are professional governments and councils bods are not.
    Purchase Commercial less hasle.

    Paul Barrett

    Afraid the vast majority of LL are simply NOT interested in Commercial.
    Vacant shops for a start.
    I simply would leave my capital in a savings account if it wasn't for bog standard resi letting.
    Maybe now a FHL but apparently that market is being flooded by new entrants who are most probably S24 LL attempting to avoid S24.
    Doing something prosaic like commercial is of no interest to me or most other normal LL.
    Only the truly business like professional LL will get into that stuff!
    That certainly ISN'T me!!
    There is no way I would make any money if I needed a LA!
    Last one I used caused me losses of over £60000
    Never recoverable and still have the burden of it on my balance sheet.
    LA got away Scot free.
    LA complete and utter scum as far as I am concerned

     
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    Commercial is sound if sourced correctly.
    Lots of opportunities out there. Seek established businesses with long FR leases excellent business accounts, with directors of subtance. Not just shops, look outside the box, health centres dancing schools,gyms,keep fit, social old person establishment's. The list is not endless.

    Paul Barrett

    Oh! I get what YOU are stating.
    STILL NOT interested!
    I guess that is the difference between a professional LL and those LL just wishing to do bog standard resi lettings.
    Am simply NOT prepared to venture into Commercial.
    Funds don't permit it anyway!
    Well OUTSIDE my comfort zone.
    I'll leave that market to the clever LL one of which I am NOT!
    I know what I know.
    I simply can't be bothered to learn new stuff.
    If that affects my income level then so be it!
    For me it is now lodgers NOT tenants.
    My days of being an AST LL will be over very soon thanks to S24.

     
  • Paul Barrett

    @appalled LL
    Accepting your correct logic what might renters do if as a result of Govt policy there are fewer rental properties and consequently higher rents!!
    Surely that would p### of tenants just as much as not being able to buy!!??
    At least as things were before 2015 there was a healthy rental market.
    Yep this meant a few whiney self entitled GR brats moaned they couldn't afford to buy near mummy and daddy but for the vast majority of tenants they had a decent supply of affordable rental property.
    This Govt has shown itself completely politically inept.
    They haven't a clue about the PRS.
    Whatever they do GR won't vote for the Tories.
    So why bother pandering to them p#####g off 2 million LL at the same time?
    Where all the newly homeless tenants are supposed to live beats me!!
    Plus we haven't even figured in the continuing MASS UNCONTROLLED IMMIGRATION!
    As you suggest they certainly won't be buying and neither will those tenants not being evicted.
    If they were going to buy they would have done so from the more than plentiful supply of properties presently available and very likely to increase as more LL look to sell off.
    Cause and effect doesn't seem to compute with this politically inept Govt.

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    The political chase for generation rent votes is gotten completely out of hand.. seems it’s just now who can bash the landlords the hardest wins the votes
    It would seem the tenants are paying the price but clearly can’t see it ...

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    Generation rent will always vote labour.

     
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    Renters are not the buyers and anyone who thinks that LLs selling up will allow renters to purchase is clueless, brainless, just like the government and council bods.
    Mummy or daddy or grandparent will have to cough up the deposit and guarantee in most cases, people rent for 4 reasons mostly, 1 no savings, 2 does not want to own, 3 students and 4 job movers. The LL has not pushed prices up in fact the opposite, if at an auction we will purchase as cheaply as possible which anyone can do the same not just the professional LL. We will seek out deceased properties, we will seek out the builder wishing to just turn a property, its not a science, its not magical witchcraft. We have cash because we worked and saved or inherited.
    We will never pay over the odds, why would we, we want a bargain. Don't we all.?

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    Here here

     
  • Paul Barrett

    Just stop it you lot!
    You are being far too logical and correct.
    Consider the snowflakes who might read these posts.
    The poor dears don't understand business realities.
    They expect a fluffy world of bunny wunnies where everything is handed to them on a plate!!
    Do not move them out of their safe zones of worldly unrealties.
    No wonder they all consider you evil greedy LL.
    Remember this lot have not been brought up to deal with realities.
    Cotton wool figures largely in the lives of snowflakes so wrapped in it are they.
    Snowflake GR will not accept that there are anything other than evil greedy LL.
    As such expect to be exterminated as a business class.
    Time to get out of the AST market.

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    What happens when all us baby boomers are gone and the snowflakes take over the world, could be the end.

     
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