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TODAY'S OTHER NEWS

Landlords could lose £50bn under Labour’s ‘right to buy’ tenant plan

The Labour Party’s planned ‘right to buy’ policy could cost landlords almost £50bn, an average of £18,400 each, according to calculations by Times Money. 

Many landlords fear the idea of a Labour government after the party unveiled plans to give private tenants the right to buy their homes at a discount. 

John McDonnell, the shadow chancellor, wants to “tackle the burgeoning buy-to-let market”, and believes that his plan would be a fair way of redressing problems such as landlords refusing to invest in their properties, while making a “fast buck” at the cost of their tenants and the community. 

In an interview with the Financial Times last week, McDonnell stated: “You’d want to establish what is a reasonable price, you can establish that and then that becomes the right to buy. 

“You (the government) set the criteria. I don’t think it’s complicated.”

However, McDonnell yesterday appeared to backtrack somewhat on committing to the idea that buy-to-let landlords will lose out when it comes to selling their properties to tenants. 

The shadow chancellor told the Andrew Marr Show that Labour is indeed “exploring the idea of a right to buy for private tenants”, but went on to say that “the discussion would be at what’s a fair price” and that he “wouldn't expect anybody to lose out”. 

“People who have invested that way [in buy-to-let property] would be protected, of course,” he added.

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    It would never get through any challenge in the courts. So stupid it beggars belief. You cannot force a private person to sell unless over eminent domain. To which this cannot apply. What next? You rent a car and then you can force the company to sell it at a discount? just politicians trying to play to the base. Remember how Labour screamed blue murder when council houses ( which the public owner agreed to ) got sold. My, my, how the worm turns.

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    I hope your right. Since when was leagalising theft part of a democracy? I have a property that`s been in my family since 1979 I don`t want to sell it! These lunatics will bring war to our streets. Crazy times!!

     
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    There will be civil war if they attempt a property grab like this. I do think Labour have overshot themselves with this one as so many people are two prop owners. Also someone without property their inheritance from their parents with multiple props is at threat. Read the report for labour they had done recently

    ‘Land of the many Politics of envy’

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    Jahan.
    Also, it may very well result in a massive property crash if this were Implemented, affecting many homeowners who vote Labour.
    The phrase 'looney left' rings especially true when it comes to Corbyn and McDonell.

     
  • Suzanne Morgan

    My neighbour rents out their mothers house to help pay nursing care fees. Why should she be forced to sell at below market value to the tenant and whats to stop the tenant putting it straight back on the market and casting in. I think this could never happen as too many people are landlords and there would be a legal challenge to any such thievery.

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    Politics of the madhouse Suzanne and you make a very good point.

     
  • Paul Barrett

    McDonnell is an evil f##ker!
    Don't put anything past him.
    He wants to see the destruction of the capitalist system in the UK.
    That destruction starts with LL!
    Where there is a will he will find a way.

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    OMG it is so b*****y depressing!!!

     
  • Paul Barrett

    As far as I can work out the best way of avoiding any RTB is to stop letting to single households on one AST.
    It can only be that sort of tenancy that would qualify for any RTB.
    So LL simply need to get rid of single households tenants.
    That means families will be booted out to be replaced by unrelated sharers on one AST who by implication cannot qualify for RTB.
    LL might even be able to increase rents with unrelated sharers.

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    • L C
    • 09 September 2019 15:26 PM

    It is difficult to get anything other than a selective (family) licence in our area. This would then leave landlords exposed if this stupid ruling was to somehow be approved.

     
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    Family doesn’t need HMO license whether, mandatory, additional or selective as I understand it.

  • Paul Barrett

    Well chaps appreciating that it might be difficult to replace a single household in a house with sharers that is just TOUGH!!
    IF you want to avoid the risk of RTB then you need to change to multiple households rather than single ones.
    If this is difficult to achieve then selling such properties needs to occur.
    If this means having to re-invest outside your area then that is what you will have to do.
    LL are having to adjust what they are doing in light of S24 and so must do the same with the bonkers Labour RTB policy.
    This is of course a PITA!
    But we are where we are.
    Even if Labour loses there remains the risk for the future.
    A Parliament is scheduled to last 5 years though this seems to be regularly ignored.
    So even if the Labour bullet is swerved this GE there is always the next one when the bullet might get you.
    It is highly unlikely that the Labour Party would return to normality.
    While you have the current Marxist policies as an ideology espoused by Labour then as a LL you remain at risk and need to plan for the future.
    A Tory GE win will just give you a 5 year breathing space.
    You need to use that to adjust how you do things.

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    if a tenant can buy a rented property
    Does it mean if I buy something from a supermarket then I can buy that business at a fair price?
    What stupid political stunt to try to get votes?

    Paul Barrett

    You misunderstand LL are the only business type that Labour wishes to eradicate.
    Labour seeks the destruction of the LL class with the Tories having the same attitude hanging on to Labour coattails.
    You might believe you are needed but that is irrelevant.
    Vast parts of the UK electorate resent LL.
    You will NEVER be thanked for providing rental accommodation.
    So don't expect any such thanks.
    You just need to fight the system and try and make as much money as you can.
    You will not be assisted to do this and Govt will do everything it can to reduce your business viability..
    As long as you understand these attitudes you will be able to develop strategies to defeat those who would wish to see you out of business.
    Simply put people resent giving vast chunks of their income to LL even though they are paying for a service which they are not in a position to provide themselves.
    It is only LL that face such resentment.
    No other business does to such an extent.
    Just accept that you are hated.
    Being a LL is not a popularity contest.
    You will never win one if you remain a LL.

     
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    Hi Paul.
    you are certainly correct about landlords as far as the popularity stakes go.
    We probably come in third after estate agents and MP's?

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    I agree Paul totally sold one yesterday another going on market today gunna start winding down over the coming years had enough my place in the sun awaits.

  • Paul Barrett

    It seems that many experienced and long-standing LL; just the sort of ones you want to remain giving their resources have decided that a tipping point has been reached.
    I believe it is an anathema for these LL to sell.
    It goes against everything they have striven for.
    But when even they start to sell that must tell you something!!
    I personally believe there are still too many rental properties.
    We need such a reduction to where sealed rental bids will be used to determine who gets a tenancy.
    Subject of course to suitability.
    We need many more LL to sell off.
    There is a lot more selling required before the question is asked
    'Where have all the LL gone?'

    Only then will bonkers anti-LL policies be reversed.
    There is a long way to go until that happy day occurs!!

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    There’s not a shortage in my areas Paul 58 calls in 8 hours for two houses tells you all you need to know about demand up north people begging me to let them out practically

    Paul Barrett

    I meant shortage of rental properties.
    There is of course plenty of demand but nobody has made the connection yet to there being more tenants than rental properties.
    It is just in some areas there are more available properties than tenants.
    What we need is100 applicants per rental property
    Then the crisis point will have been reached and Govt might realise how badly wrong it has got things.
    It took the Irish Govt 3 years for them to accept they got it wrong..
    Still the Irish PRS hasn't recovered.
    It will be a long hard slog to restore the Irish PRS to its former position.
    Years it will take during which time it is the tenants that will be doing the suffering!
    There are still plenty of rental properties available.
    This means there are too many.
    Personally I will be stopping letting to single households.
    I will now only let to unrelated sharers to avoid Labour RTB.

     
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    I can see how the communists are going to put us in check mate.

    First they give rights to the tenant to stay for a minimum of 3 years. Then they cap the rent. That immediately handicaps us and makes it impossible to sell up.

    Then they enact this appalling law. Tenant then gets the right to buy our house at a massive discount. We're left in a mess. Possible capital gains to pay.

    Absolute disgrace and gives me zero incentive to do anything. I will 100% be going on the dole if this awful, disgusting John McDonald and Jeremy Corbyn get their keys to 10 Downing street. I've basically worked my guts off for nothing. Free country? My arse, a free country. I have zero incentive to do anything with these 2 money grabbing, jealous scum. I'm all for a safety net and for clawing money back from tax dodgers, going after rogue landlords, but leave us good ones alone!!!

    Paul Barrett

    If Labour win there should be an immediate military coup with Corbyn and McDonnell being put UK against a wall and shot!
    Get rid of two of the most evil f#####s there has been in recent times.
    The few simply can't allow Labour to steal their assets.

     
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    There are over 2 million private landlords but only a few hundred thousand labour party members and even fewer members of the other parties. We should all join ALL the parties and thus have a big say in who is elected to be leader, who is selected as candidates and by attending conference, influence the future manifestos. Think outside the (cardboard) box! After all, that's how Corbyn got elected leader. The Daily Telegraph even suggested their readers should join the Labour Party and vote for him, as they mistakenly thought he would cause the Labour vote to collapse at the last General Election.

    Paul Barrett

    You are correct.
    It is only democratic complacency that facilitates the activists attaining power.
    The Tories should request of it's voters that they join the Labour Party and vote against all looney left ideas.
    Such Labour Tory voters could choose right- wing Labour MPs with policies similar to the Tories.
    We must better the looney left..
    Democracy would seem to fit the bill.
    So even if just LL became Labour members that would be sufficient to change marginal seats preventing a Labour Govt.
    Compare the cost of a Labour Party membership to having a your property assets stolen from you!
    The left relies on the laziness of others to assume power.
    We LL need to stop being lazy!!

     
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    I agree, and I am a member of the conservative party, mainly because I wanted Mrs May gone. However where labour are concerned it's the unions with their large block votes who decide the leaders, which is why Mr Corbyn was made leader, I don't think the average labour voter really wanted Mr Corbyn as leader, still looking on the bright side labour are 14 points behind the conservatives at present and unlikely to win a GE while Mr Corbyn is their leader.

     
  • Paul Barrett

    So perversely do we LL join Labour and encourage even more looney left ideas on the basis that it would make them even more unelectable!!!??

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    Too much of a risk to encourage more loony policies. A lot of the potential loony supporters can't be bothered to vote but give them really loony policies and they just might get out of bed! Alex Salmond (currently awaiting criminal trial) managed to get a lot of Scottish loonies voting for the first time in 2014. Throughout the UK there are many such dormant loonies who shouldn't be woken up.

     
  • Paul Barrett

    Yep fair enough suppose we don't want to awake the sweaty masses with really barking ideas!

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    seems poorly thought out, especially since a/ RTB caused the shortage of council houses b/ its easy to add a clause to contracts which tenant gives up any right to buy under RTB c/ fair price is not defined and hence will be subject to legal clarification

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