Whingers who complain about financial perks for landlords and who then complain about rising rents when the perks are withdrawn and landlords exit the sector, are the subject of a new blog.
Tim Worstall’s latest entry on the Adam Smith Institute website identifies a series of attacks on the financial viability of buy to let in recent years that have contributed towards a reduction in supply as landlords have left the rental sector in exasperation.
He then goes on to say that those who have complained about the financial assistance given to landlords historically - via mortgage interest relief, for example - are often the same people who complain about higher rents, caused by the shortage of rental units after landlords exit.
He cites Foxtons’ latest market snapshot saying a 22 per cent year-on-year surge in rents in the capital in the first nine months of 2022, with 30 new renters for every property listed.
Worstall then writes: “And of course everyone is complaining that the rent’s too damn high. That is, people are both cheering the restrictions upon supply and also complaining about the effect upon prices of that restriction of supply. Whcih does lead to a certain amusement at what people will complain about.”
To see his wry column in full, click here.
Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.
.png)
Join the conversation
Jump to latest comment and add your reply
Agree, it’s a tad funny 😄
Ironic and the result of non-joined up thinking by short term thinking decision-makers.
It was hardly a financial perk, when rental income and expenses were treated the same as all other businesses!! It was simpler and fairer. The current S24 tax regime is completely unfair and has indeed led to rising rents.
Yes I agree terminology is a key problem here and I many other articles. Words like incentives and perks need to be replaced with de-incentives and barriers to entry not inflicted on other businesses.
It’s just a shame that only a right wing group can get its head around this and I would suggest as a result it won’t help us much.
The words, Turkeys and Xmas comes to mind.
As Neil Oliver says GB news
The government have broken their right to govern. Broken social contract with us . They no longer serve us.
Unfortunately, these campaign groups that want to see affordable rents to the total end of private landlords, don't seem to understand some basic facts. Firstly for the vast majority of Landlords, you want a happy customer, having to put up prices and not provide a good service should end your existence as a business - now being honest we know that regulation continues to fail to ensure this happens, but the problem, of course, it's making the sector unattractive to the legitimate landlord, who can get similar or better returns in other assets in the current economic climate. So all they are doing is reducing supply, increasing the burden on Social Housing, who they seem to be reluctant to acknowledge has a long and tragic history of tenant deaths and misery from Mould to Fires to Entire Building Collapses. I can't recall the last time a Private block of Flats collapsed or Caught Fire, but I can recall Ronan Point and Grenfell...
They can reap what they've sown. I'm getting rid of my portfolio which was supposed to be my hard earned retirement fund. Thanks for nothing! I wonder how manty of my properties will go to landlords...not a lot I suspect so that will be even more tenants searching for alternative rental accommodation. Oh well.......
I've been doing the same as I'm fearful that this is the beginning and will get worse under Labour......I wouldn't put it past them compulsory purchasing our properties at rock bottom prices.
Please login to comment