The business editor of London’s daily newspaper, the Evening Standard, has made a strong statement in support of landlords.
Jonathan Prynn, in an opinion piece, says it’s been a brutal year for private tenants - as he knows only too well as his son is renting.
But he says that the latest figures from UK Finance about the plight of landlords in arrears and losing their properties through repossession, means that buy to let investors may deserve sympathy.
There were 8,980 buy to let mortgages in arrears of 2.5 per cent or more of the outstanding balance in the second quarter of 2023, which is 28 per cent leap on the previous quarter.
Within the BTL total, there were 4,810 buy to let mortgages in the lightest arrears band: this is representing between 2.5 and 5.0 per cent of the outstanding balance. This was a huge 41 per cent greater than in the previous quarter.
Some 440 BTL mortgaged properties were taken into possession in the second quarter of 2023, which shows a seven per cent rise on the previous quarter.
Prynn goes on to say: “[Landlords] have proved a fruitful cash cow for Chancellors with punishing measures such as the three per cent second home stamp duty surcharge and the abolition of mortgage interest relief on buy to lets all eating into returns.
“We are now probably at the stage, certainly in London, where we need to offer incentives to landlords, not keep clobbering them.”
He argues that London needs more decent, reasonably priced rented homes - and that landlords pushing into selling up or raising rents will not help that situation.
You can read his brief but pithy column here.
Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions.
If any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals, then the post may be deleted and the individual immediately banned from posting in future.
Please help us by reporting comments you consider to be unduly offensive so we can review and take action if necessary. Thank you.
A man has been sentenced to almost three-and-a-half-years in jail after...
When letting a property, many of us turn to letting agents...
A London based letting company has been fined £20,000 after issuing...
The former owner of an estate agency in Ipswich which went...
The vast majority of tenants are unaware of new laws introduced...
Despite the recent tax crackdown, buy-to-let continues to look an attractive...
The property market had enjoyed a boost thanks to the outcome...
There wasn’t much by way of good news in the Spring...
Twenty twenty-four is a pivotal year for landlords in the Private...
National Landlord Investment Show has announced that the former Leader of...
The management of BTL properties, whether it's a modest collection of...
We are thrilled to report that the first National Landlord Investment...
If interest rate rises weren’t enough to drive landlords out the...
Landlords play a crucial role in providing safe and comfortable housing...
.jpg)
Calling all landlords, Investors and property professionals: National Landlord Investment Show...
A recent survey by digital mortgage lender, Molo, revealed that nearly...
In the buy to let market, success goes beyond the transaction...
Mohammed Sharaz, a landlord from Bradford, recently seized an opportunity to...
We believe a well-functioning housing system is one that meets everyone’s...
It’s not just the weather that’s wet and dreary – the...
As the ‘big buy-to-let’ sell off gathers momentum, we take a...
The challenges facing the property market right now are well reported;...
If you are a landlord looking for the silver lining in...
This year is set to bring sweeping rental reforms that will...
A council has prosecuted a landlord for letting out two HMOs...
The Labour-led government in Wales has issued a consultation proposing the...
Another council is looking for landlords with rental properties to match...
Another council is looking for landlords with rental properties to match...
.png)
Landlords and renters’ activists are at either end of the spectrum...
A prominent lettings sector expert is blaming the media for anti-landlord...
Who are you and what does it say on...
Who are you, and what does it say on...
Who are you? I am the Head of Broking for...
Join the conversation
Jump to latest comment and add your reply
No mention of the Renters Reform legislation which is the prime reason why so many landlords are selling up or planning to sell up in the near future.
Yes I’m not bothered about the rates rises myself. I can raise rents and pay down the mortgages. It’s the RRB is the reason I am selling 🏴☠️
I am the same, Nick.
Until the Renters' groups work out that what is bad for LLs is bad for tenants & start working with us instead of against us, things will continue to get worse for tenants.
The rhetoric that puts LLs & tenants at war is bad for both. We need a functional PRS for both sides of this equation.
Tricia - I often think that the anti LL rhetoric is more a result of left wing politics of envy rather than logic or a teal desire to problem solve or help renters so sadly I think it is unlikely to change and I am already seeing the damage it is doing to renters looking for a home to rent
You are spot on there Catherine. The real issues are totally ignored.
What you are forgetting is that this country is run by rich aristocrats whose interests come first. The conservatives have created a large enough PRS and used landlords like us to do it. We are in this market largely because the social housing stock is being depleted for last 30-40 years.
Now the market is primed for build to rent landlords to take over from us. So expect policies to support that narrative.
Total disaster deliberately caused by one man in particular Mr Michael Gove why is he still in a job.
The landlords don’t need incentive no need for Government to do anything only remove the deliberate causes.
Reinstate Section 21. Remove Section 24. Make SDLT the same for everyone. Scrap Licensing Schemes or at least Application’s fees should be free if Council’s wants them pay for their own administration, Landlords have to pay thousands in Compliance, everyone wants everything when others pay.
Did someone say there’s a Housing Crisis I wonder why ?.
Evening Standard might be having a guilt trip after previous Editor George Osborne done endless damage to PRS when Chancellor of Exchequer.
Good comments yet again Michael though I do think the Government could offer something with CGT to maybe encourage some Landlords to keep letting.
The Government need to make a buffer zone for themselves in order to give time for them to try and sort out the housing disaster that they have clearly not seen coming. To us the situation has been crystal clear, makes you wonder about other areas in Government too.
Yes Andy,
Another area they've screwed up it forward planning, Town Planning and development of land.
Pleased I am somewhat less exposed to that now, but I still see their mistakes and the constant tinkering that wastes time and effort.
One very small but clear example: they are proposing to remove the Permitted Development right to convert laundrettes to residential without planning permission; that they introduced! Recognising their mistake in doing that in the first place because it isn't levelling up for those who reply on laundrettes. But their view they are always right may mean the proposed reversal doesn't happen: would be embarrassing.
Then there's the whole housing targets fiasco...
I really don't think that punitive capital gains tax measures will make most landlords let their properties in a way that they lose complete control of them as required in the Renters Reform legislation.
Similarly, making it difficult for landlords to switch to short term letting will NOT make them hand their properties over indefinitely to tenants.
We know what happened in the past - there was no private rental sector; and people gave their properties away to family members rather than let them.
The PRS for the bulk of the small landlords (1-3 properties) is in its death throes 💀. There is zero chance a Labour government ( they are in next) will help landlords or even be seen to support us. Not a hope. We all have decisions to make that fit in with how we wish the rest of our lives to pan out.
When Labour get in we will see the politics of envy big time. If you are a landlord or live in the countryside you are a rich toff living off the backs of the poor downtrodden working class, and have no right to accumulate any wealth or be entitled to pass that wealth on to your kids. Sadly we have an urban based politics (even more so with Labour) and press with policy derived from the big urban cities.
The interest rates have just added to a perfect storm. In the past you could borrow at 1.2% and get a return of 5+% so there was profit in borrowing. Now that is not the case so you might as well take your equity out and stick it in a fixed interest account or other investment with no hassle, more so if like many landlords you are close to or at retirement age.
Simon my friend it would be great if we were allowed to make our own decisions but that’s not case we are held to ransom.
@Christopher Housden - I am sure many of us agree with you re Labour - for those of us who remain in the PRS we will have a choice of tenants. as supply of rental properties disappears One of my major concerns with Labour is that they will treat rent as earned income and then apply National Insurance - and I suppose that at that point rents will go up by just over 12%. LIke every other Govt in recent years I suspect they will not consider cause and effect!
I never thought about NI, Capital Gains and Inheritance Tax are likely to rise I suspect. Younger landlords and those whose main business is in rental will have to work within a new system with less competition, probably with higher rents and hopefully it can be made to work. I am one of the older landlords (63 and retired at 59) and peaked at 6 properties as an additional side line, now down to 3. My life will be simpler without being a landlord and the financial benefits compared with alternatives are reduced so I am getting out.
Ditto!
Not dissimilar, so it’s the right time for me.
Please login to comment