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OTHER GUIDES & TIPS

Tory complains about “coughing up most of income to landlords”

A prominent Conservative has complained that her party, and others, have failed to do anything about a housing market in which the younger population is “already having to cough up most of its income to landlords.”

Charlotte Gill, deputy editor of the Conservative Home website and a columnist in The Express newspaper, says: “Almost every bit of news about housing these days seems to confirm that younger generations will be renting until … well, forever at this rate.”

Gill, who describes herself in her column as “an almost 33-year-old”, says that the current government has attempted to do something to improve housing supply but came up against opposition from within its own ranks in the shape of backbench MPs concerned about building on the Green Belt.

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She adds that older generations are “banking on” younger people footing the bill for the pandemic, social care and progress towards Net Zero. “This is a demographic already having to cough up most of its income to landlords” she says.

 

Gill’s newspaper column echoes some of the tone shown by another Conservative - former councillor Sam Clark - who wrote on the Conservative Home website just before Christmas that the Tory government should consider outlawing buy to let purchases by landlords in a bid to give younger buyers more of a level playing field. We reported on Clark's story yesterday.

“I would argue a Conservative government should restrict the purchase of properties for the buy to let market. This would be transformative, allowing the UK to once again become a home-owning democracy. It would help young people who find themselves in a vicious cycle of renting and who are unable to save up for a deposit” wrote Clark.

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  • icon

    Successive Govt's have failed to build enough social & affordable housing and now they this MP blames LLs for taking advantage of the opportunity that lack of building has presented.

    Housing building companies land bank & keep supply of new houses to a minimum to increase their profits yet it is LLs who take the blame for simply providing houses to those people who can't afford to buy.

    We have become the most hated people in the country and blame for everything is being heaped on our shoulders. I will not miss the PRS once I leave (first house being sold this month) but I fear the PRS may miss me and the others like me once we leave!

    icon

    Well said. I too will be selling my second property in March followed by the other 10..enough is enough. I'm itching to leave the whole sorry game... There's got to be better places to invest my hard earned dough

     
  • icon

    Perhaps not allowing our population to grow by 10 million in such a short space of time is the real issue. The illegals crossing from France alone this year are the size of a small town the size of Burnham or Daventry or Bromsgrove. Then they suddenly buy up 1000's of housing stock to put Afghans in but no, it's the fault of the PRS. I'd estimate at least 60% of my tenants are from the EU alone. We'll done Blair.

  • icon

    Rents are rising due to the lack of social housing but also due to the continued hoops that the Government heaps on LLs. The next requirement of raising EPCs to a C will heap more expense on LLs and surprise surprise rents will go up. The Government needs to remember we are a business not a charity.

  • Nigel Nigel Spalding

    Well tax changes under Tory Chancellor George Osbourne have meant landlords have been coughing much more of their income (if not all) to the Tory government. Consequently there is a landlord exodus under way which will only increase with more taxes and red tape. This in turn means supply of rental property will continue to reduce where as demand will not. No one in government is listening to landlords - so in the end they will die out. I am a landlord and I know how many have sold up and others including myself are following them. Where them do those who need to rent before they can buy their own place are supposed to Live? Do students and those who come to work from abroad need to buy their own place to live? What if you were a poor student and don’t have the means to buy your own place?

  • Matthew Payne

    It certainly would be transformative Charlotte. I would be happy to provide some coaching on the dynamics of how the housing market actually works and responds to certain pressures and behaviours so you can make more informed comment when helping shaping policy in the future. Contact details in my bio.

  • icon

    I would like to see proof that the cost of rent is “most of a young persons income”. Where is this young person? where does he/she live? what income do they have? What is their job? Do they sport the latest mobile phone? Do they drive around in expensive cars?
    Can they move to a cheaper area? I can’t afford to live in a London hotel penthouse suite, so I don’t live there. Seems some people are trying to live above their means, then complaining that they can’t afford it and someone else should pay.

  • icon

    I am not surprised that tenant’s rent goes up, in fact everything is going up! This happens when inflation gets out of hand by printing paper money out of thin air under the disguise of Covid. God know what the real inflation is in this country, I would say 10-15%. I am also selling 3/4 of my portfolio now and leave it to the big guys (banks and hedge funds). They will take care and be fair to of tenants in the future! I get out when I can, before this Global bubble is going to explode and the shizzy hits the fizzy! Buy inflation hedge asset like farmland, AU,AG, BTC and keep cash to buy cheap when everyone is desperate to sell! Sorry for the bad news and good luck.

  • icon

    Successive Governments have failed the UK public in many ways, from the current hot potato of security and continuity of affordable energy supplies to the ever increasing influx of people from abroad into the UK for which housing will - for many - be needed.
    Governments have always paid more attention to the views of the more vocal minority, instead of making long term strategic plans for all.
    The naivety demonstrated in the 4th paragraph really sums this young person up. She clearly fails to understand that Landlords are also funding the aspects she is so concerned about via taxation, and other financial impositions, additionally many Landlords have children and Grand children and therefore have an inherent concern about their futures and whatever mess they inherit from us - including Miss/Mrs Gill.

  • Franklin I

    It was the same Tories that introduced the BTL for LL's. The same ones that introduced diesel vehicles, then later charges us all as pollutants to the environment.

    There was an old song called "video killed the radio star" by The Bugles.

    Well, the BTL killed the first time buyer's, but it's no fault of the LL's.

    LL's have been hit left right and centre, whilst the estate agents seat quietly as if butter wouldn't melt in their mouths.

    All I can say to Charlotte Gill, is "Hit me baby one more time," and you'll see what happens!

    icon

    We are definitely singing the same songs! Haha!

     
  • icon

    Charlotte, how can you possibly say the Conservatives done nothing about housing, when they have raided the PRS for hundreds of millions plus all kinds of other costs and restrictions imposed. Charlotte that’s hardly nothing driving rents through the roof and continuing you can’t expect to get away with that, also that includes John Prescott’s Labour Party’s anti-landlord private licensing Schemes 2004 Act, you were quick to make use of that one to line your pockets, where some Boroughs take up to £20m out of PRS LL’s, now rampart so we private LL’s have and are doing the coughing up.

  • icon

    Unfortunately a lot of 'Conservative' MP's (including Boris) aren't actually Conservatives any more.

    Edit: She's not even an MP. She's just a jumped up journalist.

  • icon

    Possibly if the “younger generation” would stop buying iPhone 12’s, 50” TV’s, cocktails at £8 pounds and less “stuff”, saved for a couple of years and stayed in, they would be able to buy their own home. Believe it or not that’s how many landlords started!
    I used to own a successful letting agency and have been involved for over 40 years and have seen how money was being spent each month whilst reference checking applicants. Im sorry I’m not believing any of this.
    Governments need to stop using LL’s as their scapegoat for their inability to build new rented homes.

    As far as support from “our official body” where the hell ae you. Start supporting us and stop cosying up to the decision makers, you represent US!

  • icon

    We see here at first hand the problem with many who use their media platform without deeper research. Little, or no, experience (outside of a non-nuanced book) of the core reasons we have so many private Landlord's in the first place. Most landlords became such from the mid-nineties onwards - a direct resultant effect of the failure to protect private pensions. With fraud too easy to commit, and the rich able to screw with an individual's future, public confidence in pensions was devastated. The normal, average, hard working, prudent working person turned other means to secure their future. Many put their savings into bricks and mortar... and forewent the luxuries that everyone today (including Charlotte no doubt) enjoy and take for granted.
    There are those landlords who have made millions, just like other prudent investors in every other walk of life! Most Landlord's have NOT though become millionaires and that narrative is never at the forefront of the discussion. All we hear is the slur and demonisation of decent fully compliant long term Landlords (decent people), 99% of whom support the creation of homes and futures for society, performing a duty that this country's consecutive governments have failed in. Not just the governments fault when they have to pander to PERCEIVED public opinion on a 5 year rotation. That's another topic, nevertheless an important one to consider. How can the UK have cohesive housing plan if its not a 'ring fenced' long term all party collective? It can't.
    Personally I find the naivety of Charlotte Gill disturbing... and her anti-landlord narrative nothing short of disgusting! Most young people when I were in my 20's didn't moan, weren't self entitled, didn't begrudge, and weren't hell bent on destroying the lives of the older generations. They just got on with it, got their heads down and saw older financial successful people as a yard-stick for themselves. So sorry Charlotte, but if you really want to be constructive, you need to take your head out of the sand (I'm being polite), adopt a more nuanced approach and engage with all Landlords. You would likely get the real picture of the security good Tenants (decent people too!) are afforded. Perhaps then you will stop this negative virtue signalling! Conservatives need our votes too. You should remember that.
    Happy New Year to all!

  • George Dawes

    They’re into iPhone 13 now , this phones a week out of date , quick , throw it in the dustbin !

    And my sky tv with 78 channels I’ve never watched is up for renewal , including top gear episodes with adverts

  • George Dawes

    It’s all part of the long term plan , google it , while they still let you

    The removal of private property, using epc and climate change as leverage

    By 2035 the house you live in will have to be minimum epc c - otherwise out you go , into the gutter

    What a cheerful thought , everything you’ve ever worked for taken off you by some ridiculous unattainable government laws . Especially irksome considering the uk contributes virtually zero to the worlds carbon output , ok 1.8% , compared to China at 18% , who btw have refused to do anything and just get let off scott free … join the dots

  • George Dawes

    The way things are going they might as well merge with Labour and the greens and become the new communist party , mark my words , that’s where we’re headed !

    icon

    Ditto!
    Bigger governments,
    Extinction of small/medium business- No competition —- Monopoly,
    Loss of freedom of speech and gatherings,
    Leadership through fear,
    Extinction of entrepreneursim and innovation
    Heck….. the motto of the World Economic Forum is “you will owe nothing and be happy”!!!! Well they will be happy!
    We are already there. So, decide who you gonna be, the sheep or the lion?

     
  • icon

    It will be just like Ireland then where Government TD’s (MP’s) when they were afraid of loosing their soft jobs, different Party’s joined together to take turns at being boss and Premier (Taoiseach) in rotation, must keep their big Salaries & huge Pensions, is this Democracy or Collision.

  • icon

    Micheal, I Think you mean collusion, or perhaps conspiracy. Otherwise I agree with you.

  • icon

    Unfortunately students are being suckered into a debt trap. Cunning Stuff !

  • icon

    Edwin, exactly what I meant this little HE phone loves to change what I say. I can’t be proof reading all the time, although its handy to fit in pocket for work instead of a big slab phone. Thanks for the advisory.

  • icon

    Conservative woman is normally a good website, but I think its dawning on Charlotte Gill that she has been made a fool of but doesnt want to admit it and is looking for someone to blame. At one time 10% of the poulation passed their 11 plus and half of those went to university (normally state aided). Now its more than 50% and their arent the jobs there for such people. twent years ago I was with a senior manger for a world leading company, and we made a pit stop at a motorway services, the woman who was serving us said to us "I have a degree". I wonder how her career progressed ?

    icon

    That woman and many others like her are still there, I have a son and 2 daughters, love all 3 to bits, however daughter 1 got an open university degree, she works nights in an old people's home, daughter 2 went to Plymouth uni and came out with an honors degree, she cleans holiday lets in Cornwall, my son who was hopeless at school, just like his dad , works hard, pays 40% tax and earns many times more than his 2 sisters put together, don't need say more do I ?

     
  • icon

    We, long-term Landlords, (I've let property for 40+ yrs) know the issues. We could help the Govt. solve the housing problem more effectively than Shelter et al but I'm done. I can barely be bothered to comment now. We've been badly let down by the Conservatives -which was my breaking point. I've sold 95% of my UK rented houses in the last three years, the rest will be gone within the next year.

  • icon

    Congratulations you got out before collapse imminent, just reviewing some of my Tenancy Agreements I see one is the same Rent for 19 years at £1500 for this London semi-
    detached even though Tenants have changed many times. Just how many extra costs had I to absorb in this time, all those Regulation’s & Certificates and up grades plus it has been Licensed twice with no Rent increase, fact I have the evidence, never mind the inflation since then. I now don’t have any Deposit on it either because of Shelters interference in 2007 Rogue Deposit Scheme putting LL’s at further risk just minding the Tenants money free for them if they had it at the Bank they would be charged for having it there.

  • icon

    Anyone who takes what politicians say at face value is an idiot. If you honestly think this politician, or any other cares one jot about anything other than their own career then you're deluded. This is simply creation of narrative. There is NO desire to 'improve' the PRS and they don't have to 'prove' anything they say. They can do and say what they want, make completely unfounded statements knowing that they have the credibility of authority and total immunity.

    The PRS, long term, is going corporate. Investors in future will simply buy into funds and REIT's that hold hundreds and thousands of properties, and they will do so without having to worry about the dirty work of management which will be simply outsourced. The rich and connected will get an easy 6% return on their millions for doing nothing, meanwhile for the plebs, it will only be benficial if you stay in long term (decades) or set up a business providing a secondary service. It'll take time, but the days of income driven property investment for the average person are numbered. It's all going to the institutions.

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    I couldn't agree more with your end game conclusions, although this is going to take at least 15, probably 20 years to bear out. There is a positive business model for Landlords for some time yet. In my view those who are selling up now will rue the day, as inflation grabs hold for some considerable time yet and supply reduces exponentially.
    I would also caveat, the private rental sector will survive albeit on a much smaller scale, attracting the better quality Tenant who needs versatility or a more bespoke property/service. My humble advice to Landlords - sit on your hands for at least another 10 years!

     
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    John

    Totally agree with you.

    I've just turned 72 but will continue managing my and my grown up kids' portfolios for the foreseeable future and then employ an agent.

    I put most of the properties I bought straight into my kids' names to minimise CGT, IHT and higher rate income tax and will eventually bequeath the properties in the names of me and my wife directly to grandchildren.

    I'm in this for the long term but have over the years moved my properties more upmarket to ensure that we have solvent guarantors and less exposure to the financial problems of the average working tenants. I fully accept this does nothing to provide long term homes for decent working tenants but the efforts of Shelter, GR etc. have pushed me in the direction that I have taken.

     
  • icon

    Max you are correct in that the institutions are going to take the PRS sector. However it will end with the state picking up the bill, Councils lost money hand over fist on social housing, which is why Thatcher sold them off. It will go just like the sub prime mortage crsisi. Most tenants are high maintenance, and the letting agents cannot cope with them. The institutions, ie banks etc will peddle the investments as very safe and flog them to pension funds etc who will burn their fingers when th eproperties gett trashed. Max, who are you ? and how do you earn a living?

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    I'm sure it will happen, but it's a long way off , PRS will see my days out

     
  • icon

    Some very good points made here which I totally agree with, including - as with others - the commencement of selling my properties due to my complete lack of faith in those who are in "positions of influence". Sadly, it doesn't matter what party is the government of the day because the same highly paid - indeed over paid - civil servants occupy posts which Ministers and their underlings are reliant upon for guidance, unless of course the given Ministers have some backbone or inherent knowledge which is rarely the case.

  • icon

    I think Max is right on this one looks like what’s happening already, nothing to do quality affordable housing or whether Tenants can afford it they could careless. I know of several Companies that have moved into letting Blocks of Flats already and guess what all their Rents are higher than traditional private LL’s (like up to £300. pm). I don’t mind if Max or anyone else takes a swipe at me, it’s fine I can take criticism not a problem.

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    Actually Max is right on this one much as it peeves me to admit to that.

     
  • PossessionFriendUK PossessionFriend

    Unfortunately, Gill is too Woke to mention the Half a million Immigrants into this country Every year that are a burden on the Housing demand.
    Elephant in the room comes to mind !

    Theodor Cable

    And not to mention the 2,000,000 illegal immigrants scrounging on everything and paying nothing back to the country.

    Send them home. They are illegal.

     
  • George Dawes

    Max is max correct

  • icon

    Max, who are you? and how do you earn a living ?

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