Rental market is utterly broken
Discussion
Olivera said:
Hopefully Labour introduce widespread rent controls, and eventually compulsory purchase legislation.
1 Every economist who ever drew breath agreed that rent controls were a bloody stupid idea.2 Where's the money coming from? Or do you intend to rob people of their properties?
3 How will this solve the shortage of decent rental properties?
Ideology like yours is the cause of the problems, not the solution.
Biggy Stardust said:
croyde said:
I'm expecting that in March next year, when my contract is up.
Currently paying £1500, about 70 percent of my salary but similar 2 beds on the estate are now on the market for £2000, the one beds are now at £1500.
I'm sure my LL can ask for a £500 rise knowing that they'll be queuing at the door if I have to move out, but then where will I go?
Please don't think I'm being rude to you but quite literally nobody cares; the LL just wants to get out of a bad situation, the marxists lap up any anti-LL sentiment they can find & the governent wants to appease a mindless baying mob. Your situation is immaterial to them.Currently paying £1500, about 70 percent of my salary but similar 2 beds on the estate are now on the market for £2000, the one beds are now at £1500.
I'm sure my LL can ask for a £500 rise knowing that they'll be queuing at the door if I have to move out, but then where will I go?
Good luck but I don't anticipate it being easy. Yet all of this was avoidable if only they'd left alone.
No offence taken btw
LF5335 said:
There is a flip side to this.
I’m a landlord and I have a simple view on the way I rent houses out. I buy houses that are around 30 years old and in need of modernisation. I refresh them, make sure everything is new and fresh. Fit modern but not expensive kitchens and bathrooms then rent them.
I charge what I see as a fair rate based on the current market. I won’t give them away but I don’t add silly money to the rent which would just add to the inflation.
However, I only need one tenant. I don’t need or want 20 people fighting for the house. If I get that then I’ve priced the house too cheaply. Equally I don’t want it empty. That costs me money so the quicker the turnaround the better. Finding a balance is critical.
The market may be all over the place but tighter regulation and higher taxes will always see the those costs passed down to tenants. Tighter regulation is not always a bad thing, but excessive red tape is, especially when it adds no value and is just a cash grab.
Nice post. You come across as a decent sensible landlord.I’m a landlord and I have a simple view on the way I rent houses out. I buy houses that are around 30 years old and in need of modernisation. I refresh them, make sure everything is new and fresh. Fit modern but not expensive kitchens and bathrooms then rent them.
I charge what I see as a fair rate based on the current market. I won’t give them away but I don’t add silly money to the rent which would just add to the inflation.
However, I only need one tenant. I don’t need or want 20 people fighting for the house. If I get that then I’ve priced the house too cheaply. Equally I don’t want it empty. That costs me money so the quicker the turnaround the better. Finding a balance is critical.
The market may be all over the place but tighter regulation and higher taxes will always see the those costs passed down to tenants. Tighter regulation is not always a bad thing, but excessive red tape is, especially when it adds no value and is just a cash grab.
Personally, I could live without an oven, You can buy a decent microwave for around £60,00.
I have an oven in our motorhome, never ever used it.
Tenants need landlords and visa versa.
How can the average young person/couple save up for a decent deposit when they are paying almost £2000pm rent?
Olivera said:
Hopefully Labour introduce widespread rent controls, and eventually compulsory purchase legislation.
You want to make it even more unfavourable for landlords, you think that will help the rental market? Interesting. I think almost the opposite, they should stop selling off council houses under right-to-buy, you know, stop reducing the number of properties available to rent so there is more competition.Olivera said:
davek_964 said:
I - and I'm sure many others - would immediately sell.
That would be an excellent result, lots of properties on the market at depressed prices.The problems the OP and many others are facing now are the result of the utterly stupid anti landlord dogma and political interference of the last few years.
TriumphStag3.0V8 said:
Olivera said:
davek_964 said:
I - and I'm sure many others - would immediately sell.
That would be an excellent result, lots of properties on the market at depressed prices.The problems the OP and many others are facing now are the result of the utterly stupid anti landlord dogma and political interference of the last few years.
To my mind the problem is that successive governments have spent the last few decades telling us that rapidly rising house prices are a good thing, when anyone with half a brain can see that it's not a long-term sustainable situation... and now we've got to the point where it can no longer be sustained but none of the policy makers are willing to say it. To my mind for the market to be healthy, house prices need to roughly halve in the south of England.
A decent family home should not be twenty times the median post-tax annual salary!
A decent family home should not be twenty times the median post-tax annual salary!
I think the issue was early on in the year I was potentially moving and got made redundant but found it was less of an issue finding places.
the issue has for my part become considerably worse, looking in a different area but not that far away.
Regarding ovens my point is simply that I have read in numerous places that white goods wise that is the bare minimum, and others say it is a legal requirement. have to say if I was a landlord I would at least have that, maybe not all white goods, that seems a luxury these days. It does not matter how much a microwave is or even if you would use an oven, i am fairly convinced that in most properties they are a legal requirement as is a heating system, water , floor coverings etc etc.
the issue has for my part become considerably worse, looking in a different area but not that far away.
Regarding ovens my point is simply that I have read in numerous places that white goods wise that is the bare minimum, and others say it is a legal requirement. have to say if I was a landlord I would at least have that, maybe not all white goods, that seems a luxury these days. It does not matter how much a microwave is or even if you would use an oven, i am fairly convinced that in most properties they are a legal requirement as is a heating system, water , floor coverings etc etc.
Biggy Stardust said:
flatlandsman said:
i am fairly convinced that in most properties they are a legal requirement as is a heating system, water , floor coverings etc etc.
Please tell us which law.The Homes (Fitness for Human Habitation) Act of 2018 states that landlords must provide "facilities for preparation and cooking of food" but doesn't go into any more details than that. The same act states that "appropriate flooring" must be provided, but that can be bare floorboards as long as they are safe (ie you can't let a house with sharp carpet grippers on the floor but no carpets).
Edited by kambites on Friday 29th September 17:44
Biggy Stardust said:
1 Every economist who ever drew breath agreed that rent controls were a bloody stupid idea.
2 Where's the money coming from? Or do you intend to rob people of their properties?
3 How will this solve the shortage of decent rental properties?
Ideology like yours is the cause of the problems, not the solution.
1. Yet it's practiced in economic backwaters such as, er, Germany and Switzerland 2 Where's the money coming from? Or do you intend to rob people of their properties?
3 How will this solve the shortage of decent rental properties?
Ideology like yours is the cause of the problems, not the solution.
2. Compulsory purchase orders (if the renter so wishes) at a discount, so the renter (soon to be buyer) can purchase via a mortgage
3. It doesn't, but it will successfully transfer large sums of cash back from landlords to renters
davek_964 said:
Plus if prices were depressed I'd simply keep it as an empty property until prices recovered, which also wouldn't help the market much.....
Most councils now charge double council tax on empty properties.Olivera said:
davek_964 said:
I - and I'm sure many others - would immediately sell.
That would be an excellent result, lots of properties on the market at depressed prices.Same with your compulsory purchase idea. How many extra properties would it free up? The answer is none. All you've done is change who has capital tied up in assets. Same tenants need housing.
You can't compulsory purchase at less than market because that's against human rights legislation which Labour are quite keen on.
I'd be happy for a Labour government to cut me a fat cheque for my property. I get better returns from S&S any way and most of it is tax free
Olivera said:
Most councils now charge double council tax on empty properties.
Yes - mine does.So what? Compared to forced lower rent and the potential to have my house forcibly sold to a tenant (which removes me from the housing market, and staying in it is the only reason I rent the house out anyway) - it would be a small price to pay.
Plus - in reality, I could very easily make it 'not empty' if I needed to.
Olivera said:
Biggy Stardust said:
1 Every economist who ever drew breath agreed that rent controls were a bloody stupid idea.
2 Where's the money coming from? Or do you intend to rob people of their properties?
3 How will this solve the shortage of decent rental properties?
Ideology like yours is the cause of the problems, not the solution.
2 Where's the money coming from? Or do you intend to rob people of their properties?
3 How will this solve the shortage of decent rental properties?
Ideology like yours is the cause of the problems, not the solution.
1. Yet it's practiced in economic backwaters such as, er, Germany and Switzerland
2. Compulsory purchase orders (if the renter so wishes) at a discount, so the renter (soon to be buyer) can purchase via a mortgage
3. It doesn't, but it will successfully transfer large sums of cash back from landlords to renters
Point 2 is insane but point 3 shows your goal is simply to punish the landlords, whatever the impact on renters.
Wacky Racer said:
Nice post. You come across as a decent sensible landlord.
Personally, I could live without an oven, You can buy a decent microwave for around £60,00.
I have an oven in our motorhome, never ever used it.
Tenants need landlords and visa versa.
How can the average young person/couple save up for a decent deposit when they are paying almost £2000pm rent?
Thanks, but the reality is that I could easily be painted as a greedy bd. Personally, I could live without an oven, You can buy a decent microwave for around £60,00.
I have an oven in our motorhome, never ever used it.
Tenants need landlords and visa versa.
How can the average young person/couple save up for a decent deposit when they are paying almost £2000pm rent?
The market has moved massively where I have my portfolio in the NW, not a glamourous part of Manchester, just one of the bigger towns on the outskirts, but with very easy access to Manchester and beyond. The rental market has seen prices pretty much double. I can’t give houses away, but when I do rent them I rent them at or around the market rate. Equally, when the 12 month leases come up for renewal a discussion is held about an increase. I don’t like big increases, but I can’t let the market move away too far either. The harsh reality is that I hold all the cards when it comes to that negotiation. The tenant can’t move as the monthly cost locally has skyrocketed, so I can ask for what would have been a big increase. However, I try to strike a balance again and find a midpoint with an understanding of what’s coming the following year, not a fixed amount but an understanding of what split between their current rent and market rent is likely to be asked for.
Of course, it will be more difficult for me to move them on if they disagree, but I can always sell the house, or at least try to and then re let it a few months down the line even under the new legislation. I don’t want to do that and I’d always rather be fair, but if the law is becoming so strict, then I will become less moderate in my approach too.
All this has been driven by populist poorly thought through legislation where a few bad landlords have messed it up for the vast majority of landlords and tenants alike.
The big problem with your p[policy is that as you say the market is saturated, you cannot find anything, so as you increase the rent, peoples incomes do not increase, and we get to the situation where people literally cannot find anywhere to live. As I say it is a depressing situation for everyone.
But for me sorry not landlords, you say yourself they hold ALL the cards. Somehow that to me is wrong.
But for me sorry not landlords, you say yourself they hold ALL the cards. Somehow that to me is wrong.
Gassing Station | Homes, Gardens and DIY | Top of Page | What's New | My Stuff