The problem isn't landloards, the problem is buy to let mortgages. If you have the cash to buy a property outright, good for you. But you should not be able to borrow money just to "buy" a house and get someone else to pay your mortgage. If buy to let mortgages didn't exist, properties would be cheaper to buy and rent.
Completely agree. The introduction of the buy to let mortgage product supercharged the market. Limits on % mortgage is important. So pre 2007 you could get 100% even 110% buy to let mortgages. Reducing to 75% to 80% the introduction of extra 3% stamp duty all helped dampen demand. Perhaps more should be done?
Lenders make money out of BTL mortgages. It's a business model that won't go away until they cannot make money from it. Banks are as powerful as the government, so legislating BTL mortgages out of the market isn't going to happen any time soon. Banks don't care for anyone's feelings.
Always amazes me when you hear landlords try to spin the narrative that they are just kind, caring people trying to provide a service for their beloved tenants. Landlords have taken a basic human right and turned it into a commodity that makes themselves rich explicitly at the expense of people who can't afford that basic human right. It's a predatory business model and it only serves to drive up the property market and make ownership even more unattainable for everyone else, thus maintaining the supply of tenants for them to bleed dry. The reason high interest rates are making it difficult for renters to buy is because the mass buyup of property by landlords has increased the average house price to 8 times the average income. Interest rates were higher than this all the way through the 70s and 80s, but house prices were 3 times the average income, so people could still afford a home. Interest rates aren't the issue. Interest rates in an unaffordable market are. Once again. Landlords are the problem. Not the solution. You cannot convince me that paying off the mortgage on your 10th property using money from someone who can't afford their 1st property is a moral thing to do. If you've managed to convince yourself of that, you need some introspection.
No one should feel sorry for landlords. Anyone able to invest in anything is likely fortunate. Buy to let properties have been reducing in number since 2016. Due to measures to make it less attractive. 2016 was when the extra 3% stamp duty was introduced on 2nd homes. Then section 24, then tenant fee ban. So all these measures are gradually promoting the home taking advantage over the investment. These measures will continue over time.
Agreed, house price growth needs to be controlled. A significant reason house prices have increased so much is because we haven’t hit home building targets since the 50’s. If labour build the promised 1.5m homes that will also help
@@dthebukYou can’t collect rent on properties on monopoly, same should be the case in real life. Stop renting out mortgages properties, renters shouldn’t be paying that for you
@@dthebuk Idea off the top of my head: maximum one rental property per landlord, rent cap on how much they're allowed to charge, no ownership of homes by corporations. Probably someone who's thought about it more could come up with something better.
@@TheWilliamGale over the past couple of years we’ve seen higher house prices and interests resulting in higher rent. Would higher stamp duty on second homes not do the same?
The sad music over the fact that people aren’t renting anymore… dude, its because renting SUCKS! We cant afford affordable housing because wannabe millionares are buying up all the affordable houses and turning them into expensive properties, putting an absolute chokehold on the market. And buying properties just for rent raises the price of buying a home for all of us! So my generation is left holding the bag, with most rent too expensive to afford and never being able to afford a house because its all being taken up by property leeches and airbnb tycoons. FUCK. THAT. If youre a landlord, look into the concept of economic rent. You are contributing nothing to society, and are in fact creating a net negative by taking away resources to make an excess, unnecessary profit for yourself. You’re a leech. Sell your property. Bring home prices back to a reasonable level. Allow people to have access to affordable homes again, instead of hoarding them for yourselves. We’re done paying your mortgages. You did this to yourself.
I've been in the rental business and I can assure you that it was the best day of my life when my financial adviser put me onto investments that gave far better returns than rental properties. I didn't realise how much the properties had become a heavy chain around my neck. I only own two properties now and have never felt more free and happy! You go for it, keep on bashing landlords and more and more like me will find better or easier investments. Less rentals on the market = higher rents, it's called supply and demand, so crack on and in five years all your money will be spent on rent, well done, give yourself a pat on the back. xx
There are 33% less rental properties and 18% more tenants than pre-covid right now: The result has been massive increase in rents. So the market is becoming less attractive to investors which exactly what you say you want…but it actually costing you more. Reason is because true issue is we’ve not hit new build housing targets since the 50’s.
@@TheWilliamGale But what is the reason were not building new affordable homes? Because huge rental companies lobby against it to protect their supply.
@@TheWilliamGale I understand your perspective, and what you say is right. But this is an issue that the renter economy has in the first place. Im not anti rent entirely. But it should be a niche option- not the default. And we should increase the amounts of homes on the market so people can buy instead of rent, but huge rental companies are preventing that from being a reality. Its tragic.
Your point of landlords selling are: "cashing in on higher property values, so they're hardly losing out". IS COMPLETE NONSENSE! These landlords are often selling with a tenant in situ. This will likely mean they have to sell at a deep discount and any equity gains will be lost in selling at a discounted price. I'm a landlord also, and celebrate those greedy landlords being forced out. Nothing sweeter than negotiating with a landlord desperate to sell, but trying to hide their desperation. 😂
I guess it depends when you bought and if you over paid or not originally. I was making a general point and I should have clarified. There will be some landlords caught out and sounds like your aware of those instances and capitalising 👍 How ever I’m finding most aren’t needing to sell for less than they paid. Or aren’t able to sell for what they want and keeping as the rental market is very strong. My main business (see description below) is sourcing around 200 bmv properties enough for investors so I do see where you’re coming from. Thanks for the comment
@@TheWilliamGale A landlord selling with a tenant in situ can only sell to another landlord. Also, due to the higher risk, getting a BTL is much harder. So these properties are often selling to cash buyers. I bought 2 myself and the discount was close to 30%. Are you saying that you're achieving market value for your BTL landlords selling with tenants in situ??? I find that hard to believe.
We find selling properties with tenants in situ very tough. You’re 100% right there. Generally we sell vacant possession or if the landlord wants to sell with tenant in situ we advise far easier to sell at a better price vacant.
This needs to get worse before it gets better. I was evicted from my 2 bedroom house last year. The banks simply refused to let me pay them what i had been paying my landlord for years without a single missed payment.
Councils are going bankrupt putting evicted private Renters into emergency accommodation as landlords exit the sector en mass because its now a poor investment- plus a huge % are simply retiring which was expected - no surprise there - and can not stop someone selling their private property and/or retiring! So, Councils/gov need stop abdicating responsibility & do their job and build more social housing not sell them off!. How short sighted & stupid expecting to have social housing needs met by the Private sector.🤦♀️
I agree. ☝️ Landlords get so much criticism for a situation created by government. The underlying problem is we’re not building enough & thatcher sold off all the social housing. Which is why Labours plan is to build 1.5m homes of which a significant portion will be social housing & improving the protections on social housing not being sold. Let’s see if they pull it off.
Government/councils are slowly taking control of privately rented properties. It is their intention to turn private rentals into council stock where they call all the shots. Landlords that made the investment decisions and put up the money will become pawns in this game. Lib/lab/con makes no difference. They all have this as part of the game plan. Selling up will be next to impossible. Eviction won't be possible at all. The returns will be tiny or maybe even negative. The landlord will still have to keep the property maintained and updated to new EPC standards despite the tiny returns. I'm staggered that people cannot see this happening. If my tenants weren't all so nice I'd sell up tomorrow. I just can't face evecting them despite the ghastly road ahead for private landlords. I wouldn't recommend anyone to touch property investing with a barge pole right now, unless you fancy being a slave to ever increasing government regulations.
Unless you have several and make it your job, or if you have paid off the mortgage, its really hard. BTL really is dead for the person who has an interest in a single rental property, with a third of the mortgage paid off. The tax on rents before you make a profit is a killer, couple that with 6/7% interest on BTL mortgages and its not an enticing proposition. So you pay 7k on every 100k you borrow and the government want to tax you on the rent you will be using to pay the interest on the mortgage. Its about break even financially but you still have the work and liability of being a landlord. When I have to renew my BTL mortgage I will be selling and the equity is going into the S&P500. I can make a better return on my money doing nothing!
agreed, as the investment appeal of property drops, the appeal of other investments like index funds grows. buying standard buy to let properties with a 75% mortgage are becoming harder and harder to make a profit on. Property investment works better if you are developing or building property, or if your less dependent on debt.
Yes section 24. I should have included. However only affects investors that hold properties in personal name. Does not apply to investors that buy through ltd companies.
I lost my section 21 case because of a missing gas certificate during covid and ended up paying my tenant his court fees not to mention the thousands I paid to the solicitor. I decided to raise the rent because the tenants was paying peanuts for the last 13 years whist my mortage has quadrupled but now the tenant has challenged the rent and it gone to a tribunal and this will probably end up in another court case. Any advice will be appreciated as this is killing me.
I’m really sorry to hear that. I would recommend you follow the same section 21 process but insuring you have all the relevant info you missed last time. In the past I’ve assessed what the process costs & just offered the tenant a sum to move on amicability. Making the argument I’m happy to offer £x to help you move onto a new buy to let property or I’ll be forced to serve you with section 21.
@@TheWilliamGale Thank you for the reply unfortunately I’ve been told by my solicitor as I lost my section 21 case as the gas certificate is missing I can’t use section 21 again and I can only use section 8 only if I have grounds. Any ideas if this is correct? I was in the court for only 10 minutes they asked where’s the missing gas certificate I said I don’t have it due to Covid I couldn’t gain access to the property and that was it after putting my case together for a year and paying thousands the case was dismissed in 10 minutes. Now I’m stuck with this tenant and now he’s challenging the rent rise when his rent has risen only £70 in 13 years. No surprise landlords are selling up.
@@TheWilliamGale sorry I mean it was never done for that period I have all the certificates since then but unless I magically go back in time and get the missing one done I’ve been told I can’t use section 21 again 😩
I see. What a frustrating situation. It’s seems section 8 is the only answer. There is so much focus on villainising landlords. Whereas there are often cases like this tenants are playing the system. I’m sorry your in this situation & I do hope you’re able to resolve this 🤞
This what you get when governments screw landlords on tax and section 21 abolished and c rate epc certificate before 2030 so it's a case of sell my rental houses . had nine now only got 3 left and I will sell rest before 2030 .
A lot are following your trend on this. Have you found profitability has just dropped? Or too much hassle? Or better return on investment putting money somewhere else?
Do you disagree with section 21 and more rights for renters? You shouldnt be able to kick us out of our homes whenever you feel like it. You should be forced to provide us with adequate care and prices and respect. This is peoples lives were talking about, not just your side hustle!
I agree. There needs to be more rights and protections to tenants. But there also needs to be protections to landlords if a tenant is being difficult and not paying rent for instance. Section 21 being scrapped isn’t the concern to landlords. As section 8 can be issued if a landlord has reasonable reasons to evict a tenant. The issue with section 8 is the court system is so over stretched it takes a huge amount of time to administer. Like the NHS, the court system is completely overrun and underfunded.
@@TheWilliamGale If people want to rent fine, but make it a right to br able to buy the home one occupies, if thwy can afford the rent they can afford the mortgage.
Section 24 doesn’t affect investors that buy through limited companies. So it created pain to investors when phased in, but of course not to net new purchases through ltd
