Renters evicted as landlords act before law changes - BBC Newsnight 

For newbies, be aware that this is a grossly oversimplified scenario. For one thing, you can't get a mortgage on an investment property without at least 25% down payment. Two, it's easy to see comps for house purchase prices, but it takes a lot of research to understand the comps on rent prices. The trick is to find a place where renting is more expensive than buying, but those places are less common because of this very type of scenario. Three, you have to remember that rent number he's using is supposed to be net income, not gross. So you have to think about costs for taxes, insurance, maintenance and vacancy when you're researching investments. All that said, real estate investing is a good tool for wealth accumulation. But it isn't foolproof.

It’s a bad time to be a young generation that is dealing with this. My generation had it quite easy compared to this. Government failed once again.

housing costs are getting insane and within 10 years if nothing changes...the suicide rates and homelessness will rise....

What's the point in a contract if the landlord can break a clause so easily? Contract states 5% rent rise cap. Landlord wants over double that. Contract says no so he just evicts them with no reason to get that rent rise anyway. So what's the entire point of a contract if it means nothing?

The real underlying problem seems to be how mortgages work in the UK. Fixed mortgages expiring every few years and having to get a new rate just seems crazy to me as an American. Our mortgages are 15-30 years long. One of the biggest reasons for the housing crisis in the US was the over use of adjustable rate mortgages where the interest would shoot up after several years. If landlords can’t afford their mortgages they’re going to need to jack up the rents.

Here in Sydney, Australia, real estate agents are encouraging landlords to raise rents by 40-100% because of the rising cost-of-living, and the 3-4% rise in interest rates! Most wage-earners have been struggling to receive any wage-rises over the last 5+ years!

The reason for landlords evicting tenants is not panic: it’s reality. The laws the government made regarding EPC’s states they must at least be a C in order to rent them to tenants. Secondly, mortgage interest rates are extremely high right now. Landlords don’t make a fortune from renting unless they charge very high rents (£900+). The government has screwed both tenants and landlords because landlords will be fined £30,000 PER HOUSE if they’re renting to tenants at an EPC less than C. Oh and the cost of improving an EPC from a D to a C can be upwards of £10,000. Most landlords don’t have that kind of cash. The EPC thing is part of the net zero. The government are deliberately making decisions that are screwing small time landlords and tenants and young first time buyers. The government are playing both sides, here’s what they’re doing: 1) they are reducing the availability of rented properties by increasing restrictions on smaller landlords, this allows the big time landlords to raise their rents (higher demand, lower supply) - higher return for big time landlords. 2) they’ve increased interest rates so only the 1% can afford them. This prevents first-time investors buying property, prevents small time landlords growing quick enough to stay ahead and pay down their mortgages. It also drives the property prices down which means some small time landlords HAVE to sell up because their LTV ratio isn’t satisfied. Banks won’t lend without leverage. Also, it makes property cheaper for the big time landlords so they’re able to capture more of the market share. Eventually, property prices will rise high again and the small time landlords will have been pushed further behind and the big time landlords will have leap decades ahead keeping them on top. 3) inflation, they’re draining everybody out of their savings with inflation so nobody can afford to buy or invest. So instead they’ll have to rent and work which is a never-ending cycle that benefits big time landlords and cripples the middle and lower classes. Pushing first time buyers even further back. 4) Subpar house building; the government is not giving the economic boost and political support construction needs to make more houses. This keeps supply down and prices high, forcing majority of people into renting forcing them to work all their lives. It’s all designed specifically to empower the elites and cripple the majority of the people. It’s not right and this country needs a revolution because nothing is being done to the interests of the British public

I have a section 21, My landlord has given them to ALL his tenants and there are many of us and he is selling up and getting out. So that is a significant amount of families all looking for the same size rentable properties in the same area at the same time and rents are going sky high, many have moved north away from their families, jobs and support to an unknown future. This country's housing is a mess.

Brighton is an absolute nightmare to rent in. I lived there for years but eventually was priced out

Within 4 seconds and the BBC made a mistake; Brighton is in East Sussex! 🤦‍♂

Brighton depresses me every time I go there for a day out. It reminds me of London in that it’s never developed and yet everything is so expensive. Rents included.

Landlords, just remember, you are in it for the profit but the tenants are in it because it's their home.

Thatcher created the rentier class by selling of our social housing.

My rent went up £50 in May. I was told by the landlord it's due to inflation...he knew my benefits would rise by 10% in April ..it's pure greed

The issue is that either the renter or the owner must in some way pay insurance and property taxes if they want a "permanent roof" with utilities like electricity, gas and water. Because of this, many people-at least in California, where I currently reside-are living in tents. No taxes, rent, mortgages, or insurance. The number of people who tell me they live in their car that I meet amazes me. Its crazy out here!

I had to move almost every month when I was a student ..it has to work both ways so landlord and tenants are both happy ,some tenants trash the property and some landlords ignore damp and general repair jobs ..so complex but governments need to find a solution to give balanced rights ..there are too many horror stories going on and students that study need security while they do that ,difficult when the goal posts keep moving .

Obviously some « new arrivals » will have their rent paid by the taxpayer and the landlord is rubbing his hands together

Government need to step in an help encourage landlords to stay in the market. Without private landlords this country would have a housing/homeless crisis. Face it, we are now over populated and not enough housing. The councils are not building enough social housing to keep up with our increasing birth rate and refugees coming to our country. We are very quickly running out of space to build houses due to green belts etc. Im a landlord myself and i have little to no interest in continuing for much longer. In the last 6 months my mortgage has increased by £340 per month. I only increased my tenants rent by £50 as if she was to pay anymore it would just be unaffordable for her. BOTTOM LINE..... We need our landlords!

"I've got seven properties I'm losing money on month by month." 😂 Thoughts and prayers.

That would never have happened in Germany the renters rights are much bigger then the landlords one. People can not get kicked out unless the landlord has own use of the flat!

Landlords need to be abolished.

Are we supposed to feel sorry for the landlords? Why its even a business to make money of living quarters, it is a human right

More regulation will only make it worse and landlords will exit the market like I did. To much interference from government is counterproductive.

We viewed a flat in the BN16 postal code this week that someone had died in, they letting agents hadn’t cleaned the blood of the bed nor cleared the fridge and wanted £800 a month, we’re in the same boat as the two featured!

These legislative changes drive down the volume of rental properties.

Does anyone believe that society would fail because landlords can't buy houses to let? Is it plausible to think that if the growing majority of people who are struggling would be put to live in the streets, it'd be their own fault and problem? It'd be acceptable to have millions of people on the streets, who have REAL jobs, who contribute to society and landlords with empty houses? The sooner people start saying NO to this system the quicker it will fail.

it's clear at this point that no one in the government cares about renters, we just don't matter.

If the landlords mortgage has gone up then unfortunately the renters will have to foot the bill. Otherwise the landlord will need to sell ! Not all landlords are rogues !

Dont worry guys ! : "Prince William has launched a major five-year campaign to end homelessness, which he says should not exist in a "modern and progressive society" ..." So good news, the royal family owns 30 estates and im sure we can all move in with the prince caring so deeply!

how will they watch bbc if they are all evicted?

Buy to let is a con. The tenant ends up paying the profit to the bank and the middle man so called landlord, people need to set up makeshift tent anywhere to show their anger towards politics driven by the banks

The governemt kicked off massive rental inflation by changing the taxes from on profit to on turnover. They caused this mess by driving landlords from the market, now people want more help from the government. What we need is more landlords to increase supply to drive down rents, and the way to do this is to simply reverse the last 5 years of goverment intervention.

I think HIS name is RAMON, not Ramona!

The couple might have been better off agreeing the 12% increase - despite it being against the capped 5% contract terms - because if the rental is not too big for them, and so downsizing was not viable at a cheaper rent than the hiked market rate the landlord is now asking, they were unlikely to achieve a lower rent for a similar sized property elsewhere unless they move away from the area, where they might then need to factor in heightened travel costs to get to work or college. Plus they still face all of the same insecurities. So better to stay put, surely! Furthermore, they might have suggested a more creative solution of their current landlord who they have got to know which might not be achievable elsewhere : to simply loan the landlord the 7% over capped rate whilst the crisis was on, and then to reclaim that money back from the landlord, once mortgage interest rate rises ease off. That way the couple get to stay in the same place they'v made a home and the landlord gets to survive by keeping them there and to avoid voided periods. Not ideal, perhaps, unless they were renting an oversized property where they could simply move to smaller and cheaper rental, but there was no other better solution for them and just moving for moving sake after receiving a s.21 for not agreeing the above capped rate was not doing them any favours.

Well, landlords cares only about the profit.

I had a landlord, house was rented out at below market price about £100 - £200, no tenancy agreement. He stated that he doenst do repairs (house is in good condition when he rents) and when he says go I have to go and no deposit. Sounds dodgy ? Nah best landlord Id ever had. He gave me 2 months notice to leave (4 years being there) after I went he checked out the property and found that I had damaged a wall. We agreeded on £150, settled. Why cant all landlords be like this?

I would have never been able to buy if my landlord hadn't kept the rent flat. Even though, I am buying at one of the worst times ever, I am so glad to no longer have that Damocles sword over my head. I really feel for my friends still renting

Stop supporting holiday homes. Use hotels or old guest houses.

Just a case of the British system failing the British people, and as these two young people grow older there will be more injustice for them to endure. Meanwhile the "royal family" live in their happy little palaces... 😠

It is very misleading to suggest that it is only the rise in mortgage interest rates that is causing the need to increase rental levels. This short sighted analysis does not help anyone and avoids other key issues. Property providers have many high costs before they make a penny profit. Most of these costs are increasing all the time: insurance, repairs (labour/equipment), redecoration, cleaning, never mind voids. And so it goes on.

It's a shame that this guy and girl are getting evicted

She didn't own her home. The landlord has a right to sell. This happened to us. She needs a reality check.

The joys of feudalism. Rent controls are now essential in this country. If we are been paid 'minimum wages' why is it right to charge 'maximum rents'. This is not right. Only parliament (80% landlords) can address this injustice.

Bit late on reporting the rent crisis, been a crisis for a few years

My heart breaks for this couple. 💔 and bit upset with the government.. They accept asylum seekers, feed and house them using people's money and now they easily turn the citizens to be homeless

It's nothing to do with mortgage costs. Most rentals are 2/3 times the monthly mortgage costs so landlords already feed off their tenants. They just get more greedy.

I’m sorry but if someone has bought a house and they want it back they should be able to get their house back. Pure and simple if the government wants no fault evictions they should build more social housing.

My husband is selling up as we are losing too much money. However, tenants have more power than landlords. Our tenants have refused to move out and stopped paying their rent and now we have to find money to go to court and pay a mortgage we can't afford. We are tenants too, so we see things from both sides. But I would never stop paying my rent or make things difficult for my landlady if she asked me to leave. The home I rent doesn't belong to me, it belongs to my landlord and they have every right to ask for it back. Being a landlord is just not worth it anymore. The sooner we get our tenants out the sooner we can sell it and be stress-free.

Light on detail. Section 8, section 21, renters reform bill? WHAT ARE THEY? 🤷🏾‍♂️🤷🏾‍♂️🤷🏾‍♂️

Real estate is becoming the new oil, huge amounts of money for destroying society

We are not building enough houses, we build millions of cars, why cant we build millions of houses ?

It's impossible to have an opinion about the case of the person asked for 12% rent hike, without knowing how much rent is being paid currently and for how many years it's been left unchanged. Over the last 4 years the value of money has decreased due to inflation alone while some landlords have kept rents the same because they didn't want to make it harder for their tenants during covid etc. This could be the case that they are paying 2019 rent in 2023 and now the landlord realises that their mortgage is unaffordable (their problem not the tenants, but it's a reality that can't be ignored). So the 12% rent rise is not necessarily greed, we don't know the full picture. I really doubt that landlord was doing 5% every year for the last 3 years and then this year they do 12%

being a landlord is no longer worth it, its been getting worse for years now. Less landlords = higher rents you will pay!

Most landlords aren't wealthy individuals. They have just saved up enough for a down payment and have good enough credit to buy a rental. They count on the rent to meet the cost of the property. If the costs of the property go up then the rent also has to go up. They aren't running a charity. It isn't their responsibility to provide housing for these tenants. These idiots should have accepted the 12% increase or tried to make an offer that was above the 5% that could have maybe worked for both the landlord and them.

I’ve little or no sympathy for the landlords…..they had a contract and a 5% raise cap is fair (more than they’d get in a wage raise!). If they did pay the increase and mortgage rates reduced, would they get a downgrade in rent………not bl%%dy likely!!

Government should stop landlords from having more than 2 buy to let mortgages. Because end of the day it’s the tenant who pays their mortgages and rising rent will make impossible to have a mortgage if their own. They bring NHS workers from abroad also will have an impact on housing. One NHS worker from India 🇮🇳 will come with 5 family members, later on they will take their in laws too. So 10 New members need ti be housed and given NHS services too.

Greedy landlords… greedy government… I’ve had a section 21 and my landlady has sold our house. Me and my family are hard working, never ever not paid our rent, have glowing references and yet living in the south east we can’t find anywhere as the greedy estate agents have bought in loads of impossible rules and a system that declines you for any box you haven’t ticked. Unreal. We can’t even live in a caravan legally!! Anything we think of is a dead end.

Canadian here. Landlords of big towns like Toronto ask for too much in rent. Im moving again and very soon who knows where Id be

The price to pay when the Government punishes landlords, forgetting they have taken up the slack from the lack of council housing as a result of poor Government decisions..... extreme un-joined up thinking.

The numbers don’t lie. All the LL’s selling up and leaving the market are affecting rental prices, as well as the interest rates. They’re horrendous. Clearly the government is worried and starting to ease up on the pressure. All the recent changes have proved more counterproductive than beneficial. High rents are here to stay and they’ll only get worse.

I wouldn't want those two in my house either 😂

I live in Brighton ❤

The idea that there should be a law that protects tenants no matter what is ludicrous. If I’m renting my property out, I should have the right to decide who gets to live in it. It’s my property, I paid for it, the renter shouldn’t have more rights to it than I do. There should be fairness for tenants, but anyone who has read the proposed bill should understand that what it will do is minimise private ownership and give the government room to take over.

Demand is already high, but you want to live in a touristy spot with an ocean view? It's even higher. Be prepared to pay.

Why do landlords need to exist?

Payed all my rent on time for 5 years straight and received an section 21 landlord trying to up the rent by £200 and there repairs in the property that haven’t been fixed for over 2 years which I’ve already told him about no repairs have been done and he trying to up the rent what an joke

Great to live in England now that 1984 has come and gone.

Greedy landlords and government. Lots of people ate pushed out of our homes. I lost my home I lived in for 10 years and now I'm living in a hmo, because its all I can afford now because of the increasing rents, and now the rent is so high I can't have a flat of my own now. I lost my interest life because of the pandemic, the cost of living etc, and it's going to get worse. I remember when I first moved out. I paid 7 pound a week for my bedsit, and my first 1 bed flat was 400 a month. So yer it's a bloody joke.

1. Too many landlords seem to view renting their properties as a no risk, no responsibilities and no work source of free income. 2. However much landlords like to blame extenuating circumstances, landowners have always sold at the top of the market, as they're doing now, and bought when prices are low. 3. These properties do not magically disappear once sold - either a new tenant with a new landlord or a new homeowner will move in.

The real problem is that guys purple hair. :-))))

I’m sure they were ecstatic and thrilled to get a letter telling them they had to get out of their home…😒 Why would he even ask them that ridiculous question?

The more you squeeze, handcuff & vilify landlords the more are leaving.

The landlord is talking crap, If he was losing money he would have sold them off

We lived in a flat for 10 years. We cleared out his disaster of a yard free of charge. We paid the rent on time in full. We paid the bills on time in full. We looked after the property. We did every single thing we were supposed to do. And then we got a section 21. We had to find a suitable flat, the deposit, pay for moving, and pay for cleaning his flat. He insisted we get the carpets cleaned professionally, and the whole flat cleaned professionally at our expense. The next day he ripped all the carpets out, removed everything, including the bathroom and the kitchen. Now, he has built on the yard, and is charging tenants well over a thousand pounds a month plus bills. I will never, ever, ever forgive him.

Prices on everything are rising, not just housing.

Government dont target energy companies that made eye watering profits like British Gas.

I"ll take "unintended consequences" for 1000 Alex. lol

Woke winging again

In 30 years there will be an extra 10 million people living here . But hopefully living in sheds and garages won’t carry a stigma by then. 🐤

seems like we have five times the homes than necessary standing in long term unoccupied status… take the second homes, we cant have that as a society when working people dont have a FIRST home!

Ronald I mean Ramona has a point

Mortgage interest rates have gone up and the fear of the RRB has lead us to selling all 12 of our properties and unfortunately as a result some have been left homeless, this government announced this bill at the totally wrong time during a cost of living crisis. Well done your now hurting landlords and renters.

You have no right to live near the ocean or anywhere else if you don’t owe the property.

To be honest I'm glad this happening. Its easy for me to buy a cash purchase properly now. I always lost out to gready landlords in the past. I can't do a mortgage at the moment due to poor credit. I'm now on my way to having my first place. It's a shame about the tenants being kicked out but the government need reforms on mortgages and buy to let places. The bubble has burst and all those landlords are now selling up. It also time to rethink about council housing because this has also why so many are renting privately. The tenants are ones that have been worst off in this.

We got one so now me and my 3 children a little less than a month to move out with nowhere to go. I was told he would renew in October so was a shock when I got the letter and just 2 months to be out. Things need to change because with no affordable/ suitable houses available where are families meant to go 😢😢

Need to make room for all of the Doctors, Architects, and lawyers fleeing war torn France! Which of course is fully endorsed by the BBC!

Lol the dude named Ramona could be why they’re being kicked out? Ramona should have helped out his girlfriend better while she was crying.

I am a landlord and its really tempting to sell. We get no encouragement, no financial help despite having to comply with expensive modifications and often are faced with expensive repairs when our houses are rendered squalid and filthy by bad tenants. We are not all rich by any means and many of us feel we do not deserve the bad press. Some of us were pleased to provide homes for the homeless.After years of being a landlord in my😅 small way I feel I've been a doormat! We all have had horrendous tenants as well as really lovely ones, been cheated,lied to and also thanked and appreciated in equal measure.

this is misinformation. This bill actually increased the rights of landlord, as now they can turn out tenants with 2 months notice if his extended family wants the accomodation. And the property can be re-listed after as little as 3 months. And my understanding is, tenants can be served notice immediately, without the initial fixed term. So less stability for tenats, high season airBnB opportunities for landlords.

We need a rent cap like in other parts of Europe and, ideally, the state becoming the provider of housing and acting as the landlord. This private model is failing people left, right and centre

In less than 30 years the population has grown by 22 million people. There are too many people and not enough houses, which is the ONLY factor that can explain why both purchase prices AND rents have risen. Scapegoating landlords is driving them out of the sector, leading to an even greater shortage of properties for rent, which has further accelerated rent increases. We need net zero immigration now, or this will only get worse.

Not sure I see the issue - lease was expired otherwise it could not be changed; Landlord is facing increased bills and expenses - 12% in the current climate does not sound excessive as it is basically inflation. They were blunt in response to the 5% contained in the expired shorthold lease which is below inflation; and crushed when he said he can't do that and needs to find new tenants. Pretty sure if they came back and said can we do 8% because it is a little tight the Landlord would have negotiated. I get the pressure but then feel for the owner as well - he might be renting this place to pay for his elderly mother's health treatment which has jumped by inflation or more - who knows! Landlords are people as well.

The Government caused this latest crisis by giving a date of the new law, giving landlords a chance to get people out before it comes into law, no excuses for this crisis!! It’s so disgusting that we are ruled over by a 3rd choice prime minister we didn’t choose! My heart goes out to all of those living with the fear of homelessness and that shouldn’t happen to working people!

As a landlord with one property i charge 650 a month. Mortgage payment is 400. After factor and agency fees i make 100£ per month. Thats with no repairs etc. So my net cash profit is £1200 a year but tax bill is £2000! And thats with a 2.99% Mortgage. What most ppl dont understand is that section 25 has made it impossible for small-time landlords to invest the profits into the property. I have very little savings and lose 800 a year cash on the property. I have zero incentive to improve the property. And yes. I know im lucky to have a poperty to rent

i'd like to bet most of us would do the same if we saw a huge loss against our properties

My rent has gone up £50 a month in the last 3 years

The landlords have probably been faced with increased costs, interest payments added red tape etc... I make less profit than I did 5 years ago and the rent has gone up 30%. ALL of that increase goes to RentSmart Wales, the taxman and the banks.

Between 2019-23 350,000 Landlords exited. So a lot of excitement over this. According to spareroom.and other bodies 20% more will exit. This should encourage tenants to buy their own homes.

The couple here are just priced out of market. That’s it, nothing more. Market rate just jumped up so quickly and they can’t afford their life style choices. Landlords need market rate, just like if I was to sell my car, I would want market value. At supermarket , can’t expect to pay what I’ve been paying last year ! It’s not greed , it’s hard realty of our economy.

THe tenants freel powerless because the landlord had to serve a section 21 notice because the Landlord also feels powerless thanks to the governement, mortgage interest rates and fact that the governement and tenants believe landlords are banks, social workers and have endless funds; they don't...