cry me a river, buy to let land lords have forced prices up so much, that it forces us to rent.
​
Dont let the door hit you on the way out
The explosion of buy-to-let has really been an absolute catastrophe for this country.
The idea of popularising people taking out mortgages on properties only to rent them out for even more money than the mortgage costs is one of those concepts that’s really hard to explain to other people and have it sound remotely rational.
What a load of rubbish, foreign investors are hoovering up buy to let properties all around the country, almost 9 billion worth was bought in Liverpool alone in the last few years. The relatively weak pound has only exacerbated this and neither of 2 large parties seem interested in put cap on what foreign investors can buy so draw your own conclusions.
Most who think this is good are focussing on the wrong thing when wage stagnation and high interest rates mean most of you still can’t afford to buy. Only difference now is you won’t have anywhere to rent either and those that do find somewhere will see it inflated to match in line with mortgage rates.
As much as I fear for the rental sector, this has been a long time coming, for too long, buy to let has been way too easy to make money, as the cost of first time buyers, and rental tenants. Now finally they’re bringing in rules, where landlords who brought a cheap house, and left it to be cold and not energy efficient, (they never cared, cause they never lived there). Will have to bring up the properties up to scratch, to rent it, coupled with higher labour, and materials cost, tripled with higher interested rates, means there nest eggs, isn’t going to give them the extra wage, for doing naff all. They will sell them off, and still make lots of money, most of us, can only dream off. Most investors aren’t going buy in to a falling market as-well. The Chinese do seem to be buying around Manchester, probably good place to park cash, with HS2 completion to boost there value. I wonder want will happen, when no one can find somewhere to rent, and the councils long sold all there homes. it’s looking more, and more bleak for the future.
The casual landlords will be forced out…and replaced by corporate landlords when the market hits the bottom
As others say, this is by design.
They want the housing stock that Boomer Landlords have. Chip away and make it so that property rental is so awkward as a “side income” that their adult offspring can’t be arsed with them once they’ve inherited them, and then corporations sweep in and hoover them up.
Banks aren’t happy with their revenue from mortgages and underselling your interest on your savings. They want your rent too.
Sleepwalking into a country where mortgages and eventual ownership are exclusive to a small wealthy percentile and the rest of us have LLOYDS RENT DD taking away 40% of our pay every month…
Landlords provide housing, like ticket touts provide concerts. Oh dear, what a pity, nevermind
I was an arrears agent for karl tatler and all you would get was landlords ringing moaning that they couldn’t pay there mortgage because the rent had not been paid and if you told them to stop relying on a renter to pay your mortgage they would go mental.
Eat the rich. Fuck land lords. No one needs to own more than one home.
So there’s a risk of houses becoming more affordable?
WONT SOMEONE THINK OF THE LANDLORDS.
My dad owns 5 properties, including the one I live in (I’m fully aware of how lucky I am, don’t worry). He phoned me the other week saying about how annoying it was that with all the new laws coming in, it’s getting harder to make a profit as a landlord now. I told him he was taking the piss and you housing wasn’t there to be used to make a profit.
Edit: To clarify, I said it in jest, and he is remarkably Liberal for his age and is sympathetic to the younger generations’ inability to buy a house.
OH NO. They made a financial investment and it’s at risk at failing?
Almost like the market’s working. You don’t get to privatise your profits but socialise your losses lmao.
There’s a definite trend in the Standard, the Times and the Telegraph.
Boohoo woe is me stories about landlords selling up because the tax rules have changed and how WFH is killing the economy.
Shockingly nothing about how wages haven’t risen since 2010, how they all complained about the law “to make homes habitable for humans” was voted out. How 500,000 local authority and housing association places aren’t fit for habitation
For some reason I get a lot of telegraph stories on my apple news feed & it’s mainly all boomers bitching that they have to pay inheritance tax on their £million+ homes or how they can’t live on their £million pensions.
Now this campaign to abolish inheritance tax! No one pays inheritance tax except lazy upper middle class boomers who think they’re too good to pay for a financial advisor.
Boohoo. The houses don’t disappear . Landlords in this country have had it too good, too long. Good riddance.
/r/ParasiteTears
A subreddit I’ve just started if anyone would like to join.
This would normally be a good thing as it would crash house prices which in turn would take the heat off the rental market. But the reason government isn’t worried about a house price crash is, that investor companies are sitting in the wings to snatch these properties up. They are a safe investment for banks, insurance companies and pension funds. They don’t depreciate in value (not if you can control the market) and provide a much safer income in form of rent than dividends do. There is no cost associated with them, as the tenants cover all costs through their rent plus a profit for the owner of the building.
On one hand I’m thinking “great, this will massively increase the supply of housing stock, allowing house prices to revert to the mean and allow people to get on the property market at long last”. However, I don’t think that’ll happen. All that’ll happen is that landlords with single or smaller portfolios will exit the market and their stock will be snapped up by the huge property developers with hundreds of properties. The ones with political influence. The ones who will invariably be worse for tenants.
Well no shit. The problem here is that on one hand you have the “landlords are evil! Anyone with a buy to let is satan incarnate” and on the other hand “there isn’t enough property to let!”
Ideally, forcing private landlords to sell up, which the tax changes since April which make it very hard to profit from buy to let, plus the mortgage rate increases, will mean a lot more property goes on the market which people can buy.
Problem is, in the short term what that actually means is landlords selling up and less property to rent, which makes it even harder for those that can’t get a mortgage when interest rates are high.
Unless there’s a significant market crash then I can’t see this being resolved to the benefit of the renters that can’t currently afford to buy.
We can only hope.
The responses in here….people wanting small land lords gone in favour of big banks buying up all the properties instead, JFC talk about voting for the leopard party.
We need more houses built ffs and no big banks controlling a sector like rental housing, do people expect the housing problems, high rent, high interest rates to be over once big banks move in for the kill, has anyone not learned anything about banks?
Someone is going to have to explain to me why this is a problem and what the “risk” is to everyone else *other* than landlords?
A buy to let doesn’t pay the loan of the property, only the interest to the bank. So even if you rent the flat for 30 years at the end of it you don’t get to keep the flat, it’s still the banks. You have 0 equity in it.
Furthermore if you have a job besides it then most of what you get from the rent is taxed just like regular income.
Let me put it in perspective for you. The mortgage of my house is about £1400. Add ground rent and service charge and a minimum of 10 to 15% for the agency fees. That means that I would need to ask for at least £1750 a month rent to cover the costs.
Most of this £1750 a month is taxed 40%. If I were to rent it out, assuming all goes well, I’d only get about 5k a year “profit” which goes to the repayment of the loan.
That doesn’t even take into account higher interest rates for buy to lets, just the one that I have now which will go higher at the next renewal.
I know and I agree with you that houses should not be an investment but something that everyone has access to within reason.
Everyone cheering the exit of individual landlords is going to be sorely disappointed when they see who buys up the houses.
The whole system needs burning down and starting again.
This doesn’t mean the end of renting. It just means you’ll be renting from an even larger and more callous company than your landlord ever was. So if you’re still renting this is actually very bad news.
I think tenants should be able to credit check their landlords and make sure they’re not overleveraged if they hold a BTL mortgage. I don’t want to live somewhere where the landlord might default on my home.
All this means is that the corporate giant landlords get an early Christmas.
this is for regular landlords, house prices will not fall and **large multinational conglomerates will buy them up, which could be worse.**
Except those houses advertised in China….big hoover suckong them all up. It’s a great way to launder money. Buy property here, charge rent, increase the amount on paper, add in repairs/maintenance. All washed and ready to spend.
Behold! My field of fucks. Lay thine eyes upon it and notice that it is barren.
The situation in the UK is very worrying. We’re already seeing UK governments transferring huge amounts of wealth into private corporations via wage subsidies. The burden on the state is going to get ever greater as housing benefits get sucked up into the corporate world, often in foreign ownership.
All this coming at a time when the UK government is shutting down legal avenues to protest, criminalising more and more trivial acts, and placing increasing restrictions on who can vote.
I don’t think people quite get how dire the situation is and how quickly it might spiral out of control.
30 comments
cry me a river, buy to let land lords have forced prices up so much, that it forces us to rent.
​
Dont let the door hit you on the way out
The explosion of buy-to-let has really been an absolute catastrophe for this country.
The idea of popularising people taking out mortgages on properties only to rent them out for even more money than the mortgage costs is one of those concepts that’s really hard to explain to other people and have it sound remotely rational.
What a load of rubbish, foreign investors are hoovering up buy to let properties all around the country, almost 9 billion worth was bought in Liverpool alone in the last few years. The relatively weak pound has only exacerbated this and neither of 2 large parties seem interested in put cap on what foreign investors can buy so draw your own conclusions.
Most who think this is good are focussing on the wrong thing when wage stagnation and high interest rates mean most of you still can’t afford to buy. Only difference now is you won’t have anywhere to rent either and those that do find somewhere will see it inflated to match in line with mortgage rates.
As much as I fear for the rental sector, this has been a long time coming, for too long, buy to let has been way too easy to make money, as the cost of first time buyers, and rental tenants. Now finally they’re bringing in rules, where landlords who brought a cheap house, and left it to be cold and not energy efficient, (they never cared, cause they never lived there). Will have to bring up the properties up to scratch, to rent it, coupled with higher labour, and materials cost, tripled with higher interested rates, means there nest eggs, isn’t going to give them the extra wage, for doing naff all. They will sell them off, and still make lots of money, most of us, can only dream off. Most investors aren’t going buy in to a falling market as-well. The Chinese do seem to be buying around Manchester, probably good place to park cash, with HS2 completion to boost there value. I wonder want will happen, when no one can find somewhere to rent, and the councils long sold all there homes. it’s looking more, and more bleak for the future.
The casual landlords will be forced out…and replaced by corporate landlords when the market hits the bottom
As others say, this is by design.
They want the housing stock that Boomer Landlords have. Chip away and make it so that property rental is so awkward as a “side income” that their adult offspring can’t be arsed with them once they’ve inherited them, and then corporations sweep in and hoover them up.
Banks aren’t happy with their revenue from mortgages and underselling your interest on your savings. They want your rent too.
Sleepwalking into a country where mortgages and eventual ownership are exclusive to a small wealthy percentile and the rest of us have LLOYDS RENT DD taking away 40% of our pay every month…
Landlords provide housing, like ticket touts provide concerts. Oh dear, what a pity, nevermind
I was an arrears agent for karl tatler and all you would get was landlords ringing moaning that they couldn’t pay there mortgage because the rent had not been paid and if you told them to stop relying on a renter to pay your mortgage they would go mental.
Eat the rich. Fuck land lords. No one needs to own more than one home.
So there’s a risk of houses becoming more affordable?
WONT SOMEONE THINK OF THE LANDLORDS.
My dad owns 5 properties, including the one I live in (I’m fully aware of how lucky I am, don’t worry). He phoned me the other week saying about how annoying it was that with all the new laws coming in, it’s getting harder to make a profit as a landlord now. I told him he was taking the piss and you housing wasn’t there to be used to make a profit.
Edit: To clarify, I said it in jest, and he is remarkably Liberal for his age and is sympathetic to the younger generations’ inability to buy a house.
OH NO. They made a financial investment and it’s at risk at failing?
Almost like the market’s working. You don’t get to privatise your profits but socialise your losses lmao.
There’s a definite trend in the Standard, the Times and the Telegraph.
Boohoo woe is me stories about landlords selling up because the tax rules have changed and how WFH is killing the economy.
Shockingly nothing about how wages haven’t risen since 2010, how they all complained about the law “to make homes habitable for humans” was voted out. How 500,000 local authority and housing association places aren’t fit for habitation
For some reason I get a lot of telegraph stories on my apple news feed & it’s mainly all boomers bitching that they have to pay inheritance tax on their £million+ homes or how they can’t live on their £million pensions.
Now this campaign to abolish inheritance tax! No one pays inheritance tax except lazy upper middle class boomers who think they’re too good to pay for a financial advisor.
Boohoo. The houses don’t disappear . Landlords in this country have had it too good, too long. Good riddance.
/r/ParasiteTears
A subreddit I’ve just started if anyone would like to join.
This would normally be a good thing as it would crash house prices which in turn would take the heat off the rental market. But the reason government isn’t worried about a house price crash is, that investor companies are sitting in the wings to snatch these properties up. They are a safe investment for banks, insurance companies and pension funds. They don’t depreciate in value (not if you can control the market) and provide a much safer income in form of rent than dividends do. There is no cost associated with them, as the tenants cover all costs through their rent plus a profit for the owner of the building.
On one hand I’m thinking “great, this will massively increase the supply of housing stock, allowing house prices to revert to the mean and allow people to get on the property market at long last”. However, I don’t think that’ll happen. All that’ll happen is that landlords with single or smaller portfolios will exit the market and their stock will be snapped up by the huge property developers with hundreds of properties. The ones with political influence. The ones who will invariably be worse for tenants.
Well no shit. The problem here is that on one hand you have the “landlords are evil! Anyone with a buy to let is satan incarnate” and on the other hand “there isn’t enough property to let!”
Ideally, forcing private landlords to sell up, which the tax changes since April which make it very hard to profit from buy to let, plus the mortgage rate increases, will mean a lot more property goes on the market which people can buy.
Problem is, in the short term what that actually means is landlords selling up and less property to rent, which makes it even harder for those that can’t get a mortgage when interest rates are high.
Unless there’s a significant market crash then I can’t see this being resolved to the benefit of the renters that can’t currently afford to buy.
We can only hope.
The responses in here….people wanting small land lords gone in favour of big banks buying up all the properties instead, JFC talk about voting for the leopard party.
We need more houses built ffs and no big banks controlling a sector like rental housing, do people expect the housing problems, high rent, high interest rates to be over once big banks move in for the kill, has anyone not learned anything about banks?
Someone is going to have to explain to me why this is a problem and what the “risk” is to everyone else *other* than landlords?
A buy to let doesn’t pay the loan of the property, only the interest to the bank. So even if you rent the flat for 30 years at the end of it you don’t get to keep the flat, it’s still the banks. You have 0 equity in it.
Furthermore if you have a job besides it then most of what you get from the rent is taxed just like regular income.
Let me put it in perspective for you. The mortgage of my house is about £1400. Add ground rent and service charge and a minimum of 10 to 15% for the agency fees. That means that I would need to ask for at least £1750 a month rent to cover the costs.
Most of this £1750 a month is taxed 40%. If I were to rent it out, assuming all goes well, I’d only get about 5k a year “profit” which goes to the repayment of the loan.
That doesn’t even take into account higher interest rates for buy to lets, just the one that I have now which will go higher at the next renewal.
I know and I agree with you that houses should not be an investment but something that everyone has access to within reason.
Everyone cheering the exit of individual landlords is going to be sorely disappointed when they see who buys up the houses.
The whole system needs burning down and starting again.
This doesn’t mean the end of renting. It just means you’ll be renting from an even larger and more callous company than your landlord ever was. So if you’re still renting this is actually very bad news.
I think tenants should be able to credit check their landlords and make sure they’re not overleveraged if they hold a BTL mortgage. I don’t want to live somewhere where the landlord might default on my home.
All this means is that the corporate giant landlords get an early Christmas.
this is for regular landlords, house prices will not fall and **large multinational conglomerates will buy them up, which could be worse.**
Except those houses advertised in China….big hoover suckong them all up. It’s a great way to launder money. Buy property here, charge rent, increase the amount on paper, add in repairs/maintenance. All washed and ready to spend.
Behold! My field of fucks. Lay thine eyes upon it and notice that it is barren.
The situation in the UK is very worrying. We’re already seeing UK governments transferring huge amounts of wealth into private corporations via wage subsidies. The burden on the state is going to get ever greater as housing benefits get sucked up into the corporate world, often in foreign ownership.
All this coming at a time when the UK government is shutting down legal avenues to protest, criminalising more and more trivial acts, and placing increasing restrictions on who can vote.
I don’t think people quite get how dire the situation is and how quickly it might spiral out of control.