Small landlords selling off isn't a great news after all

Why not build the social housing before you start taking rental houses that are desperately needed out of the rental sector?

There are significantly more costs associated with being a landlord including:
-interest rates on BTL are higher
-tax
-backed up fund for replacing boiler/ windows/ structural stuff
-ongoing repairs
-periods of vacancy
-management fees

all small landlords I know do not make a profit. It’s only when they sell, which now the housing market is flooded with flats they’re not able to do so

If your landlord lives abroad you should be paying the tax direct to HMRC unless HMRC have told you otherwise.

https://www.gov.uk/guidance/paying-tax-on-rent-to-landlords-abroad

It costs over twice as much to rent a house on my road as it costs me to pay for my mortgage. That is ridiculous. People have become so greedy they exploit those needing to rent. I think it's a good thing. And no one becomes an 'accidental landlord' what a load of crap. If you inherit a property it's easier to sell than rent out in most cases. I have no sympathy for these people who have watched too many episodes of homes under the hammer.

If you bought a flat to rent out you wouldn't just need to find the shortfall between your own rent and the amount the flat rented for because you would have to pay tax on the rental income (assuming you have used your personal allowance with employment).

If you need a mortgage the interest on this is not fully tax deductible if you are a higher rate tax payer or the rent you receives makes you a higher rate tax payer. Mortgage equity paid with rent is always taxable.

You would also have expenses of annual gas checks, insurance, voids and maintenance of course.

I think this is a case of people getting what they wish for. The socialists, that is, and any other like-minded fool who hates landlords.

People love to rant about bad landlords, which I’m sure there are many. But nobody ever talks about bad tenants.

We had a woman refuse to leave, didn’t pay rent for 5 months, moved in her criminal pedophile son and we had to pay them to leave because court and baylifters could have taken years. My health has not recovered from the stress years later.

I see so many people on here vilify landlords, but frankly you have no clue what the reality is.

We are also selling our flat in London at the end of the year. I’m so sick to death of being vilified by labour with all their holier than thou bullshit when they are just a bunch of hypocrites.

We are also good landlords. We have had the same tenants for 10 years and I feel awful about selling but I am sick to death of being taxed within an inch of my life and also the completely lunatic regulations coming in. So we’ll sell up and invest the money.

All the big corporations who will buy up rental properties will treat their tenants like customers and not in a good way. They will know every trick in the book to squeeze more money out of tenants and screw them over but people don’t want to hear it. More fool them

Yes why do governments of both colours only want renting to be done by corporations? All their fiddling and increased taxes is forcing it that way.

Tories wanted to squeeze private landlords out in favour of first time buyers.

Labour want to squeeze private landlords out to stop BTL investors bettering themselves as they need to keep people poor for votes

But both just result in properties moving to corporations.

I'm still a landlord as I don't see an easy way out - and I've been doing it for 30 years.

But I'm changing things. Particularly I will never take a chance on anyone. I now need excellent references, a high income and preferably a guarantor. In the past I have happily taken a chance on people without those things if I liked them. Now the risk will be too great.

And when we had Section 21 most landlords used that, rather than Section 8, to get rid of non paying or antisocial tenants. This "no fault" eviction route meant such tenants didn't get a black mark against them that would have made finding another rental difficult. Now all tenants evicted under the new system will find their non payment is recorded and is also likely to result in a CCJ and so will make themselves untouchable.

I own one apartment, rent under market value, keep it in good condition, long term tenants, respond to issues asap. I do make money on renting however. My own view is that more social housing would be better for society as a whole, but more big private corporate landlords will be a disaster

Yanbu. I'm still a landlord, 'accidental' as I moved area and couldn't sell at the time.

Ten years later I'm preparing to sell. Not allowing mortgage interest to be tax deductible, increasing legislation year and after year, there are soon to be only financial losses in being a private landlord.

The sad thing is I've always treated tenants well, allowed dogs, redecorated regularly, taken pride in the property. I cant afford to keep it though when I'm basically not allowed to make a small profit after all the bills and taxes. Ten years ago there was a decent market for landlords and tenants. Now it is awful for both.

When I had to increase the rent, it was hoovered up by agents fees and VAT and 40% tax (I work a day job as well).

The buyers interested are large corporate landlords, I doubt they'll take the level of care maintaining the building and comforts for tenants that I have.

What a mess successive governments have made.

Ah yes. That is certainly true.

So was doing away with mortgage interest relief. Anti small landlord anyway.

Yes, absolutely it was. But then the Tories realised it was unworkable and so basically shelved it.

This is impacting the building we live in, we have a flat in a shared (old) building in a tourist city.

What is starting to happen is flats which used to be let long term (usually to professional couples or a small family) are being turned into holiday lets.

It's not great, hen parties teetering up the stairs and noise etc, in fact we are unsure of they are breaking the terms of the lease, but I guess it is understandable given the new rules.

In such an old building I doubt any flats would pass the energy efficiency ratings. the pets thing would also be a problem as our original lease does ban pets (anything with four legs apparently or a noisy bird!)

I don't know why anyone wants to be a landlord. I've been an accidental one for 18 months after my parent died, and while waiting for the legal go ahead to sell the property to meet the debts they left behind. There's not been a penny in profit after tax was paid and repairs done. The tenants finally left in arrears and had trashed the property so the expense has been significantly larger than any income. It's been a complete nightmare.

I asked the lettings agent why anyone would want to be a BTL landlord. She said that she had no idea, and that knowing what she knows she would never be a landlord.

I count myself fortunate to be selling the property before the rules change. I've also never been so grateful to own my own home, and that my adult kids managed to get on the housing ladder. I feel desperately sorry for those having to rent these days.

I'd felt terrible for having to give my parent's long term tenants notice. However, that vanished when I saw what they'd done to the property.

Nobody is asking you to. But shedding a tear for the tenants for whom it's now impossible to find anywhere to live and for tenants whose rents are higher due to the lack of supply is a more appropriate response.

It's pushing people here to Air bnb which is really bad for communities and neighbours next to the party house. We also have huge amounts of students and the rooms they pay through the nose for would be considered 3rd world - mould, stained mattresses, leaking roofs. Those guys own about half the town and split houses into rooms with a 3 bed terraced housing up to 9 students! Those are the guys they should be going after. They also always aim for students from overseas because they can't view the property and don't know their legal rights.

The point I was trying to make was that the last government promised to ban section 21 notices and never managed to do it. In fact I’m pretty sure it was announced many years ago so it was probably several prime ministers back.

So tell me again why people should give up their SH and secure tenancies?

Just out of interest.

Every rental home sold is another house for people to buy. They move out of a rental house which is then let. Small landlords selling up makes no difference to the overall housing stock. Large build to rent businesses actually create rental supply which is why they are not being discouraged

Why do socialists always complain when they ask for socialism, then get socialism.

Not necessarily you OP, but this is what people on MN ask for all the time. Now it’s happening. And it won’t end well.

No. As in my post below. The Tories abandoned the removal of Section 21 as they realised the courts wouldn't be able to cope. The rest of the Rental Reform bill wasn't particularly worrying for landlords. The Renters Rights bill is extremely anti landlord however.