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

Yes, I have heard that from my solicitor.

The letting agent has ‘apologised’ - apparently they told her they would apply for the license (so they did know) and then forgot to do so.

She also forgot to follow up and check the application had been submitted.

The letting agent will have been fully aware with people trained in the office. She'd better not throw them under the bus.

I agree, most landlords are not exploiting the public, they are providing a service to the public, the only point I would make is that most landlords were not starting with the option of saving or investing 500k or buying a rental, they didn`t have the 500k they borrowed it and it was borrowed against property as a deliberate policy by the banks/government to get more secured lending into the economy. A lot of the moves by councils against landlords, licence fees, double council tax etc. are just revenue raising tactics because so many councils are deep in debt.

“Very very good advice but most people borrowed money to get into BTL, they didn"t have 500k, that is why BTL took off, it was more nearly free debt that people could access, of course large numbers of people lapped it up thinking any property investment was a one way bet.“

@KeepPumping - it is sort of what I meant though, to use the 500k against a leveraged property portfolio. It makes zero sense to do that now - even if you are risk averse, you can just distribute it online across various banks for a 4% plus annual return, open it all online, guaranteed by the Government up to 85k, across various banks. Lots of Middle Eastern ones providing great returns - now how that is serving the British public more, is beyond me.
The media rhetoric became that landlords are exploiting the public, when the reality is that it is a risky and hassle prone work, dealing with estate agents, tenants, workers all in your own time, cannot deduct mortgage costs if in your own name. The whole thing is dead and not worth anyone’s time.
Why the State in their infinite wisdom think a corporation with employee costs can provide a cheaper service than a small time landlord doing the time investment for free (and taking tenant risk and interest rate risk and Government hate risk aka political risk), is completely beyond me.

I reckon all these politicians are either completely dumb or they literally just do it all for votes. Like lemmings, if public opinion is X, jump off the cliff with them. I just do not understand it at all. I am not even personally invested in any of this. Just sad that it appears that democracy in its current form is dead across various countries now. They infight, they do not react quickly enough, they do not understand any subtleties.

https://www.gov.uk/government/publications/selective-licensing-in-the-private-rented-sector-a-guide-for-local-authorities/selective-licensing-in-the-private-rented-sector-a-guide-for-local-authorities

“Under changes made by the Labour government in December last year, councils no longer need to apply for permission from central government to introduce these licensing schemes. But not all councils in London require licences.
Southwark council, where Reeves’s home is located, operates a selective licensing scheme of this kind. This was first introduced in 2021 and extended to cover the area where Reeves’s house is located in 2023.
It requires any landlord letting out a property to obtain a licence costing £945, by submitting documents proving the house is fit for purpose including gas, electrical and fire safety certificates.”

“Reeves’s spokesperson said she had made an “inadvertent mistake”. She let out her home through a letting agent and was not made aware of the requirement before Wednesday. “As soon as it was brought to her attention she took immediate action and has applied for the licence,” they said.”
https://www.theguardian.com/politics/2025/oct/30/what-has-rachel-reeves-done-wrong-break-rules-licence-house

Sounds like a money spinner for Southwark Council (£945!) more than anything to me. Why are they doing it and not all London councils? Even the letting agent did not know.
So some councils are doing it in a blanket way now? More costs for landlords. Like I said, small time landlords are providing a service and their own time for free, are they not? And are already taxed at their marginal income tax rate. They should be able to deduct their own time. It is just not a worthy investment anymore, given all the regulation and hassle.

I know you are joking but it depends what you are trying to sell I suppose? Purchases over the last five years or so are likely to be looking at an immediate loss I would think. Did BTL landlords pile into new-builds?

https://mortgagesoup.co.uk/new-build-sales-slump-62-as-buyers-await-price-stability/

One would have to be a "special" person to be able to sell a house in a housing crisis at a loss!

Honestly can`t see their business model lasting much longer.

He even had the gall to vote in a license scheme as a councillor (a money making scam for councils) and then not license his own properties.

You actually could not make this shit up.

Like this guy - he's left wing and presumably a Good Person

https://www.bbc.co.uk/news/articles/clyg1j0lv1go#:~:text=Jas%20Athwal%2C%20the%20newly%2Delected%20MP%20for%20Ilford,scheme%20he%20introduced%20as%20Redbridge%20Council%20leader.

Obviously it's not a problem because RR is left wing, which mean she is a Good Person and her actual actions are therefore irrelevant. Anyway, who could criticise a senior member of government for failing to follow rules she had voted for when Boris ate cake during lockdown?

What a surprise @Puzzledandpissedoff - but I'm sure there'll be a reason why it's really not a problem.

Except it turns out it wasn't an honest mistake, @TeenagersAngst ... tthis is copied from another thread and makes it very clear that Rachel was well aware of the issue:

x.com/Basil_TGMD/status/1983849226795987452/photo/1

Edited to add missed link

Rushanara Ali?

I hope she is fined accordingly and her tenant instigates a rent repayment request as is their right.

@Araminta1003 licensing happens across the country not just in Dulwich.

Decent landlords get absolutely shafted for not having licenses but when a politician does it, it's an 'honest mistake'.

Better Reeves rents it out though and pays 45 per cent income tax on rental income plus a family gets a home. Licence to rent out a house sounds like a Dulwich nimby policy, they also have traffic measures. It’s that kind of place.

Heartwarming to read this.

https://www.lbc.co.uk/article/rachel-reeves-broke-housing-rules-renting-house-5HjdG8G_2/

https://www.independent.co.uk/life-style/university-students-ucas-applications-education-b2684381.html

"the report warned that overall demand for higher education could fall by around 20 per cent from 2030 to 2040 as a result of the decline in the number of young people in the population by that time."

I think it could be more than 20%.

Where are the tenants on the waiting list living while they wait?

It is reality, has been for some time, parents of 20 somethings are most likely still working themselves, they live where jobs are available, very very few parts of the UK don`t have some form of local or commutable employment.

https://www.bbc.co.uk/news/articles/cx2j8v8wvrko

DD is at uni and had halls the first year, now in a private house. There wasnt even enough uni halls or houses for first years, some were in private student accomodation.

Same we buy derelict return them to family homes and rent out. We have a waiting list of tenants as ours stay years and we keep rents reasonable. We have been slowly selling.

Nice in theory, but in a lot of places, especially the regions, there aren't enough jobs close to the family home, and usually very few decent apprentice schemes.

Part of going to Uni is that it's a stepping stone to moving permanently away from the family home area which many have to do to get a decent job.

Those who live in the big cities won't understand just how bad the job market and career prospects are out in the smaller cities and towns in the regions.