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Original poster

what if, everyone is only allowed to buy their own home, no more buy to let, what happen then?

140 replies

happyfishcoco · 19/10/2023 18:09

just a hypothetical question.

I am very curious.
as some people cannot afford a house and blame the landlords.
And they are very happy that nowadays landlords are selling up their houses because of the interest rate going up. They think this will make house prices go down and become affordable.

SO, is that true?
from an economic perspective how would it be, if the UK government do not allow people buy to let?
(also not allow the company to do so.)

where do people live?
Why gov cannot have more affordable houses for people?

OP posts:
Disorganisedmess2023 · 19/10/2023 18:14

Well it wouldn't work would it. Always makes me eye roll that people laugh at greedy landlords but in reality we need rental houses. I am not a landlord but have lived in rental properties. There's good and bad landlords out there and we can't lump them all together.

Whattodowithit88 · 19/10/2023 18:17

We do need rental properties, but the rent shouldn’t be so high that it covers the mortgage rate and gives the landlord money on top, the owner should be contributing to the mortgage or the interest if they have done it that way, being as it is them who will make thousands from it.

Properties shouldn’t be a business in anyway!! The should be a means to live only. Greed!

TomatoSandwiches · 19/10/2023 18:18

I imagine corporatations would buy them intended to be a benefit or in lieu of a full salary...

BoohooWoohoo · 19/10/2023 18:18

Would you ban people from inheriting a property or keeping their property while they trial living with a partner?
Banning buy to let would help people looking to buy in places where buy to let are popular but they wouldn't become affordable. Plus you create a potential new problem of people in negative equity.

Spudlet · 19/10/2023 18:22

How would that work for students, or people just starting out in life and moving around frequently for their careers? Not everyone is able to buy, not just for financial reasons but also for practical ones. I went through a period in my life where I was moving practically once a year - I couldn’t have bought a house every time.

There is clearly a big problem with the rented sector but banning it would only cause a whole new set of problems.

Darkandstormynite · 19/10/2023 18:22

We do need rental properties but we also need a lot more regulation around the rental market. Too many people paying high rents for substandard properties that are poorly managed.

BTL mortgages should have a lot lower LTV rate, 75% is too high and susceptible to economic fluctuations.

Petaldust · 19/10/2023 18:26

Corporate landlords only under stringent regulations and rent controls. Only fully owned properties can be let (no renters paying off mortgages for owners.

Disorganisedmess2023 · 19/10/2023 18:26

Whattodowithit88 · 19/10/2023 18:17

We do need rental properties, but the rent shouldn’t be so high that it covers the mortgage rate and gives the landlord money on top, the owner should be contributing to the mortgage or the interest if they have done it that way, being as it is them who will make thousands from it.

Properties shouldn’t be a business in anyway!! The should be a means to live only. Greed!

Eh! So they should lose money each month because eventually they'll own the house? Don't be rediculous. Most landlords are just ordinary people and don't have shed loads of spare money.

fuckssaaaaake · 19/10/2023 18:27

@Disorganisedmess2023 I'm glad not just me read that as a bit whacko

CoalTit · 19/10/2023 18:27

Would it really be any worse than amateur landlords buying up all the more modest housing stock and charging tenants 80or 90 per cent of their income because the landlords see no reason to pay the mortgage themselves on the property they bought?

MonkeyPuddle · 19/10/2023 18:28

Eh. Where would I live then? Can’t afford to buy.

sleepyscientist · 19/10/2023 18:29

Darkandstormynite · 19/10/2023 18:22

We do need rental properties but we also need a lot more regulation around the rental market. Too many people paying high rents for substandard properties that are poorly managed.

BTL mortgages should have a lot lower LTV rate, 75% is too high and susceptible to economic fluctuations.

But then who is going to rent a stunning property to challenging tenants or those that can't afford the market rate of those houses.

We sell it as a landlord problem but reality is it a poverty problem.

That before you even consider the issue of people not wanting to buy or qualifying for a mortgage.

Do you ask the state to fund council housing but then who is going to want to pay more tax.

Perfect28 · 19/10/2023 18:29

Isn't the OP questioning the assumption that we need rented accommodation? I don't think it's necessarily true that we do, and certainly not private.

enchantedsquirrelwood · 19/10/2023 18:30

Residential lettings aren't the issue - people want and need to be able to rent.

Second homes and holiday lets are the issue - they need to be reduced in numbers. Significantly.

Darkandstormynite · 19/10/2023 18:30

Most landlords are just ordinary people and don't have shed loads of spare money

This is a big part of the problem. Insufficient liquidity to deal with market fluctuations or carry out required maintenance. The consequences of which are passed on to the tenant.

enchantedsquirrelwood · 19/10/2023 18:31

Perfect28 · 19/10/2023 18:29

Isn't the OP questioning the assumption that we need rented accommodation? I don't think it's necessarily true that we do, and certainly not private.

We do. People need to live in places temporarily eg students, people who are on short term contracts, people who are maybe in the UK for a couple of years and then moving on. Or who just don't want to commit to buying somewhere.

We need a rental market but I agree it should not all be private by a long way.

Disorganisedmess2023 · 19/10/2023 18:33

Darkandstormynite · 19/10/2023 18:30

Most landlords are just ordinary people and don't have shed loads of spare money

This is a big part of the problem. Insufficient liquidity to deal with market fluctuations or carry out required maintenance. The consequences of which are passed on to the tenant.

But often it can't be helped. For example Ordinary Bob lives in Manchester and gets made redundant. He finds a new job but it's in Grimsby. He's in negative equity so can't sell. He can't find a buyer anyway as the market has dipped. So he ends up renting out his property so he can work in Grimsby. He doesn't have a ton of money but generally gets by. An accidental landlord.

ArseInTheCoOpWindow · 19/10/2023 18:34

Watch the BBC programme on it.

Buy to let mortgages, low interest rates and greedy construction companies who build for profit are the problem.

No government based building schemes are also a problem. Help to buy and reduced stamp duty alsk contributed to housing problems.

Disorganisedmess2023 · 19/10/2023 18:34

MonkeyPuddle · 19/10/2023 18:28

Eh. Where would I live then? Can’t afford to buy.

Exactly. I rented for years. I had to and that's absolutely fine.

Darkandstormynite · 19/10/2023 18:46

But, with all due respect, why is that the tenant's problem?

The tenant enters into a business agreement with the landlord to purchase a service (accommodation). Like all other consumer markets, the tenant has a right to expect a base level of service and quality in the product.

Darkandstormynite · 19/10/2023 18:47

That was in response to @Disorganisedmess2023

Disorganisedmess2023 · 19/10/2023 18:50

Darkandstormynite · 19/10/2023 18:46

But, with all due respect, why is that the tenant's problem?

The tenant enters into a business agreement with the landlord to purchase a service (accommodation). Like all other consumer markets, the tenant has a right to expect a base level of service and quality in the product.

Totally agree it should be well maintained but lots of landlords can't magic up money. Obviously it should 100% be safe though.

SecondUsername4me · 19/10/2023 18:51

The remaining houses would be let via Social Housing Associations or local Councils

Darkandstormynite · 19/10/2023 18:56

Disorganisedmess2023 · 19/10/2023 18:50

Totally agree it should be well maintained but lots of landlords can't magic up money. Obviously it should 100% be safe though.

Show quote history

The fact they don't have sufficient reserves is the problem. Amateur landlords operating in what should be a professional market.

SaturdayGiraffe · 19/10/2023 18:56

Well what are the options?

  1. Private UK landlords who pay UK tax
  2. Private foreign landlords/entities who don’t pay UK tax
  3. Social housing centrally administered
  4. Social housing locally administered
  5. Massive corporate landlords owning entire blocks where the rents all go up at the same time, building maintenance on site etc

I don’t really see why interest only BTL mortgages are still allowed, as the landlords generally outbid the first time buyers for the same properties. Just let people be cash only landlords and crack down on the opaque foreign shell companies.