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

[happyfishcoco]

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?

The pension fund investors will want their investment to grow so they’ll need to make a reasonable rate of return on it. How will that affect rents? Genuine question, I’m wondering about it.

You do realise the problem isn't Sarah and Tom who both own a flat when they met... And when they got married kept one flat as a BTL and bought a house?

Problem is that Sarah and Tom are not operating in isolation. There are thousands of Sarah and Tom's holding onto housing. Add Sarah and Tom to Mike the amateur LL who is snapping up investment properties, Barbara whose just bought a second home and Penny who's got a nice little BTL for her pension, and between them they've created a housing shortage that drives up prices.

The problem with renting privately is not necessarily private amateur landlords but the lack of security for tenants and the high level of rent. I currently pay a very low rent and do a lot of things that tenants might normally expect the landlord to do as a result. My biggest fear is what happens if my landlord decides to sell up or something happens to him.

I am a full time carer for my DD who is never likely to live independently. The thought of having to find a new rental in the current climate is terrifying.

Why would anyone bother with the admin and risk of being a landlord if those were the rules? Why would they put a huge chunk of money into the deposit? Who would pay for wear and tear and new roof and boiler in the property?

What you're suggesting is basically social housing which I agree we need more of

Why would someone pay a mortgage on a property they don't live in and can't use?

Most btl LL buy to rent the property out providing accommodation for someone whilst at the same time hoping for capital growth down the line. I don't see anything wrong with that. In general houses appreciate over time. Obviously there are ups and downs in the market but if you buy for the longer term it doesn't matter. In 10-15 years if I sell one of my houses I'll probably have a lot of equity. I'd have to pay CGT on the rise in profit but still get a large lump sum.

The government does need to buy more social housing but that won't happen anytime soon. In the meanwhile if all LL sold up tomorrow there would be a million people homeless.

The problem with this view is that you are looking at the situation in isolation. That what you are doing has no impact on the wider housing situation. But multiply you by thousands upon thousands and you have a housing market that is corrosive for future generations.

We do need properties that can be rented out but we also need great control of the rental market.

Why is this always private rent vs owner occupation? If all the BTL landlords has to sell up I think councils would buy some of them for their temp accommodation/social housing. Our council uses air b &b and holiday inn for temp and it must cost £££.

Not necessarily.

If the 100% mortgage product is made more available to those who have been renters, then they may be able to buy those properties. Particularly if prices continue to slide as predicted.

The myth that property always goes up is going to be hard to maintain as wages are not keeping pace and there is a limit on affordability.

I hope people can understand that, I don't think "banning buy to let" is work.
I just wonder what would it be. Suddenly I had this thought when I heard some people think that all LLs false.
basically, I don't think the house price will go down to an "affordable" just by eliminating LLs. And it is not gonna work, as pps mentioned, there are so many problems.

So surely we all accept that no govt/local authority is going to invest in social housing. That is just not happening. All parties want 'small state' govt, low taxes etc. And recent policies have made it harder and less attractive for landlords to function. How has that worked out for renters? It had made things much much worse for them as there are fewer rental properties so basically the remaining lls can charge what they fancy. Any lls that do sell up are not selling to ftbs in general, certainly not to the ftbs who had to rent, they can't afford them. They sell to new households, divorced Dad's, older people down sizing maybe, so then you have an expensive large property for sale and you have to go through a whole chain before the smallest property comes on the market, by which time prices have generally risen anyway.

Properties shouldn’t be a business in anyway!!

I somehow agree most of the properties shouldn't be a business.
But,
If landlords couldn't earn money from renting a property, why would they do it?
they are not doing a charity!

only the government can do this and have enough funding houses for people.
Like Singapore, they seem to have the best system I ever heard so far.

@Changynamey2this, do you really think all these ex renters would really pass the far more stringent salary multiples needed to buy a house today? My son was a FTB this year and he had to pass an 8 percent stress test. Could the ex renters if given a 100 percent mortgage pass an 8 percent stress test and all the income multipliers. I think it is wishful thinking on your part.

Personally, I'd have been fucked. I had to move lots of times for training, and if I hadn't been able to rent privately goodness only knows where I would have been supposed to live.

I don’t get the obsession with LL mortgage your not paying there mortgage
your paying for a service as in a property how LL finances it is irrelevant

all business are financed the issa brothers who own Asda are in debt to the tune of 7.6 billion
when I buy a loaf from Asda I don’t look at is as I’m paying there mortgage

Our council uses air b &b and holiday inn for temp and it must cost £££.

yeah, same as my council, same as many councils,
so gov/council always makes the large corporation be the winner.

it’s basically a question or supply and demand, at the moment the supply ( the overall amount of houses and flats for sale and renting) are smaller then the amount of potential households. So we need to bring some houses and flats on the market from outside e.g built them. I would also restrict overseas buyers and people buying second homes but getting rid of renting market won’t work as many PPs have pointed out a lot of people at some stages of their life prefer to rent. So it would be ridiculous.And I also don’t think that overall prices will go down at this situation. They might just slow down their movement up.

Atm where I live house prices went up but not much in percentage whereas rent went much higher than before. I’m so glad I’m not renting.

Rentals should be managed by a professional company

my son is in a rented property his 1 year AST ends in nov and he is lucky enough to be buying a house

when he spoke to the management company with regard to moving out and not signing for another year they couldn’t have been more helpful to him .

sent him an email giving him different options and said should his sale fall through he could either stay on a rolling contract or go for six months AST depending on if he was going to buy straight away .

he is on a government buy to rent scheme so I don’t know if that’s got something to do with how helpful they have been but I couldn’t fault them

Well ... they could simply not buy beyond their means, in that case? It's not actually ok to buy something you can't afford and expect people who can afford it even less to pay back your loan for you.

I'm always intrigued by the amount of people saying no one should own more than one house, when as PP have already said there are a lot of instances where people want or need to rent (at short notice)
Students, temporary contracts, couples splitting up, people moving to an area for the first time, if a house is damaged by flooding/fire etc or having building/repair work done......to name but a few
I'm not a LL by the way, I can see there is a need.
I also see the problems created in tourist/holiday areas when almost all properties are rented or holiday homes.

We need to get rid of empty second homes and entirely abolish the right for non doms to buy here - the latter should not be using our housing stock as a get rich quick scheme 🤬

Private renting has it's place. If all rental properties were council/SH, then single childless folk would be resigned to a life of living in bedsits/teeny high rise flats.
No home offices, home studios, extra storage space etc.

Surely landlords ARE paying the mortgage themselves - with the rent that is being paid. The renter is not paying the mortgage, they are paying for a service.