to think we need new taxes on Buy-to-Let

[AgaPanthers]

Over the last 15 years the number of new homes built in Britain is equal to the number of new homes under private rental. In other words, buy-to-let is in effect taking all new homes (though obviously some existing homes are going into btl and some new ones into owner occupiership so it's not a 100% match).

But there have been vast rises in the number of private tenancies, sharp falls in the number of owners with mortgages, and the consequences are many, from tattier streets (landlords don't spruce up homes with sitting tenants, the tenants don't want to plant the gardens because they might be kicked out next year) to families having to move house mid-school year because the landlord is kicking them out.

Today it's announced that the number of people made homeless from private tenancies has trebled in five years, and that private landlords are now the leading cause of homelessness. www.bbc.co.uk/news/uk-27940701

AIBU to think that this has resulted because of all the people piling into buy-to-let because it is deemed as more attractive than the alternatives (bank accounts, shares, small business, etc.), and that therefore we need new taxes to make buy-to-let far less attractive, given the social problems it causes?

But that would be a good reason to evict them.
It works in Germany as somebody has already pointed out. I do think we have a culture in this country of leaving things to other people to sort out and not taking responsibility ourselves if we can help it. Perhaps part of the reason renting is more commonplace than home ownership in other parts of Europe is because tenants take more responsibility for the upkeep of their homes and landlords leave them alone to live a settled life.
I'm not saying that we can change the British culture and work on a more continental model, but it would be beneficial if it was possible.
I am quite often an optimist
The people in Germany probably think our tenants are pathetic by running to the landlord over every single minor issue.

From what I can see in Germany they think our tenants are getting ripped off.

Well thanks for that oversight of the German psyche Aga. Having lived in rental accommodation in Germany, the people I met couldn't believe how strict the HMO rules are. They would say things like "people cannot be trusted to close their own doors after themselves? Seriously? That's crazy". I was lucky to get an apartment where i didn't have to supply my own kitchen! My friend, a German national, who worked at Patent Office as a lawyer, happily put up with a defective boiler and radiators that burnt you if you brushed against them, because she had a generously sized flat in a good area. Mind you, the Hausemeister would have reported any anti social behaviour to the landlord and eviction started if it was bad pdq.

I was in Germany last weekend, my friends are happily living in a nice suburb of Munich in a nice maisonette on a reasonable rent with their son, and have been for years. And so are all their friends.

And funnily enough they don't mind supplying their own kitchen when they know that the home is theirs as long as they want it.

It's not in the right place
Jane I get updates on vacant Council properties almost every week. About 95% is either in city centres or about 15 mins outside of centres. The pattern may differ in London but that isn't necessarily representative of the UK.
The German example is interesting. I have friends who have rented across the globe and their German experience was the least positive especially when there were any substantial problems with the property. They much preferred the system in the UK.

We very rarely contact out LL unless it's something big (we had a drain problem where the channels collapsed. Turned out it had been going on for 10 years and rather than getting it repaired, re-let the house to unsuspecting tenants and pretended it was the first time it had happened and tried to blame us )

We maintain the house and fix everything (DP is a manager of a maintenance firm so has plenty of skills). The shed in the garden is on the verge of collapse, I would be happy to replace it if I knew I would be here for another few years, but I wouldn't be that stupid to do it knowing we could be served an eviction notice at any time and have to move in 8 weeks.

I'm sure many tenants would be happy for a reduced rent and to take on more maintenance and repair jobs if they had a much more secure tenancy.

You can be an excellent tenant and still be evicted.

Letter in yesterday's FT:
The myth of UK home ownership

From Mr RN Austin.

Sir, Martin Schieritz (“Anglo-Saxon economies should envy Germany’s rental culture”, Comment, June 23) perpetuates the myth that the UK has a much higher proportion of home ownership than other countries, positioning this as an Anglo-Saxon malaise.

Eurostat data, which are much more current than the old OECD figures quoted by Mr Schieritz, show that 26 of 31 European countries have higher ownership percentages than the UK. Only four are lower than the UK and one of these is Germany at 53 per cent compared with 67 per cent for the UK. Spain, Italy, the Netherlands, Greece and all Scandinavian and eastern European countries have similar or higher percentages of home ownership, with 13 countries being at 80 per cent or more. High levels of home ownership is hardly an Anglo-Saxon issue.

Given the legacy of East Germany, which had very low home ownership, coupled with the other factors that Mr Schieritz mentions that make buying less attractive in Germany and renting far more stable, the surprise is that the gap between ownership in the UK and in Germany is as small as it is.

RN Austin, Bedford, UK "

You could have FRI leases (full repairing and insuring) as per commercial property for residential longer term rentals? And leave it as a choice? Although its hard to enforce. I don't think expecting people to supply cheap long term property to an incredibly high standard where landlords do every little thing is tenable.

Competition generally works well to reduce rents. Round here holiday rental prices are less than 8-10 years ago because there is far more competition now. But the reason there is more competition is because landlords have realised they can make as much money from a few months of holiday rentals a year and without the hassle of all the regulations of residential tenancies.

I find it a bit morally repugnant to tax people to death on what they do with money they have already been taxed on to buy the property in the first place and the tenant is paying tax on to pay the rent.

I "ordinary" people are drawn to property as an investment because its something the person who has to have a job to earn a living can do to try and improve their financial long term position, and its something that people enjoy having the personal touch with. And tbh social housing has a very patchy record over the years as well - most slums this century were social or council housing.

There is not a queue of people waiting to buy houses that have been snapped up by BTL landlords. The BTL market has supported the construction industry.

I have two BTL properties, I shall take your advice and evict two families from their homes and sell them. As my income is taxed I will be then contribute less.