To wonder how Labour’s Right to Buy on privately rented houses would work?

[Bearbehind]

Just read something this morning about Labour proposing Right to Buy on privately rented properties - how would that actually work?

How can they force a private landlord to sell at a discounted rate?

Also, if one of the requirements is you have to have been renting the property for several years, that’s just going to lead to less secure tenancies because landlords will make sure tenants cannot qualify for this.

It seems like a bonkers idea to me

If private landlords were taken out of the housing market the prices would eventually stabilise a long way below their current levels. Anyone seeking to own more than one property raises demand on a restricted supply.

In some areas, perhaps. In the area I have rentals properties in, I’ve been keeping an eye on two, which went on the market over a month ago. No interest in either as yet, according to the agents

As I said upthread, there will always be some people for whom good private rentals are a need or a preference

That’s properties for sale, not rent

Although, if this does seem to be passing into law then not only will I not be buying any more, I’ll be selling what I have

This won’t get rid of private landlords. There will be plenty who will feel it’s still worth their while after accepting these new rules.

You’ve also got to remember that not every tenant WANTS to buy the property they live in, and, as pointed out above not every tenant can. Plenty of landlords will be happy to accept the odds that it’ll never happen to them.

Excellent news @Costacoffeeplease, hopefully ftbs will buy them.

Plenty of landlords will be happy to accept the odds that it’ll never happen to them.

There isn't a snowball's chance in hell I'd gamble on an investment of that size. Do you think people have hundreds of thousands to just play around with?

Probably the most ridiculous thing about this policy (although there are many ridiculous things) is why is the policy forcing landlords to sell a property they don't want to actually sell rather than just giving the proposed discount for tenants to buy a probably near identical property in the same area that someone put there actually does want to sell, why does it have to be the exact property they live in.

I don't agree with the above as a policy either, but forcably removing property off someone that doesn't want to sell is just politics of envy and would put the UK on a par with some of the most dangerous communist regimes that have ever existed.

You don’t have much knowledge of the property market though @Juells

Granted, lots of small time landlords don’t either- but who cares? If they don’t want to take the risk they can sell up. We’ve been through loads of times why it wouldn’t matter

@Alsohuman ftbs have plenty to chose from now. At least where I am. And affordable

More reasons not to vote for the dangerous labour idiots. Giving shares was tried in Russia the receititants really just wanted money. People like Abramovich came around and bought all the shares now he and the rest are multi billionaires. That worked well - not!

Forcing people to sell buy to let property is also stupid. Will they have it impounded if they don’t want to sell, what happen to people with large borrowings on their properties, the banks won’t be too keen. Really ill thought out ideas from the Abacus Abbott school of mathematics!

@MoonageDaydreamz I think this is quite dependant on political ideology.

Labour want to take from the rich and give to the poor. They want everyone to have the opportunity to own 1 house and punish those who want more than 1.

They also believe (to some extent ) in true social housing, where a rental home should be treated as your own home. Which is why it makes sense that you should buy the property you’ve chosen to make your home for a number of years, and emotionally invested in.

The conservatives ideology is simply that they want increased home ownership and less dependancy on the state.
In this case you certainly could offer a discount on another property apart from the rental property, but it would be more complex and I suspect they just can’t be bothered with RTB already well established with a proven framework.

FWIW, there is a product that allows people to do that- it’s called rent to homebuy. It offers cheap rent if the tenant can show that in 5 years of subsidised rent they will be able to save a deposit for a property (not the one they’re renting) there aren’t too many of them about though.

Meant to add, really interesting point @MoonageDaydreamz

Another reason not to vote Labour

So many silly posts in the last few days, trying to whip up panic and fear about labour. Very suspicious!

The tenants exist, the house exists: we're just talking about a change in distribution

Actually we're talking about a change in ownership, which isn't the same thing at all

forcably removing property off someone that doesn't want to sell is just politics of envy

No doubt, but even that has a certain appeal to some; indeed if you add rancour, the current Labour party appears to function on little else

So many silly posts in the last few days, trying to whip up panic and fear about labour. Very suspicious!

But of course. It’s a proven fact that if you question any Labour proposal you’re clearly a Russian bot.

It’s surprising how many people aren’t aware that the opposition should never be questioned. Silly people, wanting a discussion about politics.

Again. How many tenants would actually be able to get the mortgage?

It's such a shame Labour did nothing about the property market in their 13 years of power isn't it!

Alsohuman I doubt it as one has a sitting tenant

There are plenty of FTB flats for sale in this area, we’re talking £30-50k for a 1 or 2 bed flat.

A search on rightmove shows 49 such properties currently for sale, although, as I said, no interest so far on these particular ones

I find this terrifying to those saying it wont happen it could Leave won, Trump won, men are winning women's sporting titles around the world. My dh and i have no pensions other than the two properties we bought as near derelict shells and spent considerable time and money returning to lovely family homes. Does this make us lucky? We are both approaching retirement an ever moving date for me we will sell our rentals and live gloriously off the cash for a few years then claim benefits if theres any chance of Labour being elected. Thats the problem with this new Labour there will be no point in working hard, no point in saving.

It could easily happen. It nearly did 5 years ago with pay to stay and the original extension of RTB

I literally don’t understand anyone, let alone die hard labour supporters, who think it’s a good use of tax payers money to fund discounts on private landlords properties some people can move from renting to owning.

It’s absolutely insane.

Also. Wouldn't less houses on a market (landlords selling direct to tenants hence house not hitting open market) actually raise the market value? Because less houses on an open market, higher price on an open market.

@Bearbehind

It's completely sane. No one needs more than one house. Do you need to live in both?

If you read up on the history of housing in the UK you will find that relying on private rentals caused the very worst outcomes.

This is not theft - it's redistribution to make sure everyone has a fair share.