To be angry that this government has further shafted everyone bar homeowners

[Kitchendisco73]

The eviction ban ends and the prediction is that about a million people who rent will be in trouble and at risk of losing their home.

Alongside that, the government has also shafted anyone who is a first time buyer by creating a fake housing boom using help to buy and the stamp duty holiday as prices have risen so much, those who it was allegedly meant to help are priced out.

In Cornwall, I read there were 10,000 air Bnb properties but 62 for long term rent for local families.

www.theguardian.com/business/2021/jun/01/bank-of-england-monitors-uk-housing-boom-as-it-weighs-inflation-risk-dave-ramsden-covid

It’s entirely possible that there is a big housing crash coming too thanks to inflationary pressures.

Aibu to be angry- it’s just truly appalling and impossible for anyone (millions of people) who can’t get on the property ladder. Surely this madness has to end soon? You can’t just protect homeowners at the expense of everyone else. I am tired of the rampant inequality in this country.

@osbertthesyrianhamster it’s like housing bingo on these threads!

‘Move to another cheaper area’
‘Prioritise and stop eating avocado toast, buying mobile phones, having holidays’
‘Homeownership just isnt for everyone’
‘Help to but helped my friend Doris buy a house’
‘House prices always go up’
‘It’s just market forces’

Etc etc etc

And the worst thing is that it’s often people who bought their house for 50k and it’s now ‘worth’ 500k telling people to prioritise when they really didn’t have to prioritise at all

Why should the tax payer have to pick up the tab to rehouse people who have been evicted?
Who should then? The landlord? Who is likely a tax payer themselves? Who might not have got any rent for months and is struggling financially, possibly more than the tenants who didn't pay?

I don’t understand why help you buy is a problem?

Housing is a problem in the UK for decades. Most people I know can’t afford to buy in the area they went school too. Of course the UK Tory gov will keep the status quo as it make a lot of money for their friends and themselves. But the major of people have voted for the status quo on housing.

Well the tax payer is currently funding help to buy

You are totally right op and there should be some law that those in power should not be able to benefit so well from the rules they set.

I actually think as a country we could be at a bit of a tipping point. Where I live the hospitality trade can not get employees as locals have had to move further out. It is not worthwhile doing a long commute for minimum wage. Will second home owners and tourist still want to come once there is no one to provide hospitality and attractions?

If people no can no longer have a decent lifestyle with adequate housing when working full time then where is the incentive to work?

it’s like housing bingo on these threads!
Because there are options, options that many home owners had to take themselves to become so, but others just want the nice house without any of the sacrifices.

It is hard to become a first time house owner without a doubt, but there are flats all around the county but London between 50k and 120k. Two FT working people should be able to save for that. Instead, these flats are indeed bought by investors for rental because people who want to buy don't want the flats.

Increase in percent renting isn't new trend. www.ons.gov.uk/peoplepopulationandcommunity/housing/articles/homeownershipdownandrentingupforfirsttimeinacentury/2015-06-19
"The decade 2001 to 2011 saw substantial changes in longstanding trends in home ownership and renting. In 2011, the proportion of owned homes decreased by 5 percentage points, the first fall in a century"

@vivainsomnia

Why should the tax payer have to pick up the tab to rehouse people who have been evicted? Who should then? The landlord? Who is likely a tax payer themselves? Who might not have got any rent for months and is struggling financially, possibly more than the tenants who didn't pay?

That's why i said Private Rent doesn't work for anyone.

People being evicted may have children, the tenants could be working but on a low wage.

If they become homeless, then they may lose their job (or be unable to get another one) claim more benefits, council temp housing is also super expensive.

Should a LL with several houses be subsidised because one tenant can't pay?

Energy companies are now no longer able to cut off supplies to people who cannot pay, why should LLs be able to evict tenants?

Some rent could be collected direct from wages/benefits and still allow the tenant to remain housed.

Many people in private rentals have to claim housing benefit to top up their rent. That money comes from the taxpayer and goes straight into the pocket of the landlord who can then get another mortgage for another buy to let. So it goes on. The taxpayer is funding many private tenants so the obvious thing is to build more social housing with affordable rents for low paid people.

The minimum wage for someone working 40h a week is about 18K. So a couple would be on 36K. That would get you a one bedroom flat in most places.

Again, the issue is people having kids before they become home owners. It then doesn't pay to go back FT because of childcare and families can't get a mortgage on 1 income of 1 and a PT one.

@Overthebow doctors who can't buy? Do you mean foundation year doctors? Because all the doctors I know (ST years now, or in Consultants Posts) are buying their second homes... Im in London.

Sure they didn't start off in a million pound house like they are in now, many started in flats, but as a profession they all got on the property market in their twenties. In London.

I wonder if the end of the eviction ban will lead to a lot of BTL landlords selling up? If, so we could see a lot of properties coming on to the market in late summer/autumn.

Help to buy - first time home owners only
5% deposit = home owner pays
25% government loan = home owner eventually pays loan to government
75% mortgage = home owner eventually pays

Not sure how the tax payer is funding help to buy?

@Guavafish how exactly do you think the government is funding the 25%? Here’s an FT article about it

www.google.co.uk/amp/s/amp.ft.com/content/b0863064-3b72-11e9-b72b-2c7f526ca5d0

Should a LL with several houses be subsidised because one tenant can't pay?
Several houses? What about the landlord who only own one home, and that income goes towards care fees for their parents? Should they subsidise the family that claimed HB but decided to spend the money for themselves knowing they couldn't get evicted?

Landlords come in all shape and forms.

That money comes from the taxpayer and goes straight into the pocket of the landlord who can then get another mortgage for another buy to let
The pocket of the landlord? Or the government! Do people conveniently forget that most landlords pay tax on the rental income? In many cases, 40% nowadays?

@Kitchendisco73 I had to move to a cheaper area to be able to afford to buy what I wanted to buy... I chose to prioritise my living space over my commute (something, I am now very grateful for for obvious reasons!).

The cheaper area is now named this year and last year as the best place to buy and the best place to live - so moving to a cheaper area is not such a bad thing (unless you are a snob). It can, and often does, have serious perks.

I wonder if the end of the eviction ban will lead to a lot of BTL landlords selling up? If, so we could see a lot of properties coming on to the market in late summer/autumn
There will be, especially now with the hefty taxing. Many landlords are now making no profit at all or even losses. Add the loss of rent and the stress associated with being a landlord and it really isn't worth it any longer.

In the medium size town where I live, there isn't one, not one 3 bedroom house for rental. There used to be up to 20 or more 5 years ago.

[quote Notjustanymum]YANBU, OP. Where we live (mortgage paid off, thankfully) the prices have inflated to the point where we could not afford to buy a studio flat in the neighbourhood on our salaries alone - and we earn far more now in comparison to what we earned when we bought the house initially, with promotions and career changes Etc.
I think the rise in multiple home ownership as a savings choice happened due to the drop in interest on savings, the removal of final salary pension schemes, and a certain Mr G Brown declaring that people needed to fund their own retirement whilst bankrupting the country. Property as a commodity is what has driven the prices far beyond earning power, the only problem is how to reverse it? See the link for the figures - www.allagents.co.uk/house-prices-adjusted/[/quote]
The rot set in when Thatcher abolished rent controls.

inews.co.uk/opinion/sadiq-khan-rent-controls-margaret-thatcher-315635

@Kitchendisco73 interesting that you have ignored both of my points of abandoned homes being a worthy focus and the people who are actually doing selling to the incomers in your area that you could have much more of a direct influence on via dialogue.

This thread is not good for my inner devolution nerd as it seems to be about housing in Wales but discussing English policies.

The obviously thing to say is that 2nd home land transactions rates (Wales) are much higher than the comparable stamp duty (England). If I bought a £250k holiday home in Wales I would pay £12,450 compared to £7500 in England. So the Welsh government has implemented policies that are in favour of owner occupiers and renters.

People have invested in second homes and buy to let property as the return on savings is so low. If the interest rates were to rise and savers were able to get a reasonable return on their savings they may not look at property for investment but then that increases costs to borrowers and potential borrowers.

Why not invest in the stock market then? Average of 10% a year for the last 100 years?

You're speaking like the only choice is to throw your life savings in a current account and get 0.000001% interest. That's nonsense.

People are just generally greedy. I know a few people "at it"... they live in Edinburgh and when the rentable properties got too expensive they just switched to Dundee and started buying up properties there and handing them over to management companies.

Op I completely agree with you. I got sucked in by the shared ownership thing. Say the place is worth £100k, so 25% should be £25k. But it's not, it's actually £48k. So the 100% value would be £192k which is nowhere near what the property is worth. (Made up figures).

And my only hope of selling is that someone else who is naive enough as I was wants to buy.

Everything is at the stage of needing fixed now. New windows, new bathroom, new kitchen, damp in the stairs. But it's just a black hole because whatever money I put in, I will never see, the HA will. If I sell to someone else, the HA keeps 75% of the profit.

And by spending that money now, it only forces the price up more when I can eventually afford to staircase up more equity, shooting myself in the foot and making me pay for the gun and the bullets and the funeral.

And yes, I KNOW I should have thought about all of this, but it was a fairly new concept when I bought into it, marketed as the future of home ownership. I DID think about it, but when you are effectively homeless because the LL kicks you out, you have two children to support on your own and no hopes of getting a mortgage for 10X your salary... you take what you can get.

I feel like literally everything that's been done to "help" people on to the property ladder has ended up either worse for the buyer, or worse for the market in general.

The only answer is to build more houses.

No employee pensions 30 years ago

Yes there were
However, it was not compulsory to join or provide one
There was the option to pay into your own personal pension

30+ years ago, some companies did not offer pensions to women

@Littlemoons eh? I responded to your comments with my thoughts

You still can not evict without reason and what about landlords who have had tenants not paying or abusing the terms of their tenancy in ways NOT connected with covid ? The amount of complaints there are in here about neighbours from hell. There has to be a proper legal channel to evict them .