I'm so sick of people buying multiple properties for BTL

[flashbac]

So the landlord next door has hoovered up another house on the street for BTL. A nice house that wasn't even on the market but they managed to get their mits on it. Yes I know I sound bitter because I am! I'm so fed up of investors hoovering up all the houses. There should be a limit but with most of our government being BTL landlords nothing will change.
I'm sick of the increasing gap between rich and poor.
now runs and hides because reckons half of MN have a BTL or holiday home

@DocAutumn

Aw, just let the rich people have everything because they can afford to pay for it.

Also, with buy to let mortgages often requiring miniscule or no deposits and the tenants paying rent that more than covers the mortgage these rich people often aren't even investing any money in the properties they end up owning.

This is correct, sadly. There are BTL mortgage products out there where you don’t even need a job to qualify for. The rental income pays the mortgage. All you need is a deposit.

@moofolk

Agree OP.

it's immoral and damaging to communities.

Gets my goat, especially when it's ex social housing. I currently pay market rent to an absentee landlord who owns I don't know how many ex council houses across the city.

With the shortage of social housing I don't know why LA's don't " buy back " Ex council houses as they come on the market. There would be no need to build on green spaces if they did this. Social housing should be available to those who need it. We should stop "economic migrants" taking up housing, there are genuine refugees who need help and we have limited land compared to other countries

@dangerrabbit

YANBU

I consider BTL and buy to leave to be the root causes of the housing crisis.

Agree. It's driving the prices up so much - if the few with money couldn't buy and rent at astronomical prices then houses would have to sell at affordable prices.

What's even worse is a high percentage of these people scoop up properties and then refuse to those on UC (although technically illegal nowadays there are loopholes) and those who really require the housing the most cannot actually get it.

Our housing crisis is far more than just a lack of housing.

I agree. If there is a housing crisis as everyone seems to say then why on Earth is anyone allowed to own more than one home.

We bought a btl and rented it to a couple who had a bankruptcy so couldn't get a mortgage. How would they have got a home without this.

I'm so undecided on this. In theory I agree with you but I suppose it's the right of the individual to try to improve their circumstances by investing or whatever. The problem is what is best for an individual landlord is not what is best for the country at the minute.

Plus I think we all know that if a Tory government tried to regulate this they'd do it in such a way that it hits ordinary people who'd like an extra source of income but not massive corporations!

I am in my 30's and many people of my generation cannot afford to buy a house, in part because of greedy BTL landlords hoarding properties. I think it's awful.

@jontyl

We bought a btl and rented it to a couple who had a bankruptcy so couldn't get a mortgage. How would they have got a home without this.

If people like you were not buying up all the properties, there could be more state housing to provide for people in that situation, and housing would be overall cheaper so they may not have been bankrupt in the first place.

So many LL’s on here thinking they’re doing God’s work by allowing poorer people to pay off their second mortgages. Hahaha

@Petlover9
"Social housing should be available to those who need it. We should stop "economic migrants" taking up housing, there are genuine refugees who need help and we have limited land compared to other countries"

Stopping "Economic migrants" like the lorry drivers who hold up our supply chain (that has currently gone to s), NHS nurses and doctors who've been essential during covid, carers, workers on farms etc etc... the jobs that Britain doesnt want to do. You're saying leave them without any accommodation after everything they do to support our nation?

Agree, everyone needs a home nobody needs a property portfolio

@AllTheUsernamesAreAlreadyTaken

So many LL’s on here thinking they’re doing God’s work by allowing poorer people to pay off their second mortgages. Hahaha

This is my experience of a lot of Landlords, almost all of them if I'm honest.

It's like they expect gratitude for allowing you to exist in their property. Don't miss a chance to let you know it is their property and not yours.
One guy I rented from used to just drop in when he was 'passing'
I had to say no, you must give 24 hours to visit.
He threatened to refuse to renew the lease, threatened to section 21 and evict if I complained again. Etc.
When I left he tried to keep deposit too because I'd "walked repeatedly on his carpets"
Made us dispute what he wanted to keep. Luckily the deposit protection people told him he was being ridiculous and everything he was trying was wear and tear and to be expected, they gave all our deposit back, which was 2 month's rent at that time.

I am sure some landlords are wonderful. But I fear that to get the wonderful landlords, you would have to find the ones that don't just buy the cheapest houses to let out at the highest rent they can get away with.

I can barely afford to buy my one home. Where are all these people that have multiple?! I need tips 😂

@seaandsandcastles

Why shouldn’t they buy? They have the money, the property is for sale, the seller is happy to sell. End of.

We live in a capitalist society. If you have the money, you should be able to buy whatever you want.

Completely agree, it's the nature of capitalism. It's how the system works and quite frankly I don't want to be part of the alternatives I would rather have it this way.

Also not everyone wants to buy. Some people don't want the responsibility or not everyone can buy (no deposit, poor credit etc) - so why shouldn't landlords cater to those people?

[quote RandomLondoner]Here's a conclusion on Buy to Leave in a report I've found. (A different once, since not focused on London, and does find some impact.)

On balance the issue of Buy to Leave Empty is not deemed to present a major policy issue, being confined to particular local markets, and even in those local markets not being hugely significant in the context of the overall market. In terms of limiting supply to those seeking a home, which would be their principal residence, it is probably less significant nationally than the proportion of flatted dwellings being bought for second homes or corporate uses, given the significance of such purchases in London and other city centre locations.

www.reading.ac.uk/web/files/REP/Buy_to_Leave_Empty.pdf[/quote]
‘ The work undertaken has entailed consultations primarily with DTZ personnel active in the residential markets around the UK and a number of external consultees. A list of those consulted is contained in Appendix 1. There is no substantial research into this issue, but a review has been undertaken of a range of related literature, listed at Appendix 2.
What evidence is there of a problem?

1. Discussions with DTZ Residential personnel and others across the UK suggest that the phenomenon of Buy to Leave Empty exists, but that it is confined to certain locations and types of property’

Chris owns Wessex economics, they work with private developers.

The ‘study’ is also fifteen years old.

And finally this paragraph says that it would affect housing costs/values. It’s obvious it would anyway…

‘The focus above has been on investors who in principle wish to derive a rental income from their properties. However, in a similar way if an investor is looking to sell their properties, they may well seek to maximize values by drip feeding the properties into the market. Suddenly dumping a large number of properties on the market could lead to a loss of confidence and falling values. They may also wish simply to ride out a slowing market, and to keep their properties in pristine condition so they can take advantage of recovery or rising values in the future’

[quote FangsForTheMemory]@dangerrabbit The root cause of the housing crisis is that Thatcher let thousands of people buy their council homes and councils never built new ones.[/quote]
Yes, this. Many of the people who bought their council homes then found that they could not afford the mortgage/maintenance and either had them repossessed or sold them on. Many are now BTL homes and are poorly maintained and managed. As they were not replaced by the councils there are now more people having to rent in the private sector.
Here I confess that I do have one BTL, a small one bed flat (too small for a family) which we have properly managed by a responsible agent. Our tenants usually stay for at least two years and we have not put the rent up for about eight years, preferring a good tenant to stay long-term. Several tenants have gone on to buy their own larger properties and some were only living temporarily in our area. At the moment our tenant is an elderly man who doesn't want the hassle of maintaining his own property and his daughter lives close by. The arrangement suits us and them.

We don't make a huge income on it, in fact one year when we needed to replace radiators and redecorate we made a loss. Our profit certainly isn't as much as we could have made on the stock market on a tracker fund and we declare everything to the Inland Revenue.

YANBU but unfortunately there will always be some people who think money is more important than anything else and think they're entitled to do what they want because they have it 🤷‍♀️

great plan, then all those who aren't in a position to buy
live where exactly?????

Relevant news considering tax hikes etc

bylinetimes.com/2021/09/08/retired-rich-and-renting-out-property-landlords-escape-tax-rises-to-fund-social-care/

I am a buy to let landlord. I did this because I inherited money and it was a way to invest, that will give me a pension. My workplace pension for many years working part time is not worth the paper it’s written on. I took time out to raise my children as well. So now at least I will never be a burden on the benefits system.
As for BTL landlords causing prices to go up, I believe that the building of overpriced flats, on every available bit of land, is what is driving up property prices. I live in North London where these greedy building developers, that should be addressing the housing crisis, are building flats that will sell for in excess of £450,000 to £500,000!
I also know that many landlords have sold their BTL’s because of the change to taxes and mortgage relief.

@Davygran

I couldn’t agree more, one person’s home should not be another person’s pension. BTL landlords make me sick.

I don't think it is unreasonable to provide for your old age. Not everyone will have a good, occupational pension and buying a place to let is a sound investment. I see no problem as long as it is well maintained and let at an affordable rent.

MyM re. tips. My sons own a small house each which they rent out because they ilve at home. That was possible because I have helped each child buy a first home. They won't be landlords however once they settle somewhere as the rent does not quite cover costs and it is too much hassle to let out. So far the costs have outweighed the whole of the annual rent. Hopefully that won't be so in year 2!

One of my daughters lets her first flat out as she had to buy the second in a rush so kept the 1st. That makes I think £50 a month (and any capital gain or probably capital loss these days re flats in London without gardens)

In other words those example s are accidental in a way. My daughter bought her first in the days when could get a buy to let loan without already owning a home. That was then changed by the time my older son bought his house (which he lived in)

I just own one mortgaged house.

As people have said above for those with a mortgage you now pay income tax on profit you don't make so not surprisingly landlords have been selling up left right and centre.