Housing crisis

[lollipoprainbow]

Aibu to feel really angry about the housing situation in this country ?? I think it's terrible that tenants that privately rent only get 2 months to find somewhere else to live once issued with a section 21 surely in the current climate of a rental shortage it should be six months ?? I think it's awful that people can't get mortgages despite paying the same or less in rent each month. I think it's disgusting that 'affordable housing' is anything but for the normal low wage earning person. There is zero help for people working on a low wage. Sorry but I just need to vent, I want to complain but don't know who to !!

@fallfallfall really helpful comment thanks

Landlords are switching to holiday lets instead. Many have also sold up but as we've all seen, house prices are still rising.

The real 'Landlords' moved into Airbnb years ago, and no many haven't sold up

That's a major problem where I live (Highlands). Landlords have switched from long term rental to Airbnb as they can make much more money that way. This means there's a massive shortage of rental properties for locals, keyworkers etc. There needs to be a crackdown on Airbnb numbers.

@Blossomtoes - rents are rising because landlords are selling. Prices are not falling for purchases as demand still outstrips supply for housing purchases. We need to build more houses.

Landlords used to be able to deduct interest on the mortgage for the property from tax on the rental received. This is the same as every other business which deducts interest costs together with other costs prior to calculations of profits.

Now landlords are taxed on profits they aren’t making (at least individuals are - not corporate landlords). This is part of the reason why people such as the ops landlord is selling abs she can’t find an alternative to rent.

@lollipoprainbow the problem with having to give tenants 6 months to leave the property because there is a shortage of alternative rental properties is that it will make the shortage much worse. No one wants to rent a property if it takes 6 months to remove a bad tenant and the banks don’t want to lend on that. So even fewer rental properties available.

We had tenants from hell in our property and it cost us thousands to evict them plus the money we lost in rent and the expense of repairs after they eventually left. It's not as black and white as it seems and there are good and bad landlords and tenants.

Plus the section 21 didn't mean anything in our experience so it really does depend on the tenants.

@Imsittinginthekitchensink

There are many places (most actually) that don't require half a million in deposit. I'm the same age as you and recently split from exh I get it but saying you can't buy isn't true, you want to stay in a very expensive area. I've bought a 3 bed townhouse in a lovely sort after location for £380k not cheap but far less than you are implying

Now landlords are taxed on profits they aren’t making (at least individuals are - not corporate landlords). This is part of the reason why people such as the ops landlord is selling abs she can’t find an alternative to rent

And this is the Tory govermnet who have brought this policy in, the old addage of investmestments can go down as well as up has been lost on a lot of people who openly hate the tories and openly rent out properties. Even Corbyn had a policy to attack landlords, it doesn't matter if you are corporate or private, people being made to pay their way in society is not a hardship, you wanted to gamble on something that is going to cost you a bit more now, that isn';t something others should feel sorry for

gogohm I can't get a mortgage for more than £240k on my salary. My point is that I can afford the rent but not get a mortgage. I am priced out of most areas and to afford something anywhere would mean I have to move to an area I've never even visited. £380k may as well be a million pounds for all the likelihood I could ever afford it.

@Imsittinginthekitchensink I live in a big Northern city. For £240k here you'd get a 3 bedroomed semi or terrace house in a reasonable area with ok schools and good transport links. Ex council properties are much cheaper, as are properties in surrounding towns.

The government brought in a mortgage deposit scheme in March 2021 as the 5% mortgages all disappeared. I think this scheme finishes December 2022. Does anyone think this might make a difference? I have just looked at a couple of mortgage calculators at what I could borrow and the amount I can borrow with the government scheme is generous - for example £180,000 with a 5 % deposit of £9000 (which is good on a low salary).

So, I think this scheme finishing might affect the market.

Another scheme brought in recently is the intermediate rent scheme where working people can rent in HAs at 80% market rent with very generous eligibility (ie the criteria to be classed as a key worker has been extended). This must have an effect on the existing rental market. In addition, the lower number of European students must have impact.

@SenoraMiasma our local HA mentions intermediate rent on their website but there are no properties available haven't been for years. I guess once people find a cheap place to rent they don't move again certainly won't now. Someone I worked with managed to snap up an absolute bargain of a house via that route years ago but she knew someone that worked at the HA and they sorted it for her before it even went on the market, that still makes me annoyed especially as she has now been promoted and is earning loads she could probably afford a mortgage

[quote Villagewaspbyke]@Blossomtoes - rents are rising because landlords are selling. Prices are not falling for purchases as demand still outstrips supply for housing purchases. We need to build more houses.

Landlords used to be able to deduct interest on the mortgage for the property from tax on the rental received. This is the same as every other business which deducts interest costs together with other costs prior to calculations of profits.

Now landlords are taxed on profits they aren’t making (at least individuals are - not corporate landlords). This is part of the reason why people such as the ops landlord is selling abs she can’t find an alternative to rent.[/quote]
You’ve just parroted what I said. Most landlords aren’t taxed as businesses, they’re taxed as individuals via income tax. They’re already having someone else pay their mortgage, why on earth wouldn’t they pay the same tax as their tenants?

@user43786 my heart bleeds for you.

@GreenNewDealNow

I hear you. This is why I campaigned for Labour when Corbyn was in power as he would have addressed these things. We lost :( and I've been gutted ever since! I am amazed not everyone is as angry about it as we are. Some people seem to have a very high tolerance for being treated badly! Low self worth?

If you campaigned for Corbyn, the you played a part in making Labour making totally unelectable. By the way there are 11 million mortgage holders in the UK, most households will be couples or families. Why do you expect them to be angry?

"What would happen if BTL mortgages were slowly phased out? Or maybe had higher capital requirements? Or a limit for the number of properties a person or business can own and let out?

Something needs to be done to deflate the rental market."

There would be fewer houses available to rent and more demand for those remaining, pushing prices up.

"One idea would be 100% mortgages to enable those to buy and pay less on a mortgage than rent."

These disappeared after the credit crunch, for very good reasons.

@ArabellaStrange your sarcasm is duly noted and irrelevant to me. Just remember that when us mean landlords have to pay costs to remove non paying tenants we have to get the money back somehow so the next tenants will suffer.

@Blossomtoes LLs do pay far more tax. They pay additional stamp duty land tax when they purchase a BTL, they then pay tax on rental income and then pay even more tax when they sell the property (capital gains tax). Your knowledge about what LLs are subject to is short sighted

By the way there are 11 million mortgage holders in the UK, most households will be couples or families. Why do you expect them to be angry?

It’s entirely possible to be angry about something that doesn’t directly affect you. We own our house outright, the housing situation in this country infuriates me, it’s based on total greed. Yet, according to you, I shouldn’t give a shit.

There are 6 million spare bedrooms in the country.

The solution isn’t ‘build more houses’, the solution is to live in a house the right size for your family.

Fed up of old single people hoarding huge 5 bedroom family houses, whilst the new generation of young families squeeze into bedsits.

@JaceLancs

I totally agree - a friend has just been given 2 months notice after renting lovely home for 8 years - landlord is selling She can’t find anywhere within 20 miles that she can afford and as a single 60+ year old with no disabilities she is unlikely to get help from council or housing association She won’t be on the streets as can sleep in my spare room with furniture in storage temporarily We are in a reasonably cheap area for renting but when you are single on a low ish wage it’s near impossible and everything gets snapped up instantly

Would she not qualify for over 55s housing? She could check with the council.

With the current house price increase it wouldn’t be long before a 100% mortgage turned into an 80% LTV