Emergency rent freeze laws passed !!??

[happyfishcoco]

Emergency rent freeze laws passed in Scotland
and Welsh maybe follow.

YABU = vote agree to rent freeze
YANBU = vote for not agree to rent freeze

www.bbc.co.uk/news/uk-scotland-scotland-politics-63164850.amp

www.bbc.co.uk/news/uk-wales-politics-63131075.amp

It comes down to it being a private transaction that no government or council has any right to intervene in. Presumably if it was the other way round they wouldn’t object to the landlords dropping the price below a minimum amount set by the council or the government ?

if they want to interfere with any of the markets and they should interfere with all of them for consistency including the interest rates, the cost of fuel and the cost of food.

We need rent control around the country with regional set rates to allow affordable housing for everyone

I got excited hoping this was England then. Thought Scotland had already happened though

Would have been better off improving tenants rights, as per Germany for example.

One thing I think should happen is that your notice period should be proportional to how long you have lived in one place.

In theory I agree. In practice if private landlords cannot increase rents to cover mortgage they will sell. Isn't lack of rentals already a problem

Lack of rental properties is already an issue, and this is just going to make more landlords sell up. It is only viable after a prolonged period of building and maintaining social housing.

So, how would it work?

Interest rate rises. Landlord's btl mortgage goes up. Landlord is unable to pay increase on btl mortgage. Landlord is forced to sell to avoid bankruptcy. Tenant ends up homeless because new owner wants to live in their house.

How does that help the tenant?

So what happens when the rent doesn’t cover the mortgage so the landlord has to sell?
the tenants won’t have a home?

or would we have a mortgage freeze too so everyone benefits?

As a landlord I think this is a terrible policy for both landlords and tenants. Most landlords have mortgages. With interest rates going through the roof, if I get to a point where the rent I can charge is frozen and it no longer covers my mortgage then I'd sell. I imagine I'd struggle to find another landlord to buy so it would be a rental property removed from the market.

It would likely also result in an increase in poorly maintained properties with landlords claiming the rent no longer covers necessary maintenance and repairs. Contrary to popular opinion, most landlords don't make huge profits from their properties, the investment is in the capital increase of the property. Once you've deducted mortgage, any management fees, and regular maintenance and repairs there is very little profit left

I think it's very optimistic to argue most landlords are carrying out "regular maintenance and repairs" however much the rent exceeds the mortgage!

They have tried this in Dublin and it has been disastrous. Landlords sell up, fewer houses on the market to rent, rent through the roof.

rent is high due to high demand for rental properties. Inducing landlords to sell is the very worst thing to do. The SNP never see past the positive headlines to see the outcomes.

Millions of tenanted flats are caught up in the cladding crisis and can't be sold. They also struggle to get good mortgage deals if any. If rents are frozen and a landlord can't meet their costs the tenant will be homeless and the landlord can't sell so will have no option but to default. Everyone loses except the banks who get the keys handed to them.

The shortage of rentals is due to holiday homes and air bnbs

Government intervention rarely works. Give me an example, any example, of something the government haven’t managed to cock-up

And if all these buy to let landlords sell, house prices will fall helping first time buyers.

And where exactly will the tenants go?

And in other news, the Glasgow rental market is seeing "unprecedented demand" and students are being told to take a year out from their courses, or commute from Edinburgh, because landlords are selling properties in droves.

www.glasgowlive.co.uk/news/glasgow-property-market-seeing-unprecedented-24772642

Rent freezes and a complete ban on evictions. Slow handclap, Scottish government. Again.

I would imagine we’re going to see the reintroduction of 100% mortgages at 6% and that is the plan.

Lack of rentals is the real problem. Scarcity drives up prices. If landlords can't make a profit they will sell, not everyone is in a position to buy

Oh good! We wanted to buy in Glasgow but could not afford it. Maybe we will be able to.

@antelopevalley only in certain areas. Can't blame that outside of major tourist areas

Get away with your logic and reasoning.

I freeze rents for every new tenancy I have and only review when they've moved out. This has worked so far but I can't guarantee that I won't be in a situation you're describing.

I got a letter from the bank the other day telling me my rate had gone up to 6.6%. I'll do my best but there may come a point at which I'll be forced to increase the rent.

Across the whole of Scotland? Really? In premium tourist areas sometimes but many AirBNBs are annexes or subparts of existing homes rather than independent dwellings.

Rent freezes are good for headlines but don't fix the systemic problems in the rental market and risk reducing the pool.

So instead you all want to raise rents and evict those who cant afford them?

Well if its anything like around here, a 4/5 bedroomed house = a tenant in every room. + at times even the living room is rented out, on top of that.

Thats a big income and despite the way I suspect this post will go, my heart will not bleed for landlords. Im more sorry for tenants.