Renters getting shafted yet again

[Upthebracket22]

I know this might be just noise but Ed Davey is proposing that mortgage holders get £300 a month grants!

www.theguardian.com/politics/2022/nov/06/lib-dem-leader-ed-davey-proposes-300-a-month-mortgage-grants

I mean WTF? What about private renters who get shafted by landlords with huge annual rent rises! Do renters get a £300 a month grant?

Absolutely fucking shocking to be honest! (And clearly not really viable as it will feed even more into inflation)

That 2.09% will go up. And even if it is only a £200k maximum in help, it is still interest free help that lets you keep an asset that appreciates at £30k/Yr on the average home. So say, they help you to the tune of £12k in a year, all that means is they’re getting a fraction of your homes increase in value. It’s a bit more than “sod all”.

@cantba

It was all over the news last week 🤷🏻‍♀️www.birminghammail.co.uk/homes-and-property/more-property-sales-collapsing-lender-25429436.amp

It might prevent a few landlords from selling up when their mortgages go up much more than they can raise the rent. In that context it does actually help renters.

The issue is social mobility and the complete lack of it. Any policy which worsens the situation is short sighted.

First thought was - of all the policies he could think of he came up with this one first??...

No because first of all it's capped at a mortgage of £200,000.
It's interest only.
It's based on an interest rate of 2.09 per cent irrespective of what you are actually paying.
And it's a loan.
They put a charge on your house so it has to be paid back.

So all of what you are saying is rubbish.

People who think house buying is a walk in the park really don't understand that unlike when you're renting and lose your job, lose your job when you have a mortgage and you can be up shit creek very very quickly. Plus once you have arrears, you'll not get another mortgage within 6 or so years so can't remortgage even if you want to.

Renter in need get housing benefit, home owners don't get anything which then means they may end up in reposition, then homeless, and will add to the social housing crisis, then claim HB when they rent... it is a better use of pubic ones to prevent this. It used to be that it was paid but only the interest not the capital

Not all landlords are greedy rich people making the lives of their tenants miserable!
I can't stand this landlord equals the devil incarnate argument.
The vast majority provide decent housing for people who need and want it, for whatever reason. You abolish landlords and just where would these millions of people live? Students for just one example.
Anyway, it won't happen so relax.

That's just not true. Me and my partner earn around average UK wages between us, and obviously aren't entitled to any help, and why would we be, we both have ok jobs but certainly not 'very high' by any measure.

…..’most renters living in shitty substandard conditions’ Is this supported by official statistics? or is it just your uneducated opinion?

This article angered me too, because if the government wants to help families hit hard by housing cost increases, why only homeowners? The article said:
“The party pointed to figures suggesting that the average two-year fixed rate has risen from 4.24% at the beginning of September to 6.55% now, adding an estimated £1,800 to a typical household’s annual mortgage bill by the end of 2023.”

Our rent has already gone up by £2,400 a year from 1 Jul 22. So 150% of the “typical households annual mortgage bill by end of 2023”. Our rent will likely go up again before the end of 2023. Unless you’re in Scotland, there isn’t a limit on rent raises. Landlords ignore rent clauses in tenancy agreements, if you don’t like it, they section 21 evict you and get in someone else who’s willing to pay.

So, I don’t agree that homeowners are especially affected compared to renters. The Lib Dems should be more inclusive if they think families need more help with housing costs.

Im not one of “those people”. I’ve owned homes in the past but life dealt me a raw hand and I now rent. I know exactly how the help is more than “sod all”

@Soniastrumped i am assuming you haven’t rented recently

That's all anyone gets. Whatever they earn.

You’re right. Glad I’m not the only one who’s sick of it.

Not if it’s due to wear and tear

Shelter’s shocking YouGov poll reveals millions of private renters have endured dangerous conditions in their current home, such as mould (42%), broken boilers (31%), pests (14%) and electrical hazards (11%), within the last year. Even worse, when private renters raised a maintenance issue that needed fixing, 17% – equivalent to 1.9 million people – had to wait over a month for their landlord or letting agent to start dealing with the request. Apr 2022 Shelter Press Release.

Thanks for posting that @Discovereads - I do feel that quite a lot of people are clueless about the reality of Renting for many people!

Yes, absolutely. Grey 🪨.

From the story you link to:

Chris Rhodes, chief finance officer at Nationwide, told MPs that the building society’s “worst case” scenario would be a 30% slump in house prices.

Mr Rhodes added that Nationwide’s central scenario was for a more modest decline of 8-10%. However, he said, this was “not a forecast”, with much uncertainty continuing to surround the UK housing market.

@Dragonskin well yea- so nobody really knows! Could be 10%, could be 30% 🤷🏻‍♀️

The same Lib Dems who said they wouldn't put up tuition fees.

But surely if house prices fall by 30% many many people (especially those in first time buyer homes) will be in negative equity so won't be able to sell so there won't be any houses on the market to buy 🤔

Agreed. When I was single and a nursery nurse I got zero help with rent.

Housing benefot/UC is for low income families and even then it rarely covers full private rents.

If, as renters, we can't afford our rent we get evicted.

If you can't afford your mortgage sell up or let the bank take it. It is not up to the state to fund your private purchase that has significant value. Value that if the renter had equal to in the bank they would be considered ineligible for any help at all.

Also how would something like this work for BTL landlords with several mortgages? Absolute madness.