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)

@Woolandwonder if you have high rental costs and earn £54k ( average income x2) and gave children you will be entitled to UC. If you donot have children you have afford your rent.

We don't have children or earn 54k. We can afford it, but it leaves us struggling to save enough to be able to afford a deposit in order to buy our own home so we are not renting forever!

If this happened, I would buy a very cheap place to rent out. The payment would pay most of the mortgage.

@antelopevalley yea of course you’d be able to do that 🙄

But if you don't have the deposit and earning multiplyers to buy a property no bank or building society will give you a mortgage. Why can't you understand that?

You can potentially claim uc towards your rent, mortgage holders can only get a loan at best.

So saying I think a 30% correction is the prediction too from what I saw last week isn't really true is it?

Don't increase lha as it makes things worse.
Supply and demand means that prices are under pressure.
But seriously bad idea to increase lha. We need lower rents not higher.

Unless they let House prices fall and decrease demand..
And don't forget those 37000 hotel rooms only get emptied by taking up 37000 bedrooms elsewhere. More demand.

You can still be forced sell when in negative equity. You owe the bank the difference if the sale doesn’t pay off the balance due on the mortgage. If the bank repossesses, they often short sell the house.

So? If a renter can’t pay rent, they end up homeless. If a home owner can’t pay the mortgage they may be forced to sell and end up renting. Renters and homeowners are not equally financially secure, nor are they equal in terms of wealth. The homeowner is generally more financially secure & wealthy. Why should the government spend money to prevent a homeowner becoming a renter when they cannot even help the homeless we already have?

That's what happens now, except mortgage arrears cases do not have mandatory possession orders, and in my experience, and I've defended hundreds of these, it takes at least two or three hearings before a judge will award a PO providing the person is represented. Then they get another opportunity at warrant stage. A s21 is mandatory, so yes, renters are not in a good position. But then facing your home being repossessed whether it's owned or rented is a horrible thing to happen.

Instead of blanket comments like all PRS properties are shit etc, start by looking at the Housing Policy for this government. They've had 12 years and it's shit. The lower paid you are, the shittier it is.

So instead of blaming landlords, or homeowners, or builders let's put the blame for this shitty position fairly and squarely where it belongs. It's on this government.

For those of you who are happy for landlords to sell up - be careful what you wish for. If the large companies like Blackstone move more into the UK sector, then you'll really know what shitty landlords are. Google them. Be sure to catch the Guardian article.

Taking this debate towards politics, and away from money, ideologically I think I'm a LibDem at heart. Not too right wing nor left wing. A sort of centre ground party.
They come across as well-meaning with very noble ideals, (many of which I agree with), but unfortunately not a strong enough party to challenge for power.

Your assumption is wrong.

You don’t get any help if you don’t have kids. Go back and try that calculator again but take the kids out and halve the income. Zilch. Renters who live on their own are in the worst position. No help, the entire rent and bills to pay… even someone on minimum wage would get no help from UC in that situation. Not all renters have kids or partners.

@Upthebracket22 you could always.....save and buy a house? Just like everyone else I know has done.

This is the position I was in when young. it was very hard.

@Woolandwonder then you don't earn average wage ?

@Hippylady if you are single with no kids you can rent a room - much cheaper than a house.

How does attacking mortgage holders benefit renters?

These threads always seem to come across as jealousy and resentment towards people on the housing ladder.

The reality is that the government would have no choice but to stump up and pay if thousands of family homes were going to be repossessed. What else could they do? There is no social housing for people to move into. It's in the government's interest to keep people in their homes.

MidnightMeltdown, why should renters pay for someone else’s asset? If mortgage holders loose their homes then it’s the same when renters loose their homes, they either find somewhere else to live or get moved to temporary accommodation. No one has ever cared about all the families living in temporary accommodation before.

@MidnightMeltdown I would say the government could help in the form of purchasing a percentage in homeowner's property with some interest. Then said home owners can buy it back again.

The buying of a home is a private purchase and as such free help should not be given due to the owner having (huge) value in the property as an asset.

Just the same as if renter had the same value in a bank account. They are entitled to sweet FA.

🫤
Like it’s that easy. The deposit needed for an average home has increased by £81,510 if a first time buyer is to get the same monthly mortgage payment as they would have if they had bought the same house in Jul 2020.

How many singles or couples do you know that can save an extra £40k per year to keep up with interest rates? 🤔

*First-time buyers must now quadruple their deposits to get onto the housing ladder as mortgage rates stick at 6.5pc, new research shows.

Purchasers must now pay for 43pc of their first home in cash if they want to keep their repayments the same as when average mortgage rates were 2pc, according to Hamptons estate agents. This means the average first-time buyer would need to find an extra £81,510 in cash.*
uk.finance.yahoo.com/news/first-time-buyers-quadruple-deposits-070000276.html

You have no idea what it’s like to see the property ladder pulled firmly up to the moon because that’s what has just happened.

The reality is that the government would have no choice but to stump up and pay if thousands of family homes were going to be repossessed. What else could they do?

They could do nothing. Like they did in the late 80s/early 90s. And they still got voted back in 1992.

A landlord private or corporate would buy your house to rent out and you’d be renting, probably somewhere cheaper and smaller. The government “has no choice” lol. Yes they do. They let hundreds of renters get evicted and go homeless every day. You think they’ll protect your assets? You think your family is special and will get to stay in their home?

You’re not rich enough for that level of entitlement. In fact a lot of MPs are probably buying up shares of corporate landlords right now so they can make money off your loss.

been thinking more about this.

Rents go up too high the tenant cannot pay and gets evicted. They are really fucked as it’s deemed you’ve made yourself homeless so won’t be able to go to the la and even if there is something affordable a ll won’t touch them.

Rents are too high ll’s will struggle to find people to rent to. Even those that have to move because their ll has to sell will wait until the bailiffs go in to be able to go to their local authority.

The ll looses that property.

The market tanks and as some have been doing, las will buy cheaper when the house is repossessed. They will gain money back in the short term from renting until in years to come they can sell off at a profit through right to buy.

If the government help that will be how. They look good because those people living in squalor in over crowded b&bs and on the street etc for years will finally get housed.

When the next election hits this will be what a lot of people remember - tories helped Tracy, Tom and the kids who’d been homeless for years and vote them back. Again.

Peopke have short memories. Just consider the people that voted for Jolly Johnson despite his reputation.