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)

@Untitledsquatboulder

Maybe the Op won't care about the issues faced by renters as long as she's able to buy a house.

@headstone you do realise that as a renter, you're doing that regardless. The difference with this is that he'd be indirectly paying a homeowners mortgage instead of directly.

Actually @Discovereads I purchased a 2 bed in the SE for £210k on a 3.5% fixed and for 30 years. If I go to the current average fix which is around 6.5% i'd be on almost £500 more. So if you have a shorter term, a slightly bigger house, or if you fixed at a lower rate than i'd did you could easily get to that figure.

So why is it better to help pay for a landlord's assets who is trying to make a profit, rather than the asset for someone who wants to live in their house? Also if you force owners to loose their homes, you may still have to help them with housing benefits and care home fees in the future now they no longer have an asset that can be plundered?

kpo58 , giving people extra money to pay their mortgage would just increase house prices further and they are already ridiculous, where would it end? Housing benefit is a safety net rather than a benefit for landlords.

Why?

Do you not think people who have mortgages are struggling in this climate?

Well yeah. But they have something of huge monetary value in the property they own that renters do not have. If renters had equal value in their bank they would not be entitled to help just like if renters earn over a certain thresholdthey get no help. If you can't afford your mortgage sell up. It's the risk you take when buying.

@ForTheLoveOfSleep

well thank you for your concern 🙄🙄 but my mortgage is (currently) affordable thanks to having a 5 year fix pre Truss's mini budget

but suppose I was struggling to pay it due to Truss mini budget hit. & I sold it. Where do you suggest I live? a £300 mortgage assistance will keep many families in their own homes, that's much cheaper then finding homeless families non existent housing stock. Not to mention people not losing their jobs, children not having to move schools, people losing their support networks. Mortgage payers matter too.

Yes mortgage payers matter and the increases will be painful, but they are not more important than renters. Why on earth would government choose to prioritise scarce resources on people who already had the means to buy their own home?

Radio 4 money programme on this afternoon had an item on this kind of issue. In fact they even said they should do another on renting v buying as it was so popular. The expert said currently average renting is £525 a month cheaper than buying. The presenter then thought she had said it was the other way round and he pointed out of course you are buying an asset with a house so pays off in the end. It will also depend where you live if rents have shot up yet and if you have a huge London mortgage and your mortgage has doubled to £3k a month or something of that kind.

@Xenia The expert said currently average renting is £525 a month cheaper than buying. The presenter then thought she had said it was the other way round and he pointed out of course you are buying an asset with a house so pays off in the end
that makes no sense it would be that way round for it to pay off in the end. .

Of course they need help. If they want government help that pays for their ownership of something of extremely high value they should have to pay it back. Not just have a portion of their property bought for them by the taxpayer. Madness. It should either be a loan or they should have to "sell" a percentage of their property (dependant on how many payments they receive) to the government which they can later buy back.

There's a house for sale on my street for £180k.
The mortgage on that is £1,040 at 5.96% over 25 years with 10% deposit. At 20% deposit it's £925 a month.

The private rents have gone to about £1000 a month.
LHA is £166.85 per week for a three bedroom, or £723 a month.

Rightmove tells me if I'm buying it as a second property, that the stamp duty from 23rd Sept 2022:£5,400

FTB or moving = £0.

Assuming Landlords are paying the same rate as a FTB then I don't see how a landlord can make any money.

There's no EPC yet showing to see how much work would be needed to change it into a C rating either.

That is exactly what happens with Support for Mortgage Interest. A charge is put on your house and interest charged, 39 week wait period, based on mortgage interest at 2.09%

@mumda a landlord would have an interest only mortgage as opposed to a repayment

Fairness, social and economic stability. Trying not to crash the entire economy. Those kinds of reasons.

Can't expect any behaviour like that thougj from our current Government. Or the opposition most likely.

The suggestion wasn't to "prioritise" mortgage holders. It was to provide some help to them. Like lots of renters get already. If anything like this was implemented presumably there would also be help for the renters who don't get help now. And they would benefit anyway as it would stop their housing situation becoming even more precarious.

But it won't happen: it's a Lib Dem proposal. Do you expect them to form a Government? So what is the point of the discussion?

Renters much more likely to have anxiety caused by their insecure conditions than mortgage holders:

www.theguardian.com/money/2022/nov/10/private-renters-twice-as-likely-anxiety-homeowners-uk-study

As I have said, renters are just forgotten about or ignored by politicians. 1.3 million over 50’s now rent, highest figure ever.

The Lib Dems policy stinks and while yes, they might not get in, other parties pick up on ideas they think might be vote winners.

Also, why the fuck should taxpayers bail
out homeowners?

The suggestion of £300 payment by its very nature of only applying to mortgage holders is de facto prioritising them.

It is also unlike the help that a few renters on very low incomes with next to no savings already get. That’s more comparable to the help that a few mortgage holders on very low income with next to no savings get- as in housing benefit applied to the interest charges as an interest free loan.

If this were implemented it is actually presumably unlikely renters who get no help no would get any help at all. During the Covid mortgage holidays for anyone who asked regardless of circumstance, was there any similar help for renters? No, there was not. There was no rent holiday. Only empty exhortations for landlords to #bekind and a moratorium on evictions.

Renters would not benefit from a £300/mo handout to mortgage holders because it’s highly doubtful that this would be paid to landlords per property they lease out. And even if it were, there would be no legal requirement to pass on this savings to the renter by reducing their rent. Most landlords would pocket the £300/mo per property and leave the rent where it is. At most, they might decide to not increase the rent that year….but it’s within their sole discretion.

As we saw with the Covid mortgage holidays, while landlords took advantage of them, there was no passing down and giving their tenants a rent holiday. At most they pretended a kindness of oh, if you can’t pay rent I’ll be nice about giving you to to pay back the rent arrears (when they couldn’t evict anyway…).

*time to pay back rent arrears

Oh for fucksake do some reading will you? I have always rented and don't claim housing benefit. I earn too much. The bar is very low in terms of what is a low income.

I emailed the Lib Dems and told them I don't vote for a party that creates even more inequality. I was thinking about voting for them at the next GE, but this has just shown me they are no better than the Tories.

Um what mortgage holiday? Do you mean the one where the banks said if you run into arrears during the covid period we won't take possession proceedings. The one where arrears continue to build, with interest on the top, and the monthly payments increased to meet the debt.

That one 😂

@Upthebracket22 and not all mortgage owners would get this so what's the problem?

Would you like homeowners join the renters in an already overcrowded Market?
With their 1000's in the bank they'd push rents up even more.