to think that landlords will benefit in the long run

[TetherEndOfMy]

if mortgage rates stabilise and come down? Not sure if this will happen, but if it did, and mortgage rates came down, unless there is some legislation put in place (aka landlords can only charge a % over their mortgage payments) I can't see landlords reducing rents accordingly out of the goodness of their hearts. Opinions? (posted by someone struggling with the 20+% increase in rent over the last two years)

How would that work when some landlords own outright, some have interest only mortgages, and some mortgage companies base the repayments on the rental potential of the property (I believe on one deal we had our repayments was 80% of rental income, leaving the rest for maintenance and tax)

The government has been trying to disincentivise second homes to let. People have sold so there are less of them but as mortgage tastes go up people can’t buy, so more people are chasing less houses nationally so in most areas there is little chance of house prices falling.

I meant rental prices falling.

Less rental properties also means landlords can charge higher rents... supply and demand!

Unless LAs buy the houses off the landlords at market rate then rent them out at a controlled rent... its never going to be an easy answer.

It depends on how the market goes. If market rates go down, those who don't lower rents risk tenants moving out into another house with lower rents.

Personally I would lower my rent. But then I've not increased them either for the last 5 years. Therefore, the market would have to change a lot before I'd have to think about it.

I had a house I use to rent out so by your reckoning I should have rented it out for free?

Sorry I forgot to mention it didn’t have a mortgage on it

Op
Imagine you already had a property that was mortgage free
That you were employed & had some savings, enough to buy another property mortgage free & rent it out below market rate
That you had no debts
Please advise how you would invest your savings ethically as a landlord or into something else ?

Not all LLs are evil

Not 'evil' but there is, imho, something morally repugnant about people making money from buying properties where the mortgages are paid off by people who can not afford to buy a home, or are desperately trying to save for a deposit whilst paying high rents for these properties. Some landlords have properties they own and rent out at market value - most of which is then just profit- the property price is increasing and they are banking monthly rent ontop. It's morally pretty repugnant.
And there are landlords who own many properties- some of them hundreds of properties. We have neighbours who own 6 in Newcastle- let them to students. Neither of them work- both took early retirement and spend their time abroad on holidays. Meanwhile, students (saddled with decades of debt) have bought them 6 houses.
I don't think anyone should be allowed to own more than 2 houses. House prices would fall if this was the case and more people could own a property.
We need good standard social housing-that is monitored strictly (by local councils) as to rent and condition.

No they haven't. They just want to sound like they have. Everything the government do simply adds money to rents. Anything that 'costs' landlords is paid for by tenants. The stopping if no-blame evictions will have no impact for at least 2-3 years, and anyone with a current lease will still be able to be evicted- it will only be those who have a new tenancy agreement who will be protected.

To reduce rent and mortgages, the most simplest answer is best answer. Which is, the government really needs to build more homes. Or incentives others to do so.

The wider community benefits from money from taxes
Extra stamp duty
Tax on rental income
Capital gains tax on sale
It's not all profit to the LL !

Students don't have the means to buy property at that stage of their lives

No deposit
Little or no income

Your argument is flawed

No but they pay expensive rents that rack up their debts.

What a pathetic argument to excuse making a fortune from property by taking money from those who can't get a mortgage to buy property and have to pay rent that buys property for landlords or fills their bank accounts.
It is no better that the government makes money from the exploitation of these people by landlords- I certainly don't want to benefit from it in any way.

Rubbish. If all the landlord owned property was put on the market and sold, prices would fall, we wouldn't have the housing shortage we have - many fewer houses would need to be built which would also benefit the environment.

This. Our landlord now currently owns half of our building! It's not long before she owns the whole lot.

My EX-MIL is a landlord, she was in business with her mother (now passed)

They owned a heck of a lot of properties in north wales, the Wirral and Chester. All families were slowly evicted or just moved on, now all are holiday let's and Airbnb's.

She's a lovely woman but hoarding property on this level is immoral and should be made illegal.

Lulu

I rented out my former home
When I relocated for employment
I could have stayed there after redundancy & claimed benefits. But I choose to continue working FT
I have sold recently

I am relocating again
My current property will be for sale soon
Want to buy it ?

You have no idea what goes on in other people's lives

How dare you call me an evil LL !
It is easy to say on an anonymous forum

Well short of stealing people homes and ignoring the fact that the population has grown. How is my suggestion rubbish?

Building more open market sale homes is not the answer.

Because unless house prices collapse and i mean by 50%+, people on low wages cannot afford to buy them.

Someone recently put up a link from Lisbon, no shortages of homes to rent, yet rents continue to rise, the supply and demand argument is false, LLs will always pass on additional costs, just as those that stay in the market will pass on the costs for the EPC changes.

The only way to help the low paid and thus ourselves (by ensuring we have enough essential workers in wealthier areas, Cornwall cannot get anywhere nr enough care workers for its elderly pop.) is a return to council rented property, this could start with councils buying houses from LLs and majority of new builds for council rent, yet we continue to build open market housing :(

BTW the crisis in rentals for the lower paid is now, yet we hear nothing from Lab or Con's on what they plan to do about it.

That makes sense.

Our council has built a lot of houses, but they are affordable houses rent, not social rent. What will be done to stop this? Because my cousin had a council property and he nearly swapped to a different one which had affordable rent.

He used to be able to afford his old rent without applying for benefits, but with the new affordable rent he was told he would be better off because he would now qualify for benefits as his rent is so high. He worked full time on nhs band 2. He didn't move because he didn't want to apply for benefits.

In large parts of the country rents are much lower than they were in the 90s compared to wages.

E.g. staff nurse was £10k in 1990, now it’s £30k yet I know a house that privately rented for £500 in 1990 but now rents out for £760.

Landlords have been relying too much on capital appreciation to be honest, but tough on them, I think BTL should be banned.

A condition of my btl is that is that the rent covers at least 150% of my repayment. So if the gov adds another restraint on landlords they need to be mindful of the banks rules. If a new rule was added that meant I didn't the 150% I think that what give me reason legally to issue a section 21 surely? I don't know. Banks are twitchy about risk. More so now I guess.

I am hearing so much about landlords raising rents by £500 pm or one third. I have never gone more than 10% every four years and seriously now wondering if I'm cut out to continue in such a market. If my tennents every left I'd leave for sure

Here we go, I wondered how long it was before someone stated Renters are paying off the mortgages of LL. Most LL either own outright with no mortgage or have interest only mortgages on their properties. So no mortgage is being paid off. I own ten btl houses and a mixture of owned outright or interest only. I know about 50 other LL and the same is true for all of them. There are fewer fixed rates available for btl properties without £2k fee for 2 years and £3k fee for 3 years. There are more trackers available. Trackers have gone up 14 times now over the last 15 months. I've increased rents 6 percent last year and will increase again 6 percent this year. Rent increases even then won't cover all mortgage increases. I'm taking less profit as I don't think my tenants, who are all families with children, could afford more as they have also had CoL crisis to deal with. I used to increase each year in line with inflation but once it went over 6 percent I thought that an increase higher would be excessive. I've got good tenants and I'd like to keep them. If inflation went down to 2 percent then I'd only increase by 2 percent that year. I won't be putting my rents down though. I could easily charge an additional £150 per month and they still be snapped up because I can see local rental prices on Right Move. I've got a waiting list of people wanting one of my houses so I never have to advertise.