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)

My point remains- these people, who can not buy their own property, buy yours for you. So what if you have an interest only mortgage? Property prices increase and over 10, 20 or more years, by the time the landlord sells them, they are worth double or triple what they were bought for- made possible by the tenant paying the interest only mortgage.
If you own the property already, you pocket the rent.
Either way, your 15 properties will earn you a great deal of money off the back of people paying you rent when they should be able to pay that money off their own mortgage.
Many landlords purchase property that is paid for through housing benefit- which is as cynical as it gets really and fits right in with the values of this 'pouring public money into the pockets of the already wealthy' Tory government.

@LuluBlakey1, I've got 10 properties as I stated in my post not 15 as you stated. No houses are being bought. In 15-20 years time if I decide to sell I'll be paying very high Capital Gains Tax. Several houses are now in Ltd company so I can claim interest rates off those profits meaning I can charge lower rents on those houses but ironically those are the spacious Victorian terrace houses on a D rating for EPC and would need over £14k spent on each to get them to a C so if government goes ahead and imposes the C rating in 2025 I'll be selling those 3 and 4 bedroom houses off and 4 families will have to move out. I don't know where they'd go. This is all so tenants can save on average £48 pounds per year from those 4 houses. This is in a large city where many large houses are split into HMO for extra profit so already limited housing for families.

@LuluBlakey1

So what. Some buy, some rent. It's the way of the world. It's not inherently an issue.

The crux is how the government legislate to ensure reasonable rents and quality of housing. Historically, they've not done enough in the areas that matter.

Many landlords purchase property that is paid for through housing benefit- which is as cynical as it gets really and fits right in with the values of this 'pouring public money into the pockets of the already wealthy' Tory government.

The irony of course is that landlords traditionally refused to rent to those on benefits, but there was uproar so it's now illegal to discriminate.

If mortgage rates come down more people will be able to buy and demand for rental properties will decrease and that will force rents to stay the same or fall. However if you are in an existing rental I doubt the landlord would put your rent down, they’d be unlikely to put it up though.

With 10 properties, say getting a net rent of £500 per month, i think you can afford the £14k to upgrade to EPC C.

You've been getting been getting over 500k per year yet are moaning about investing a relatively small amount into your properties to save your tenants money on their bills and to future proof your investment.

You'd rather make your tenants homeless and the stress that will cause them and their children.

Your CGT is a flat rate tax, off set against your original purchase price and monies spent, i'm sure your accountant will reduce your CGT but a 20% on the increase in property prices is far lower than if you'd been earning that money.

No wonder LLs have a bad reputation

Some landlords- not those who simply bought poor property to rent out that they didn't keep in decent condition.

However, as usual you are simply avoiding the point- landlords make money (some make fortunes) from the housing pains of others. They are the gainers and the tenants pay for their properties.

Quite.

The large hole in your assertion is that everyone that rents is in some sort of housing pain, which simply isn't true.

Do you apply your rationale to housing associations too?

But ultimately, as I said above, if the government legislated and regulated in the right areas, there'd be less of an issue. The problem isn't with renting, as lots of people need to rent, but with how the industry is managed.

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 !
Exactly that. 40% of rent goes into taxes, to benefit everyone.

Why do so many renters seem to believe that once the mortgage is paid, everything else is cash to enjoy by the landlord!

@Howpo, I think you must live in a fantasy land. I only charge £800 per month rent in one location and £500 goes on mortgage interest. Then in other location in Hull charge £650, £600 and £585. Then about £425 on interest. How you get to £500k a year I have absolutely no idea. On top of this expenses of gas certificates and gas service of boilers and gas cookers, repairs and maintenance. If I earned the £500k a year as you suggest I'd only rent for 2 years then sell as a millionaire. You really have no idea about LL's but a very vivid imagination.

@Howpo, I forgot to add my DH is an accountant and can't reduce CGT for us. It's the same rates for everyone.

It is supply and demand thing. During lockdown, you can easily get a bargain in central London

Humble apologies, i multiplied your monthly rent by 52 NOT 12, huge error on my part, tired, no excuses.

As you said you owned, 10 houses, a mix of interest only and owned out right, i suggested a net overall of £500 per month per property, so £60k.

But the point still stands, with 10 properties you are getting a substantial amount of money, gas certs are around £80 per year, you wont be repairing cookers every month and electricity checks are every 10 years.

Then there is the growth in house values too.

Please don't kick out your tenants, i ve seen exactly what that is currently doing to a friend, its awful, her hair is falling out with the stress as she faces homelessness.

Aside, the EPC changes are bonkers, quite why someone in rented accommodation should get a better rated EPC than most owner occupiers is beyond me, EPC D would be reasonable, for smaller 1 or 2 property LLs, they will simply sell or pass the costs on to the tenant.

Please don't kick out your tenants, i ve seen exactly what that is currently doing to a friend, its awful, her hair is falling out with the stress as she faces homelessness.

Unfortunately this is going to be out of people's control, if the EPC rules are enforced. A great many properties simply cannot comply due to age and there isn't anything that can be done at feasible cost to achieve this.

But this will be the government's doing if it happens.

Aaargh! I am so sick of this!

Listen, the massive problems in the property market are not due to 'evil' landlords but due to incompetent government forward planning and policy over decades.

We have a crap property market (by which I mean social rented housing, private rent and owner occupation) because the government near destroyed the social rented market ( a deliberate strategy) and failed to build up a proper professional private landlord sector meaning that sector is dominated by huge numbers of individual landlords with a small number of properties (often one or two). This makes it an insecure market (landlords may choose to sell the property when this suits their life stage), and means the landlords do not have the economies of scale to do upgrades, such as upgrades to make properties more climate friendly. However, this market has been created by the collapse of the social rented sector meaning large numbers of people now rely on the private rented sector. Rent is expensive because its in such demand because there is social rented housing is inaccessible for most.

Yet the Government is doing nothing to really address this.

Blame the effing government for a massive fail in planning and strategy, not individuals who have understandably moved into a market which gives them a substantial asset (such as renting your property out when you move in with your girlfriend).

@Howpo, but I still don't get £500 profit on my properties. I get well less than £200 profit per month on houses I have to pay interest on. The ones owned outright I do get more profit on so £650, £600 and £565 minus gas certificates maintenance and repairs. But I do try to let my tenants have new things. I've bought new kitchens for 4 years in a row for 4 different houses. I've had the outside painted on 2 of them last year. I've bought a new integrated fridge freezer for 1 house and a new washing machine for another, and this year I'm giving one house some nice decking because I do want to keep my properties in good condition. Any LL who doesn't is an idiot in my book because you can claim for maintenance and repairs/replacements. I'm hoping the government will change their minds about C rating. These spacious Victorian terrace houses are all only 2 or 3 points from a C rating but can't get up to a C rating without internal walls being built in every room and then some kind of lagging or solar panels. I've already done the cheaper options things like loft lagging, energy saving lights and controls on all individual radiators. The boilers are also serviced every year. It's very frustrating as they don't have damp and my tenants have lived in them for years. Some of the younger children were born living there and are 7 or 8 now. All my newer houses are already C ratings it's just the 4 older terraces that I can't get up to the C. I'm just hoping the government backs down. At the moment the standard is E. It makes far more sense to move up to D standard for everyone first. I just can't conjour up £56k to get them all done and tenants couldn't live there while it was being done. It's a messy job. On top after the internal walls were built every single room would need new wallpaper and painting again too. I've written to my MP to complain about it but no reply even. Im not sure what Kier Starlmer will do about the energy rating after general election. I'm hoping he can see sense and move from an E to a D. Leaving C for the future.

Why can’t you get them Mortgage ? Let’s see if we can fix that.