Lots of Landlords are selling up!!

[PassingStranger]

Where is everyone going to live who can't afford to buy?

Alot of landlords are selling. Can't be bothered with all the hassle now.
People aren't paying rent and also trashing houses when they do and costing the owners lots of money to put things right.
On TikTok people are being told to trash houses. [Society gone downhill]

I know there are good tenants, but there are alot of bad ones. Family member works for estate agent and says there are more bad tenants than landlords.

You can trash a house and walk away. Nobody ever gets done for criminal damage on private rents.
There is no register of bad tenants legally allowed either. It's all left to the landlord to sort out at their expense.

Where is all the housing going to come from?
The government donthave enough.
People who are trashing houses and not paying rent are actually spoiling it for everyone..
Alot of lls are selling up now.

Rents rose after the interest payable on mortgages couldn’t be offset for tax purposes.
Lots of landlords couldn’t then pay the mortgages
They sold
So less properties being rented
Supply and demand

Being a landlord is an investment activity. As with investing in the stock market there is a risk that the asset in which you have invested your money could go down in value.
It's quite right that the interest payments on any loan you take out to buy into an investment is not offset against tax. After all, if you borrowed money to invest in the stock market you wouldnt be able to offset the interest payments against the taxes that became due on your investment gains.

That AR is going to solve the housing crisis. I can't take anyone seriously who honestly thinks this.

Being a landlord is an investment activity. As with investing in the stock market there is a risk that the asset in which you have invested your money could go down in value.

Many don't seem to understand this

Exactly
Thats why so many are selling up
Some landlords are quite literally paying to rent out.

Plays the tiniest violin.

Based on the state of rental properties I saw available in London I call bull on their being more bad tenants than Lordlords.

For the landlords or for the poor sods forced to pay even higher rents as the market shrinks and landlords pass on the increased expenditure?

I don’t think landlords are suffering that much.
Theyll make a gain on asset increase
Tenants however are now dealing with higher rents and lower availability.

How does immigration force landlords to sell up.

I’m shocked! I guess current accounts etc aren’t as lucrative as they used to be and there's a lot more competition maybe.

Maybe your friend was a shit landlord.

I'm in the south west, here houses go to 2nd home owners or for holiday lets. Real crisis with trying to get a rental.

It doesn't. No one said that.

It contributes to there not being enough properties available for people to live in. It contributes to homelessness.

I'm leaving the thread now, it's too frustrating seeing pp's who are knowledgable about the situation constantly repeating/trying to dumb down their points to make sense to the hard of understanding/thick as mince 😂

Good luck guys!

There are probably ten or 20 decent tenants for every bad one, and ten or 20 decent landlords for every bad one.

(Except some awful landlords own multiple properties and make many households' lives a misery, whilst no tenant inhabits more than one place at a time).

But it seems that the arguments are always framed by the outliers on the shitty side of the bell curve. I realise that I myself indulge in the same rhetoric, and recognise that my bias towards more state intervention in the housing market, rather than less, colours my views.

We need to build more homes in the UK. We really need to mitigate our sclerotic planning system and stop prioritising the wishes of nimbys over the needs of others.

Hundreds of new homes are being built within half a mile of my house and I am glad they will be available to people who need them, despite all the well-rehearsed downsides.

I'm a landlord with a small rental property. We rent it out through a reputable letting agent. This takes a fairly hefty whack of the rent, but they vet tenants thoroughly, and we've not had any major issues.

The outgoings are much higher than most people would expect, though - pretty much everything has to go through as an "emergency", and things need replacing ASAP (even though I've not had a microwave for 2 years in my own house, and we recently managed a 4 day powercut just by wearing coats indoors- I imagine I would have had to pay for 4 days in a Travelodge if that happened to my tenants!) It's certainly not a cash cow if you're doing it properly.

I don’t, because they you can build thousands of homes and if they aren’t affordable to people on NMW then they will be purchased by landlords. And so it continues 🤷‍♀️

No, what will happen is that small landlords for whom a bad tenant is too high a risk will leave the market. Only companies with many properties will remain - because that means the risk is evened out between all their good tenants and all their bad tenants. And they will increase all rents to cover the cost of the bad tenant.

Eg...
1 in 20 tenants don't pay for a year (or cause an equivalent amount of damage.) If you have 100 properties, you charge 5% more rent than you would otherwise need to. The good tenants pay for the bad tenants, and you're OK.

Not so good if you have only 1 property. You can only put the rent up 5% to match the big players, but you have a 5% chance of losing 10 years of profit...

Either way, the result is simply that rental prices go up, so that the good tenants pay for the bad tenants.

And that's exactly what we've already seen. As the government has put in laws which make it more expensive to get rid of bad tenants, rental prices have increased to cover that extra cost. That's why rent has increased so much faster than house prices in recent years.

No but seriously - though I will never weep for a landlord’s woes (potentially the ones with one or two properties but the ones with a whole portfolio can f_ck off) - they are a necessary evil.

There will always be a need for rental properties even if everybody who wanted to buy could afford it. So there does need to be incentives for landlords (small landlords) to remain in the market while tenants also have protection from unscrupulous landlords.

And there needs to be a recognition that there is a house crisis, we need more homes being built and managed migration but there seems to be no desire for that.

*there.

They did but that’s the problem. People with BTL mortgages passing the increase onto tenants.

Do you have official stats for your first paragraph claim.

I will never feel sorry for a landlord. Even if I accept they are a necessary evil.

I think there is more in place to protect tenants which may have made it harder for landlords. But the government need to consider how they are going to house people who don’t qualify for housing association homes and can’t afford the expensive new builds that are not as affordable as they were originally supposed to be…