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.

But no one will be able to rent them if costs are prohibitive?

Where are all these wealthy tenants coming from?

They don't exist!

Sell to the local authority!

Yes the increased tax isn’t going to make it worthwhile anymore I don’t think. Once we’ve been taxed on the full income and taken off the mortgage and fees and insurance etc we will be left with £200 out of £1300. Not worth it when you add in repairs and boiler service etc too.

I do honestly think there will be a return of 'workhouse' type shelter within my lifetime. I don't know how else people will be housed.

We will be selling up when our tenant ends the tenancy. We don’t make anything on our rental, the rent pays the bills. It was a lovely family home and had generations of families rent it from us. These last tenants who have been there for over ten years are on partial HB as he can no longer work. We’ve always kept it nice for our tenants and done all repairs immediately.

The local authority won't buy them. When did that last happen? Compulsory purchase would be very difficult, I guess that's what your hoping for?

If you're lucky a housing association will take the properties, but I don't think so, not all of the properties and certainly not the areas that people most want to live in. Places near to transport and well populated will always be expensive. There are more people that need accommodation than there are flats in many parts of London.

You're hoping for....

Exactly this. I had a tenant who owed me £20000 in unpaid rent. It took years to evict her as it was during Covid. The flat was totally trashed and we had to spend another £13000 on repairs and redecorating. Whilst this was going on, the council doubled our council tax
as the property took over a year to sell. It was the most awful experience being a landlord and I would never recommend it to anyone.

Whilst you're basically correct, there is a fundamental issue that because mortgage interest is no longer an allowable expense, but instead it's a "tax deductor", more people are pushed into higher rate tax in the first place. It's a very niche and easy to misunderstand point.

Say wages of £40k
Rental income £20k
Rental expenses £5k
Mortgage interest £5k

The taxable income is £55k, i.e. £40+20-5. So £5k of that is within higher rate.

The mortgage interest attracts BR relief but is not a deduction against profits. So relief only given at BR or £1k.

Before mortgage interest rates were no longer allowed, the taxable income would have been £50k i.e. 40+20-5-5-, so there'd have been no higher rate tax at all.

Like I say, a pretty niche point, but it is something that caught/catches out a lot of people and the effect is that a lot of landlords who had previously been within the basic rate band, therefore BR taxpayers, suddenly found themselves with a higher rate tax liability completely unexpectedly.

But you'll get tax relief on the boiler service and repairs as they're still allowable expenses which will reduce profits and reduce income tax.

If you fancy reading my other posts on this thread you'll see I expanded upon my position and we don't disagree that much 😊

They exist in large numbers in Germany and Austria, but there the laws regarding renting are designed to favour long term rentals.

In that case these owners previously lived elsewhere which is now, presumably, unoccupied and can be let.

It's absolutely tragic! 10yrs ago - on my own (for very good reason) with two young children - I earned above average. Not spectacular like everyone else on MN but a decent wage.

I could rent us a lovely home, pay the bills, feed us all, pay for breakfast and after school club, do birthdays and Christmas, buy uniform and go on a camping holiday once a year.

These days - monthly- equivalent locally (estimate for some but low):

Rent: £1500
Council Tax: £180
Utilities: £500
Phone: £67
TV licence: £20
Childcare: £200
Uniform and other clothes: £60
School lunches: £60
Materials for school: £30
Savings for holidays, birthdays and Christmas: £100
Travel to work: £100
Food: £350
Pets: £50.

I'd struggle if I hadn't have married latterly and inherited.

And I think I am paid fairly for a job I am lucky enough to really enjoy.

So many people are struggling desperately.

I'm not about to feel sorry for people who have a second home to sell, frankly!

Although after mortgage increases post Truss
I do know of LLs that simply couldn’t raise the rent enough to cover the sudden increases in mortgage payments
If tenants can’t pay, they can’t pay

They covered the shortfall during the process of moving tenants out. ( no one’s asking for violins from the sarky, it just is what it is )

They’ve now sold or are still in the process.

Oh right, I wasn’t aware of that. Might help a little but not a lot. Accountant will be on it. (Another expense 🤣)

Connells Group do this in the UK actually.

Or with parents. As many still do these days

Make allowances too for rental defaults.
Our accountant always told us to never budget for more than 11months in a year and preferably 10.

Remember @Daffodilpup there us a year on year gain in increased asset value.

Yes there are capital gains, of course.

Of course the public purse is controlled by the government, which was my point. I would say every single private landlord is running it as a business to supplement an income, otherwise they’d have to be pretty stupid to rent out a home to someone and not make and not make a profit, or even make a loss, especially with all the hassle now connected with renting out. So I repeat; the basic right to a home, which should be afforded to every individual resident in the UK is definitely not the role of Joe Public/private landlord. That’s the government’s job. And I can confirm I am not a landlord, and have never been one, but have had to rent privately for many years before getting on the property ladder. Had there not been private landlords, what would have been the option for people like me, who was a single mum at the time, full time job, not on benefits? Clearly you have a different view to me, and feel that private landlords shouldn’t make a living out of renting, but instead should provide housing without profit as they should take responsibility to provide ‘a basic human right’. We just have to agree to disagree.

There's no talking to some people.

It's all the folding green stuff wedged in their ears and the blinding pound signs left in their eyes indelibly through inheritance.

I suppose they genuinely did have multiple tenants who trashed their marvellous and greedy second homes because they were just relentlessly offensive twunts?

But let's just join together and be thankful to our gracious feudal overlords who are devastated that their selfless gift to society is being swiped away from people in need.

Because they have to pay a bit more tax

Landlords get no help its all in tenants favour. Landlords provide a service, a valuable one at that.

I think maybe only people who are working will be able to rent in the future...

The green stuff you refer to sounds like envy…