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.

If the house leaves the PRS then a it’s now a OO house surely? How is that a loss?

I’m speculating, but I would assume it’s because tenants can’t afford for the ridiculous hikes landlords are applying each year. Renters pay so much more than homeowners each month, for what? Lack of stability, lack of autonomy (can’t paint, can change this or that), lack of equity.

Landlords may not be making loads extra each month (although some are - my friends hoping to expand her property portfolio, not sell) but they’re building equity - often at the expense of the families living there.

The renting system is diabolical, for renters. Most landlords have done very well out of it in the last few decades.

The number of lets round us have quadrupled in the last year so I guess it depends on your area. Most of the houses sold are snapped up by landlords

Surely that’s a lack of social housing issue. Not a landlord problem issue.

Landlords are simply being paid ( not pocketing ) for property they own and rent out. Who or how it’s paid is up to the tenant

Highly unlikely
There would need to be a huge surge both in supply and demand.
That’s not looking very likely given recent Labour initiatives

You don’t get it do you?
**
Fewer landlords, fewer houses to rent for those who cannot afford to buy. A lot of current rentals will be sold to first time buyers, loads of who are currently living with parents/house shares.
**
They’re not going to be purchased by new landlords because loads of landlords don’t want to do it anymore.
**
Where are the renters going to go?

@AlexandrinaH

So what if they are sold to FTB currently living with parents? Should these FTB stay living at home indefinitely so that there are more houses available for people to rent? Are FTB supposed to stay living at home until their parents die??! Or are you hoping that they'll move out to a rental instead?

Honestly, I think you're the one who doesn't get it. Landlords aren't providing some kind of special service to the community. Most of them are parasites.

Well if landlords hoard the housing there will be less for first time buyers 🤷🏻‍♀️

Honestly, this is the sort of wanky logic that landlords always come out with - trying to justify themselves taking a big slice of the pie.

@Bigbrommieowner why do you pay tax on turn over? - surely should just be on profits only?
.
I agree with your other points - we rented our first home out years ago and was very straight forward. We were lucky with good tenants and a good agent but far too much risk now and with the added hassle of additional regs.

Happy for you to go down the semantics route but we all know that the tenants pay their rent which the landlord uses to pay their mortgage

Not everyone buys with a mortgage.

Where I live there are many landlords who own hundreds of properties, inherited through a trust, so mortgage free on receipt. It’s almost feudal but at least it can lead to more stability for their tenants as they are less likely to sell.

In London many landlords were able to buy before the huge price surge and then have their mortgages paid off by tenants who were now shut out of the market, paying far more in rent than the mortgage repayments. Meanwhile the property made money for them just through the continually rising prices. They were in a way on government benefits themselves since the government continually intervened in the market to keep prices high. Lots of these homes, I know from first hand experience, were in dangerous states of disrepair. People are frequently being given notice to leave since the landlord wanted to sell, and each time the disruption and cost of a move is punishing. Multiple times I have seen tenants including young families asked to move again and again after only 6-12 months, because the landlord planned to sell. Every time I have seen it they ended up not selling after all and re letting the property to someone else. All these properties, bar one, had major issues that were a threat to the health of the occupants.

My mother used to be a landlord and she didn’t have the best experience. People disappeared leaving rent unpaid, and left the property in an appalling state. You are right OP they are causing trouble for other renters as well as for landlords, It’s very upsetting and when a good landlord is treated that way I really sympathise. I know it’s not always easy for landlords especially outside the SE, but to suggest everything goes the tenant’s way is absurd really.

I inherited a house with a tenant in situ. Felt judged on here for being a landlord when so many people couldn’t get on the property ladder. Did all the repairs and followed all the rules until those tenants decided to move out. Certainly didn’t want to make anyone homeless. Have taken the opportunity to sell as this won’t come round very often if we rent again. Selling to a first time buyer. Felt quite good about that. Now feeling judged for reducing the rental market because being a landlord is too much hassle and not profitable enough.

People have to do what is best for them and not what other people think they should do. There is an Aesops fable about this where everyone including a donkey end up falling in the river.

The man, the boy and the donkey

I think you mean a surge in supply and NO demand ?

it’s happening where I live.

we sold my parent’a flat in 2022 for £260k - since then the prices of other pretty much identical flats in the same block have gone for £249k, £235k £220k - there was definitely a peak in 2022

my brother bought a house to do up at the beginning of last year. After a 3 month refurbishment it went on the market at £800, no buyers, had to drop to £700k before they found 1 buyer. 6 months later buyer drops out because their chain collapsed. Found another buyer at £675 but it’s now not going to complete before end of March so he’s expecting buyer to ask for more off due to stamp duty rise. All previous refurbs he’s done have sold in weeks.

there’s some beautiful properties in the road near my work which have been empty and on the market for the past year, not one sale agreed board has gone up let alone a sold.

once the surge to beat the stamp duty deadline passes I think it’s going to be more obvious it’s a very different housing market now

If there is one takeaway from this thread, it’s this.

There is evidently a lot of bitterness and envy in the UK, against those who would seek to improve their lot, and it is not restricted to owning investment property (which is, no longer a viable proposition, as we have discussed).

Private schools, a nice house with off-street parking and a garden perhaps, or a luxury car - all come under the envious eyes of those who cannot have what you have, so they simply want you not to have those things too.

It’s all really rather ugly, and says a lot about some of the bitter and twisted people out there (and on MN).

This is exactly right. I am a landlord with half a dozen houses in east London. The average yield on these is about 3.2%. I could sell them all and put the money in a savings account and get 4.5%. And I get that 4.5% without having to pay local authority licensing fees, repair costs, safety check costs, tenant finder costs, house insurance, tenant default insurance etc etc. The only reason I don’t sell up is the sheer hassle it involves. When the most you could make in a bank time deposit bond was 0.75%, being a landlord made sense. Now it doesn’t.

I'd have more sympathy for landlords if they didn't make rent absolutely bloody ridiculous. They've put themselves out of business.

As for bad tenants.. Tenants would probably have more respect for the houses if the rent was at a rate they could afford long term and make a home there. If they have no way of staying longer term because the rent shoots up every year whilet their wages or benefits stay stagnant, they're probably more concerned on how to survive over what state they leave your investment property in. Financial insecurity can cause worsening mental health.

Let your house be someone's home and perhaps it would be taken care of. That would mean making sure the tenant can continue to afford it.

Housing is a necessity, not a luxury. Everyone needs a place to live. Having more than one property is the luxury. Landlords seem to have forgotten this.

It’s not being bitter and envious to want a normal functioning housing market!

I bought my first property with my boyfriend at 18. Colleagues struggle to buy similar properties at 28 now despite earning a lot more than I was at 18 and having parents help with the deposit.

wanting people to have decent social housing and not see landlords have their mortgages paid off by people claiming housing benefit/universal credit is financially better for the country not envy!

watching my kids friends go off travelling in their 20s and then hear they’re not coming back, is not envy, I’m pleased for them, it’s not good for the country though to be losing so many youngsters.

if this country didn’t have so much money tied up in property, everyone would be better off

The 4.5% would be gross, but you would no longer exposed to - operational risk, credit risk, fiscal risk, regulatory risk, political risk etc., and you would no longer be the object of contempt amongst many.

Firstly, please define a ‘normal and functioning market’.

I will then get to my point, subject to your response.

I’m a landlord. I’m not selling up. My flats are well maintained, repairs are done within 24 hours of notification and my rents are below market rates because I’m not greedy.
No sane person is trashing their home.

Mostly what I want to take out of your original post OP is that alot isn’t a word - it’s a lot.
A LOT!!!

It's something called Section 24 - mortgage interest is no longer tax deductible. A landlord without a mortgage will indeed be taxed on profit alone. A landlord with a high mortgage could well be making a loss, particularly now interest rates are higher, but they will be taxed as if they are making a large profit as mortgage interest will be ignored in the calculations.

@BornSandyDevotional thank god you “gave up” teaching.

We’ve just sold a rental flat - prices are sky high. We have another rental property and the estate agents say prices are just going north because the rental demand is v high.

Ot isn’t the case that LLs sell up then there are cheaper rental properties

This- add on landlords that look after their properties properly and don’t rip off tenants with moldy, damp, shitty accommodation with dreadful upkeep.

We need landlords kept to higher standards and cheaper housing prices for young people and families. So landlords not up to it dropping out and releasing stock can only be a good thing.

That's a bit of a reach!

I'm not a landlord sweetheart.

😆

Morning

You're lovely, aren't you?

I'm assuming the lowercase G was a typo.

I shouldn't be a teacher because I don't like lazy fat cat landlords presenting themselves as performing some sort of public service?

When many are just ne'er do well greedy and criminal ass hats?

Do you have a career?

Or do you just sit on your pile of property, billowing smoke, like some ancient dragon?