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.

I was just in this situation and it was very scary. We are good tenants and can't believe how awful some.can be. However, interestingly enough there seem to be a lot of reduced price rentals coming om the market right now.

But be honest at least. You’re keeping it in the hope of a substantial capital gain. You wouldn’t be keeping it if the housing market was flat lining for years or likely to go down.

@lovericepudding why on earth are you only charging 65% of the going rate for rents, leaving yourself with a financial burden on your family?

You have an asset: a sum of money you have available to use. I can understand you being willing to accept a financial loss for a period of time to keep a house you might want to move back into soon. But unless that's the situation, either sell it and invest the money a different way or else increase the rent to give you the same return as you could achieve elsewhere!

But you’re still expecting a capital gain. That’s on top of the yield you’re getting from the rents. It’s like saying you expect 4.5% interest from your savings bank account and you expect the capital balance to grow on top of that.

Is this like 'Oh god, VAT on private schools is going to make the whole education sector collapse'? It hasn't and won't.

The houses that are being sold aren't being knocked down. The problem is that housing has become a business. Estate agents have been rubbing their hands with glee getting their percentage cuts from a bloated housing market.

But the reason housing has become a business is slightly more interesting, low interest rates (so no point in saving) and a volatile stock market (so risky investing). Alongside this, we have the Airbnb phenomenon. It's hard to blame the buy to let landlords when there's nowhere else for them to put their money to get a decent return.

Oh. Get away with you! You're not providing a public service.

You just have at least one property you don't live in and are feathering your nest!

There's nothing wrong with that, ethically or morally.

We live in a capitalist society.

You're not Tesco or Sainsbury's.

You're a one man band who has set out, deliberately, to make money in an unjust and unfair housing market.

The very idea that local government thrusts responsibility on private landlords is utterly absurd.

You are part of the problem. Not part of the solution.

I would expect that to be included in a landlord's calculations about whether property rental is the best place to invest their capital.

Rental price is generally a lower proportion of purchase price in areas with high expected house price growth.

I'm being honest in saying that we have a house where we don't live right now. We're keeping the house in case we either move back or our daughter will need the house. Meanwhile a family lives there who has to be subsidised by a state to pay 65% percent of the current rent (and we haven't raised the rent in the last three years and don't mean to for future). And we earned every bloody cent that went into the purchase and renovation of the house while we lived there.
To me, it's our first house, it's memories of starting a family and kind neighbours and friends we made all over the years. Sounds very stupid, so sentimental, eh? One of the reasons we don't want to let go of it.
It's probably because we're not in the rental market for business. That's why we rented it out for a much lower price than even the rents at the time, because we wanted to have a family there and not someone who will sublet it because they won't manage to pay the rent. That's why we're also using a rental agency which is known for renting properties to families specifically and doesn't weed out unofficially those who need to have to use a state subsidy to pay their rent. So far, every ask they had regarding repairs etc. was answered immediately and we pay for it.
We're not some kind Samaritans but we didn't go into the rental market for business. I thought it wasn't unusual but considering what you think of me, it actually makes me feel extremely naive and stupid. Food for thought and I really mean it without being passive aggressive.

The very idea that local government thrusts responsibility on private landlords is utterly absurd.

I haven’t heard the government offering to buy them out though?🤔

Obviously 1 house less tenants can rent. The more LL's sell up the less houses left for tenants to rent = rises to prs rents for tenants who are left. Basic economics of supply and demand.

I halted my PGCE because it wasn't for me.

I've had some amazing teachers and some mediocre ones.

I would've been a mediocre one.

I did myself and my potential students a favour by discontinuing.

The analogy was made because of the waggy finger 'I'm better than you' stance of some landlords on this thread.

In my head, it felt like a poor teacher trying to control a class badly. And then blaming the pupils.

I have no idea why you're obsessed with the idea that I think you're a landlord?

Telling me once was enough.

No need for the SHOUTING.

Haven't you? It varies from area to area.

But it's definitely a thing in a number of places.

You will only get actual market value.

Like - if you sign up to local authority incentive schemes - you'll only get market rent.

A lot of landlords want more than that because their little nest eggs are maxed out in terms of borrowing.

Nope, fewer people wanting to rent because some ex renters will buy properties to live in. So less supply, but also less demand.

Because there's a family there who would be out on the street and struggling. We know very well they wouldn't be able to pay the asking prices for rents and we don't want the house to be destroyed by someone living there and subletting it. They've been good to the house, they maintain it well.
We are the probably financially stupid people who are holding on to a house for sentimental reasons and also because partly, if our daughter decides to go to a university and goes back to the country, she could potentially live there. In which case unfortunately the family will need to look for a different property but we hope that by that time there will be more properties for them and the rental agency will look after them.

What? I have a really good career.

Which is why I was able to claw my way out of the PRS and own my own home mortgage free.

Just the one home.

No properties I don't live in.

But mortgage free.

How's your mortgage - or mortgages - doing?

This. Big new housing developments under construction are being bought up (in advance) by equity firms/venture capitalists. Presumably they will set up their own management companies in due course.

No mortgage here thanks, we bought our house with part of a £1.5m inheritance. We also bought 10 acres of adjoining woodland.

We don't rent anything out though.

Oh yeah, blame immigrants not greedy parasite Landlords. Im glad the bubble has burst.

You sound really nice, @LoveRicePudding

You are right that if you think you or your daughter might move back in, then the very high transactional cost of buying property makes it worth accepting a loss for a while. (Although I'd rethink not putting the rent up!)

Also, as you say, property is emotional. Not only when it's a home the landlord has personally lived in, but actually the physical reality of a house makes it feel like a safe place to keep your money. I think this sometimes makes people keep rental investment even when it doesn't totally make sense, especially if they are accidental landlords. Being a landlord is risky, has low liquidity, and the returns aren't good enough to reflect that. But people like houses, and each house is unique. They're more than just an asset. It's not necessarily wrong to keep a house which doesn't totally make sense on paper.

This is why we vet our tenants thoroughly thrpugh an agency and don't accept people on benefits. Seems harsh, I know, but in 15 years we've never had problems with our tenants (2 properties).

These threads are always a bit predictable as people have strong views on either side. We made 50% losses on two buy to lose flats as I call them in the 1980s and I have not been a landlord since. Sold them in the 90s property crash. My son have a house each but live at my home and they are both currently landlords.

However one set of tenants are moving out as they are buying a house (which is lovely for them) and even though the rent is now about £300 a month less than market rent and my son would get about that more as he moves to paying 40% income tax this year on his earned income after the risks of repairs (£2500 on fencing last year just for starters so high HMRC on the automatic prompts, nudges when I was helping with his tax returns raised if it were true - yes 100% true ). and costs I think he has decided that putting the capital sum elsewhere even if it has a relatively low level of interest on it is goingto be less of a hassle, worry etc (and that money and the house are there for when he moves out form my house and buys his own place).

So we have been discussing the pros and cons. My other child who bought a new house with spouse last year, sold a buy to let and her spouse sold h is 1;5 buy to lets so that is 3 buy to lets off the market too.

However there is nothing wrong with any of this - it is just market forces. There is very little to rent where my sons let their house and last time it was up to be let a few years ago we had 13 couples round in one weekend all wanting it - I have never seen anything like it (presumably not helped by the UK having its highest population ever)..

It is what it is. The state chose to make letting a property out not worthwhile (not least from the major changes to interest rules a few years ago).

So why are you blaming landlords for giving up your PGCE?

You still haven't explained that despite quite a few people saying that it's a pretty weird link.

That's marvellous.

Hope you enjoy it

There's a really good bit of commentary on the housing market called 'have you considered getting richer parents.'

Possibly Canadian?

Anyway, your good fortune is just that.

Good fortune.

My parents are both still alive.

When I do inherit, I'll use my estate to make my life more comfortable.

Just like you.

I hope I'll be less judgemental. And certainly in a way that displays such flawed logic.

This might have been another poster but the very idea that not finishing a PGCE 30 years ago makes someone a work shy scourge is absurd.

But I did say I have lived in the private rental sector.

And - with your £1.5m inheritance (that you didn't earn) - you get to look down on people who rent, don't you?

If someone is willing to buy/rent at a higher price, then that is market value.

What do you think defines market value?

And I would have let it lie, if she hadn't then said that we don't immediately get the link because we're self-serving.

I'm still waiting for either@BornSandyDevotionalor indeed any other non self-serving poster, who will of course automatically understand it, to explain it to the selfish ones among us.