Is BTL the reason many people cannot get onto PL?

[Bananallama858]

Simply this.
Had a really interesting chat with someone recently who felt very strongly that the reason it is so hard nowadays for people to get onto the properly ladder is because there are a huge amount of greedy people who are buying properties to rent out. And if they limited the amount of properties that were bought through BTL scheme then perhaps housing prices would reduce therefore making it easier for many people to buy their first home. Would be really interested to hear people's views on this.

UK may also introduce restrictions on air b n b if it starts 'eating into' the availability of longer-term rentals in a significant way

The whole point is the UK has gone the other way.
It has made it so difficult for BTL by bringing in so many rulings to force people to give up their btl places that the alternative is to turn the places into holiday lets.

People use these holiday lets not just because they are on holiday.

When we moved house we used holiday cottages as a stop gap between houses.

When dc have been doing a course they have stayed in Airbnb type places in towns that you wouldn’t consider as a holiday destination.

Recently spent a night in Milton Keynes because we needed to be some where early in the morning and didn’t want to get up at stupid o’clock and cramming 4 of us into a tiny room and paying £150 for the privilege. Instead we spent £60 and got a 4 bed house

I do feel that you shouldn't be allowed to buy more houses than you can live in (I'm renting). Some people who rent out houses are responsible landlords and they take their business seriously; they keep up to date with legislation making changes before they come in to law, and they charge a fair rent as they know good tenants are hard to come by and they know that their tenants are looking after their property. Others do the bare minimum as they don't want to spend money, and they put the rent up at every opportunity. I really think that reducing BTL would solve part of the problem at least

"It has made it so difficult for BTL by bringing in so many rulings to force people to give up their btl places that the alternative is to turn the places into holiday lets."

The other alternative is to sell, which may free up more property for owner occupiers. i think the policy aim is to make it easier for people in 20s and 30s to owner occupy - which may be assisted if btlers sell/stop buying. But if air b n b is profitable people may indeed move into that instead - unless there are restrictions on it.

It would be interesting to know how difficult it is to get a permit to air b n b a house for more than 90 days a year in Greater London. If they're fairly easy to get it may not have much impact.

Restricting people to only one house would cause so many problems.

The other alternative is to sell, which may free up more property for owner occupiers

But would people buy? These places were available for owner occupiers before being sold for btl

"But would people buy? These places were available for owner occupiers before being sold for btl"

Certainly in some areas - London/SE (just one example) there are people who would like to buy if they could afford it. So if the price falls to a level they can afford, they'll buy. Simplistic analysis - if btl/air b n b is unprofitable/restricted and landlords sell, owner occupiers will be the only potential buyers so the price will fall to a level they can afford.

(Simplistic I know, and doesn't take into account overseas buyers and other second home buyers, but I think that's the broad principle!)

I have sold loads of places and it isn’t as simple as if people can afford it they will buy.

In one case I was messed around by 3 different sets of people who wanted to buy to live in. Price and survey weren’t issues

One pulled within a week of exchange, one the day before and one on the day.

Eventually after 9 months of this shit I bumped the price up by £20,000 and sold to a btler and it was all done and dusted very very quickly.

If people want to buy then buy otherwise stop messing everyone around.

Money as I have said wasn’t the issue as pulling out meant they lost so much money. £2000 for mortgage arrangement fees and probably another £1000 on surveys, then structural surveys when the survey came back and said everything was fine and solicitors fees for the aborted sale.

So a pretty stupid comment really

Yes so your own experience ‘proves’ an argument. OK.