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Property/DIY

One third few rental properties than 3 years ago and rents up 20 percent.

15 replies

caringcarer · 16/10/2022 00:13

Should the government stop attacking btl LL? Over the last few years interest paid on mortgages can no longer be offset against profits, energy performance certificates will need to be a C grade whilst homeowners can be any grade above G. Through Covid crisis evictions were halted even for those a whole year behind with their rent, now section 21 will be scrapped meaning if tenants cause serious problems it is very hard to get them to leave as courts take up to 7 or 8 months to hear and government want all LL to allow pets in all rental properties. Government also want an end to fixed term rental contracts of say a year. No wonder in this hostile environment LL are selling up in droves. Problem is this causes fewer houses to rent and so pushes up rents on houses still available to rent. Under these circumstances do you think it would be better to make energy performance targets of D instead of C in short term? Allow fixed term rental contract of 1 year, allowing those who are working away for a year to rent out house but get it back after the year and contract ends? Leave section 21 in short term until courts catch up with evictions after Covid?

OP posts:
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spuddy56 · 17/10/2022 12:34

So continue to cope with all the problems associated with poor property maintenance and a lack of stability and autonomy? These houses aren't being knocked down, they still exist.

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C4tastrophe · 17/10/2022 18:47

Mortgage costs are still allowed if you are running your business through a proper company. The Tories announced section 24 and the EPC changes in 2015, landlords have had years to incorporate or sell the properties.

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LondonMatilda · 29/03/2023 10:54

I rented out my property and it was a nightmare. Couldn't get my tenants out 'because covid'. Will never let out again. The reality is the government is forcing out small landlords in favour of huge corporates in giant new builds which meet the C energy certificate. No Victorian house can meet that. Just like all small businesses were attacked 'because covid' and now 'because climate' with the ban on cars in the high streets. But that's a side note.
Sure go ahead and demonise small landlords. I was an amazing landlord. Bought them anything they wanted. Never raised the rent in 3 years. Then they took advantage 'because covid'. So that's all very well for the mortgaged middles classes without a house to rent. Just wait till you can't sell 'because climate'. It's a land grab. The govt will take your unsellable energy C certificate house off you and you'll be renting off the giant corporates at huge expense.

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Keepthetowel · 29/03/2023 10:58

I am BTL landlord in process of selling up. I waited for tenants to leave then put house on market, they were great , I didn’t raise rent at all and we still text each other. But it’s too stressed keeping up with regs and replacing dishwashers and washing machines etc out of a low rent eats into any profit.

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Freetodowhatiwant · 29/03/2023 11:00

It seems crazy that landlords cannot claim back the month they spend on mortgage interest. I can’t think of any other business where what you’ve laid out for stock isn’t taken into account. I don’t get the argument that a home shouldn’t be a business, by that same token then neither food, transport, gas electrics, furniture, clothes or anything else we need to survive. You would think anyone would predict this happening let alone a Tory government.

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Pangolin23 · 29/03/2023 12:04

Freetodowhatiwant · 29/03/2023 11:00

It seems crazy that landlords cannot claim back the month they spend on mortgage interest. I can’t think of any other business where what you’ve laid out for stock isn’t taken into account. I don’t get the argument that a home shouldn’t be a business, by that same token then neither food, transport, gas electrics, furniture, clothes or anything else we need to survive. You would think anyone would predict this happening let alone a Tory government.

That’s not a fair comparison because a business sells its stock but a landlord keeps hold of his asset. In fact a landlord has two businesses, one which generates rental income and another that profits from capital growth. It is only fair that they are treated separately and one should not subsidise the other.

Landlords on interest-only mortgages should sell up and get out of the game.

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C4tastrophe · 29/03/2023 12:35

Freetodowhatiwant · 29/03/2023 11:00

It seems crazy that landlords cannot claim back the month they spend on mortgage interest. I can’t think of any other business where what you’ve laid out for stock isn’t taken into account. I don’t get the argument that a home shouldn’t be a business, by that same token then neither food, transport, gas electrics, furniture, clothes or anything else we need to survive. You would think anyone would predict this happening let alone a Tory government.

Surely if a LL is running a business, then it will though a company and all mortgage costs are deductible?
Section 24 was announced years ago, landlords have had more than enough time to incorporate.

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BarrelOfOtters · 29/03/2023 13:53

Going to get worse as the new environment standards kick in. I can't fit a heat pump to my rental property and then spend thousands replacing radiators and fitting insulation to make it work. I'll sell it.

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Tara336 · 29/03/2023 14:15

I have a property I have considered renting out but with all of the rules and regulations now I just don't want the hassle.

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JackyinaTracky · 29/03/2023 21:15

I was an accidental LL and it was just too stressful. Sold up last year. I felt bad because my tenant was on universal credit and had a dog so she found it really hard to find somewhere she could rent. She begged me not to sell and offered to pay more rent but it just wasn’t worth it. I was a good landlord and she was a good tenant but as per Tory wishes I sold up.

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Somanycats · 29/03/2023 21:28

Well it clearly isn't working for small landlords and they are voting with their feet. No this wont mean that properties become cheaper to buy or that tenants will ever be able to buy. They will just be sofa surfing or in b&bs. Councils cant accommodate even the ones they have a legal obligation to.
Prospective tenants come in their droves to view very average properties and remaining landlords can charge what they fancy as tenants fight to gazump each other.
Presumably this is what people wanted when they demonised private landlords? Presumable this is what the Tory govt wanted when they made it all so bloody difficult?
Rentable properties that come on the market are bought now by conglomerates or friends of the Tories. Rents go up. There will soon be no competition.

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ProbablyDogNappersHunX · 29/03/2023 22:41

Energy performance certificates will need to be a C grade whilst homeowners can be any grade above G.

My unremarkable 1930s semi is already a C - and I haven't done anything like sticking solar panels on the roof. For most houses this seems quite achievable.

Homeowners can choose to live in discomfort if they wish. There's a huge difference between having yourself live like that and having someone else live like that, especially when there's a power imbalance and the LL isn't the one paying the higher bills.

Through Covid crisis evictions were halted even for those a whole year behind with their rent

Landlords got mortgage holidays, and were still able to demand rent in full, while most tenants got zero help with paying their rent - even if their income had been severely affected and they had fallen between the cracks of government support.

Blame the government for creating a situation where industries were shut down and workers were left without an income.

now section 21 will be scrapped meaning if tenants cause serious problems it is very hard to get them to leave as courts take up to 7 or 8 months to hear

If the tenants are causing serious issues you'll still be able to use the S8 grounds for eviction.

S21 notices require court action just like S8 notices do, so I'm not sure what your point is there.

Removing S21 notices will remove the fear many tenants feel when reporting disrepair; so many are evicted for asking for repairs. People shouldn't be losing their homes on a landlord's whim.

and government want all LL to allow pets in all rental properties.

Good, it's their home, and with many people now forced to rent well into their 30s and 40s, kids and pets are an inevitability. People shouldn't be forced to put their lives on hold because the landlord doesn't like pets or children.

Government also want an end to fixed term rental contracts of say a year. No wonder in this hostile environment LL are selling up in droves. Problem is this causes fewer houses to rent and so pushes up rents on houses still available to rent. Under these circumstances do you think it would be better to make energy performance targets of D instead of C in short term?

Current rules are that it needs to be an E. You've got until 2025 (new tenants) or 2028 (existing tenants) to get it up to a C. 2-5 years ought to be enough time for you to organise some extra loft insulation, double glazing or whatever it is you're missing.

Allow fixed term rental contract of 1 year, allowing those who are working away for a year to rent out house but get it back after the year and contract ends?

Be more selective with your tenants; you can always find a tenant who is in your area for a year long contract. Even if S21 ends you'll still be able to evict in these circumstances using S8 Ground 1 (landlord's former home, moving back in).

Leave section 21 in short term until courts catch up with evictions after Covid?

Pretty sure they have caught up now but even if they hadn't, the S21 ban will take time to implement and any lingering covid delays will be cleared by then.

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Tekkentime · 30/03/2023 10:26

Yes it's short sighted to want to stick it to private landlords.

It's a shame really as we enjoyed being landlords and we still get on with our previous tenants.

Just wasn't worth it anymore with all the gov rules. It felt like less of an agreement between me and my tenants, and more like I had an unwanted third party.

Then house prices skyrocketed and we took our chance.

I do feel sorry for our old tenants because it wasn't their fault, but I wouldn't do it again unless things changed.

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senua · 30/03/2023 10:55

Anything to do with property always swings like a pendulum, from one extreme to the other and never resting in a sensible mid-point.
Legislation has been going against LL recently and a lot of them currently think that the downsides outweigh the upsides and are leaving the sector. @ProbablyDogNappersHunX list is all very well but no individual has to be a LL, there are plenty of other ways to invest which involve less hassle and less risk. They are walking away and the basic economics of supply/demand is kicking in.

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ProbablyDogNappersHunX · 30/03/2023 11:24

Of course no one has to be a landlord - but those objecting to things like installing insulation and actually having to give a reason for eviction (S8 will still be available and there's quite wide ranging reasons you can apply for eviction - but it ends evictions done on a whim)... those are the people who shouldn't have been landlords in the first place.

Special mention to the landlords who objected to rules meaning homes have to be fit for human habitation - it's the lowest possible bar and they were still objecting to something that was designed to keep their customers safe.

I work in a management position in the food industry. You wouldn't believe the sheer number of rules we have to comply with to keep our customers safe. For instance - Natasha's law (requiring full ingredient and allergen labelling on any prepackaged food) has added a lot of admin and about 8-10p in extra label printing costs to every product we sell. It was alright until supply chain issues meant we've struggled to get the same ingredients in consistently and we can't switch as we would have previously (e.g. one brand of mayo for another with slightly different ingredients) because that would involve an expensive label order with a one week lead time and a large minimum order quantity. Do you hear moaning from within the food industry about it? No, because we all recognise that while it's an expensive pain in the rear, it was the right thing to do to keep our customers safe.

Landlords serve up housing with mould on it and there's no real comeback. If we served up mouldy food we'd be in court.

Food and housing are two of the most basic fundamentals of human life, but only one of the two industries seems to take their responsibility to keep their customers safe seriously.

I'm a live in landlord by the way - different set of rules apply but even if all the same rules started applying tomorrow I'd be compliant with 90% of them and the rest would be paperwork things like getting an EICR certificate (having recently done a partial rewire, no issues there). I've never evicted a lodger or withheld their deposit. I was a tenant for long enough and treat others how I'd like to be treated.

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