Cost of Living Crisis

[Clown Job]

[Clown Job]

They really are desperate to get people back into the office again 

Wouldn’t surprise me if we see an energy price cap for business but not for homes 

[williemillersmoustache]

 

 

 

[Billy Jean King]

Going to be a tsunami of salty tears from private landlords at today's SG announcement. Oh how my heart bleeds for them [emoji28]

[resk]

13 minutes ago, Billy Jean King said:

Going to be a tsunami of salty tears from private landlords at today's SG announcement. Oh how my heart bleeds for them

The BBC feed currently has expert reaction to this policy from two people - the CEO of Scotland's largest lettings agency, and the Chief Exec of the Scottish Association of Landlords.  

Somebody really should set up some kind of charity.  

[Suspect Device]

 

 

[williemillersmoustache]

 

 

We'll just keep them empty and not make any revenue at all while the costs to us stay the same or increase. 

Hahahaha ha ha ha. 

[Dawson Park Boy]

42 minutes ago, Billy Jean King said:

Going to be a tsunami of salty tears from private landlords at today's SG announcement. Oh how my heart bleeds for them

It’s the kind of policy that looks good but, in reality can have unforeseen consequences.

It might encourage landlords to sell more properties which could increase supply and thus reduce property prices.

It certainly won’t encourage people to get into the property rental business.

Who knows? 

[Benjamin_Nevis]

54 minutes ago, Billy Jean King said:

Going to be a tsunami of salty tears from private landlords at today's SG announcement. Oh how my heart bleeds for them

So THAT'S what today's flood warnings were about? Splendid. 

[Billy Jean King]

It’s the kind of policy that looks good but, in reality can have unforeseen consequences.
It might encourage landlords to sell more properties which could increase supply and thus reduce property prices.
It certainly won’t encourage people to get into the property rental business.
Who knows? 

They would need to sell with sitting tenants, not always easy at any time but during a rent freeze more so. The ban on evictions should prevent your scenario.

Half the landlords I know are so balls deep in loans and mortgages to facilitate the original purchases that it would probably be financially ruinous for them to sell up.

One of the biggest "ponzi" schemes going

[GiGi]

If the landlords end up losing money then this just comes with the turf with 'investments'. There can be no guarantees you can simply continue to extract money from holding onto a house for decades. 

Obviously that doesn't apply to accidental landlords but they will be in the minority. 

The rest of them have had it good for long enough sitting on rising equity and making profit out of hoarding in-demand housing stock. Scalping c***s. 

[Dawson Park Boy]

16 minutes ago, Billy Jean King said:

They would need to sell with sitting tenants, not always easy at any time but during a rent freeze more so. The ban on evictions should prevent your scenario.

Half the landlords I know are so balls deep in loans and mortgages to facilitate the original purchases that it would probably be financially ruinous for them to sell up.

One of the biggest "ponzi" schemes going

You make the point that it’s not a great business to be in as, maybe I’m wrong, but I don’t think you can offset mortgage interest any longer.

If landlords go bust, then the banks will put the properties on the market and, eventually the tenant will be evicted.

You must also know that there are some rotten tenants so to vilify landlords is a bit one sided. 

[Dan Steele]

Investments can go up as well as down but as we've seen over the years, and in the long term, house values invariably increase. Anyone who thinks a rent freeze is wrong during this crisis should take a good look at themselves.

[DeeTillEhDeh]

If the landlords end up losing money then this just comes with the turf with 'investments'. There can be no guarantees you can simply continue to extract money from holding onto a house for decades. 
Obviously that doesn't apply to accidental landlords but they will be in the minority. 
The rest of them have had it good for long enough sitting on rising equity and making profit out of hoarding in-demand housing stock. Scalping c***s. 

This.

They took the profits when things were going well and need to take the losses when they don't.

[carpetmonster]

9 minutes ago, GiGi said:

If the landlords end up losing money then this just comes with the turf with 'investments'. There can be no guarantees you can simply continue to extract money from holding onto a house for decades. 

Obviously that doesn't apply to accidental landlords but they will be in the minority. 

The rest of them have had it good for long enough sitting on rising equity and making profit out of hoarding in-demand housing stock. Scalping c***s. 

We're accidental landlords and have kept the sitting tenant's rent the same for the last 3 years because he causes us no ball-ache. Much more interested in that than making an extra 100 quid a month that the agency would take their cut of and potentially much more if you get someone in who trashes the place. I think the annual review is November and I was planning on just leaving it anyway. 

[Left Back]

1 hour ago, williemillersmoustache said:

 

 

We'll just keep them empty and not make any revenue at all while the costs to us stay the same or increase. 

Hahahaha ha ha ha. 

I don't think this guy has thought it through.  When there was a ban on evictions during Covid there was a clear distinction between people who couldn't pay rent and people who simply refused.  If you could afford your rent but decided to stop paying it for the lolz you could still be evicted.  I haven't read the details of what's been announced but presumably it will be the same otherwise anyone that's renting, whether private or not, would simply stop paying rent.  This would impact Council finances.

Also the example he gave about students.  If you're renting student flats surely you don't care about rent increases while you have tenants.  When one lot of students move out and another lot move in there's nothing stopping you charging the new lot more from what I can see.

[Dawson Park Boy]

4 minutes ago, oaksoft said:

Maybe but we have way too many people renting in the country.

And they're renting because the price of buying a house puts ownership beyond them.

And because there's so many of them, it pushes rental prices up as well.

So we have a house price boom and a rental price boom.

And all of this is artificially fuelled by Buy To Let.

End BTL and you'll see house prices drop and with fewer people needing to rent, you see rental prices stabilise as well even if the number of rental properties drops.

I don't see any unforeseen consequences which are particularly negative TBH.

Agree we have far too many forced to rent due to the cost of buying.

The root cause of the problem is the shortage of supply exacerbated in recent years by the break up of so many families and demand for single occupancy properties.

The only solution is to radically change the planning system to allow building on previously banned land.

Will upset a lot of people but ‘needs must’.

 

[welshbairn]

If landlords are forced to sell it should take house prices down for first time buyers. Much stricter rules on holiday letting like AirBnB would free up more properties for renters.

[Left Back]

14 minutes ago, oaksoft said:

Maybe but we have way too many people renting in the country.

And they're renting because the price of buying a house puts ownership beyond them.

And because there's so many of them, it pushes rental prices up as well.

So we have a house price boom and a rental price boom.

And all of this is artificially fuelled by Buy To Let.

End BTL and you'll see house prices drop and with fewer people needing to rent, you see rental prices stabilise as well even if the number of rental properties drops.

I don't see any unforeseen consequences which are particularly negative TBH.

We have an obsession with owning our own home in this country.  What we don't have though is adequate stocks of social housing and that's the real issue.

Renting your own home is perfectly fine.

[Soapy FFC]

2 minutes ago, Left Back said:

We have an obsession with owning our own home in this country.  What we don't have though is adequate stocks of social housing and that's the real issue.

Renting your own home is perfectly fine.

Yep, because the social housing we did have was sold off to become the private rental stock.