The joy of being a landlord

Resident said:
BTL mortgages are, imo, the biggest problem with the rental markets & should never have been a thing. They're a ticking timebomb worthy of the 2008 bank crash.
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Why do you say that? Honestly, anyones whos primary motivation is maximal money extraction from rental properties is likely to be a bit dodgy. I don't think there is anything fundamentally wrong with people owning multiple houses vs companies doing it.
 
fez said:
Why do you say that? Honestly, anyones whos primary motivation is maximal money extraction from rental properties is likely to be a bit dodgy. I don't think there is anything fundamentally wrong with people owning multiple houses vs companies doing it.
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Nothing wrong with owning multiple properties. But many people with BTL mortgages don't have the backing financially for when things go wrong. The rent they're charging literally covers the monthly payments, particularly when rates go up which then often leads to shady landlording. Either becoming a slumlord and ignoring the tenant or back to my previous post regarding being evicted because she couldn't afford to fix the roof so she can get someone in who won't complain.

I've even heard stories of tenants being blindsided when the bank turns up on the doorstep with a high court writ and they have to leave immediately.
 
fez said:
An excellent outcome. Should be the norm. If you don't get issues fixed within a reasonable amount of time then the fine should make the cost of fixing the issue seem trivial. If you can't afford to be a landlord then you shouldn't be one (risk vs reward) and if you are incapable of providing safe houses then you shouldn't be providing them at all.
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It might become the norm if there is no S21. Easy to do as a ex tenant, but harder as a current tenant unless you are prepared already for the revenge eviction.
 
It's all very well saying that but we need some more context to form an opinion. How much have rents gone up over the last decade or so? Who will it apply to? As much as I love jumping on politicians, it might well be a justified move, but a twitter page called "stats for lefties" with a ******* watermelon emoji in its name doesn't exactly seem like a reliable source of information.

I'm far too lazy to google any of this btw.
 
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Diddums said:
It's all very well saying that but we need some more context to form an opinion.
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How about a table showing social rent caps since 2001? :)

www.gov.uk

Limit on annual rent increases 2024-25 – from April 2024

Information about annual rent increases limit from April 2024
www.gov.uk www.gov.uk

Diddums said:
How much have rents gone up over the last decade or so?
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It's been CPI + 1% since 2020, and a mix of +0.5% to 1% previously.

Diddums said:
Who will it apply to? As much as I love jumping on politicians, it might well be a justified move, but a twitter page called "stats for lefties" with a ******* watermelon emoji in its name doesn't exactly seem like a reliable source of information.
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Yea, it's a partisan article for people looking to try and bash Labour for anything.

Diddums said:
I'm far too lazy to google any of this btw.
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Sorted for you :p
 
My point of posting the link was for the “encourage the building of affordable homes”, not trying to make Reeves look daft.
I get the idea from the FT article linked, but will it actually work?

FT
“Guaranteeing higher rents will delight housing associations but could worsen the cost of living for millions of tenants and could land the government with a much higher benefits bill”.
 
JonRGV250 said:
My point of posting the link was for the “encourage the building of affordable homes”, not trying to make Reeves look daft.
I get the idea from the FT article linked, but will it actually work?
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It would have helped if you'd posted that rather than just link and run then

JonRGV250 said:
FT
“Guaranteeing higher rents will delight housing associations but could worsen the cost of living for millions of tenants and could land the government with a much higher benefits bill”.
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I'm (genuinely) struggling to see how that's any different for the tenants & benefit bill from the last 20 yrs when there's been a CPI + X% guaranteed higher rent?

The difference to the council's & HA's is obvious though. To get a 10 year certainty/stability on what their incomes will be gives the ability to make longer term plans, like any business needs. And house building on the scale needed is a multi-year venture.
 
A +1% on social rents is still nothing like what private sector tenants have to deal with, so if that was used properly to provide more social homes, I think its a good thing. But as always its a case of how it will be used.
 
chrcoluk said:
A +1% on social rents is still nothing like what private sector tenants have to deal with, so if that was used properly to provide more social homes, I think its a good thing. But as always its a case of how it will be used.
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Yup, in my area it would be between £10 and £20 a month for most of the housing association type rents.

Meanwhile my sister had to move out of her rented house because IIRC the owner wanted to raise the rent by about £200 a month "to bring it in line with other properties at the moment".
 
Resident said:
Nothing wrong with owning multiple properties. But many people with BTL mortgages don't have the backing financially for when things go wrong. The rent they're charging literally covers the monthly payments, particularly when rates go up which then often leads to shady landlording. Either becoming a slumlord and ignoring the tenant or back to my previous post regarding being evicted because she couldn't afford to fix the roof so she can get someone in who won't complain.

I've even heard stories of tenants being blindsided when the bank turns up on the doorstep with a high court writ and they have to leave immediately.
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If the rent they are charging literally covers the monthly payments then what's the point landlording a BTL property? :confused:
 
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