The joy of being a landlord

[Freakbro]

I’m very privileged when it comes to housing.

My family gave me a £50k deposit for a small city house, which was bought at £240k plus fees etc in 2015. I took responsibility for the fees and paid the mortgage etc. I had to get a 35 year mortgage as that was only basis that I would be leant to on, even being a higher rate tax payer.

In 2020, it sold for £330k. It’s now apparently worth £400k.

So for someone today to be given the same opportunity that I had, they would have to stump up an additional £160k in cash (£210k total). That’s only 7 years later.

Assuming that you didn’t have any help from relatives, how long would it take you to save up £210k cash…? That’s before you even factor the dramatically increased costs of everything in the last 2-3 years.

(Obviously affordability depends on salary, disposable income, location, whether you have a partner sharing the mortgage etc and how much a bank will lend you - so this example is knowingly limited in scope)

Yes, every generation has their own problems to overcome but I think it’s very fair to say that’s the up and coming adults have an insanely difficult time with housing compared to even what I had.

While a multi-facted problem, the nub of that is the asset inflation we have seen combined with wage stagnation, which has led house prices move from their long term norm of 3-4x salary to the current 9-10x, which then ofc makes them difficult to afford for FTB's

If 100% mortgages still existed then all of the people in here wouldn't be complaining about renting prices and landlords.

Just looking here https://www.statista.com/statistics/804446/property-tenure-distribution-in-the-united-kingdom/ and I'd say there's other factors at play.

It seems private rentals accounted for ~10% of the market in the '80's with this rising to a current ~20%. And it started rising through the period of 100% mortgages.

Whilst I empathise with a lot of @Zenduri points, I disagree with his absolute stance that no-one wants to rent. I certainly did for a lot of my early years and was quite late (in comparison to my peers) before getting on the housing ladder. Landlords fulfil a need, it's probably just that sector has got unbalanced, with BTL LL's taking a larger part of the housing stock nowadays.

 

[dlockers]

IIRC you could by a house for £1 as part of a scheme in some parts of Liverpool not too long ago, fat load of use for people living in the South East or London and not necessarily desirable for everyone local to them either, if they were they'd not be run down and part of such a scheme in the first place!

Pretty sure you needed to prove you had like 40k cash in the bank to pay for refurbs to be eligible to buy those, too.

 

[Deleted member 77746]

Landlords are so stuck up. They act like they own the place.

What is the opposite of a Mermaid? A landlord.

How did the landlord die? He Cashed Out

 

[fez]

Disagree RE: it shouldn't be a long term option.

It shouldn't be a long term option for people who choose not to work and use cheap housing as a crutch to be able to do so. No issue with people who are working using subsidised housing but council houses shouldn't have someone living there for their entire life for free unless under exceptional circumstances.

I equate you to being a communist because you are spouting communist ideology.

Cant really help you past this

Its not communist ideology and i'm pretty sure you know that. Spreading more of the vast wealth accumulated in this country isn't communist in the slightest. Its just the basis of a good society. Society requires people to work at every level and as much as the super wealthy like to think they would be just fine without the great unwashed, its not true is it.

If you can explain to me how there is not a strong link between one person benefitting and another losing when one is directly paying off the others mortgage when they themselves cannot get a mortgage I am all ears. I'd go so far as to say thats a very obvious and simple example of a broken system. I can be paying someone £1000 for rent when the mortgage on that home could be £6-700 and the bank won't lend me the money because I can't find £20,000 for a deposit due to said high rent.

 

[dlockers]

It shouldn't be a long term option for people who choose not to work and use cheap housing

Wait, did you just describe landlords or benefit scrounges? They appear very similar in this sentence

 

[mattyg]

Strange the most of the complaints in here are saying the young cant get on the ladder because of LL's..
I've just had a quick look on the web and there are loads of 2nd or 3rd rung houses for rent.
The house next door to my parents has been rented for the last 12 months to a family who were having their own house built. Defo not first time buyers.

 

[Zenduri]

Whilst I empathise with a lot of @Zenduri points, I disagree with his absolute stance that no-one wants to rent. I certainly did for a lot of my early years and was quite late (in comparison to my peers) before getting on the housing ladder. Landlords fulfil a need, it's probably just that sector has got unbalanced, with BTL LL's taking a larger part of the housing stock nowadays.

I dont think i've ever said no-one wants to rent. I just pointed out that landlord arent providing a benefit to anyone but themselves. Renting should be done by a local housing authortiy to those that want to rent or need to rent. It should never be in the current situation where people are profiteering from it.

 

[Chris Wilson]

Why was your agency bothering them? If they want to commit a crime in your flat so be it. If they were paying rent on time leave them alone and let the police deal with any weed growing or dealing?

The second tenants raised a safety concern with your property, you claim it was a couple of cracked slabs, so why were you so scared they would contact Environmental Health if it wasn’t an issue? Instead you as the landlord rectified the problem.

These seem like complete non-problems that are the cost of doing business as a landlord?

Having drug growers and dealers in your property, and druggies turning up to purchase drugs is not what i would want for the sake of my properties well being, its neighbours quality of life, or for property values in the the area in general.

I would also not want the stigma of being a landlord renting to drug growers and dealers, letting a property used for prostitution and its derivatives, or the storing and distribution of stolen goods. Growers of drugs are not known for paying their bills, electricity nor rent, and leave the property owner open to at least police investigation if not financial liabilities. so all in all prostitutes and drug dealers et cetera are not what respectable landlords would want as tenants, or neighbours of their properties. But you know that....

 

[Scam]

Nah, @NVP is pretty much on the money here; the lack of housing supply for our growing population is the biggest issue here.

I view lack of supply as a total red herring in this argument. What good is a new-build flat that is out of reach of the average FTB? Because most of them are. All building more does, is put more investment opportunities into those that already have the capital/are far enough up the ladder to invest and rent them out.

 

[aVdub]

Strange the most of the complaints in here are saying the young cant get on the ladder because of LL's..
I've just had a quick look on the web and there are loads of 2nd or 3rd rung houses for rent.
The house next door to my parents has been rented for the last 12 months to a family who were having their own house built. Defo not first time buyers.

Many of those young near me are also becoming landlords and of course, not forgetting the countries many inner cities councils that are buying up property in areas where it is cheaper to house their waiting lists.

 

[bigmike20vt]

I dont think i've ever said no-one wants to rent. I just pointed out that landlord arent providing a benefit to anyone but themselves. Renting should be done by a local housing authortiy to those that want to rent or need to rent. It should never be in the current situation where people are profiteering from it.

Ill make you a deal, if all of the massive land owners in the country agree to sell up and give all their property to the councils to rent out.......... then i will give up our flat as well.

perhaps if local housing authority wanted to rent out properties themselves then they should not have chosen to make a quick buck by selling off all their stock. but am sure that is the fault of those who bought them as well?

 

[bigmike20vt]

I view lack of supply as a total red herring in this argument. What good is a new-build flat that is out of reach of the average FTB? Because most of them are. All building more does, is put more investment opportunities into those that already have the capital/are far enough up the ladder to invest and rent them out.

that is the choice of government..... if they really wanted to get people buying their own houses they could offer incentives for FTBs.
and IF some form of penalty was put on multiple property ownership i could support that but only IF DONE FOR EVERYONE.

the last thing i read - and am going back a few years, 1 suggestion was made and the bottom line was if you registered yourself as a business and had more than a certain number of properties on your books.... you would not be affected... and that is why i get angry at these things..... any solution would only go after small owners and not attack the billionaire property owners / big business.

isnt there an isa with some unbeatable rates on them designed purely for FTBs and saving for a home? (am sticking my neck out a bit as am probably going back 5 years and i didnt pay much attention - given i am not a FTBer

 

[Freakbro]

I dont think i've ever said no-one wants to rent. I just pointed out that landlord arent providing a benefit to anyone but themselves. Renting should be done by a local housing authortiy to those that want to rent or need to rent. It should never be in the current situation where people are profiteering from it.

Apologies, it wasn't you, it was Scam with this comment. My fault for relying on dodgy memory rather than check first

lol as if anyone out there in the UK wishes to rent.. That's landlord denial right there.

 

[Scam]

that is the choice of government..... if they really wanted to get people buying their own houses they could offer incentives for FTBs.

You're not wrong. But making it easier for FTBs to undertake massive debt is a short-term sticking plaster that will only result in further house price inflation and making the overall problem worse. Why do you think we now have 30+ year mortgages as standard.

isnt there an isa with some unbeatable rates on them designed purely for FTBs and saving for a home? (am sticking my neck out a bit as am probably going back 5 years and i didnt pay much attention - given i am not a FTBer

You mean the Lifetime ISA. Ah yes, one of those fantastically ill-thought sticking plasters yet again. Count me as one of the people that actually lost money through those ****ing things

Apologies, it wasn't you, it was Scam with this comment. My fault for relying on dodgy memory rather than check first

To be fair, my quote probably should have said "lol as if anyone out there in the UK wishes to rent long-term.. That's landlord denial right there." I refuse to believe in this day-and-age anyone who plans to live in this country long term would choose renting, over buying a home.

 

[bigmike20vt]

You're not wrong. But making it easier for FTBs to undertake massive debt is a short-term sticking plaster that will only result in further house price inflation and making the overall problem worse. Why do you think we now have 30+ year mortgages as standard.

You mean the Lifetime ISA. Ah yes, one of those fantastically ill-thought sticking plasters yet again. Count me as one of the people that actually lost money through those ****ing things

To be fair, my quote probably should have said "lol as if anyone out there in the UK wishes to rent long-term.. That's landlord denial right there." I refuse to believe in this day-and-age anyone who plans to live in this country long term would choose renting, over buying a home.

bugger.... i didnt think you could lose on those isas... sincerely.. that sucks.

your amendment i can agree with. i dont think most people would choose to rent long term.... indeed all of out tenants have been youngish people new to the area. our current tenant is a newly qualified scientist on a short contract (she does not know this but as it happens she works at my wifes place, one of the reasons we chose to let her have the flat - despite her not knowing)

we also had a newly qualified nurse at the locall hostpital as well as an apprentice builder. none of which matters other than to say our flat would not be where they would want to settle down long term but is a great young person 1st pad.

 

[dlockers]

You mean the Lifetime ISA. Ah yes, one of those fantastically ill-thought sticking plasters yet again. Count me as one of the people that actually lost money through those ****ing things

You whinging that you didn't read the rules again?

 

[Deleted member 77746]

You mean the Lifetime ISA. Ah yes, one of those fantastically ill-thought sticking plasters yet again. Count me as one of the people that actually lost money through those ****ing things

Must have been a scam.

 

[dlockers]

Must have been a scam.

It really wasn't. It is just silly people thought £450k was enough to buy a house in London, despite the average price AT THE TIME THE SCHEME LAUNCHED was £480k in London. lols!

 

[Deleted member 77746]

It really wasn't. It is just silly people thought £450k was enough to buy a house in London, despite the average price AT THE TIME THE SCHEME LAUNCHED was £480k in London. lols!

whoooooooooosh

 

[Zenduri]

Ill make you a deal, if all of the massive land owners in the country agree to sell up and give all their property to the councils to rent out.......... then i will give up our flat as well.

perhaps if local housing authority wanted to rent out properties themselves then they should not have chosen to make a quick buck by selling off all their stock. but am sure that is the fault of those who bought them as well?

Sigh, hell of an over reaction. Completely ignored everything ive said in this thread to start off with and then run with your own narrative. Also i never said anything about LHA's selling housing stock to make a quick buck, like the landlord making a quick buck now i quess....

I have no issues with housing being sold as long as there is sufficient housing to replace that which is being sold on. The problem is the LHA's sold thier stock and nowhere near enough replacement LHA properties or FTB homes are being built because we are now reliant on this stupidly propped up market that is the housing market.

I dont get your points other than being offended by something i didnt say?