Wednesday, Apr 23, 2008
Modern-day Rachmans watch out New Liebor is out to get you (and not before time)
ePolitics: MPs to debate rental market
"Clear evidence of families with children - in particular single women with children - who have to move just about every six months" ... "people complain about the housing repairs and the next thing they find that their tenancy isn't renewed". Grasping BTL landlords watch out, the labour Left (god bless them) is resurgent as Broon's grip weakens and they are about to make it a lot harder to push your weight around. (That's on top of the tax bill that will shortly arrive).
Posted by montesquieu @ 09:45 AM (740 views) Add Comment
18 Comments
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1. nubbers said...
Its not just the cheaper end of the rental market that suffers the whim of the private landlord. I find that the sort of house that I want to rent is supplied by people who are away for a few years will be comming back. Therefore there is never a feeling of permanence. Roll on the HPC.
2. An Bearin Bui said...
Funny it's only considered to be an issue for those in social housing - the lack of security of tenure is a problem for all tenants and is a major reason why people with children are so reluctant to rent as they fear having their children's lives disrupted. This reluctance to rent is what drives a lot of the buying mania and it could easily be solved if tenants were given back their security of tenure as it used to exist prior to the 1990s.
3. whiteknight said...
the welfare state we're in
4. wage slave said...
The lack of security of tenure is one of the key things that has fuelled the BTL boom - if landlords couldn't kick out their tenants quickly to sell and release their capital gains, then they probably wouldn't get involved with BTL at all.
However security of tenure is one of the things that makes people feel more a part of the comunity.
So a choice between propping up property prices and a better society - which way do you think the MPs will vote ?
5. montesquieu said...
For those too young to remember ....
http://en.wikipedia.org/wiki/Peter_Rachman
6. talking rot said...
I am all for adopting a more Continental-styled rental market although I am biased, having lived in Germany for a number of years. The German model for tenancy is superior to the UK model. Security of tenure is only one issue but the German equivalent of Magistrate Courts come down hard and quickly upon Landlords who do not meet legislative requirements; even mould in cellars is treated as important because of the effects on the respiratory system!
The net result is that rental housing stock is good and work-force mobility is high.
Landlords can make money through renting but only over the long term (20+ years).
I could recommend it to anyone although it is FAR FROM PERFECT!
7. Kenny Boy said...
They destroyed the rental market the last time they were in power. With nothing available to rent and 25% deposit required to buy, I'm going to start selling tents. The next big urban sprawl will be Tent City or maybe we can call it 'Brown's Town'.
8. General Melchett said...
@ Talking Rot I agree 100%. I too have lots of links to Germany, and would note that Germany is one of the few main economies to have opted out of crazy property speculation in recent years. Renting in Germany also does not have the social stigma it seems to have here, with high earners happy to rent. These things may not be 100% unconnected!
9. European-bear said...
talking rot...well the german model would suit the UK landlord just fine then...as we all know that they are all in it for the "long term"
10. uncle tom said...
montesquieu,
A couple of years back, a documentary team was commissioned (I think by the BBC) to do a documentary on the 'notorious' Peter Rachman. The researchers went to some lengths to find people who had known him, and who had actually been his tenants.
To their surprise, they discovered he was actually a decent guy who found homes for the least well-off. None of the tenants they found spoke ill of him. The documentary was never finished, but there was a long article written about the research, and it's surprising outcome.
When the the loony left Labour govt of the mid 60's set out to abolish private landlords, they needed a villain to present as an example. Rachman, conveniantly, had died in '62, and dead men can't sue...
He is probably one of the most libelled men in recent history.
11. Stevie Dee said...
Well for a party that was started for the welfare of the people.. with great servants like Nye Bevan, what we see in the rental market today is "slave boat housing", a situation that would have not only had Bevan, but Wilberforce & Shaftesbury turning in their graves. Quite simply scandalous, but what do you expect from Champagne Socialists.
Nevermind...
12. Stevie Dee said...
Champagne Socialists with Lemonade Morals!!!
13. str 2007 said...
The point you're missing is funding for BTL only became available with the abolition of secure tenure and the invention of the short hold tenancy agreement.
It's not to say all products BTL would be withdrawn, but they would certainly change, afterall there is a higher risk involved in a defaulting situation.
14. mark wadsworth said...
Talking Rot, the German system works partly for cultural reasons (renting is no shame and they are fussy about build quality), partly because of massive tax breaks for private landlords*, partly because they are far more generous with planning permission to keep supply and demand on an even keel and so on.
* When I worked there as a tax advisor, a mother and her adult son said they had sold the family business and wanted to buy a flat each in a new block to live in. We told them that this was plain daft - it'd be far better for tax if each bought a flat and rented it out to the other. Which is what they did, I think. That's what I call totally stupid.
15. montesquieu said...
@ uncle tom
That's all right then ... let's not forget how cuddly the Cray twins were too (and how much Hitler loved his mother).
16. Stevie Dee said...
@UT
Fair point.. but the current situation vis-a-vis landlords & agents (a la dodgey de la rigsby) needs to be addressed urgently. Fortunately I rent a lovely place, but have just experienced the irresponsible behaviour of landlords, who are no business people, lack compassion, and provide attrocious living conditions, stealing deposits, etc.
I wonder have any of them ever heard of Auschwitz? Furthermore, the present government sit and watch and support this inhumanity.
17. uncle tom said...
"let's not forget how cuddly the Cray twins were "
There was nothing fishy about the Kray twins - they were evil.
There needs to be a sensible balance between the interests of landlords and tenants. The former need to be able to deal quickly and efficiently with tenants who fail to pay their rent or are otherwise genuine problem cases - current procedures are too slow and expensive. The latter need to be able to get longer tenancy periods - two years should be the norm.
18. montesquieu said...
My point was that regardless of whether Rachman deserved his reputation, 'Rachmanism' was what sparked the rent reform act giving tenants more clout. During the Thatcher era and since, the state - the government included - has wanted out of social housing provision (or at least wanted to move it to arms length) and legislated to allow landlords to behave as badly as they want one again.
I appreciate what you are saying about the need to deal with problem tenants but the current rules mean the balance of power is heavily tipped towards the landlord, making BTL more attractive and helping create the current state of affairs (bubble, unaffordability and so on).
No-one wants to recreate the vast 30,000 council house estates of the 50s and 60s but I believe the state should have a role in social housing, establishing a fair and decent floor in the market, while landlords should be required to behave responsibly and treat tenants with human decency.