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We Complain A Lot, But What Would Actually Help?

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We complain a lot about the slumlord tendency/aka BTL scum but what could actually be done, that would fit ideologically with the current lot of pols who seem to be in power for the foreseeable?

Came across a suggestion I think in one of the comments on an article in the Mail, which I think Makes good sense.So here are my two suggestions.

REVISIONS TO RENTAL CONTRACT: It's about time the legislation on rental contracts were renewed; if more people are renting for longer, it makes sense for new contracts to be available to reflect that, with rights and responsiblities on both sides set out better.

RIGHT TO BUY: Tenants should have a right to buy at an agreed market rate (average of 2 independent surveyors) if they have been renting a property for more than two years. Should be supported in getting high LTV mortgages (95 or 100%) as by paying rent for 2 years they have proved themselves, Government backing for this to be diverted from nonsensical shared ownership schemes.

These combined with proper landlord registration (which, particularly when it comes to catching tax evaders is a no-brainer - proving of course that Grant Shapps, who canned the idea, has no brain) would take us a long way towards a fairer property market.

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Competition is the only thing that reliably keeps suppliers in order.

This requires a massive loosening of land control and planning permission.

It all just goes away after that, without the need for stealing (right to buy).

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REVISIONS TO RENTAL CONTRACT: It's about time the legislation on rental contracts were renewed; if more people are renting for longer, it makes sense for new contracts to be available to reflect that, with rights and responsiblities on both sides set out better.

RIGHT TO BUY: Tenants should have a right to buy at an agreed market rate (average of 2 independent surveyors) if they have been renting a property for more than two years. Should be supported in getting high LTV mortgages (95 or 100%) as by paying rent for 2 years they have proved themselves, Government backing for this to be diverted from nonsensical shared ownership schemes.

Those two contradict one another don't they? If people are renting for longer but can buy after 2 years won't they not be renting for longer?

I don't think 100% mortgages are a solution to our problems. They are more of a cause of them. 100% mortgages are used to embrace higher prices. What we need are lower prices and lower LTV mortgages.

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We complain a lot about the slumlord tendency/aka BTL scum but what could actually be done, that would fit ideologically with the current lot of pols who seem to be in power for the foreseeable?

Came across a suggestion I think in one of the comments on an article in the Mail, which I think Makes good sense.So here are my two suggestions.

REVISIONS TO RENTAL CONTRACT: It's about time the legislation on rental contracts were renewed; if more people are renting for longer, it makes sense for new contracts to be available to reflect that, with rights and responsiblities on both sides set out better.

RIGHT TO BUY: Tenants should have a right to buy at an agreed market rate (average of 2 independent surveyors) if they have been renting a property for more than two years. Should be supported in getting high LTV mortgages (95 or 100%) as by paying rent for 2 years they have proved themselves, Government backing for this to be diverted from nonsensical shared ownership schemes.

These combined with proper landlord registration (which, particularly when it comes to catching tax evaders is a no-brainer - proving of course that Grant Shapps, who canned the idea, has no brain) would take us a long way towards a fairer property market.

Right to buy , who would want their asset sold at a time not of their choosing, tenants would just wait for some world shock to buy at temporarily depressed prices. Who would bother investing with this uncertainty hanging over them, espeically if they took long term view on an area improving and having to sell out before their bet paid.

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REVISIONS TO RENTAL CONTRACT: It's about time the legislation on rental contracts were renewed; if more people are renting for longer, it makes sense for new contracts to be available to reflect that, with rights and responsiblities on both sides set out better.

Yes, the market could probably cope with better protection for tenants. Ideally accompanied by better remedies for landlords against delinquent tenants. Basically make a proper distinction between the nightmare tenant (never pays, trashes the place and the neighbourhood - landlord should have fast track from court decision to bailiffs) and the good tenant who deserves better protection.

RIGHT TO BUY: Tenants should have a right to buy at an agreed market rate (average of 2 independent surveyors) if they have been renting a property for more than two years. Should be supported in getting high LTV mortgages (95 or 100%) as by paying rent for 2 years they have proved themselves, Government backing for this to be diverted from nonsensical shared ownership schemes.

No way! That'd just bugger the market. Lots of tenants being arbitrarily chucked out before the threshold of doom.

These combined with proper landlord registration (which, particularly when it comes to catching tax evaders is a no-brainer - proving of course that Grant Shapps, who canned the idea, has no brain) would take us a long way towards a fairer property market.

In theory, deposit protection should give them a database. Could improve awareness and incentives for that as a carrot.

Statutory standards, rising over time, could help improve the stock. Every time they offer taxpayer-funded help for homeowners to improve their homes (e.g. things like insulation), they should set out a timeframe over which landlords would be required to introduce similar improvements in their rental properties.

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Competition is the only thing that reliably keeps suppliers in order.

This requires a massive loosening of land control and planning permission.

It all just goes away after that, without the need for stealing (right to buy).

Thats my opinion too. I know its a tiny step but in my local area I have been advocating allowing more development. You can write to the paper, talk to people in the community.. and most importantly attend the public meetings on each development. And stand up arguing for rights of immigrants and youth to have a chance to own a home.

Lots of statistics mentioned on this forum to back up your arguments.. like only 3% of Britain is covered by cities, to counter the alarmist nimby's.

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Just waiting for Sweden or Germany to be held up as a model for renting as usual, can we explode this myth please

Renting in Sweden

My link

Buying is even more mad, everything is auction and goes on for ages.

Germany

Many professional Germans do buy just not in their own country due to terrible historical capital appreciation and high transaction cost of moving and capital gains tax on your principle resident if you sell within less than ten years.

Edited by mercsl

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Competition is the only thing that reliably keeps suppliers in order.

This requires a massive loosening of land control and planning permission.

It all just goes away after that, without the need for stealing (right to buy).

+1 The heart of the issue. Everything else is just noise.

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RIGHT TO BUY: Tenants should have a right to buy at an agreed market rate (average of 2 independent surveyors) if they have been renting a property for more than two years. Should be supported in getting high LTV mortgages (95 or 100%) as by paying rent for 2 years they have proved themselves, Government backing for this to be diverted from nonsensical shared ownership schemes.

absolutely nobody would go into private rental on those terms you would kill the supply instantly

tim

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Just waiting for Sweden or Germany to be held up as a model for renting as usual, can we explode this myth please

Renting in Sweden

My link

Sweden's not as bad as that article implies.

It only sucks if you are wanting to be there for a temporary period.

If you are planning om spending the rest of uour life in Sweden the rental system is great

tim

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absolutely nobody would go into private rental on those terms you would kill the supply instantly

tim

Are you saying amateur BTLs wouldn't get involved if they thought they would be obliged to sell at market value after 2 years?

Oh yes they would - don't forget: "property only goes up", therefore it would never occur to amateur BTLs that they might have to sell at a loss.

"Ah yes", you cry, "but their accountant or solicitor would warn them".

Nope - amateur BTLs proceed after talking to Uncle Fred, or Bill down the pub. There is no professional scrutiny.

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<snip>

These combined with proper landlord registration (which, particularly when it comes to catching tax evaders is a no-brainer - proving of course that Grant Shapps, who canned the idea, has no brain) would take us a long way towards a fairer property market.

My feeling is that your suggestions are unworkable. I believe the banks should be left alone (not cajoled into taking massive risks backed by the tax payer), and allowed to go to the wall if they mess up... i.e a free market.

A fairer property market, if the government must interfere with it, would be to tighten lending criteria and create a multiple home ownership/ land value tax.

Property as an investment should be discouraged.

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RIGHT TO BUY: Tenants should have a right to buy at an agreed market rate (average of 2 independent surveyors) if they have been renting a property for more than two years. Should be supported in getting high LTV mortgages (95 or 100%) as by paying rent for 2 years they have proved themselves, Government backing for this to be diverted from nonsensical shared ownership schemes.

Tenants have the 'right' to buy now; they just have to come up with an offer that's acceptable to the owner.

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absolutely nobody would go into private rental on those terms you would kill the supply instantly

tim

Err... how does that work, exactly? (not that I think it's a good idea, but I'm wondering what all the BTL landlords do with their property when they're no longer willing to rent it out)

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Competition is the only thing that reliably keeps suppliers in order.

This requires a massive loosening of land control and planning permission.

It all just goes away after that, without the need for stealing (right to buy).

Planning consent is a huge problem.I was on a planning committee for many years and the attitude of the offiicers can pretty much be summed up as "I live in a nice area,pull up the ladder".They tend to be ex hippies who have fallen on soft times and spend their lives in a fight to protect our green and pleasant land from horrid developers.That is of course unless the developer happens to have a name like Barratt or Persimmon and wants to build 24 houses to an acre in an urban sprawl then they fall over themselves to help.After all it keeps the plebs away from their bucolic acres of solitude.The policies are formed out of self interest.

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  • 152 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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