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Millionaire Landlord Kevin Green Fears Benefit Changes Could Put Him Out Of Business

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Son does a lot of work for letting agents. He was chatting to one the other day (with a lot of properties on their books) as he'd just done some work on a few of the properties held by one particular landlord. They said it was the only landlord they had who who is doing well and whose little empire is safe as they'd bought back in the 90's. Most of the rest of the landlords are struggling to keep things going because they came into the market later or were overleveraged.

Also I did read somewhere on the internet that HB payments will be changing from the 30th percentile they are currently set at to being capped at CPI. Don't know how this would affect the rental market - it will take someone cleverer than me to work it out.

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In areas of chronically high unemployment perhaps they ought to just knock the houses down to force people to move - rather than subsidising an area at a low level.

Either that or they could something more constructive to help the area.

But either is better than the slow death we have now.

I have been saying the same thing for a couple of decades about the Welsh Valleys - most of those communities didn't exist before the industrial revolution, only came into existence mainly because of coal and once coal was no longer mined there was no reason for them to exist.

The cost along in maintaining road, power, sewage, etc, healthcare, etc, to the Valleys is enormous. Add on top benefits and absolutely no hope of any meaningful employment going there.... ah, but it is a political heartland which provides numerous MPs to Parliament again and again and again.

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I have been saying the same thing for a couple of decades about the Welsh Valleys - most of those communities didn't exist before the industrial revolution, only came into existence mainly because of coal and once coal was no longer mined there was no reason for them to exist.

The cost along in maintaining road, power, sewage, etc, healthcare, etc, to the Valleys is enormous. Add on top benefits and absolutely no hope of any meaningful employment going there.... ah, but it is a political heartland which provides numerous MPs to Parliament again and again and again.

Could they re-open the coal mines? Are they open pit?

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I have been saying the same thing for a couple of decades about the Welsh Valleys - most of those communities didn't exist before the industrial revolution, only came into existence mainly because of coal and once coal was no longer mined there was no reason for them to exist.

The cost along in maintaining road, power, sewage, etc, healthcare, etc, to the Valleys is enormous. Add on top benefits and absolutely no hope of any meaningful employment going there.... ah, but it is a political heartland which provides numerous MPs to Parliament again and again and again.

It's a good point, but these places are relatively cheap. Why can't some sort of industry be introduced into these areas? Manufacturing, call centres, anything. I don't like the idea of knocking down perfectly good housing.

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From Wiki - It's Thatcher that did it :)

In 1979, Margaret Thatcher became Prime Minister of the United Kingdom. Her policies of free market economics soon clashed with the loss-making, government-owned National Coal Board. In 1984 and 1985, after the government announced plans to close many mines across the UK, mineworkers went on strike. The ultimate failure of this strike led to the virtual destruction of the UK's coal industry over the next decade. No deep coal mines are left in the valleys since the closure in 2008 of Tower Colliery in the Cynon Valley. Tower had been bought by the workers in 1994, despite government attempts to close it.

Since the mid-1980s, unemployment rates in the valleys have been among the highest in the whole United Kingdom, and have been seen as a major factor in the rise in drug abuse in the local area, which was highlighted in the national media during the autumn of 2002 and largely linked to drug dealing gangs from Birmingham and Bristol.[12]

What a shite year 1979 was end of Disco, I was born etc. etc.

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It's a good point, but these places are relatively cheap. Why can't some sort of industry be introduced into these areas? Manufacturing, call centres, anything. I don't like the idea of knocking down perfectly good housing.

They have tried that at great cost to the taxpayer ,mainly down the bottom of the valleys (better road links) and thats the main problem the roads you have the A465 at the top and the M4 at the bottom with only one proper road joining the two the A470

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He added: "If we pull out of the market that's hundreds of houses that we rent out in this area that's pulled out.

He should just put them on wheels and move them all to London. It's on the coast so just ship them round.

Pull them out - Hyde park would do. Oligarchs are queuing up to buy up stuff like that in London.

They could even import a few thousand people to do the transporting work.

Edited by billybong

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So basically he's a millionaire benefit claimant?

I'm amazed that anyone actually bothers to do this via fraud, you might as well do it legally and live the high life.

Still I'm sure he's someone who appreciates the free market.

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Two BTL'ers I know are have had benefit related issues lately.

Both involved changes where payments going direct to tenants instead of to landlord.

One didn't pay any of the money on and got evicted.

The other got 13 'monthly' payments from council but didn't realise they were every 4 weeks - so pissed the 13th up the wall thinking it was an accidental overpayment.

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They have tried that at great cost to the taxpayer ,mainly down the bottom of the valleys (better road links) and thats the main problem the roads you have the A465 at the top and the M4 at the bottom with only one proper road joining the two the A470

Perhaps this is what a fraction of the money for HS2 should be spent on. We're not a big country, not everything needs to be on London's doorstep.

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So basically he's a millionaire benefit claimant?

I'm amazed that anyone actually bothers to do this via fraud, you might as well do it legally and live the high life.

Still I'm sure he's someone who appreciates the free market.

Exactly. Mr Green, meet business risk. I understand the frustration of having tenants who can't budget but all said and done it is their benefit not the LLs.

If that means benefit farmers like Green get a real view of their typical client's risk profile, so much the better. It might force them to sell a few. He obviously hasn't read about crop rotation and diversity to hedge against a poor harvest.

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I have been saying the same thing for a couple of decades about the Welsh Valleys - most of those communities didn't exist before the industrial revolution, only came into existence mainly because of coal and once coal was no longer mined there was no reason for them to exist.

The cost along in maintaining road, power, sewage, etc, healthcare, etc, to the Valleys is enormous. Add on top benefits and absolutely no hope of any meaningful employment going there.... ah, but it is a political heartland which provides numerous MPs to Parliament again and again and again.

....not that long ago you could buy property in the welsh valleys for under £10k often £5K.....and there were plenty of grants available to put in an inside toilet/bathroom new roof, windows etc.......people from outside were buying these places unseen often to put people in rent paid by the local authority.....how did they become millionaires? ;)

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Exactly. Mr Green, meet business risk. I understand the frustration of having tenants who can't budget but all said and done it is their benefit not the LLs.

If that means benefit farmers like Green get a real view of their typical client's risk profile, so much the better. It might force them to sell a few. He obviously hasn't read about crop rotation and diversity to hedge against a poor harvest.

+1.

You need to plan for various likely scenarios.

If you lever on the way up, you best sell before a down turn.

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He may have to stop letting to the unemployed :lol: best of luck with that one mate it`s Llanelli not London

Better still, his unemployed tenants pocket the housing benefit, play the County Court waiting game and then move to somewhere better with their ill gotten gains, leaving Mr Green with a load of missed mortgage payments. No one will weep for one more failed BTL.

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FFS why does he need so many properties? This is just so wrong. It's actually anti-capitalist because it discourages work and encourages state sponsored rentier socialism.

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Guest eight

I wonder how leveraged he is?

So is he public or private sector then? A "wealth generator", or not?

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Better still, his unemployed tenants pocket the housing benefit, play the County Court waiting game and then move to somewhere better with their ill gotten gains, leaving Mr Green with a load of missed mortgage payments. No one will weep for one more failed BTL.

He knows that will happen it`s not a question of IF it`s just a case of when hence the squealing and veiled threats

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Guest eight

So basically he's a millionaire benefit claimant?

I'm amazed that anyone actually bothers to do this via fraud, you might as well do it legally and live the high life.

Still I'm sure he's someone who appreciates the free market.

Why do you think crime is down? I already made reference elsewhere to people getting out of drugs and into property.

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From the BBC link

He bought his first property using credit cards to bridge finance the deposit of a buy-to-let mortgage. He renovated it, sold it at a profit and bought a second and now has more than 760 properties.

He evidently got greedy so I hope he does lose out. Absoloutely no need for one single person to own that many properties in an area.

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