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Kris Hopkins Vs Emma Reynolds: What Should Be Done To Support Renting Families?


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HOLA441

1) Rents are set by what people can afford. That's why they track incomes quite tightly.

2) The total number of properties will be broadly the same, so where will all the ex-rentals end up? For sale perhaps?

Graph%20of%20price%20of%20Average%20Earn

Hmm.

That graph looks far too reasonable.

What we need is a mortgage for renters that allows renters to borrow money from the banks in order to rent. You should be able to borrow up to 6x salary and secure the home of your dreams.

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HOLA442

The more things are made unattractive for landlords, the less rental properties there will be. The less rental properties there are, the more competition between renters there will be, resulting in higher rents and more homelessness. And vice versa.

This is just a simplistic supply and demand argument. Much like the one that says that house prices can't fall because demand is high and everyone needs a home.

As pointed out already, the UK has some of the worst renting laws in the developed world. The rental markets work much better in places like Germany and France.

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HOLA443

That's only true if houses that are no longer rented out disappear in a magic puff of blue smoke and no-one lives in them.

Hold on, I've got it! If the reverse is true, all we need to do is make landlordism even more attractive. Then currently non-existent houses will magically appear in a puff of blue smoke.

By Jingo, I think I've solved it. Where do I apply to become Tory chancellor?

If landlords think it is no longer a good investment to rent, then there will be a lot of properties put on the market or kept empty. Good for new buyers, bad for existing owners as prices fall. Bad for people who cannot afford to buy or do not want to buy, as explained above.

If more landlords are attracted to renting, then more new homes will be built as builders can sell them more easily. More homes available to rent means landlords compete for tenants and rents fall. And, as I said, more homes get built.

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HOLA444

If more landlords are attracted to renting, then more new homes will be built as builders can sell them more easily. More homes available to rent means landlords compete for tenants and rents fall. And, as I said, more homes get built.

Germany, tenant friendly, population 82m, built 200k residential units in 2012 link

UK, tenant unfriendly, population 64m, built 140k residential units in 2012 link

Can you explain how Germany is able to build housing at a similar rate to the UK on a per capita basis despite having pro-tenant tenancy laws? Could it be that the ease with which a landlord can neglect repairs and throw tenants out on a whim isn't the major factor in determining whether or not builders put up new buildings?

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