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Labour Rent Cap Fears Halt Buy To Lets

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It's the incumbent supporting press.

If the Conservatives were the opposition it would be concerns about their sort of stuff - benefit cuts and such like.

There might even be some grains of truth in the telegraph article but whoever gets into power the actual policy outcomes won't turn out to be significantly different.

BTLers are concerned about 3 year contracts without voids and the hassle of finding new suitable tenants every few months and rents guaranteed to track inflation? It doesn't really fit.

Edited by billybong

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Perhaps they are worried about sentiment rather than reality? Sentiment can push up house prices (Help 2 buy did this in London), perhaps the Mansion Tax and all these threats to cap rents/longer tenancies will have an effect on pushing prices down via negative sentiment?

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Sorry I got tired of trying to reconcile all the contradictions. What is it they are saying? That it would be a terrible thing if all those tenants that are forced to rent because landlords are making it too expensive to buy had nowhere to rent if landlords were to stop keeping prices high?

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God, I get fed up of these articles.

have stalled the private housing rental market, exacerbating Britain’s chronic housing supply shortage.

No it hasn't! If a LL isn't buying it someone will (or can)! The shortage doesn't get worst if LL's are buying less!

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Sorry I got tired of trying to reconcile all the contradictions. What is it they are saying? That it would be a terrible thing if all those tenants that are forced to rent because landlords are making it too expensive to buy had nowhere to rent if landlords were to stop keeping prices high?

There's a memory of the catastrophic 1977 Rent Acts. Some of the sentiment floating around now, and associated with some talk of what Labour might do, looks a bit like what brought about that disaster.

I don't think Miliband would get it that badly wrong (but then I never thought Brown or Osborne would be such disasters). But there are a lot of idiots far worse than him in senior positions in his party, and *** knows what might end up as a housing minister. It all boils down to whether we trust the politicians to get it right this time.

I certainly don't blame a journo for considering different possibilities. The scenario envisaged, where BTL is squeezed but not destroyed, seems like a best-case outcome.

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There's a memory of the catastrophic 1977 Rent Acts. Some of the sentiment floating around now, and associated with some talk of what Labour might do, looks a bit like what brought about that disaster.

I don't think Miliband would get it that badly wrong (but then I never thought Brown or Osborne would be such disasters). But there are a lot of idiots far worse than him in senior positions in his party, and *** knows what might end up as a housing minister. It all boils down to whether we trust the politicians to get it right this time.

I certainly don't blame a journo for considering different possibilities. The scenario envisaged, where BTL is squeezed but not destroyed, seems like a best-case outcome.

Weren't that catastrophic. Freed up a ton of supply for purchase cheaply. Terraced house in Northampton in 1977? Less than a thousand quid.

As for Labour's threats against BTL, don't make me laugh. They are the Red Rentiers, and always will be like their Tory buddies.

Edited by RentierParadisio

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I commented below that article. I really despair and the ignorance or just plain stupidity of journalists. Is there no-one in the chain of veto who thinks lucidly about how markets really work? When it comes to housing most people in this country have a willful huge blind spot.

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I commented below that article. I really despair and the ignorance or just plain stupidity of journalists. Is there no-one in the chain of veto who thinks lucidly about how markets really work? When it comes to housing most people in this country have a willful huge blind spot.

I think you misunderstand the purpose of the media.

Its not to inform, it is to outrage and inflame opinion to make sales.

VI entities making proposals can gauge reaction to temper or boost policies to maximise their vote potential.

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What was catastrophic about it? Genuine question - I wasn't born yet.

Completely destroyed the rental market making it impossible to find short term accommodation for contractors, short-term employment, students, etc. Alternatively, you would have to pay large sums of "key money" up front.

For those with rental contracts, the rent cap was often lower than the cost of maintenance, leading to disrepair and general decline in quality of housing stock.

It was a disaster for tenants and LL alike.

Edited by ChumpusRex

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Weren't that catastrophic. Freed up a ton of supply for purchase cheaply. Terraced house in Northampton in 1977? Less than a thousand quid.

As for Labour's threats against BTL, don't make me laugh. They are the Red Rentiers, and always will be like their Tory buddies.

OK, some folks may have benefited. That's kind-of the story of every government intervention in housing. Trouble is, where some get a windfall, others are left out in the cold.

They were truly catastrophic for my generation. Those of us who were at school in 1977, and hit the age where we needed to rent in its wake when there was no market. And no doubt for some older folks who were in no position to buy in 1977 for other reasons.

BTW, terraced house under £1000? We've seen those in modern times too: houses for £1 within the last couple of years. Of course both the £1000 house and the £1 house would need a lot of work to bring them up to a habitable standard.

Edited by porca misèria

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OK, some folks may have benefited. That's kind-of the story of every government intervention in housing. Trouble is, where some get a windfall, others are left out in the cold.

They were truly catastrophic for my generation. Those of us who were at school in 1977, and hit the age where we needed to rent in its wake when there was no market. And no doubt for some older folks who were in no position to buy in 1977 for other reasons.

BTW, terraced house under £1000? We've seen those in modern times too: houses for £1 within the last couple of years. Of course both the £1000 house and the £1 house would need a lot of work to bring them up to a habitable standard.

Yes but this was 30 years ago. Everything has changed so much since then and there was no BTL then and a lot more social housing. I don't think anyone can know how any rent caps will work on today's rental market which is so very different from the one of 30 years ago. And certainly there are just as many landlords who don't bother repairing their properties now and just as many Rachman's willing to turf out their tenants if they dare to complain.

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We don't need rent caps, they would just provide a new mechanism to distort the market.

We need guaranteed long term tenancy agreements with only CPI linked (or less) increases allowed during the agreement period. Three year agreement would be a start, but crucially this should only be applicable to the landlord. The tenant should be able to hand in notice after reduced period (six months?) because social mobility is still very important. Landlords might initially claim this is unfair (ha!) but they'll come to realise it is actually a good thing. In concession, removal of non paying or categorically troublesome tenants should be streamlined. Landlords will find that stable long term rentals are better for property upkeep and better for their business models than trying to gouge the customer as often as possible. Is it also just the right thing to do.

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We don't need rent caps, they would just provide a new mechanism to distort the market.

We need guaranteed long term tenancy agreements with only CPI linked (or less) increases allowed during the agreement period. Three year agreement would be a start, but crucially this should only be applicable to the landlord. The tenant should be able to hand in notice after reduced period (six months?) because social mobility is still very important. Landlords might initially claim this is unfair (ha!) but they'll come to realise it is actually a good thing. In concession, removal of non paying or categorically troublesome tenants should be streamlined. Landlords will find that stable long term rentals are better for property upkeep and better for their business models than trying to gouge the customer as often as possible. Is it also just the right thing to do.

The business model of most landlords is HPI. The rent they get is just to help with the mortgage payments until they can cash in on the price increase. They won't want long term tenancies because they will want to be able to liquidate the asset whenever that it is advantageous to them.

Yes, I am aware that they are living in a dream world. However, that is how they think, and they will lobby hard to have total "flexibility" in getting rid of tenants.

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OK, some folks may have benefited. That's kind-of the story of every government intervention in housing. Trouble is, where some get a windfall, others are left out in the cold.

They were truly catastrophic for my generation. Those of us who were at school in 1977, and hit the age where we needed to rent in its wake when there was no market. And no doubt for some older folks who were in no position to buy in 1977 for other reasons.

BTW, terraced house under £1000? We've seen those in modern times too: houses for £1 within the last couple of years. Of course both the £1000 house and the £1 house would need a lot of work to bring them up to a habitable standard.

I was at school around then, and started renting in 1981. I don't remember having problems finding places, and I don't think any of the places I saw were any worse than the places you'd see now.

The main difference from today was that you'd look in the local paper to find a place, and the agreement would be between myself and the landlord. There was never a need to pay an agent for credit checks, admin fees etc.

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Would three year security of tenure also be a problem for lenders? The protection for the tenant would be meaningless if the tenure could be ended at will by a repossessing lender, so it would have to extend through any default by the landlord. As a result a repossession lender would not be be to sell the property with vacant possession for up to 3 years.

This might cool lenders ardour somewhat and lead them to examine the finances of the LL, and the "BTL Business case" a bit more carefully. Wouldn't be a bad thing at all.

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The business model of most landlords is HPI. The rent they get is just to help with the mortgage payments until they can cash in on the price increase. They won't want long term tenancies because they will want to be able to liquidate the asset whenever that it is advantageous to them.

Yes, I am aware that they are living in a dream world. However, that is how they think, and they will lobby hard to have total "flexibility" in getting rid of tenants.

There will always be landlords. Not everyone wants to own their house, lots of people (like myself) enjoyed renting and lots of people need to rent. It has a vital place in society. We just need to disincentivise BTL at the cost of owner occupiers while still making it worthwhile to provide a good landlord service. I believe bringing long term tenancies into law (and yes that means lenders will have to comply) is the way forward. I've had a good relationship with my previous landlord and had no rent increases for six years. I did odd jobs around the house myself rather than phoning him because it was "my home" and everything worked to our mutual benefit.

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I was at school around then, and started renting in 1981. I don't remember having problems finding places, and I don't think any of the places I saw were any worse than the places you'd see now.

The main difference from today was that you'd look in the local paper to find a place, and the agreement would be between myself and the landlord. There was never a need to pay an agent for credit checks, admin fees etc.

I agree with you, and indeed since the AST was introduced racketeering has increased with fee's for adding and removing tenants from the agreement (including incredibly introducing the AST to house shares).

Was watching an old episode of 'Man About The House' and there was a thriving informal flat market in London back then, during a time of the dreaded 'Rent Acts'

A New Era tenant recently demolished Labour's planned reforms. They are almost laughable and to compare them to 1970's Rent Acts is Hyperbole to say the last. They amount to NOTHING

http://www.generationrent.org/the_reality_of_labour_s_housing_policy

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Yes, I am aware that they are living in a dream world. However, that is how they think, and they will lobby hard to have total "flexibility" in getting rid of tenants.

While I'm looking for a new rental in Northampton, I've seen 3 or 4 properties advertised for just 3 MONTHS tenancy. All unfurnished. Here's a good example:-

http://www.rightmove.co.uk/property-to-rent/property-51072317.html

It's been on the rental market for over 5 weeks now. Not sure that's going to plan.

Incidentally, is it just me or is RightMove really missing a trick by not making an "available from" field for rentals that can be searched? It's always tucked away in the description (often not at all). It's one of the most important things for a renter to know when a property can be moved into. But that's just me maybe....

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We don't need rent caps, they would just provide a new mechanism to distort the market.

We need guaranteed long term tenancy agreements with only CPI linked (or less) increases allowed during the agreement period. Three year agreement would be a start, but crucially this should only be applicable to the landlord. The tenant should be able to hand in notice after reduced period (six months?) because social mobility is still very important. Landlords might initially claim this is unfair (ha!) but they'll come to realise it is actually a good thing. In concession, removal of non paying or categorically troublesome tenants should be streamlined. Landlords will find that stable long term rentals are better for property upkeep and better for their business models than trying to gouge the customer as often as possible. Is it also just the right thing to do.

OK, own up, which party are you astroturfing for?

Is astroturfing "the right thing to do" too?

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