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fru-gal

"...longer tenancy proposals will not apply to BTL landlords"

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So realistically how many renters can expect to benefit from longer tenancies?

I thought the whole point was to crack down on amateur landlords and dubious practices.....or do BTL LL not fall under this category?

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This is the one thing they could fix that would really help me.

I am happy renting forever, but my wife feels that a bit of security is necessary. Hence I have a five year lease where I am now.

We are moving in about 18 months and I am quite happy to negotiate a 6 month + 3 year extension with one way 6 monthly break clauses with any sensible landlord. I prefer to negotiate with them face to face rather than through an agent and in may ways it is me vetting them to make sure they are the type of LL I want.

Good landlords won't see this as a negative offer. It is just galling that they are not even allowed to enter the negotiation (unless you can find one with no borrowing and they are rare where we will be looking)

 

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Doesn't this suit the government's policy of promoting institutional landlords at the expense of the small time amateur?  

Which will offer the bigger draw for tenants?  The quality new build with good maintenance and  secure,  long term tenancy or a poorly maintained craphole with the right to be moved on in six months?

Small time landlords will be forced to offer the same terms or be forced to settle for the sort of tenants that the IL won't touch.

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5 minutes ago, Simon Taylor said:

Doesn't this suit the government's policy of promoting institutional landlords at the expense of the small time amateur?  

Which will offer the bigger draw for tenants?  The quality new build with good maintenance and  secure,  long term tenancy or a poorly maintained craphole with the right to be moved on in six months?

Small time landlords will be forced to offer the same terms or be forced to settle for the sort of tenants that the IL won't touch.

Only after the institutional sector has scaled up, which will take decades

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This is further terrible news for BTL. They will soon be unable to compete with Build to Rent (which is going to be big!!!!) on length of tenancy, as well as cost. They will have to watch from the sidelines while BTR starts to hoover up their tenants. And the best thing about BTR? The clue is in the name.... BUILD to rent. This is great news for cheaper housing of you do want to buy. They still don't seem to be quite getting the message that is open season on landlords as far as the government are concerned. The smart ones will be busy selling up and cashing in their chips...

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29 minutes ago, oatbake said:

This is further terrible news for BTL. They will soon be unable to compete with Build to Rent (which is going to be big!!!!) on length of tenancy, as well as cost. They will have to watch from the sidelines while BTR starts to hoover up their tenants. And the best thing about BTR? The clue is in the name.... BUILD to rent. This is great news for cheaper housing of you do want to buy. They still don't seem to be quite getting the message that is open season on landlords as far as the government are concerned. The smart ones will be busy selling up and cashing in their chips...

2 hours ago, Patient London FTB said:

Only after the institutional sector has scaled up, which will take decades

 

;)

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It would be quite doable for BTL landlords to draft the terms of tenancies to offer tenants as long a period of tenancy as required, with a carve-out for a mortgagee-in-posession. The tenant would have the protection in all circumstances other than repossession by the bank, which would keep the bank happy, and would protect the tenant in nearly all the situations in which they might find themselves chucked out early.

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38 minutes ago, mat109 said:

 

;)

Build to rent will be largely prefab. Units made in vast numbers in factories by the likes of legal and general. It will take a while but I don't think it will be decades. It is more about the message it sends out. BTL is totally dead.

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Who is going to invest in build-to-rent?  

OK, Legal & General, who announced last year that they were going to build 3,000 homes, without saying over what period. Berkley Homes have built another couple of thousand. And then there's that Quintain scheme at Wembley Park, 5,000 homes over 7 years.

That's peanuts, as the graph in Patient London FTB's post shows.  

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49 minutes ago, oatbake said:

Build to rent will be largely prefab. Units made in vast numbers in factories by the likes of legal and general. It will take a while but I don't think it will be decades. It is more about the message it sends out. BTL is totally dead.

Exactly. Actual impact on renters - very long-term. Actual impact on BTL-inflated house prices - much sooner. 

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21 minutes ago, Snugglybear said:

Who is going to invest in build-to-rent?  

OK, Legal & General, who announced last year that they were going to build 3,000 homes, without saying over what period. Berkley Homes have built another couple of thousand. And then there's that Quintain scheme at Wembley Park, 5,000 homes over 7 years.

That's peanuts, as the graph in Patient London FTB's post shows.  

A load of companies are investing in build-to-rent, including Grainger, the UK's biggest residential landlord already from doing things the old-fashioned way. 

Also a lot of American companies as it's already a big part of the market over there. E.g. Greystar

Have a look at the membership page of the recently set-up trade body for build-to-rent, the UK Apartment Association, and you'll see lots of them. Note that a lot of the big estate agent chains are well represented in there too. Can't see Foxtons there though :-)

 

Edited by Patient London FTB

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It  sounds a very similar policy to that started in the 1960s to accommodate population increase - prefab high rise flats.  

At least that's what they started to do until the Ronan Point disaster that acted as a deterrent for large amounts of high rise and for sure anything that was prefab high rise.

One has to surmise that they're more confident of the integrity of prefab high rise construction these days.

Recently Barwell suggested that the new proposals would be "innovative".  It seems to be as innovative as their proposal to make new homes even tinier is innovative.  On the positive side it should speed up the construction of the numbers of new homes that is if they can be be called homes.

Modern terminology often used is slave boxes a description which seems to have replaced the use of the expression rabbit hutches.

The effect on house prices will still mainly revolve around the demand created by future levels of credit.

Edited by billybong

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