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One in eight UK renters unable to meet housing costs in full, says report


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One in eight UK renters unable to meet housing costs in full, says report

Landlord lobby group says benefits should increase to cover rising rents.

Or make tenants take out loans to pay the rent.

They're all heart. ♥️

On the first point it's a feedback cycle. Increase housing benefit and rents go up.

On the second point i think landlords should start to understand they're taking the credit risk. If they have cashflow issues from tenants not paying then they can try and push that down to the banks but they're the ones in the middle and taking the risk. 

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One in eight UK renters unable to meet housing costs in full, says report

Landlord lobby group says benefits should increase to cover rising rents.

Or make tenants take out loans to pay the rent.

They're all heart. ♥️

One in eight UK renters unable to pay their landlords mortgage, says report

Landlord lobby group says benefits should increase to cover their mortgages.

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On the first point it's a feedback cycle. Increase housing benefit and rents go up.

On the second point i think landlords should start to understand they're taking the credit risk. If they have cashflow issues from tenants not paying then they can try and push that down to the banks but they're the ones in the middle and taking the risk. 

Wasn't there a benefit rise earlier in the year?

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On the first point it's a feedback cycle. Increase housing benefit and rents go up.

On the second point i think landlords should start to understand they're taking the credit risk. If they have cashflow issues from tenants not paying then they can try and push that down to the banks but they're the ones in the middle and taking the risk. 

Business risk.

Its covid this time but they have faced similar in a recession.

The nuts thing about IOBTL is you are extending so much credit to a LL who, if push comes to shove, cannot serve the debt from their own income.

Theres a chunky percentage IOBTL LL who are carry a fee million in non amortizing loans. That's insane, from a banking position; the risk doesn't reduce over time.

 

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One in eight UK renters unable to pay their landlords mortgage, says report

Landlord lobby group says benefits should increase to cover their mortgages.

It's far far worse, sytematically.

On a 200k IO  BTLon a 4% (London / SE are even lower ffs)

The tenant is mainly paying the banks interest. The LL skims pennies.

The LL is on the hook. But if it's a portfolio LL that debt and loss comes is going yo snack the bank in the face.

The BoE did an OK job on reducing resi IO mortgages. But theres still 50% of io loans left, unresolved.

The BoE should have cleared out all IO BTL loans into the non banking sector by forcing the banks to hold more n more capital, making the loans unviable.

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Theres a chunky percentage IOBTL LL who are carry a fee million in non amortizing loans. That's insane, from a banking position; the risk doesn't reduce over time.

If the LL holds the property for a long time, won't inflation eat away the debt? Admittedly this would only happen in areas where house prices have risen.

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Theres a chunky percentage IOBTL LL who are carry a fee million in non amortizing loans. That's insane, from a banking position; the risk doesn't reduce over time.

If the LL holds the property for a long time, won't inflation eat away the debt? Admittedly this would only happen in areas where house prices have risen.

Bless.

Even in the South, property investors have been a significant part of the market/price rises.

A LL selling up exit is going to be an owner occupier, subjected to MMR borrowing.

 

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  • 439 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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