Jump to content
House Price Crash Forum
Sign in to follow this  
Realistbear

New Government Regs To Bump Up The Rents

Recommended Posts

http://portal.telegraph.co.uk/news/main.jh...xportaltop.html

Landlord tax likely to raise rents for students
By Rosie Murray-West
(Filed: 11/03/2006)
A new licensing regime for rented property
could push up the cost of owning
buy-to-let properties by thousands of pounds and make renting more expensive for students and other low earners.
The HMO - houses of multiple occupation - licensing scheme, which comes in to force next month, will be a compulsory levy on owners of houses that are let to five or more people living on three floors or more.
Landlords may have to put up rents to cover costs
One council has already set its licence fee at £1,100. Any property owner liable for a licence who fails to register for one could be fined up to £20,000.

As Gordon looks for more ways to keep the "miracle economy" going and the housing bubble intact taxes will have to go up up and away. We have just had inflation busting council tax rises, record breaking fuel cost rises and now rents are about to go up up and away. But neither landlords nor tenants will benefit!

"Miracle Economy". Yes, indeed. It is a miracle in the truest sense of the word in that it has lasted so long without so much as apology from its chief perpetrator.

Share this post


Link to post
Share on other sites

Landlords may have to put up rents to cover costs

They'll only get away with it if there's a shortage of rental properties. And round here at least, there isn't.

Share this post


Link to post
Share on other sites

It seems BTLers will have to learn the hard way. Businesses which are unprofitable can't simply put their prices up - they go out of business, to be replaced by leaner operators who have not paid such ridiculous sums for their assets, and who can hence make a profit despite increased costs.

It seems the myth that house prices always goes up applies to rents as well. :rolleyes:

Share this post


Link to post
Share on other sites

Landlords can only pass on costs if people are willing to bear it.

Rents in 2002 were ridiculous, but there have since been significant falls. I would put that down to the fact that people who are renting and are poor have found alternatives, whether it be sofa surfing, going back to mum and dad, or living in shared accommodation. Whatever it takes.

Business analysis never takes in these kind of movements towards making do (since there is no money in it, and analysists wouldn't contenence it in terms of their own expectations, it disappears completely from their thinking), so they missed the trick.

Landlords simply haven't been able to ask more, and won't be simply because their costs are higher, so if they do get stroppy they will find they have massive voids and less money to cover the investment costs. Suck eggs. Its war out there!

Share this post


Link to post
Share on other sites

You cannot raise prices in a soft market, Rosie.

quite right - the myth of the ever-increasing rent monster - now where have I heard that old tale before? :lol:

Share this post


Link to post
Share on other sites

as anyone that makes a living buying and selling will tell you.

you make your profit on the buying not on the selling.ie you buy your thing cheap enough you will always make money.

btlers are forgetting this golden rule.

by the way

Landlord tax likely to raise rents for students

By Rosie Murray-West

(Filed: 11/03/2006)

do you think she was realy named rose west, but had to change her name a bit to stop everyone going " so hows fred doing then" and "which daughter have you held down today while your husband raped her"

Share this post


Link to post
Share on other sites

"Miracle Economy". Yes, indeed. It is a miracle in the truest sense of the word in that it has lasted so long without so much as apology from its chief perpetrator.

When all this falls apart, is there anyway he can be held accountable? I want to see this son-of-a-bitch go to gaol. There is no way this half-wit should be holding a comfortable string of directorships a decade from now when he screwed so many of us.

Share this post


Link to post
Share on other sites

Business analysis never takes in these kind of movements towards making do (since there is no money in it, and analysists wouldn't contenence it in terms of their own expectations, it disappears completely from their thinking), so they missed the trick.

Which is why I hated Economics at college. I just didn't get a lot of it. Perhaps my tutor was just rubblish, or me a bit dense, but I remember asking him what would happen to the economy if everyone dug out the money that had fallen down the back of the sofa and emptied their giant whiskey bottles of pennies and went and spent it in a short period. He said "It won't happen", I said "How do you know?", he said "Because that kind of thing just doesn't happen, ever" and I gave up.

Be very, very grateful that I have nothing to do with economic policy :D

Share this post


Link to post
Share on other sites

Having read the article, it seems like the people that this is really going hit is the landlords who are cramming 8 polish builders etc into a small property. As I have mentioned before, I once visited a 3br flat with 2 bunk beds in each bedroom and at least 12 brazilians living there, I think they might even have also been using the sofa or using the beds in shifts. When these regulations come in, that house will need 3 bathrooms and 3 bedrooms.

Will the regulations get enforced? There appears to be a lot of money in it for councils, so my guess is yes.

HMOs like these have been what has been keeping BTL profitable for new entrants recently, because we all know that you can't make the numbers work with a normal 2BR flat.

If the ropey HMO sector is killed of, that will be a big help to BTL. And as for bumping up rents - a lot of the people living in these kinds of properties will only stay in the UK as long as it is profitable for them. If their savings start getting eaten up by rent, they will go. Very soon the polish will have the option of Spain, and after that Germany and France too.

All in all, good news.

Share this post


Link to post
Share on other sites

Having read the article, it seems like the people that this is really going hit is the landlords who are cramming 8 polish builders etc into a small property. As I have mentioned before, I once visited a 3br flat with 2 bunk beds in each bedroom and at least 12 brazilian

Like this guy did...

shocked officers from West Wiltshire District Council found during a raid that ten people were sleeping in Mr Boguski's small three-bedroom house. He had a bedroom for himself while some of his tenants slept in a tent and a garden shed.

Tent Poles

Share this post


Link to post
Share on other sites

I was shopping at the Costco Wholesale store in Star City, Birmingham, a few weeks ago and saw a gentleman that appeared to be from Pakistan buy a large number of pre-fab garden sheds and the thought crossed my mind that many Landlords might be adopting this mthod to cram tenants in who could otherwise not afford rents for bricks and mortar type of housing? To many E Europeans the idea of a decent pre-fab might be better than some grimy old derelict flat in a former communist state? Now that rents will be rising to accomdate Gordon "Miracle Economy" Brown's thirst for higher taxes (to pay for the miracle) the pre-fab shed may be the answer--provided they are kept hidden of course!

Share this post


Link to post
Share on other sites

I was shopping at the Costco Wholesale store in Star City, Birmingham, a few weeks ago and saw a gentleman that appeared to be from Pakistan buy a large number of pre-fab garden sheds and the thought crossed my mind that many Landlords might be adopting this mthod to cram tenants in who could otherwise not afford rents for bricks and mortar type of housing? To many E Europeans the idea of a decent pre-fab might be better than some grimy old derelict flat in a former communist state? Now that rents will be rising to accomdate Gordon "Miracle Economy" Brown's thirst for higher taxes (to pay for the miracle) the pre-fab shed may be the answer--provided they are kept hidden of course!

The guy is obviously running a brothel on the cheap...

:o

In regards to the Guardian article I quote the following:

"...local authorities have the power to apply far more stringent criteria."

"There must be at least one bath or shower and one lavatory among five people."

Ha ha! Does anybody know of any tenants who do not have a toilet?

How's this for a load of bo ll oc ks

"On its website, the ODPM acknowledges that licensing may worsen the housing shortage problem in some areas, stating that it "may make it more difficult for tenants to find somewhere to live"."

Errr. Exactly where are the houses that are withdrawn going? Are they been eaten by donkeys, or could they possibly end up on sale for other people to purchase... If a signficant number of properties were dumped on the market then prices would fall...

Some people really do have poo for brains...

brain.jpg

brain.jpg

post-2052-1142087553.jpg

Edited by werewolves

Share this post


Link to post
Share on other sites
I was shopping at the Costco Wholesale store in Star City, Birmingham, a few weeks ago and saw a gentleman that appeared to be from Pakistan buy a large number of pre-fab garden sheds and the thought crossed my mind that many Landlords might be adopting this mthod to cram tenants in who could otherwise not afford rents for bricks and mortar type of housing? To many E Europeans the idea of a decent pre-fab might be better than some grimy old derelict flat in a former communist state? Now that rents will be rising to accomdate Gordon "Miracle Economy" Brown's thirst for higher taxes (to pay for the miracle) the pre-fab shed may be the answer--provided they are kept hidden of course!

Where I live there are dozens of these sheds in plain view. I could take you to row upon row of back gardens full chalets and converted sheds housing immigrants multi-occupancy, usually as an annexe to the main house doing the same.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.