Saturday, February 5, 2011

Making huge profits on BtL?

One million rented homes in England 'are dangerous'

"Around one million privately let homes in England are so substandard they are dangerous, the Chartered Institute of Environmental Health (CIEH) has said. The CIEH said unscrupulous landlords were exploiting the lack of rented accommodation, and there were fears that cuts to housing benefit could make the situation worse and force tenants to live in unsafe buildings, often with exposed electrics, mould and damp".

Posted by alan @ 09:31 AM (1486 views)
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7 thoughts on “Making huge profits on BtL?

  • mark wadsworth says:

    What a load of rent seeking drivel from the CIEH there, who are of course keen for the govt to introduce some safety inspection regime so that members of the CIEH get nice jobs going round inspecting flats.

    I doubt whether any of that whole article is true, factually or logically.

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  • Did anyone spot the homeownerist subtext?

    Yep, the unqualified, unsubstantiated statement that there is a shortage of rental accommodation.

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  • Mark Wadsworth says:

    Even the caption under the picture is a load of rubbish: “More councils need to put people into the private rented sector as they try to tackle waiting lists”

    People on the waiting lists [for social housing] are by definition ‘in the private sector’. And seeing as it’s the local council paying the rent, they are perfectly entitled to impose certain minimum standards on the landlord.

    You can tell the whole thing is rent seeking by paraphrasing it:

    “The Association of Owner-Occupiers said unscrupulous banks were exploiting the lack of rented accommodation, and there were fears that increases in interest rates could make the situation worse and force home owners to live in unsafe buildings, often with exposed electrics, mould and damp”.”

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  • Without doubt landlords do the absolute minimum they can get away with.

    There should in my opium by an annual MOT of houses for rent and a basic standard they should meet if they are to be rented out.
    They currently need an annual boiler check, but tenants are under pressure not to make too much fuss, there should be some sort of minimum standard a property must match to allow it to be rented and then kept to that standard.

    Afterall local authorities had to maintain certain standards for far lower rents.

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  • Maintenance Tax should be forcibly imposed onto the tenants to help the poor landlords keep there pension pot at it’s maximum level! Especially with the narrowing margins due to inflation eating into the landlords profits…

    Why the [email protected] are people renting these crap holes, health & safety should be able to inspect these properties to see if they are fit for human living, & if not forcing the landlord to either repair to acceptable level or close theme down…

    “A long habit of not thinking a thing wrong gives it a superficial appearance of being right” – THOMAS PAINE

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  • @Mark
    VI or not they are on the money about the state of rental properties in my experience (Southampton, Nottingham, Newport), and the need to redress the balance of power between landlord and tenant. Even EAs get embarrassed when they are showing you round, though they still mouth the usual insincere patter, preceded by statements such as “to be honest with you” and the like.
    N

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  • mark wadsworth says:

    NickB, that’s up to personal experience, I suppose. For sure there are privately rented sh-tholes, but as there only about 3 million such homes in the UK, I’d be surprised if a third of them were really that bad.

    Either way, our old chum LVT rides to the rescue. If the LVT on a building is (say) £10,000, then the landlord will have to make sure that the rental value is at least £10,000 just to break even. Seeing as getting rid of unsafe electronics, unsafe gas heaters, damp, mould etc. costs a few thousand quid one-off cost but increases the rental value thereof by a few thousand quid a year, they’d have every incentive to keep their rental homes in tip-top condition.*

    Potential tenants, freed from the burden of paying income tax and given a Citizen’s Income on top, would have the whip hand in negotiations.

    * When I was a landlord, I always made sure that my flats were in good nick, it was a question of spending £500 on new carpets and a paint job every couple of years in order to increase the monthly rent by £50 or £100, then I’d do – that maximised my net profits and also gave the tenant somewhere nice to live.

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