| Don't believe he has thought this one through 15:48 - May 8 with 5779 views | GlasgowBlue |
[Post edited 8 May 15:49]
|  |
| |  |
| Don't believe he has thought this one through on 10:48 - May 10 with 442 views | bournemouthblue |
He is morally right but it doesn't really fit the business model for the landlords sadly
Thatcher selling off all the council houses and successive govnernments not replacing them is a big part of the problem, this all started in the late 80's |  |
| |
| Don't believe he has thought this one through on 11:27 - May 10 with 397 views | Ryorry |
| Don't believe he has thought this one through on 10:41 - May 10 by chicoazul |
Wrong. The problem is under-occupation not a lack of houses. There are a million empty homes in England alone for eg. |
As I already said (in my previous post), reclamation of derelict buildings for social housing would be great, but is very obviously still not enough, given the population growth of 10m + more demand arising from partners/families splitting up since the turn of the century. [Post edited 10 May 11:29]
|  |
| |
| Don't believe he has thought this one through on 14:13 - May 10 with 352 views | giant_stow |
| Don't believe he has thought this one through on 18:28 - May 9 by Clapham_Junction |
I think it's a bit more complex than that. Many landlords have inherited the properties they rent out (I know a couple in Harrow who inherited houses from both sets of parents and make a fortune renting them out).
Those who are BTL landlords are arguably pushing up house prices by creating more competition, so it's a bit of self-fulfilling prophecy that they then need to have high rents to recover that inflated price. This feeds all the way down to land prices - land is valuable (in certain parts of the country) because the ultimate sale value of the property is valuable.
Cap rents, and property prices will likely fall as the BTL competition is removed and those making a loss will sell up and some people currently renting will be able to buy. At some point the market might correct itself, making it affordable again to buy to let at the capped rent price. |
In the case of landlords who inherited properties and own them outright, while £600 per might might feel like easy profit, there's still an opportunity cost.
Take a flat worth £500,000 (lowish for many parts of London). A landlord could sell and stick that money n in a 5 year savings bond at 4-5% and get way more in interest that £600 a month and not have the hassle / costs of being a landlord.
I'm not crying for landlords btw - I'm just asking why would anyone be a landlord in such circumstances? They'd all piss off and we'd have a bigger homelessness problem. A switch to more social housing is badly needed, but it can't be cliff-edge sudden.
House prices coming down would be welcome, but its unclear whether they would fall enough (from a landlord exodus} to truly benefit many people currently renting - the market price isn't *only* affected by landlord demand or lack of. |  |
| |
| Don't believe he has thought this one through on 17:05 - May 10 with 322 views | Clapham_Junction |
| Don't believe he has thought this one through on 14:13 - May 10 by giant_stow |
In the case of landlords who inherited properties and own them outright, while £600 per might might feel like easy profit, there's still an opportunity cost.
Take a flat worth £500,000 (lowish for many parts of London). A landlord could sell and stick that money n in a 5 year savings bond at 4-5% and get way more in interest that £600 a month and not have the hassle / costs of being a landlord.
I'm not crying for landlords btw - I'm just asking why would anyone be a landlord in such circumstances? They'd all piss off and we'd have a bigger homelessness problem. A switch to more social housing is badly needed, but it can't be cliff-edge sudden.
House prices coming down would be welcome, but its unclear whether they would fall enough (from a landlord exodus} to truly benefit many people currently renting - the market price isn't *only* affected by landlord demand or lack of. |
If they all pissed off, those homes would still be there. And if a load of them pissed off at the same time, they'd flood the market with homes and likely cause a crash that would allow many of those people currently renting to buy (or councils to buy back in the case of leasehold flats).
Any government implementing a rent cap would need to prepare for various scenarios, including being prepared to loan a load of money to councils to buy up a load of homes that are becoming available. [Post edited 10 May 17:06]
|  | | |
| |
By continuing to use the site, you agree to our use of cookies and to abide by our Terms and Conditions.
