Why we need to abolish landlords | Nick Bano interview
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- Опубликовано: 1 апр 2024
- Housing Lawyer and author Nick Bano came by JOE Towers to chat about his new book Against Landlords: How to Solve the Housing Crisis which is out now.
In this conversation we chat about Britain's housing setup, how is set up to create winners and losers and how to end the age of the landlord.
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Meanwhile RUclips is full of videos about how to turn a 3 bed house into a 6 bed hmo
Yes indeed. When my mother died her house was sold to someone who was intending to turn it into a multi room accommodation. It has been our family home with three bedrooms and two large reception rooms, for a family of four. I wonder how many people live there now.
@@juliewake4585had such a large extension that the garden is now the size of a shed. The living room has been chopped in half for another bedroom and because of the massive extension on the back it means the living room now has no outside walls and so no windows for natural light. It now has 6 bedrooms.
Imagine how bad housing would be if they didn't. Even more homeless.
@@matty506 no it just means another house taken off the market from a family that actually wants to buy a house to live in.
And where do the 5+ adults live instead?@@David-bi6lf
I moved into my top floor flat 2.5 years ago. It's an ex-council block that's a mixture of owners and renters. The roof was so bad that when the builders came, they put their feet through into my neighbour's kitchen and bathroom. It was so sodden and rotten that my energy bill was £280/month year round for a 1 bed flat with locked-in 2021 rates.
Finally, the roof was fixed. My neighbour below had to become a director to get it pushed through. It turns out that 3 landlords, who were also directors, had vetoed every attempt to fix the roof for the last 10 years because they could still take rent regardless.
A disgusting class of cretinous little scrooges. I am incredibly lucky to be moving into my own home next week.
Here in Berlin, I was asked to pay to view a property, but I assumed the advert was just a scam. I did consider writing back to say "Sure, I'll pay the fee just as soon as that Nigerian cheque clears" but I wasn't 100% sure it wasn't a new thing these scoundrels were trying, so I just politely declined. Shocking to find out that this is starting to happen in more sought-after places.
I'd have said it either way. At least then they'd feel embarrassed to ask people to buy it.
Been in Berlin 15 years myself, it’s so sad to see what’s happened there. For absolutely no good reason other than making a lot of greedy pricks a lot of money :(
This is a scam, it’s an age old one. It’s shocking to hear landlords blamed for it. Do you blame every Nigerian because you once got an email from someone claiming to be a Nigerian prince? I wouldn’t lol
Neu Koln and Kreuzberg are shit holes
The energy efficiency question is one of the biggest reasons why having a generation of renters without any regulation is a problem. I've never seen a rental property, certainly at the bottom end of the market, where they don't buy the cheapest, least energy efficient appliances. If you're not paying the bills, then why wouldn't you buy the worst E-rated washing machine you can find? Why would you upgrade to a new boiler when there's nothing in it for you?
The fact that this guy is calling for a cultural revolution and Mao style humiliation is terrifying. Mao parroted exactly what he said at a cost of 60million people. Worse than Hitler
As a landlord you have to provide EPC certificate and maintain its validity (re-new it) every 10 years. As a person looking to rent, why would you rent a property with low EPC score? As a home buyer why would you buys such a property? There are legitimate reasons for this but I can't see why people are not looking at the available information. Perhaps all you need to do is provide some amount of education which is largely free. The market will sort itself out without hard and radical interventions which already exist BTW. To continue my rant: When buying a property why would people not look at the living area but look at the number of bedrooms? Why the garden size is insignificant in property pricing? Why would people buy a leasehold property.. ever?
@@ddimov2557 For my friends that are renting in their 30s energy efficiency isn't really a consideration as price, location and whether the property is actually fit for human habitation with no mould or damp is more paramount. And if you dally making that offer someone else will offer as much or more even if it's single glazed or leaks heat from every facade. Live in the real world and the market doesn't truly solve anything due to vast inequality and power differences.
I pay the bills for my tenants so I have every reason to supply A+ rated goods.
However, I have to remind them not to leave the heating on and then open the windows...
@@ddimov2557 Why? Because, unfortunately you soemtimes don't have a choice. The location, the price etc are all other factors to take into account as well as the stream of other people who will accept the apartment if you decline it.
most mps are landlords too so nothing will change
87 MPs are landlords… hardly most… but enough to make your point valid. 68 of the 87 are Cons (nearly one in five of them).
Make a law that if you are a landlord then you cannot become an MP. Then restrict residential property ownership. Starmer will need to grow some cajones and deal with the problem head on when he is elected this winter.
It will change when enough people grow some brains, currently people just keep voting for the two cheeks of the same ass.
Not most. 87 according to research by 38 Degrees. That's still four times the national average but it's a long way from 'most'.
@@JosephYates-dw5gi People should be able to elect a landlord if they wish but it should certainly be declared.
You could make it less profitable and could compel smalltime landlords to sell, but huge finance firms like BlackRock are circling like sharks. They'll snap up homes before you or I could get a look-in.
I have heard this, but that model of large investment firms owning a lot of residential property is not uncommon in countries where renting is much more commonplace and tenants enjoy and expect a higher standard. In other words, it's the small-time-investor-hobbyist that is a major problem for tenants in the UK.
Thats so true.
Also if house prices start to fall significantly, mortgaged homebuyers will only dare buy when house prices start to rise again, for fear of falling into negative equity. By that time the large companies will be snapping up all of the bargains causing prices to spiral again.
This is a massive issue
@@philyewin4880 you've got that right
Exactly. We're going to go from renting from small landlords to renting from giant corporations who will have loads of rules and more power to kick people out.
Shall we start with the Royal Borough of Kensington & Chelsea. I don’t see any of them in jail for their liability for Grenfell?
Good plan but jail sounds too good for em. I reckon community courts would be a better idea, it's what Mao did. With community courts, landlords have to face the uncertainty of not knowing whether they'll be forgiven or get worse than jail. It'd be well interesting to see what individual communities do with their landlords and why.
That's the council and the govt them?
@@BrianFace182That is why you have 'local' government. Like we have in AUS where power for major stuff is in the hands of the States, and councils just deal with local matters. And do NOT own rental properties.
@@BrianFace182 No thank you.
Who wants a hedge fund landlord?
I do!
I live in a build to rent block of flats built by an American investment company and I'm really happy with my monthly payment and quality of living.v
Guilty
Much better than mum & dad landlords, because then there are more pro-housing crisis Voters.
@@Loundsifyat the moment! But trust me you won’t be!
Landlords provide housing in the same way ticket touts provide entertainment.
You don't have to buy touted tickets, but you do need somewhere to live.
@Simonsimon-fy3hq Yep. You got it. Therefore, multiple landlords are far worse than even ticket touts.
Well, in case of ticket booths, at least some money goes towards paying the quality of the entertainment.
And they are the "professional" landlords who probably ignore the laws anyway and make their tenants suffer.
Not all landlords are bad people.
I could tell you horror stories about tenants I've had.@@muirislandjim453
@JamJestKox Ticket touts, not ticket booths. Touts = Scalpers.
If the landlords all disappeared would that mean people would have to buy a property in any place that they wanted to live, even if for a short term, studying, placement or lifestyle change?
he didn't think that far ahead ;)
Exactly
That is why we need good social housing
Social housing is the answer, with sustainable rents going back into the system to provide decent, affordable homes for the people that need them. It's not difficult.
@@johnners911 where in the world do they already do this not difficult solution?
Television is full of shows dedicated to promoting landlords.
The problem, for a long time now, has been that the regulations benefit bad landlords and bad tenants the most. The few genuinely just landlords get screwed over by tenants who know their "rights" and make everything as difficult and drawn out as possible and refuse to pay any rent. The rules certainly don't help good tenants who are, as mentioned, genuinely scared to raise any issue because they know the landlord will "retaliate" with a rent hike or eviction.
Funny how in your mind, bad tenants are ones who know their rights and use that, and good tenants are ones that pay the rent and shut up.
There's no such thing as a good landlord. If some tenants are using their rights to not pay rent then GOOD.
@@BrianFace182 The tenants that don't pay rent need to be evicted.
@@BrianFace182 well said again! Landlords would like us all to shut the fuck up, but I feel the winds have changed and their days are numbered and they know it and are clinging on for dear life and it’s sure gonna be messy but totally worth it!
Even good Landlords, like myself, are the problem.
Because no matter how nice I try to be, there will absolutely still be a huge power imbalance.
Even with problem tenants barring non-payment of rents. That's rarely happened to me though, but it probably should en mass in order to solve the damn price gouging.
@@mykeprior3436 There is no price gouging. The prices follow the market.
Except that corporations not councils are now buying up family homes and renting; less homes on market to buy for first home buyers
The issue is bigger than housing its the debt based money system which has caused the housing issue as well every other economic issue.
It would however help if governments build social housing on a large scale and then rent them out highly subsidised pushing down rental prices and simultaneously providing an income for councils combined with much better regulation for rental rights and leasehold reforms and so on. But beyond that the cause needs to be addressed, the debt based money system, which is hollowing out all of society both private and public to the benefit of the few.
That system has returned us to feudalism.
No it isn't, yes that is terrible, but it is not the main cause of the housing crisis.
I think we need to rebrand social drag.
We have to start saying there is no money for the economy when all our wealth is being sent to landlords to corner more of the housing market
You have fallen for politics of envy - the lie that the rich stole your quality of life. Time Rich list will tell you the wealth of all billionaires. It doesn't even add up to 1 years govt spending. We could take every penny of their wealth and it would improve next to nothing. The UK is serious decline, that is why our standard of living is collapsing. Remember this comment, within another 10 years this will become so obvious it will be impossible to hide it anymore. Look up GDP per capita data.
Some differentiation is needed - there are landlords working on a large scale with high profits and little regard for tenants, and there are small scale landlords including live in landlords. Very different situations. Its the large scale landlords that really need regulating, just like the super rich need taxing.
You sound like a landlord trying to justify their existence
@@goych You sound like someone who didn't read the OP comment or understand it, I'm guessing both.
Rubbish
If more employers supported remote working, then there would be significantly less pressure on the lettings and sales housing market in major cities. Not only would a broader distribution of the population be positive for regional villages, towns and cites who have suffered due to mass migration to mega cites like London, but tenants and buyers would have more disposable income, whilst making an investment in residential property for a landlord, less viable.
I agree, but employers are the worst people in the world. Vermin of the worst kind. Can't reason with worms, can we?
It's ridiculous to think that higher availability of housing stock makes houses more affordable. It doesn't. Land prices and hand me outs are what is the root cause of crazy house prices. Solve the, here's 10 acres of arable farming land worth say £125,000, say it's going to be allowed to have house builders develop the land and all of a sudden, the same bit of muddy earth rockets up to say £2,500,000. Then you have the council wanting their contributions to be met for local infrastructure, which it turns out quite often that nothing from that money is used to develop the infrastructure and you have an answer to the house prices problem. It is the cost of building new homes that indirectly impacts the perceived cost of existing homes, based on how much it would cost to build the same house today.
As for landlords, that depends on the landlord. People that own one or two other properties are selling up, they've had enough. The councils have sold off a lot of their housing stock so the issue is available homes for rent. It's a shrinking market and not good for tenants.
Also the Council don't want to house you but they are still happy to vilify LLs. They have sunk this Country and give to the rich, allowing them to run amock investing which puts the little guy out of ever owning their own property. This is what they are doing now. Tenants will suffer greatly.
Restrict home ownership to one home per adult or per family household. Problem solved.
@@JosephYates-dw5gi That doesn't work either. That would prevent people buying homes for their family that can't afford to buy a house
@@JustTakeAMoment You made the point I was going to make. Many do it to help their children. Absolutely nothing wrong with that!
The fact that land with planning permission is worth so much more than land without it demonstrates that the value comes from the planning permission. This, in turn, shows that the shortage is one of planning permission.
What do you think about large housing developers building ‘Build to Rent?’ Do you think these corporates will replace the small landlords? How will this be any better? Also, isn’t it the actual land that’s expensive? Not just a house. We are somewhat different from other European countries because we are a tiny island which is over populated…. Hence land is going to be much more expensive
I also think the rental market is highly regulated, in favour of tenants. I have read through the new Renters Reform bill and abolishing Section 21 just means that a landlord will have to give a reason why they want to evict… whereas before, they didn’t have to give a reason… even though there is always a reason.
Hi Julie don't forget that the reason for the eviction is sometimes purely to raise the rent. Our daughter rents in large town, an ex council house. Her landlord died and the property was sold the new landlord wanted to raise the rent from £1200 to £1800 per month . All her landlords have been horrendous we could write a book about them.
Do you think these things happen by magic?
Land isn't just more expensive by circumstance, it's more expensive because THE PEOPLE WHO OWN IT SET THE PRICES TOO HIGH.
Prices don't happen naturally, they're not some force of nature. Were you dropped on your head as a baby? Or are you just a landlord having a whine?
@@BrianFace182 The only reason landlords can name a price is that there's a shortage of properties and/or competition.
If I make eggs and try to sell them at £5 each, eggs aren't suddenly expensive because people can and will go elsewhere to buy them.
Housing isn't like this, because the vast majority of it is occupied and isn't available for sale or rent, so landlords can name their price. The answer is to grant new planning permission and to ensure that no single landlord can own a large portion of the rental properties in a given area.
@@alphamikeomega5728 Artificial shortage.
I dont know how much is landlords, however I think public, low rent housing makes up too little of the housing market.
Since the 80s, no government has increased council housing and government owned housing, leading to the ridiculous surge in prices and lack of supply.
Demand equally needs to be addressed.
What is your opinion about leaseholds and service charges, Nick? Sad you didn't talk about it.
I recently sold a property that I rented out as a landlord.
Rental income made me no money whatsoever. The rental income was all taxed at 40% which is the tax bracket I fall into. Yes my mortgage was paid by the rental income but the rest of the rent money went into a savings pot ready for a taxi bill come January. What's more the rental money was not enough to cover the tax bill and I had to pay more money into the savings account to have enough to pay for the tax bill. Month to month it actually cost me money to be a landlord and I made nothing in terms of profit.
Capital gains.....hardly made anything on this due to capital gains tax and again made basically nothing considering how long I had the property.
Yes I made some profit when I sold the property but not a lot. I don't agree landlords should be ashamed. Quite the opposite. Good private landlords should be proud of the hard work they do to help people who otherwise would not be able to afford somewhere of Thier own to live.
Hard to believe that you truly think that landlordism can be a social good when you quit landlording because it wasn’t making you enough profit.
By your own testimony, your experience as a landlord was driven by profit and not the wellbeing of others.
I think you should stop defending the fundamentally unethical practice of rentier capitalism.
@@spewter there is nothing wrong with being driven, either by a monetary, skill or other motivating factor. It comes down to your morals and in my example I gave my tennant a much reduced rate as she was elderly and had no where else to go. If I did not provide her with help then she would be at the mercy of a local borough council who, if you have any experience with will know that the experience and quality of of living can vary massively as can the service. A good landlord will help the tennant as I did with lots of things that go above and beyond the legal requirements. Again it comes down to the landlord and to blanket ban them or call for Thier abolishment is short sighted. I imagine if you conducted a poll of tenants who pay rent to private individual landlords then the satisfaction level will not be all bad.
I am happy I have my tennant a comfortable and good quality living experience and the fact I made a small profit is not something I am ashamed of not should anyone else be.
Perhaps if more people were motivated by something in life we would have less people reliant on others
@@spewter you assume I quit being a landlord due to lack of profit. This is incorrect and actually was due to being unable to afford to buy a house to live in while having a rental property as stamp duty penalties were too high. Because of this I was forced to sell the flat and evict the tenant. So actually the greed of the government is to blame otherwise the tennant could have remained living in the flat and not be forced to move out.
Don't assume to know people's intent or reasons for doing things.
@@spewter Do you have the same problem with supermarkets selling you food and plumbers expecting to be paid for fixing your boiler and other service providers or is it just those who provide you with accommodation that you think should work for nothing?
You had your mortgage paid off by someone else. In line with the principles of capitalism those people who paid off your mortgage should have been given a proportional part of the money you were given for the sale of your property.
I can only thank my tenants for helping me pay off my mortgages. I just about cover my costs as a landlord but most importantly, the rent covers the mortgages which means after 14 years I am now mortgage free on nine properties and ready to sell up a portfolio that in 2005 was worth about £450K and is now worth just short of £1.5M. I have had a lot of good tenants in those 14 years and I love you all.
I am a landlord (of just one appartment) and acknowledge the system is broken and would love it if everyone was taxed so heavily that having an investment property is uneconomic. However until this happens I am going to hang on to it for my child to use later in life because otherwise I can see it’ll be impossible for them. Maybe I should read animal farm again.
That's what my landlord is doing, they have two children in their teens who will need some sort of housing in a couple years no doubt. I definitely don't blame them about wanting to make sure their children are ok, what I think is a bit rotten is that they hired a subletting agency to 'manage' their flat ...in other words to bypass tenant protection laws and hike rent up every year.
check up on inheritence tax. it applies to propperties so your children are going to have to buy the apartment from you before you die or they wont own it
@@TheCcrack That's not how inheritance tax works.
@@sefyboy7183 you cant leave your home to your child unless they pay 40% of the homes value as tax
@@TheCcrack That's literally not true lmao.
www.gov.uk/inheritance-tax
Bidding wars definitely happen. I was put into one and it became confusing because the 2 bed property was listed at 1250 a month and I think eventually it went for like £1450 a month, which was way overpriced. Simply because I live in a town outside of London and people are leaving London
The Bank of England raised interest rates. This means it is harder to take a mortgage and therefore creates a demand for lettings. Thank the BoE for printing money to stimulate the economy.
@@insomniacresurrected1000 Higher interest rates DESTROYS demand.
Take econ 101. jesus.
@@mykeprior3436 I am a landlord and I have not noticed a lack of demand. My properties are in heavily frequented locations.
The main problem is the power dynamic. Landlords always have the power in all circumstances. Even if you put some laws in place, you have someone that can take away your home, refuse to do basic work on it or price you out of your home. Even with protections in place it is you that has to go through the pain of getting a landlord to do what they are required to.
And with your home comes your community, your children's school and friends, and your support network. No-one should be allowed to have that power over you.
I don't know what's wrong with you, why should that way, the landlord isn't there just to lord it over you, does your landlord treat you badly?, talk to you badly?
@lon1117 "The main problem is the power dynamic. Landlords always have the power in all circumstances." - BINGO!! Give that person a cute little plushie, they nailed the real issue right on the head! 😁
It doesn't have to be that way - landlords could require a licence from the local authority which and have to fix any issues raised by the tenant within a specified time limit on pain of their licence being revoked, their property being compulsorily purchased at way below market value, or their lender being required to foreclose on the debt against the property at 100% loss and redirect to the landlord personally (or the beneficial owner of any ltd company). There are ways to legislate to force landlords to be service providers to tenants. Personally I'd extend Right to Buy to private tenants - abolish short tenancies and clause 21 evictions and introduce rent controls, so anyone who pays rent to a landlord in full and on time gets an automatic right to (say) share in the capital gains on any property sale with themselves as sitting tenants, have first refusal in the sale and be entitled to buy the house they are living in at the mortgage value it commanded at the time they moved in. We could also tax rental income at a higher rate than earned income, and tax capital gains on rented property at a punitive (70% +) rate.
So, landlorda ONLY makes an overall profit from the tenancy IF they property increases in value, AND that profit is limited to half of any capital gain, after the mortgage balance is paid in full. "B B B But nobody will want to be a landlord!! " YESS!!! That's the whole idea. We've legistlated to encourage people to become landlords, now we need to legislate to penalise anyone who tries to make money from doing it.
The power dynamic you talk of is certainly the problem, but it exists because it has been allowed to exist. Nick Bano is arguing, and I agree, that it should not be allowed to exist for very much longer.
Can you tell me of any other contract where one side can stop paying their agreed terms for many months and for the other side to have very little recourse to get the money owed? In addition to defaulting on the financial commitment the same party can do extensive damage to what they are no longer paying to use, damage which in any other instance would be criminal, but in this senario the other party once again has little to no recourse.
@@sookibeulah9331 Well done, that's just what I wanted to say, thank you.
I think they'll happily take a bit of shame if they get to drive around in a big 4x4 and send their kids to a private school.
Very insightful look at topics which are not always touched upon in this kind of discussion. Good work !
Landlords, landlords, landlords. Private landlords are a drop in the bucket compared to the holdings of private equity companies, property trusts etc.
Yep. The whole 'abolish landlords' movement just plays right into the hands of massive companies owning even more.
@DanTR1 that's probably why they encourage or at least benefit from content like this.
@@DanTR1 Spot on! It goes something like this
1. First they create a situation where ALL landlords are the problem instead of a minority, Government then is "forced" to act.
2. Small-time landlords leave driving up the price due to lack of available properties.
3. Government is "forced" to act due to sky high prices, More builds are made for rental only, owned by multinational corporations who pay little to no tax. Who will rent out at the sky high prices.
It could all be fixed by building more properties inline with population growth and creating a competitive market with incentives for landlords and tenants which would help drive down prices, along with legislation that forces landlords to meet certain criteria of energy efficiency to improve housing standards. A competitive market would drive down prices but the legislation would help ensure only good landlords who maintain properties stay in the market.
@@DanTR1 Just make those companies illegal and restrict home ownership to one adult person of family household throughout the UK - problem solved within a few months.
Who are landlords by other names….
The problem is mainly to do with the banksters printing money like no tomorrow so devaluing the currency massively, and also the lack of builds over the last couple of decades
The banksters are also making money from increased interest rates!
Without banks say bye bye to ever being able to buy your own place.
Who should provide rental property? I don’t want to be tied to a mortgage but I’m fairly well off so wouldn’t need, want, or be entitled to local authority provided housing.
Professional Sound Engineer here. Difficult to diagnose over the video but it sounds like perhaps your pre-amps aren’t strong enough to provide sufficient clean gain to the SM7B which has high resistance leading to a super low output voltage. This is my best guess for the cause of the electrical noise/buzzing
One of the worse things of late is the rising air b&bs.
There us a house opposite me that used to be rented to locals for around £850 per month.
Now its an air b&b for £850 a week. People getting priced out of the area.
Just flat out ban air b&bs and other similar short-term rental companies from the UK. Take the CEOs of air b&b to court for the damage they have done to society. Fine them to the tune of billions and use that money to build extra housing as needed.
@@JosephYates-dw5gi all the houses I know that are let to tenants long term have scruffy front gardens and are maintained to a minimum standard. The short term holiday lets are at least made to look good because that nets them more money from Airbnb.
Last month I was evicted from my home of 11 years, so the landlord could turn it into an Air BnB. It was quite a shock. I wish the government would at least make the minimum notice period longer because 2 months was not long enough to find a proper home, we had to rush. 4 months would have been better notice period, and would have shown some basic respect. My rent was similar, £875 but now they're looking to make that per week.
@@michaeldonaghy3997 Appalling. I'm sorry you had to go through that.
Some people need a short term place to live whilst their own house is sorted out eg insurance - flood, fire… or they’re new to an area and a whole family don’t want to be in one hotel room… they want a furnished house - short term. Not every Airbnb is a holiday maker. Some are short term in an area and it’s cheaper and better for their needs than a hotel ! They don’t want a 6 month contract! Airbnb isn’t the problem. The government sold off the people’s assets… and they’ve not replaced it. There’s been a chronic housing shortage for years. Families break down and their more single people now than married households. That’s the real issue. Not everyone has the funds to buy. Stay at home (if you can). Save up. Just like food in a supermarket isn’t free or subsidised, housing isn’t free either. It has to be paid for. People keep voting for the Tories - this isn’t an issue for them! 🤷♀️
The biggest landlords are the banks to whom most of us pay mortgages too. If there were no landlords the corporations would take over which is whats happening. At that point the market forces are controlled by a few big companies, be careful what you wish for. These big rental block are charging more than the average landlord and service charges in the thousands.
Don't be distracted by the noise focus on the real issues of tax burdens, low wages, over priced items we all buy, affordable housing that isn't affordable, selling to wealthy offshore companies run by wealth individuals
In the development market, it should be a legal requirement for all new builds to have solar panels and ground or air source heat pumps.
And all developers should be paying 10/15% of the value of land that they have not developed for more than 6 months in tax per year.
For a significant percentage of ex-council houses that are now rented out privately, there was a person or family that benefitted greatly from the principles behind social housing, and were prepared to then ignore those principles for their own personal benefit. This comment section is no different. For every 10 people commenting how bad landlords are, there is at least one of those commenters who would do exactly the same of they had the chance, they simply dont have the chance.
only one? try 9/10. Nobody has real principals when it comes to this topic.
No we're not all garbage pos LLs.
I firmly believe this guy is right, the system and price fixing / see how much I can squeeze and rocket property value isms HAS to stop.
I literally reimburse my tenants and have it in contract that increases are in line with CPI pre-covid.
Because I don't want them, when they move out, to be just as screwed as they were before.
I locked in a low interest rate mortgage, why should I pass my good fortune on to them? I could simply reap in more money.
Because I CAN pay the mortgage. I do not NEED to extort and would outright refuse getting on the bandwagon of buying a home now until prices reflect the 5%+ reality.
Profiting off this shit has to stop.
My landlord made 21 people homeless last november so that he could gentrify the site and charge more in rent.
We were given notice because the landlord (owner of the stately home where we live in the gate house) wants to move the live in housekeeper from her cottage, that she’s lived in for 25 years, to our place which is half the size and in a much poorer condition, so that he can include her cottage in the wedding rental business he runs as a side hustle. The idea that he can do that on a whim to pocket a few extra bob, makes men head explode
@@clareshaughnessy2745 And where did Lord Statelyhome's stately home come from? His parents who got it from their parents and on and on until it was built by one of his ancestors that was profiting from something brutal, like slavery or colonialism, or maybe even further back when the commons were enclosed and it was taken by force from the local peasants who instantly became his serfs/slaves. What a joke.
Sorry this happened to you and hope you find somewhere more stable.
@@bryanbadonde9484 yeah landlords are excessively violent and territorial it's literally all they know. When having this discussion, people seem to get caught up in human exceptionalism. That is, forgetting we are an animal species like any other. We have territorial drives like any other animal species.
The landlords among us just haven't evolved past that and seem to pass it down from generation to generation.
I own two flats and would rather keep a loyal tenant than charge more rent to the new one. We have this saying in my native language that it is better to stick to the income you have than chase better deals.
@@insomniacresurrected1000 That makes you the exception to the rule. And you're still a landlord, so are making money for doing nothing (regardless of how much effort you put in, and how quick you are on repairs and maintenance - you could choose to be a scumbag slum lord and do none of those things if you wanted) and benefiting from a rigged, corrupt system that exploits a need that everybody has.
Winston Churchill hated landlordism, and Adam 'Invisible Hand' Smith, the Father of Economics/Capitalism, called landlords 'leeches'.
This is not an attack on your person or moral character. Landord is not your identity or soul. It's just an income stream you chose or fell into. My parents are landlords of one house, and one of my best friends is the scammiest type of landord of them all, 'owner' of about a dozen Buy to Let rental houses. I don't dislike them for it.
Nice top mate, where did you get it from?
Not everyone wants to or can afford to buy a house, so there’s always going to be a need for a rental market. It needs better control in terms of tenants rights, affordability and providing homes with a high standard of quality. The main problem is growing wealth inequality driving up house prices and therefore rents, in my opinion
Restrict home ownership to one home per adult or per family household. Problem solved.
House prices go up because landlords are allowed to buy houses with debt and turn them into rentals.
A rental is no longer available for purchase. Increased demand plus reduced supply = prices go up.
It's really not that hard to understand. Stop using this "not everyone wants to or can afford to buy" crap. People who can't afford to buy WOULD be able to if landlords hadn't priced them out of the market. Your circular, self reinforcing logic is getting really boring.
@@BrianFace182 mate, believe it or not there are people who don’t want to buy at any given time. Not sure how that is hard to believe. Lack of supply is not the only factor affecting pricing. Go and watch some videos on the channel Gary’s Economics if you want to understand why asset prices have exploded
@@BrianFace182 There are plenty of people who don’t want to buy houses, so I think you’ve misunderstood this point slightly. I’ll give you some examples: people in their 20s who want to live in cities with friends. People moving to a new area who don’t want to commit to buying. People relocating on a temporary basis. Even if housing were more affordable in general, you will still have sections of the population who can’t afford to buy - either because they don’t have the required deposit or because their credit/employment status means that they can’t secure a mortgage. Do we also need more social housing? Absolutely. There has never been a 100% owner occupier housing market in this country, so why is this being touted as the solution?
Let me be clear, I’m not a landlord and I want to see the cost of housing come down for the benefit of everyone, but rentals are still part of a housing market that functions properly. It’s naive to think that banning landlords is the solution. The underlying reasons why house prices have increased need to be understood, which is what lead to it becoming a lucrative investment in the first place. The combined effect of rising wealth inequality (which increases the buying power of the rich, who spend their money on assets) and the amount of money printed through QE in the last 15 or so years (in response to 2008 and covid which has increased the cost of everything and has in turn made the rich even richer) has pushed house prices up, while wages have not risen in real terms. Regional disparities are also a symptom of this, when wealth is concentrated in areas such as London and the South East it leaves other places behind. There are plenty of towns across the country where housing is cheap, but people don’t want to live in such places because they are socially deprived. There are so many factors that have lead to the situation we’re in today, it’s not a simple case of supply and demand.
But how will the Boomers do all us youngsters a favour by providing us with housing at an over inflated rate? We should be grateful!!
sToP bUyInG nEtFlIx
@@NeonVisual it’s that extra shot of espresso that did it 🫠
It doesn't appear to be the Baby boom generation but their grandchildren ( which generally is that ? ) who are property investors.
@@starbarrothschild6597 "Boomers" has been co-opted to mean something else, much like the boomerati have done with the word "woke", and do not realise they're using it wrong every time.
@@NeonVisual Eat cereal for dinner!
Just an hour ago I received a response for a maintenance request, “The landlord will not undertake the repair”
Nothing I can do, can’t complain due to the risk of revenge eviction and nowhere else for me to move out to.
Not sure of your circumstance, nor what the repair is, but if you file a work order (quickly), you're usually given impunity from revenge evictions for at least 6 months.
My landlord is disastrously incompetent (as most are), and I'm holding him by the balls using this. AND, should your landlord not address the work order, or more repairs arise, you can just reapply for a work order, extending your impunity.
@@olliejarvis1200thanks, yes I’m looking into this and getting my information together. Not sure if my circumstance will qualify at this stage but we will see. Appreciate the heads up 👍 It’s ridiculous isn’t it
@@MilkyOolong Oh it's unfathomable! And the fact that the burden of proof and paperwork is placed on you, NOT the landlord, is frankly ridiculous.
Shelter have some amazing advice regarding this, as will your local council and/or Citizens Advice. If you're up for a slog of lawyer-speak, the gov website has the actual legislation you can quote.
Hope your situation improves, fuck all landlords!
Quiet, serfs!
@@roody59 shut up garbage
24 million dwellings in the UK with 70million people so almost 3 people per dwelling. Problem is lots of those dwellings are not built for 3 people those dwellings are also not all in areas with higher population which is why it is not uncommon now to have HMOs with 10+ people living there. The aim is to have roughly 2.4 people for every dwelling which would put us about 5million homes short at a conservative estimate depending where the homes were built and where people decide to move to.
To build enough homes to keep up with current migration building 300k homes per year it would take 50 years to catch up. Last year we built 190k.
its more like 27million dwellings, so closer to 2 people per property, but then I suppose we do have all the properties left empty, holiday lets, investment properties, etc... We really should have massive limits on those emigrating to the nation, only allowing those with essential high quality skills to stay indefinitely and not cleaners and sandwich makers. That way we would also see a rise in the pay for lower skilled jobs as companies would once again have to compete with wages and working conditions to get the staff they need.
@@TheSkunkyMonk Have you never looked at the numbers? The population growth of the UK is low and seems to be stabilizing. It peaked in 2011, then massively dropped until 2021, where it stabilized.
@@bramvanduijn8086 the point? still more people than ever though and a lot seem to forget we are a tiny island that already doesn't produce enough home grown food to feed its peoples without the aid of imports.
The UK has about 0.8 of an acre per person. In 2001 it was 1.1 acre. France who have the same population is at 2.7 acres per person plus 6 million more homes.
24.9m according to ONS@@TheSkunkyMonk
I agree on the following points;
1) The housing market is not driven by supply and demand, it's driven by profit!
2) A cap isn't necessarily a bad thing, (however some landlords may be forced to sell if their costs rise).
I strongly disagree that landlords should be abolished. That's complete *******
A sane solution would benefit both good lanlords and good tenants.
No such thing as a good landlord
There would be a greater supply of houses if it wasn't seen as an assets by the majority of homeowners. A cap makes no economical sense, it will just lower the supply of apartments available for renters.
It feels like a lot of these discussions around landlords are very London (or i guess major city) related. I live in a poor northern city where you can still buy a 2 bed house for under £35k. So a lot of people can afford to buy, but some for various reasons don't want to (i have rented in the past) and obviously you do still get plenty of people who cant- no job/poor credit rating ect (think more council stock seems like the answer to a lot of these problems)
I mean obviously it can still be a problem, but it feels like a very different situation in many parts of the country.
Can you share an example of a 2 bed house for under £35k where you live?
I’m not challenging or disbelieving you, just think that’s nuts. I live in Hampshire and bought a 3 bedroom end of terrace house for £330k.
@@Mrstevemoore don't get me wrong they aren't in nice areas or particularly nice properties. But neither is a lot of rented accommodation in lots of places.
@@Mrstevemoore I bought a 4 bed detached house in a nice area with a decent size front and back garden for 200k 4 years ago (admittedly it has gone up since then). Me and my partner received no help from parents and aren't earning mega money or anything, it just really is a different world up here.
35k are you sure
@@chrisrutter6015 as above not brilliant properties, but I've seen worse rental accommodation in London on this channel
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Its a sellers market. Demand destruction is happening and i am quite happy in my caravan in a field
I live in the North and just had my property valued by rics. Dispite having a buyer for the full asking price, achieved after 10 days on the market, the valuer devalued my property by almost 10%. The property was also given a rebuild cost of 140% over their valuation.
A property in London is sold at massively inflated prices over the original build cost, and the banks are happy to accommodate this? What's happening?
Same question from me and disclaimer, I am not a landlord renting out a property.
Suppose all landlords are abolished.
Great, now the properties they rent out are emptied and on the market to be bought, etc. Where are the renters going to live? Most renters can't afford to buy the house they're renting. Who is buying these houses for these people to live in? Property developers aren't going to hand the houses over for free. So when a property is built, landlords can't buy it to rent out so people have a place to stay, renters can't afford to buy the house to stay in, what is the solution?
"Oh, the properties are overpriced, developers shouldn't be allowed to charge that much, then everyone can afford a place." OK, so you're asking property developers to not make a profit? Then why be in the business? If they are to take all the risk to not make money, they might as well just not do anything and shut down.
"Cut the cost down, property developers make a profit and now the houses are affordable." Material cost is not going down, the only thing to cut is salary. So wages aren't high enough, but let's cut the salary of bricklayers? Brilliant idea. What matters is everyone can afford a house, but bricklayers? They can starve.
I'm all ears for a solution, but no one has yet to bring one up.
"I want it to be like this, I want it to be like that, but I don't know how to get it to be like this and that."
If we can get things we want without knowing how to get them, then I want to be Superman.
Very well said
Extremely well said my friend, in addition to the unspoken facts about how we should be cherishing people's abilities to earn a bunch of money for themselves over time, and then invest that into a home (first) for themselves, and then later on so that their hard work pays them back over time for having earned such capital. Its crazy how fast people jump on the bandwagon to say "yea, screw those people that worked really hard to earn assets or capital, let's drag them down with legislation!". You seem to actually intelligently break down the issues with both sides, and I applaud you for that. Great insights.
As most rents are higher than the mortgage, I think you'll find that (perhaps with some slight tweaks to the system), that most renters could in fact afford to buy their own homes. Also, social housing is the answer.
@@johnners911
The problem is, they can't. I live in the north east of England, where houses are among the cheapest in the country and it costs almost £200000 for a three bedroom semi-detached house right now. The average salary here is just over £26000. This salary doesn't even qualify for a £100000 mortgage loan from any bank, and I know this because my brother recently approached a bank for a principle in agreement, but for argument's sake, let's say it does qualify for a £100000 mortgage loan, the buyer still needs to fork out £100000 in cash. I don't need statistics and research to say, I know the vast majority of people who rent in this area don't have this amount in cash.
No offence, but I really do think people should look at the market and see reality, like, real banks, real mortgages, real numbers, because all this "if landlords don't exist, houses would be affordable" is la-la-land talk with absolutely no statistical backing and comes from some weird hypothetical imagination.
I do agree with you that yeah, we just need more houses built. And I've been saying this a long time. Building more houses is more supply. Removing landlords doesn't increase supply, because oh, houses don't magically grow when we get rid of landlords.
@@MEvegasRealtor
Thanks.
I mean, some people inherit the wealth and do this, so it's not all hard earned, but that's besides the point.
I just get ticked off when people complain but don't have the faintest idea for a viable solution.
Reminds me of when Truss caused the interest fiasco, and someone who bought an apartment to rent out couldn't afford his mortgage repayments, so he had to foreclose, and everyone in the comments were celebrating. I was just in awe, because they didn't think about the tenants that were due to be thrown onto the street, a foreclosed property will go out cheap and it won't be a middle-class buying it, it'll be mega rich Joe who can fork out the cash without a mortgage, and the rent gets hiked, and then yeah, the tenant now has to deal with double rent or sleep on the streets, and people were celebrating this. Really just irritates me when people can't think logically for two seconds to realise who is truly suffering.
This gentleman seems to be unaware of the reality facing some of us who were trying to get a decent return in a situation where interest rates were at rock bottom in the time that we were accumulating sufficient wealth to stand a chance of having a decent retirement when our earning years were largely over. Having bought my properties a long time ago, I don't feel responsible for today's insane house prices. I might add that, while rents have been going up, so have costs. As most of my properties are leasehold, I am not actually the landlord of these properties. If the 'maintenance costs' go up, I have no redress and have to pay up. Courtesy of Covid, I have not received rent from one particular property for a number of years, and in another case, rent due to me has been paid by the tenant, but not passed on to me by a third party for over a year now. All I have been trying to do is generate enough income to have a decent retirement. Sorry if you feel that has been such a heinous crime in your eyes.
Feel bad for you. You also got fucked by the housing/rental system. Housing is not a FUCKING investment. Should have put all your money in stocks and you would have been able to retire by now.
The poor want you to be also poor. That's all.
@@MrMadalienThe people just want the chance of having a future, owning a home to raise a family. Can’t really oppose prospective landlords with the ready cash to buy their properties, but to be able to mortgage with a view to having somebody else pay it off for you is theft from the future of the nation. Find another way of making money than taking the hope of our children.
Good questions, great responses. Loved this
No mention of the yearly increase of around 500.000 people a year being added to the uk. Just might be having some impact on pushing rents up.
Also mortgage rates are high at the moment so thats pushing the rent prices up too.
Finally someone’s taking sense.
Been saying for years we don’t need more houses all over green belt. We need to end the rich hoarding property and driving up house prices.
And the way you stop them doing that is to find a better hard asset for them to use to store their weath
this is wrong to only keep making private landlords the complete villain. there's enough large housing association's but of course we all want to get onto waiting list so there's only so much, so stop slagging off the private landlords/
Yeah don’t make valid claims about a bad thing when there’s another bad thing to complain about.
No thanks, private landlords are the ones that removed all the housing from the market and made us all renters in the first place.
No let’s talk about desperate people on boats instead!
If you are on housing benefit, you are unlikely to get a rental property in the UK, as soon as I ring a letting agent to view a property, the very first thing they ask is if I am in employment, and if it is a 12 month rent, they want 6 months up front, because I only earn 25k per year, and that is when I am viewing properties for under £900 per month, I cant house share because I have a son, who stays with me 2 to 3 times a week and the rest of the week with his mum.
Just to add a balancer I have a friend who is a landlord and rents 95% to people on housing benefits.. the problem he has with a lot of tenants is the council pay the tenant, the tenants don’t pay the landlord then the council help the tenant to stay in the house RENT FREE not sure where you could live mortgage free.. end result my friend had to sell.. I’m not sure landlords are the problem wholy I agree some are.. it’s funny and this gentleman also makes the point I keep hearing housing crisis yet I go on right move or look in estate agent windows and I never see no homes for sale or rent..hmm then the new builds that I see are priced even higher than the houses they are built around 🤔
no one thinks that's alright and is an obvious abuse. But "generally speaking" LLs have the power and low risk with employed tenants.
I don't rent out to garbage humans.
People really do not understand the economics of landlords and seem to think they are making a fortune from rents. Here is an approximate breakdown of where the rents from my tenants go. About 30-50% is for the mortgage interest (not paying it off, just paying the interest), about 30% is tax, about 10% covers repairs and void periods. This leaves 30-10% as income to cover the time I put into running the business. My typical rent for a 2 bed house is £800, so that is £240-£80 per month. Usually less than a day's labour for a plumber. If I were to pay for a management company, they charge 10% or the rent, so now the profit is £160-£0.
You should rightly ask what you gain for that money. You avoid having to find a large deposit, paying stamp duty, paying legal fees, paying mortgage setup costs, paying for surveys and risking buying a bad house. It costs me about £50k to buy a property, but my tenants only need an £800 deposit. If you bought the house yourself it would be a capital repayment mortgage, so the payments would be higher, you would still have the same maintenance costs I have. When your boiler breaks you may not have the experience to know what to do and may struggle to find an engineer. If you want to move house it will cost you at least £10k in fees and selling costs.
You should also ask what you lose when you rent. You lose the growth in value of your house. Houses in the uk have tended to rise in price a little faster than inflation. But once you buy a house, you have locked that cost in forever - as salaries go up, your mortgage will stay about the same, making it feel cheaper. By the time you retire you should have paid it off, removing a cost when you're a pensioner. This is actually where landlords make money - very slowly as prices slowly rise with inflation. But that money is hard to access.
You should look at all these factors when you choose to rent or buy. But it's not a landlord being evil by renting a house and making millions. I would need to own 20-30 houses to make the same money as an experienced tradesperson and that would be a full time job to run, so that seems entirely fair. I am not rich. I provide a service that people want and need, often taking houses that are in such bad shape that first time buyers won't or can't take on. I turn them into lovely places for people to live and I am proud of that.
Exactly this. The guy talking here hasn't a clue about this business. Not everyone wants to own their home. Landlording is work and it isn't for free, it is a service and as you say it is high risk low reward for those with a few properties so many are existing the market, which is causing problems and fueling the lack of rental properties. Speak to anyone who works or contracts for housing associations or charities and they will tell you the state of some of the places that they walk into. People who rent a property do not care for that property like they would if it were their own. People who do not work and are on benefits really do not care for that property.
If we abolish landlords then how do we decide who lives where? How do we decide on who lives in a higher or lower standard of property?
Feeling secure in my own home, knowing that I can’t get thrown out of it on someone’s whim with a mere 2 months’ notice, that is priceless to me personally, so it kind of skews the cost-benefit analysis for me personally.
Also, I’ve always found the expectations of many landlords to be absurd. Rent charged should not be enough to cover an entire mortgage, pay for maintenance, tax, all other costs and even leave one in the black. The profits are supposed to come when you sell the place in 20 to 40 years, and make 10 to 20 times your original investment.
There shouldn't be an economics of landlordism. that's the entire point. You shouldn't benefit financially by simply receiving someone else's earned income. Earn it yourself, parasite.
whomp whomp
Try renting out things you actually own.
@@Jorge-np3tq try getting a proper job that does literally anything that's socially productive instead of leeching off of a real workers earned income.
YES!!! When I hear bloody politicians saying that laws protecting tenants discourage investors I say GREAT! The whole bloody debacle of amateurs moving into the business of providing people with their HOME makes me furious. And the fact that we’re encouraged to believe that it’s just an investment, a pension plan is also infuriating. Would we say the same about any other necessity? I have to stop or this comment could go on til Dick docks (that’s a very long time away if anyone doesn’t know)
👏🏽this!
It infuriates me too that these rental incomes from landlords are quite literally extra cash for the majority. It is so unfair & has caused this mess. I don’t care who you are you don’t need multiple properties, it’s pure greed. Anyone with a basic grasp of maths can see, there won’t be enough housing if every Tom, Dick & Harry has multiple extra houses & that b**ch Thatcher sold off all social housing without reinvesting that money & building more. Housing should be a basic human right. Rent control is needed now, it won’t drive the standard down. The same house we rented previously has gone up £500 in a year… it is the same f**king house… that is exactly the same product. Without rent control these greedy a**holes can charge whatever they like. And p.s this isn’t a private landlord it’s a private rental estate “built for renters” or more like “built to rip you off so you can never afford your own house”.
Yes I agree! We should ban landlords, supermarket and grocery markets they charged us markups for nothing... food and rent should be free
Amatuer here with one property to let, claiming to provide a home to those who don't own one, and pretending it's an investment, or for want of a better phrase, pension plan. In truth, I'm just out to conquer the world and rule the dumb masses and make sure Dick never docks.
@@frenchybjhy2419 you're a clown.
I've been a landlord for over 20 years, and I promise you it's 100% about demand vs. supply. Demand has gone up because more people are moving to cities and supply has not kept up because of over-regulation by government. This man has no idea what he's talking about.
someone has to own the properties. whether its individual owner occupier, small business private rentals, large scale landlords, public trust with private management or public trust with council management. There's still someone owning/managing properties.
Does this man have a RUclips channel? If not, he should. Brilliantly well spoken.
Well I’m a small time landlord. I have no mortgage/ debt, but I can tell you that after paying for maintenance costs there is very little profit left. I charge market rents when a property becomes free, but most if my tenants have been with me for many years and I’ve left their rent cheap, as I think do many landlords. One has been with me for 25years and her rent has gone up from £90pw to £100pw. Rent has gone down for landlords in the provinces in real terms!
Ummmmm its almost like Housing is not a FUCKING investment.
No sympathy for you tbh
Are you really saying that £100 p/w only covers maintenance costs?
Quality and concise, thanks very much
When I moved to London I had to pay to view properties to rent. Paid over £100. And that gave me access to view 5 properties out of a choice of 10 and I had a week to chose one.
It's just forcing desperate people into making rash decisions. Only heartless scumbags can behave with such a lack of humanity.
@@smon4164 it was utterly ridiculous
How does the government become a better landlord? Anyone who is in London and has ever lived in a council estate super old or new will know how dreadful it can be and potentially even more faceless. I remember going to pick up something from the council and in the queue was an old man who seamed exulted and told them when will the leak above him get fixed as it has been going for 3-4 weeks and the neighbour is not in( we also have a slow leak which hasn’t been attended for decades living with the fear we will be getting back home with a flood). I felt like telling him I’ll sort it out but I work in IT I’m not a plumber sadly. Can someone help me how the government/council being the landlord will fix anything? Cheap isn’t good if it’s living in flooding.
Yeah the difference is the price you pay.
I had a private landlord who physically assaulted me when I asked him to fix the mold infested bathroom.
You should be ashamed of your comment.
health and safety exec can enforce repairs if dangerous or unhealthy.
People should live in their own houses, whether they be privately owned or communal. And that should come without them having to pay out "rent" to banks... That is the best way for a society to get over landlordism. Some public housing might be necessary, but too much dependence of a society on the state is not that good either...
@@user-sf8jg6kl1z the only system I’m aware of is in the Balkan particularly Greece where an owner of a land would have to build, then a private agreement would be made to create a building and land owner gets a few flats and then the builder gets the flats he was agreed for the risk,works and upfront costs. Athens was build all in that way creating an incredible number of robust modern buildings. This requires a market which shifts out the bad ones as they don’t get to do more jobs and the honest builders get to be exposed by their lack of craftsmanship. Sadly the land system is different in the Uk and the banks are too into this business. Would also need building knowledge which most people lack these days and lost of craftsmanship has been lost
The problem is buy to let mortgages.
The problem is a privatised housing market, but since most people can't stomach that rabbit hole, the other problem is allowing people to own more than 1 property.
It's part of the problem. There's also just people with tons of money who don't need a mortgage. We need to tax wealth so that money trickles down like it was supposed to but instead has stagnated at the top
Yeah, drop the 25% deposit to about 1-5% so tenants can buy their own properties..
OK, let's abolish them.
Tenants can't afford to get a mortgage to buy the place they rent, it's now no longer available to be rented, and only available to buy because we're not letting landlords earn our money to pay their buy to let mortgages. What's your plan?
@@DanteLovesPizza government buys property at cost price, then rents out to tenants at a rate thst will cover cost of property over a period of 30 years no interest.
That's how you begin to build a society with the interests of the general population in mind.
This was a great presentation of the housing crisis this country is experiencing and Nick is a fantastic ambassador for renters everywhere. Mention of Marxist approaches so often raises the spectre of soviet-style communism but Marx was far more egalitarian in his approach than people might suppose.
Market forces are neither intrinsically good or bad but we do need to be clear where this mechanism can benefit society and where it needs to be restrained. There is no question that the commodification of the space we call home is a social evil. A roof over your head should be a right for all and a responsibility of government to ensure it happens. It should not be subject to market forces and the cost of renting or owning should be manageable. This is not just some socialist utopian hope that will drain the economy. When people feel secure about their home you increase their mental health, enable them to put their energies into building their lives by investing in themselves and their communities and turn them into net contributors rather than net receivers. Local authority ownership further enhances this economic benefit as it allows increased spending on local services.
Gary (from Gary's economics) very wisely suggests we always need to work out who gets the money in the end and this episode is a great example of how capital wealth is being accumulated by the wealthy and reducing the capital of the lower economic orders while the government feeds this process through housing benefit.
Amazingly informative
Thank you for sharing
Sounds like a future BBC Director General to me
What now?
The next director General will be one of Kier starmers relatives
Nice video.
Not 100% sold on some of what was discussed, I'd need to look at the book but I do not think there is any good from private landlordism.
Renting itself is demonised.
I'm in a precarious housing situation and I still don't want to own a property - or more accurately have a lifelong debt, while the bank owns the property and allows me to buy it on a hire_purchase/ layaway arrangement.
What I want is somewhere affordable to live, that doesn't make me ill_depressed.
Somewhere where I'm not under constant threat of having to move every other month because the person who 'owns' the house feels that they deserve yet more of the money I've earnt in my just above minimum wage job.
The landlord deserves more of the money I've earnt because they work really hard collecting my money, while they shop for clothes.
They're a moral person because they're a landlord and as they're more moral than me, they deserve more of the money I've worked hard for, which really they've worked hard for because I'm already past the average life expectancy of a homeless person and ultimately I don't want to die.
Not yet anyway.
I had a dream that i won the lottery and the thing that shocked me when i woke up, I felt happy that rent would be covered until I buy a place for me and my family.
Then for about 25 minutes i used my professional experience in financial support advice and mortgage advice to think of the fairest way to purchase property to rent out with a large amount of funds like that.
(E.g. undercutting the rental price from evaluation to reduce the value to what would have been paid 5 years prior to devalue other rental prices in areas of madening increase in rates) And set it up as a clause of as long as set behaviour is followed during tenancy of over a set period of time, the option to purchase the property or have a lump sum returned from the rent as a deposit source.
Too bad i'm not going to win life changing amounts of money
So he is advocating 'Rent Control' which was actively tried in NSW back in the 1950's. It was an absolute disaster for the landlords who could not raise the rent, nor sell the property. This caused a sudden and vast contraction in available rental properties with people living in tents in some places, but those with 'government guaranteed' rentals would not move out!
This did generate a private program of subtle evictions and rental scarcity which eventually led to a change of govt and policy.
Do you know why there is a shortage of housing and why what houses there are are unaffordable? Because of people owning more than one house!! People aren’t desperate for rentals. Renting for most is a second best option because they can’t afford to buy. As far as I’m concerned, a pile of ex landlords selling their properties is not something to worry about
The landlords could sell. They only needed yo drop their price, which is exactly what needs to happen in the uk.
Is housing affordable, then no one would need to strike for pay increases
Restrict home ownership to one home per adult or per family household. Make a deadline to be sold within 3 months. Problem fixed.
And yet the numbers don’t support his point. The UK has one of the smallest number of dwelling units per head in Europe. If you consider the extreme concentration of the population in London, there could only be undersupply. Add to this the large population of foreigners and generally low-rise nature of the city. This video is true gaslighting but the people will love it.
@@nelsfrye8570 that first stat only makes itself felt in terms of not enough empty homes. It’s not like that thing they used to say about aeroplanes not having enough space on the ground if they were all grounded at once. There are enough homes for everyone in UK to have homes - but we do need more empty homes to help choice.
That’s not going to happen unless there is some kind of legislation to stop good homes being turned into holiday houses. I am moving this weekend because my landlord want to do just that.
I bought my home, a large Victorian terraced house, in 1984: As a single woman in my early 30s (no parents, no children, no support system) I wanted a base from which to continue my travels and to work overseas.
Having first grown up living in a 2-up/2-down mid-terrace house with no hallway, coal fire, cold tap, tin bath and outside toilet and later, in my teens/20s, in a newly built 3-bedroom mid-terrace council house with no hallway, coal fire, hot water, bathroom, indoor toilet but no central heating, I wanted a house big enough to share and with a hallway with a stair banister to slide down: As a child there'd been no banister to slide down and, from my late teens onwards, I'd enjoyed living in shared houses.
My parents had both died by the mid-70s/early 80s when I was in my early 30s; there was little to inherit but I was a saver not a spender!
1984: For the first year in my own house I shared my 5-bedroom home with 2 young French students and a 20-year-old black woman who had grown up in Cleethorpes. Later my tenants were post-grads who, tempted by Manchester's nightlife, had decided to stay; in those days 'The Hacienda' was flourishing! When I was overseas they had the place pretty much to themselves but I had a base to return to and a community, albeit they were usually 10-15 years younger than me.
1992: Having failed to successfully cross a road in Naples, I returned to the UK and in 1994 I opened Manchester's first BackPackers Hostel in a pair of adjoining, 1930s bog-standard, semi-detached houses: One house accommodated up to 20 short-stay guests in 4-6 bed dormitories. The other house offered weekly/monthly rental rates in 4 serviced twin-shared rooms: In those days, before the internet and when shorthold tenancies + deposits were the norm, it was pretty much impossible for backpackers to find somewhere inexpensive for just a few months.
In the early noughties my local council closed the Manchester BackPackers Hostel, claiming that 6 parking spaces, with the potential for more, was insufficient for guests who rarely arrived by car; the council later granted Gary Neville planning permission for 'Hotel Football' with no private car parking provision.
I had never planned on being a landlord, apart from my house-share, but by the early noughties when the local authority closed 'Joan's Place', both houses were let to tenants whilst I went overseas: I'd already decided that, on my return, I'd focus on setting-up small walkers/cyclists hostels/community hubs with co-operative housing above: aka the 3rdAge Hostelling Association.
In 2005 the houses were let to tenants but I returned in 2006 to find that the houses had been turned into 'cannabis factories', substantially damaging floors, walls, electrics and plumbing. The houses have remained empty since then as, following the financial crash of 2008, I struggled to raise the funds to repair them but hoped to retain them as part of 3rdAge Hostelling and Housing's project.
Location, location, location: Developers/ landlords wish to buy these properties but altruism is not on their agenda. I've spent 20 years trying to protect the houses from thieves, vandals and developers but on Tuesday, 09 April 2024 my local authority will sue to have me declared bankrupt for non-payment of 300% Council Tax on uninhabitable, now semi-derelict, houses.
Empty houses are a blight and trying to protect them is expensive and time consuming. People don't intentionally leave properties empty for long periods, there's often a back-story of loss, stress, ill-health and ageing. The stress of a similar situation contributed to the death of a friend of mine.
I'm obviously still alive but living well below the poverty line for so many years and, since Covid, living in a home without heating or water on a pension of £120 per week has taken its toll. My pension went up in smoke, literally! Anybody need any plant pots?
Good intentions are often punished!
Wow. What a story! Wish you all the best!
The road to hell is paved with good intentions, so what do you expect? It sounds like you tried to use people's basic human needs to fund your travels and then were shocked when it bit you in the backside. So what? It's your own fault. Cry harder.
Sorry. No sympathy
Is there a difference between owning your own home, and being a landlord. Because my wife and i own our own home, but i disagree with landlords?
Being a landlord vs. being a homeowner is the difference between private and personal property in a sense. A landlord owns homes and rents them out for other people to rent from them and in a sense makes a 'profit' like a private company off of that rent, a homeowner owns their own house (once you've paid off your mortgage of course) and that's it.
If you live in council housing, your 'landlord' I suppose is the council but there's an expectation that they aren't 'profitting' off of you and instead only using your rent for maintenance of your home and maybe maintenance for other housing units.
There's socialist arguments against anyone really 'owning' houses or in particular, owning land, aside from some level of government or type of community trust - but, no, you're not a landlord for owning your own home.
yes. if you live in your own home and not rent it out in any way, you're a homeowner.
are you marxist ?
When you own your own home, it is your personal property as you USE it. When you own a rental property, that is private property as you own it for EXCHANGE. Personal property vs Private property are distinctions made by Karl Marx and are part of Marxist analysis of class relations. Use value and exchange value are also distinctions made by Karl Marx and are part of Marxist analysis of class relations. Nick does this interview from the position of Marxist analysis of the housing crisis.
Don't worry, you haven't done anything wrong and you've nothing to be embarrassed about. In fact, the top 15 countries in the world of home-ownership rates are current or former communist countries, including Cuba, China, Vietnam and Russia. All of these countries have home ownership rates above 90%.
The answer is in supply. If your rents are too high the market should, should adjust itself with more supply of premises if govt gets out of the way. Not likely, govts want all the control.
ah yes the tired old "the market will regulate itself" rubbish.
That is not now nor has it ever been true. Markets do not regulate themselves. They never have, and never will. They always have to be regulated because profit seekers have no self control.
You convinced me, when i go on my 6 month trip to turn an old piggery in to a holiday home, i wont rent my house out.
We also need to consider how to fix this without causing big sudden drop in house prices.. otherwise decent people who've bought their homes are likely to end up in negative equity. If only the tossers in the government had prevented this runaway house price inflation then a correction would be like falling out of a tree, painful. However now a big correction will be like falling off a tall building, fatal for some
If those people treat their houses like homes and not an investment for easy profit-making then they won't care. If they bought for the latter then I have very little sympathy.
@@simonturner1problem is if your property drops into negative equity, even if you don't want to sell it then it could make your mortgage unaffordable as they will charge you way higher interest rates due to way higher risk involved for them.
I've fucking no idea what the solution is either. I guess what I want is affordable housing for all who want it and also not fuck over the not mega rich normal (lucky?) people who have been able to afford houses.
Why not add to the control of county courts by having checks on are the courts doing the best for both parties
We rented our house out for 12 months to live in Spain and work. We then sold our house and bought in Spain. We were landlords temporarily. I think there’s scenarios like ours where being a landlord is not so bad. Our tenants wanted our place for a year to explore the area we used to live in. As a transaction it worked. Long term rents and HMOs are another story…
Even in a functional housing market, with affordable houses and a strong state housing sector, there is a requirement for private rentals. Generally, short-term lets.
You're a home scalper
@@James-mb3je You're trying to justify home scalping like a ticket scalper.
Yeah nah.
home scalping needs regulation. A minimum of 5 year tenancies for non HMOs, no random people becoming home scalpers, only regulated government approved providers, and absolutely no property to be scalped under any circumstances where the mortgage isn't completely paid off. Every rented in a tenancy contract should have the right to buy the property at a discount and began adding that amount to their rent payment if they choose.
Labour should give 5 years notice of this policy such that there is an even distribution allowing first time buyers to start buying the property the scalpers stole from a generation and rented it back to them through the nose.
The age of dodgy Dave down the road scalping multiple properties in his possession solely to generate perpetual income has to be made illegal. The days of converting a generation's supply of homes into a cash point must be seen as the crime that it is - monopolistic financial extortion.
No, no. We should be talking about Angela Rayner selling her ex-council house.
But ignores the fact the current chancellor, ahem… ‘forgot’ to pay stamp duty on the 7, yes, 7 properties he purchased as a landlord…
Give it a rest boomer. She's been investigated twice, both by Tories trying to fabricate hate and distract from the end of their political presence in the UK, wasting police time, resources and OUR money, as per usual.
It simply doesn't work anymore, the boomers are no longer the focus of the economy and you're never going to get another right wing, wealth diverting government again.
He didn't forget - he put in place a loophole that fitted his exact situation
The Tories have made police complaints multiple times, and two investigations have shown no wrongdoing. This is a typical Tory desperation witch hunt. They are trying to smear someone who has done nothing wrong and fully cleared of any wrong doing by multiple police investigations.
Either provide evidence of a crime or shut the fug up, petulant child.
Is he advocating for stealing the homes? Let's say landlording was made illegal. Fine, everyone who is a tenant could then get kicked out. Then what?
Then landlords would probably have to work for a living
Even onlybthe title deserves a like
My parents are small-time landlords.
Firstly, I'm sorry you feel there are no ethical landlords. I'd image there are plenty (probably the majority) of landlords who are awful and renting in a big city must be horrible. I also agree with some of the things you say, including a sort of rent control. I don't agree with everything however.
My parents converted their storerooms above their shop into flats before the landlord trend that you talk about came about. The flats are well appointed, looked after, well-located, and guess what? The rent hasn't been increased in over 15 years, and was pretty low back then anyway. The flats are rented via an estate agent, and yes, they are always encouraging my parents to increase the rent. My parents refuse to do so. Their mortgage on the property was paid off ages ago and they are happy with the income they pick up. They'd rather they had tenants who have a home for as long as those tenants wanted to consider it their home, rather than being greedy, increasing the rent and driving out tenants. This, from my travels, sounds like the experience on the continent you talk about.
Turns out, the people who live in the flats have been there for years and years. Those few that have moved on are those who eventually meet someone and settle down, want to move on to a bigger place or whatever. My parents have even taken tenants to hospital appointments, took them to visit family etc because often they only have public transport to rely on.
Just some more anecdotal evidence that there are some landlords out there who are genuinely good people, as it does appear the majority of your commenters don't think so (and I understand why!). My next door neighbours, a lovely old Christian couple (the husband is severely disabled), rent out the spare bedroom to a single guy. He's been there for over a decade. Happy with the price that's probably never increased, and with the room he is renting.
I used to live in a big expensive city outside the UK. I rented a room from a couple, easily $200 per month less than other places, and were the best. So much so I still remain friends with them and often go and visit them!
how can they be good people if they're contributing to the housing crisis?
@@BrianFace182 prove to me that they’re contributing to the housing crisis and I’ll have a sensible conversation with you.
Just to reiterate, they own a large building that is a shop. They have converted part of it into flats. They rent out flats well below the market rate.
Tell me how that is contributing to the housing crisis.
@@BrianFace182 thats a silly and argumentative answer, lets actually address points on this issue and not just generalise and insult, we need to get to the bottom of this
Your parents are bad people.
I agree with you your Parents are supplying a home from a redundant part of the building. I am afraid some people who like to Landlord bash will not listen to you.
Ask them what they want ? Their response will be a home with no Landlord ( someone has to own it ) They want to pay little rent ( they want subsidised rent ) This will leave them with the options of: not working and claiming benefits or having the latest mobile phones, new car, Sky TV package, lots of foreign holidays.
Hiya. I’m a private landlord. I own one property, perhaps 100 years old, a tenement in an urban area on a street in which most of the houses are owned by landlords, which I have rented to a single family since I moved out of it into another property six years ago. I have kept their rent low - at least £100 a month lower than similar properties on the same street. I have not put the rent up once in that six years, until the start of this year, when I increased it by 8%. Overall I have spent slightly less on improving the property (new doors, improved heating, electric/gas work, safety improvements, decorating, new shower) than I have made on it since renting it out - by perhaps £1000. Again, this is over six years.
I haven’t endlessly put up the rent because it’s not fair on the tenants, and I’ve had to put it up this year because of the rate of inflation and interest rates (thanks Liz Truss). I have also considered selling the property, but I know that if I do a professional landlord will purchase the property and put the rent up by hundreds of pounds, costing the family and perhaps even evicting them. So for now I’m sticking put, continuing to improve the property when it’s needed and keeping the rent low. I’m not entirely comfortable with being a landlord, but looking at the state of other neighbouring properties I’m glad that I’ve improved the home for my tenants, I turn up when there’s an issue with the property, and that I’ve not sold it on. I’m kind of hoping that the tenants, who I know have been saving money, will be able to save enough and offer me a price for it - I’d certainly consider selling it to them for less than the market value.
I think it’s a societal problem, and if more people thought like you it’d be a better world. Caring a little more for your fellow men and women is all it takes..
Your property hasn't risen in value over six years and your outstanding mortgage on the property hasn't decreased? Will that market value you sell it to the tenant be the price when they moved in?
The reason you're a good landlord is because you are operating counter to your economic interests. You have every economic incentive to neglect the property, ignore or evict your tenants and put the rent up, but you choose not to. The system is rewarding you for being exploitative and again you choose not to, which is incredibly laudable. But the vast majority of landlords are not like you, as you say. Because the economic incentives at play reward them for immoral, destructive and parasitic behaviour that exacerbates the housing crisis.
It's partially a societal problem, but it comes from a economic problem. As Thatcher said, economics is the method and the goal is changing the soul. And she certainly helped turned this nation into a gaggle of grasping selfish individuals only looking out for their bottom line, because the system rewards for it.
Property stock is the issue. Supply and demand drive la the value of anything. Can solve housing crisis easily. 1) abolish Right to buy council property 2) 500k new builds for next 10 years. 3) 50% of new builds should be retained for social housing.
@@wyvernlambi1892 Agree, though I would say a million new builds in next 10 years and 100% social housing, though I prefer the word council housing, as if it was up to me, it would be the council in charge of the housing.
The system appears to treat someone profiting over selling temporary occupation of a secondary residence they don't live in or need to live in, as if the owner is sacrificing their own home to the tenant. It's an extra property, like a producer of food selling food they don't eat. The landlord can only live in one property at a time, not two or three, and they choose which one to live in. Instead of selling it to someone who doesn't own a property, which should attract benefits or tax breaks in order to more evenly distribute that key resource, they profit over making it available temporarily to people who would rather buy a property but don't have enough income to. There is no thought to the beneft a community gains by having less of that going on, by incentivising ownership rather than renting, to create a more stable and flourishing human bedrock to the society, rather than funneling multiple near-mortgage payments into the hands of people who own more property than they need to live in.
25:00 not talking about the 400k backhands council give themselves for just one year of working ? Because that 'pensionfunds extra' is non taxed ?
I wish the taxpayer would subsidize me, I had a tenant who for 18 months didn't pay me rent, and the government wouldn't let me evict them for several months and now even with my property back and a CCJ against them, I can't get my money back, and am several thousand out of pocket. Most landlords provide a good service at a good rate. Some corporate/private landlords like Grainger (who own thousands of properties) are making a bad name for most of us who are good folk.
Oh no poor widdle landlord with his multiple homes that he holds hostage for money. Oh no, several thousand out of pocket because you tried to extort money from people who need places to live.
You're disgusting and you should feel ashamed of yourself.
Investment risk is always a consideration when investing.
The value of investments and the income from them can go down as well as up.
This is one of the reasons 300,000 landlords have sold up, causing the massive shortage of rental properties there is now.
@@GailPlatt do you live in a fantasy world where people desperately want to rent?
As a landlord I always go below the market rent for tenants I trust and value. I also have only rented out properties I have lived in myself so all appliances are as efficient as I could afford at the time.
Don’t tarnish all landlords with the same twisted view - like life - not everyone is the same!
Correct me if I'm wrong. I think it's more about the structural system that we have in place. There is a huge transfer of wealth from the state to private land and property owners.
When we zoom in to individual landlords then in almost all cases we could say, this is a good person. They're just trying to make a few quid and set themselves up, they've just followed what's worked for many many others.
When you zoom out and recognise that there are so many people following this same model you can see that the majority of the wealth of the nation ends up concentrated in housing with a small proportion, overall of the population benefitting.
What we want is for this wealth to go in to the real economy, we want everyone to be able to have opportunity. I want my kids to be able to have the chance to own their own home or at least rent a place that doesn't wipe out a huge percentage of their income.
The current system isn't working. We're slowing building slums while high end property is also booming. The birth rate is down in part because people feel it is unaffordable to move out and to move on.
We need to improve the social contract, we need to have a more even distrubution of the wealth. Properties should be homes they shouldn't be the default choice as a good investment.
@@davidjcallen everyone has had the opportunity to do exactly what I have. I’ve worked, saved, learnt about options and invested as best as I could.
Rebalance or implementing a ‘social contract’ will just punish everyone like me who has played the game by the rules to date. Landlords like me are not the issue; it seems the super rich how are national asset owners are where the money is ending up.
@@RKC3.14 I come in peace and not here to blame you for anything, but it’s just not true everyone has the same opportunities as you. So many people are working their arses off saving every penny they can and they’re never gonna get a mortgage with current house prices. You could say ‘get a better job’ but then you’re basically saying cleaners, nurses, supermarket workers etc etc don’t deserve to own houses. Some people are born in expensive cities with rents going up so they’d have to move out to cheaper places to try to get a mortgage, losing their families, friends and jobs and perhaps not being able to find work. Some people have caring responsibilities, this can happen suddenly. It’s just not possible for such a huge swathe of people. Housing is sooo basic and a good quality of it should be available to everyone no matter their circumstances. Like healthcare, you shouldn’t be able to profit from it.
@@RKC3.14 I come in peace and not here to blame you for anything, but it’s just not true everyone has the same opportunities as you. So many people are working their arses off saving every penny they can and they’re never gonna get a mortgage with current house prices. You could say ‘get a better job’ but then you’re basically saying cleaners, nurses, supermarket workers etc etc don’t deserve to own houses. Some people are born in expensive cities with rents going up so they’d have to move out to cheaper places to try to get a mortgage, losing their families, friends and jobs and perhaps not being able to find work. Some people have caring responsibilities, this can happen suddenly. It’s just not possible for such a huge swathe of people. Housing is sooo basic and a good quality of it should be available to everyone no matter their circumstances. Like healthcare, you shouldn’t be able to profit from it.
But you are not being a landlord out of charity @@davidjcallen
we have a relatively low housing vacancy. there is no abundance
We did this in Ireland in the 19th century. Look up the Irish Land Wars.
What changed and the housing crisis is worst than in the Uk?
We aint going anywhere!
And after hearing the hatred spewed, our property development company will be INCREASING its rent from next month
You have convinced me to never be a landlord.
if you're on this channel like me, never going to be a landlord to start with
@@slapjuice I bet both of would become a landlord if you could.
@@insomniacresurrected1000 not if we are shaming landlords and being a landlord is a bad thing
Nick: I want to talk about a profession that we all agree to hate. Evil Landlords. Some think they are good, but they are all bad!
Me: And what do you do for a living?
Nick: I'm a lawyer... But I'm a good one!!!!
I got a 20-minute "rent to rent" advert in the first 5 minutes of this video 😂 That particular idea seems like an exponential increase in the housing problem.
Has this guy just got out of the shower?!
Or a tent.
Most European countries have very high rental rates rather than home ownership, I don’t force anyone to move into my property, I also charge below the going rate. I don’t exploit anyone. I like everyone else works hard and have been careful with my money throughout my life. I invested in the property because I have done without the other “essentials” and have been able to afford it.
When did you buy your house?
I could do with some sources on stats around the housing supply.. last i checked we had fewer houses pp than france but i could have been looking at the wrong source. Also local planning seems like a terrible idea! Nimbies do not want houses built!
23:40 most countries have most of their wealth and pensionfunds inside their real estate market
Private landlords after a year or two are nearly always lower than market rent as the risk of a good tenant leaving is 100% of the income. Recent policys have caused individual landlords to sell up and have been replaced by corporate landlords, who can risk putting rent up each year as on average they will be better off. Current anti landlord policies for the last 5 years have created the shortage and massive rent increase. The market sets the rent, if the landlord set the rent it would be much higher than it is now.
No if the landlord set the rent it wouldn't be much higher. They can only increase it to a certain percentage of a persons income before the whole system becomes untenable
Soo just have governments and/or corporations own instead of people? Lol. Get fucked. Trust me when I say corporations/governments automate ALL late notices and evictions.
You think this video is pro corporations being landlords?
@@thisgoesnowhere The video is pro-government, which is the other option they mentioned. There's another option: Housing co-operations.
no, we'd have them owned by the people *living in them* like what happens in socialist countries. The top 15 countries in the world for home ownership rates are currently or formerly communist countries, including Cuba, Vietnam, Russia, China.
Whoever said anything about government or corporations?
Also, telling us to "get fucked" isn't going to do you any good. Mao Zedong was right. Watch your back, landnonce.
Telling people to "get f***ed" isn't making your case very well. A certain Chairman was entirely right. Just be ashamed of yourself and shut up.
@@thisgoesnowhere you think there is a big difference between a corporation and a government that is cute.