Is Buy to Let Sector in Terminal Decline?
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- Опубликовано: 13 июн 2024
- A look at why the buy to let sector has been hard hit by higher interest rates and regulatory change. Why are landlords thinking of selling, when demand for private rents is set to rise?
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All good news, apart from one part. Corporations buying up the housing buy-to-let landlords are selling with cash. This is terrible for both the renting and buying market. Houses should NOT be able to be bought by a corporation. End of story. Though Jeremy Hunt would be in straight violation of this with his Ltd Company owning a portfolio of properties. Conflict of interest means nothing nowadays! Conservatives want prices to rise.
why should corporations not meet renters needs, many of the houses are new build and may not have been built otherwise
@@Mike-lb1hx because it's crippling the country. Corporations only care about one thing - growth of profits. They are not 'meeting the renters needs' they are exploiting. That's why the avg house cost almost 9x the avg rent. That's why rents are at record high. Greed. Growth. Unregulated capitalism.
@@Shauney3 I presume you mean avg house are 9* avg wage (or thereabouts) but why? because we don't build enuf houses for the growth in population (or we allow too much immigration for the level of build we allow) and years of low interest rates have led to an asset price bubble
@@Mike-lb1hx don't use immigration cliche that the Daily Mail and other bs outlet's regurgitate... If the UK's birthrate was still 2.4 like it was in the 50s, then we wouldn't need immigration. But it isn't. It's 1.6, so we literally need immigration right now, so they work, pay taxes and the pensions of an aging population. Basically to keep the "growth" of our economy going. The government has purposely not built housing, gp, hospital's etc to keep up with a rising population. Private entities are buying up land worth billions of pounds, empty land, and not building to keep prices high. The gov allow this and instead waste money on tax breaks for the rich (among other things). If our birthrate was still 2.4 and immigration was 0.0... Guess what? We'd still have EXACTLY the same problem as we do now. Without immigration, this country would literally be on its knees right now - under the weight of the disastrous Brexit, lockdown and a low productivity workforce. I agree with your statement of low interest rates however.
@@Mike-lb1hx immigration is not the problem dude. We need immigration. We have an aging population. Birthrates have fallen from 2.4 in the 50s to 1.6 today. There is only one way to make up for that loss in the workforce - immigration. The gov purposely hasn't built housing, gp, schools to compensate. If birthrates were still 2.4 and immigration was 0.0 then we'd still have the same problem. Stop blaming immigrants cos the Daily Mail says so. It's the gov's fault
You talked about the last 20 years trends as a good thing, the last 20 years was an unmitigated disaster for the housing market that benefited a few morally bankrupt sociopaths.
It does seem like he’s looking at it from a certain perspective (from the sector’s perspective rather than what’s best for society in the long term).
The thought of corporations owning more of the houses is concerning.
Not if they are properly regulated and taxed. Can't see that happening however.
Thats the part that the Anti Landlord sect don't understand (as one of them). This is going to eradicate the middle class and increase inequality. Not help FTBs imo..
The time to help FTB's was 2008, if not earlier. Who did we help? BTL's 🤦♀️
Yes. Too easy for them to create fake scarcity to elevate prices.
@James-mb3je
Why would a Tory government (or a Starmer-Blair type government) want to regulate and tax corporations? There's lots more lovely lobbying money in being "business friendly".
CGT Allowance was £12,300 for 2022-23, £6,000 for 23-24 and down again to £3,000 for 24-25. Yet another reason that I am getting out, in addition to all the other problems mentioned in the video. At my age I will put it in a High Interest account and not have to worry about tenants phoning up with all manner of imagined and trivial problems.
agreed, the best years are over and will never return in our lifetimes
Good plan. Nobody hears about the landlords that have to deal with nightmare tenants that refuse to pay rent, refuse to leave (because the council tells a tenant to wait until the bailiffs turn up to get a council house) and leave the landlord sometimes TENS of thousands of pounds in debt and sometimes 24 months of a lengthy court process. The media never reports on this though.
Ill be done with it soon.when my properties come empty they'll be going...let the tenants buy there own place then we'll see how good they look after it.
Yes im getting out after 30 years when labour get in it will be game over .ill be putting a chunk of mine in the stock market
Great call and what you say makes total sense.
Great news, as soon as the UK sees property as somewhere to live rather than an investment the better. The money not spent on buy to let gets invested in the stock market, win win for everyone.
The more unprofitable we make it for landlords to provide people with somewhere to live, the less they’ll do it.
I’d rather people got rich by inventing cold fusion or miracle drugs rather than portfolio property speculation. On the other hand, properties don’t maintain themselves. They need upkeep. If you offered to give me a huge stately home for free, I probably wouldn’t take it. The costs of upkeep and essential maintenance would be astronomical.
Wholeheartedly agree, this is becoming global issue and it’s making busing a house impossible for our children.
>UK sees property as somewhere to live
what next, actually consider that their politician and rich industrialist are who fucking them up and Immigrants are just there doing job they don't want and paying taxes they don't pay?
Insanity. Might as well hoping Church of England to actually worship God next.
It's the shortage of houses that's driving up prices. Most landlords are genuine and good and as a landlord I would be financially better off investing elsewhere with better returns and far, far less hassle and stress. Tenants get a fantastic deal and super backup when there's problems. The press naturally can't make money selling shocking stories from the silent suffering majorly of landlords
Yes, but we still need an affordable and functioning rental market don't we? Between studying and working in different places between the age of 19 and 30 I lived in 5 different areas, and rented 7 different flats/houses. With fewer properties to rent and big rental increases I'm not sure how I would manage it today
turns out selling off all the council houses was a stupid idea
Selling council houses started in the late 80s and had little or no impact on house prices or rents, in fact rents were very affordable. The cost of both started to rise after New Labour opened the borders whilst artificially suppressing interest rates and encouraging buy to let with tax incentives. It's the latter that created the problem and that started after 2000 (year) when house prices rocketed with a pause in 2008 due to the liquidity crisis. Rents are now shooting up because of high demand due to immigration, much higher regulatory costs and house prices out of kilter with earnings and normalised interest rates (5% as opposed to ZIRP). This mess has mostly been created by the bank of England's monetary policy (ZIRP), population increases via immigration and tax incentives that encouraged interest only mortgages.
Caused by Truss creating a shorting of the pound
I think part of the reasoning was that it would cut down on the number of people that could claim housing benefit.
It was a deliberate ploy to break the Councils financially. Council Housing is generally of a very good standard. The low rents charged paid for maintenance AND gave the Councils an income to build more houses and repair roads etc.
The Tories forced the Councils to sell large swathes of their stock to Housing Associations, often a few pounds a piece.
The bigger Housing Associations upped the rents and made a fortune. Most went on to get quoted on the stock exchange and now a significant share of those rents are paid as dividends to the shareholders.
It was just another Tory public sector theft.
I wouldn't say it gave councils income. Councils can't run anything including house rentals as they are so useless with money @@kevinu.k.7042
People dont understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments dont match our income, yet certain investors still earn over $365,000 in stocks and assets. Wish I could accomplish that.
Very possible! especially at this moment. Profits can be made in many different ways, but such intricate transactions should only be handled by seasoned market professionals.
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The greatest redistribution of wealth by design.
I just bought a small property as a BTL, to supplement my retirement income, but the numbers barely make it worthwhile even as a cash buyer with no mortgage. The main benefits are diversification (in case the stock market crashes and my private pension with it) and having a place for my kids to live one day, since it’s unlikely they’ll ever earn enough to buy their own where I live in Surrey!
This is insane. The UK is not a serious country.
Its like a training grounds for Big corporations
@@maalikserebryakov we are their play things
The UK is usurious to the core!
The usurious banks want men living in single rooms and single mothers in council homes.
Yes, welcome to england. Consider tax evasion
I just wish that people would start being accurate when talking about profits from property. No those people didn't average a profit of £100k factoring in their second mortgages for that loft conversion and renovated kitchen.
Simply taking the difference between purchase price and sold prices is not profit. That's like calculating a business' profits by ignoring salary expenditures
Your video contains a mistake about stamp duty. You state that a property of 250k faces 8% stamp duty and so a 20k bill for landlords while the actual bill is 3% or 7.5k The 8% is only for the amount over 250k
What also doesn’t help is that cities and urban towns are building more flats and apartments instead of house which means services charges on top of mortgages.
It’s not much to ask that people want to own their own home.
Which are 99% leasehold, which is a whole other scam. Terraced houses should be built instead of apartment blocks, they are freehold and high density.
8:50 "spot on" in the long run, buy to let will only work if you own out right. Geting someone else to pay your mortage when they could be paying their own. Is not going to be a working business model.
Too many rights for tennents and court costs/ backlog is too much. Not to mention mortgages are no longer tax deductable. All you need is one bad tennent to wipe away mutilple years worth of profit. Know 1 elderly couple who had one bad tennet cost them 40k! In damage/courts and lost rent.
Awesome. Brilliant content. Spot on.
This is what Gary Economics has been talking about for quite some time now.
Yes and need to tax the super rich of 10mil + and not trying and kick out small time landlords. If you tax the very wealthy they will have to sell some assets but they will still be ok and then the middle-class and buy back those assets
@@Bloody_alchemy The issue is that the properties are increasingly bought by corporations and the governments (and indirectly, voters) continue to cut taxes for them.
As Gary said the problem was caused by massive government money printing…someone should be charged for treason, is this being investigated in those hearings?
@@Bloody_alchemy 👊 make sure the Sunaks and Hunts and their corporate friends are paying some of that furlough printed money back
Inequality
Currently the private rental sector takes up 20% of homes (from 10% in 2000), do we really want it to increase beyond this, and become a nation of renters (rather than homeowners)?
If that is what we want then tenant security and protection surely needs to be improved, rather than weakened.
And it will prove very costly for public finances when tax payers have to pay a huge housing benefit bill of those renters when they retire.
Aye. The taxpayer is often effectively subsidising private BTL buyers through these benefits.
It's insane.
Excellent insights, economist magazine style
A big percentage of houses coming onto the market near us are ex council properties, most others are new builds. Not many privately built houses for sale
As a landlord with 3 x BTL properties , my sole pension , they have been loosing money since the interest rate rises, also been effected by cladding and punitive non lender mortgages, hard to sell and hard to keep due to loss making. Worst of all you pay tax on the income not on non existent profit.
Why are you losing money? Are you on an interst only mortgage? Have you not put the rents up? I dread to think what your mortgage is if you're losing money?
@@RabJ208he mentions cladding. Perhaps his service charges have exploded, along with building insurances on affected buildings.
@@graemebarriball303, you're right. I missed that part.
lmao rekt
I believe if you do not own them under a company you only get to claim tax relief on 20% of the interest payments also so it's definitely a targeted attempt to get rid of small landlords
I don’t know whether you realise it, but you literally just said in same sentence that landlords are worried about not being able to evict non paying tenants due to changes to no fault evictions. Not paying rent would surely mean that the tenant is at fault and so can be evicted. The target of this legislation is to stop landlords evicting tenants for no reason.
It’s very hard… in fact local councils often encourage bad tenants to prolong the evictions because quite often the council would have to house them,…
It will and is backfiring because the private landlord actually provides people who are unable to get a mortgage…. If the landlords sell, then it means renters have less of a pool of houses to choose from.
Could you talk about shared ownership ? because it is unique in the UK
And also a giant scam.
Despite the supply side myth there's enough housing, but housing and the profitable debt at interest attached to it has, unfortunately, come to form the backbone of the UK economy.
Golden Rule:
Take a basic human need and attach as much debt as you can to it and end up on the right side of the ledger.
Great presentation. Interests rates have got no chance getting any where near a level that makes investing as a Landlord. It's the end. Further more, Future government budgets are going to Tax multiple house owners to the hill as they need the money for so many current problems. Bleeding the housing market will be an easy revenue stream for any government over many years. House price falls will continue. I heard also it's first dibs to local first time buyers putting corporate buyers out in the cold.
This analysis is very much from the sector’s perspective, rather than what’s best for society and the country as whole.
He talks about redefining economics in terms quality of life, but the ever expanding size of the private rental sector won’t improve the long term quality of life (or happiness) for citizens of this country.
My husband and I have another house we rent out, with mortgage rates and taxes we will be selling it to a property association. it's sad as it was my family home and we rented it very cheap, the new company will be doubling the rent for the tennants. The tories just want large corporations to own the rental market, like the US
Remember Landlords that have been in the game for a decade or more are still sitting pretty. Their mortgages payments are based on house prices in the past BUT their rent is based on current higher values….. we’ll still have millions on Landlords .
Depends on the mortgage arrangements I suppose
No far fewer, but they will be large companies rather then a individual whit a couple of properties
Lots of the older landlords are leaving the market. Nobody talks about how little money a typical 75% BTL investor (I.e. not a veteran landlord) actually makes from the rental income after deducting estate agent fees, loss of interest payment tax deductions, trashed renovations, non-paying tenants, a very expensive and prolonged court eviction process, void periods, tenants making fraudulent insurance claims against the landlord, the cost of disposing of all the rubbish tenants like to leave in the loft or shed, fraudulent landlord references, the list goes on. Imagine being stuck with a non-paying, destructive tenant that takes over 12 months to pay bailiffs to enforce a high court eviction order. Being a landlord (unless you own outright) is a tough business that is not the cash cow that people think. Without the *potential* capital gains it would never be worth it.
Without a doubt though the government is making it less and less attractive for landlords to acquire BTLs: no more tax deduction for mortgage interest payments, less and less CGT allowance, banning s21 evictions. Imagine being unable to evict a nightmare tenant, e.g. that is on the phone to the landlord every week with a complaint.
There are plenty of bad landlords that illegally harass tenants or that refuse to maintain the property as well, but people rarely hear about the above in the media. It will be interesting to see.
@@TangoVictorSierra thanks for providing such a concise summary.
Generation rent will become generation spare room.
On your end point, I think the resilience of prices against interest rates it’s the continual supply squeeze. Simply not enough being built
great vid
I have a BTL, bought in 2021 on a 5 year fix. Made a nice cash flow to support my family and i treat my tenants really well. i can see the writing on the wall though. Will probably sell in a few years. It sucks because i feel like the government is kicking out middle class landlords so BTL is only viable for soulless corporations and slumlords.
im going to suggest that you will be left holding this debt at rates of 10% with no tenant and no buyer. and you will have this debt for 15 years.
@@buy.to.let.britainbased on what?
based on the next generations income projections. @@vvwalker7261
"cash flow" otherwise knows as your tenant's hard earned money.
@whirled.government this is just silly. When my tenants move out, i get dozens of viewings a day with people always offering over the asking rent.
It's also gone up in value since i purchased, if i can sell in a few years for even a breakeven price I'd be happy. Property is just in such short supply in the UK. Demand is crazy
home ownership has reduced from 71% in 2001 to around 62% today. There are roughly 3 million more private renters than 20 years ago.
Learning of a default cycle, particularly within the housing market, is indeed concerning. Defaults often trigger foreclosures, which in turn can significantly impact the broader real estate scene.
Although it's worrying, we must consider the larger economic landscape. A default cycle doesn't necessarily spell the end of the housing market; it could indicate obstacles, but markets are resilient and can bounce back.
But if more people are defaulting on their mortgages, doesn't that mean home values could plummet?
Yes, that's a possibility. An increase in foreclosures can lead to an oversupply of homes in the market, putting downward pressure on prices. It's the basic principle of supply and demand.
what can individuals do if thev're worried about the potential impact on their property values?
It might be a good time to reassess your financial situation. If you're concerned about the value of your home, consider talking to a real estate expert or a financial advisor, someone like Mayra Femia Hetrick. They can provide insights into the local market conditions and help you make informed decisions.
The fact that interest-only mortgages exist tells you exactly what you need to know about housing in the UK. It's a get-rich-quick scheme. This type of loan doesn't exist in France or Spain, where the housing market is much more stable - and where landlords are not allowed to increase the rents because their mortgage got more expensive. Investors in the stock market are not protected when there's a margin call, so why should landlords?
Increasing rent because your finance costs are higher is in no way comparable to a margin call
What disaster. We could have people owning their own home and not paying some fat cat half their wages.
What will actually happen is that people who want to buy a house still won't afford it and instead the mega rich who can sit on a loss making asset for years till prices recover will benefit.
The middle class wipeout is in play and the rich are buying assets like penny sweets
It's not a "loss making asset" it's a valuable asset that the owner has exploited another families income (or quite often the state) to pay for.
Good riddance to small btl landlords. Unfortunately I cannot see the state stepping in, with either state owned property or regulated, registered and taxed rental companies.
Houses will now all be owned by a few mega coperations the way things are going.
@@James-mb3je BTL landlords are the lesser of 2 evils.
Do you know how many houses the super rich have taken off the market and left EMPTY?! Because they can mortgage without needing rental income and sit on the asset while it appreciates
@@James-mb3jethat’s how economies work. You buy food from a farmer at an inflated price v cost of production, or a car from a manufacturer of cars, beds, clothes in fact anything you can’t provide for yourself someone else exploits that failure to their advantage by filling the demand.
If you think you deserve accommodation for free who do you think will provide it? I build new houses, for profit not just for fun.
This analysis is all over the place! You might as well look at your tea leaves.
We will own nothing, and be miserable. Unless we vote to avoid this.
the biggest hit coming is reinstatement of increasing minimum legal energy performance standards, all that old Victorian housing is not going to achieve band C (was 2025) or band B (was 2028)
A 1% levy on ALL additional properties owned by landlords of any size.... Plus the same levy on house builders... This should suppress the transfer of property into multiple ownership hands... Raise much needed funds into the local and national treasuries . Plus could be given to first time buyers in the form of matching 50/50 grants towards deposits
They already have an additional property levy in the form of higher rate stamp duty, which is 3% of the property value. This is on any additional property of any price, there is no minimum price/threshold for when it applies.
Giving out ‘grants’ to first time buyers is just a bad idea that wouldn’t work.
The whole country is in terminal decline. I'd say sell everything and find a better life elsewhere.
Are you in Vienna typing this?
@@salkoharper2908 Yes, I have internet in the sewers.
Buy to let is only advantageous to investors when house prices are rising. A yield of 7% can be achieved by investing with any decent fund manager. Once house prices stagnate you're left with the same return, but with all the hassle of tenants and property management. The party is over.
Let's hope so.
Bombshell, but the private BTL market really only took off proper in the 1980s.
Say no to usury!
Jeremy hunt would not remove s24 mortgage interest relief for companies because he owns his many flats in company structure. He should not be able to deduct mortgage interest in his company like all individual landlords. It is double standard and corrupt unfairness of osbourn s24....
To be controversial house prices aren't that far out of being reasonable for most of the country. Minimum wage will be £11.44 or 23.8k for a 40hr week giving a mortgage for a couple of circa 225k or a property of circa 237k which for most of the country is a nice starter home before even working nights, overtime or being promoted. So finish school, don't commit crime, get married and stay married and you should be fine
That’s 10 times that income. How on earth is that remotely affordable.
Corporations can afford to take the hit and buy property as unlike private landlord they pay less tax and have other benefits. I’m unsure if it’s still true but was a time commercial let’s could be bought with pensions
Hopefully it is
yes, 1,600,000 on council house waiting lists nationally, +200,000 housed illegally emergency housing, 215,000 unprocessed asylum applicants in hotels, and another 5 million from private rented sector if that ends where are they all going to live, and whos paying
Your Leaders Depend use their Mind think about how bring Economy on Line
Some are going to have to sell up 👍 Sell to a private person or family though if possible. F them corporations
I'm fairly sure none payment of rent is a fault so landlords can't really use that as a reason not to ban no fault evictions.
Where will tenants live after the SNP, the Tories and Labour have got rid of all the landlords?
Be careful what you wish for.
Ex Tory ministers will have jobs with large corporate landlords - so they will be happy.
Young tenants with no kids will be paying corporate landlords a lot more rent to live in sky rise apartments with a communal gym - but for several years they won't be able to get enough of them built.
Single mums with kids will be in "temporary accommodation" for years with council tax payers facing massive annual increases in council tax.
Landlords will be left with their retirement plans in tatters, but with much less stress wondering why they didn't sell up sooner.
Shelter (an organisation that doesn't actually house anyone) and Generation Rent will be campaigning for laws to stop landlords selling their properties.
Neverending increase in pointless regulation is killing landlords. And worsening tax provisions, and cost inflation not reflected in rents, and...
and......EPC requirements coming which will be expensive
According to Halifax, property prices have gone up 5 consecutive months in a row. It's only a matter of time when we see Charlie "a right Charlie" holding his hands up and saying: "i was wrong about the crash guys". It will be interseting to see if Charlie apologises to his followers misinfomation.
I used to listen him, holding decision of buying my first property. I am glad I bought it few months ago and stoped with this betting game
@@Mysterkoma, congrats on the property! Yeah I feel sorry for those who are waiting for this so called 35% dive. There will be alot of disappointed people out there.
As Renting increases the power of renters vote increases, politicians will need to respond the young are already angry so landlord will face increased regulation including price control. Remember investing does not have a guaranteed return so if they loose money it’s an investment risk.
A crazily cautious lending market requiring 40% deposits is killing off small investors. And the logic of punishing non LTDs made no sense while incentivising over 6 at a time purchases showed the stated objective of Chancellor Osbourne was bollocks. More likely he was looking after his mates in the city by trying to force small investors back into their pension funds
I’ve been a landlord since 1996, built up a portfolio of 50 flats in west London. I’ve done well with capital growth and I’m ready to leave the market. Slowly selling. So many tenants wanting more and more for the rent it’s uneconomical now with the huge increase in labour costs and all the stress and legislation added. Good luck to new landlords and a tip to tenants, give your landlord a break sometimes!
This video is spot on. I bought a small London flat in London to rent out as a pension. I After overheads the yield is 3%. If I allow 2% house price increase then the yield is 5% pre- tax.
Investing in the pretty much risk free money market conservatively yields 5.5%. It is really quite easy to make 10% on the equity market by sticking to conservative equities. Though my core equity investments are currently running at a 30 - 35% yield.
As a private landlord I am making a substantial loss of opportunity.
Welcome to the corporate housing world folks.
Maybe profiteering from people that can't get a mortgage shouldn't pay your pension then.
@@Victor-vf1fi
There is so much in your statement which does not adhere to facts, but more to a political position.
Briefly:
There are a large number of people who cannot afford a mortgage and so need to rent.
Profiteering. Does the Car Sales place profiteer when selling you a car? Does the supermarket profiteer?
When you place savings with a bank, some of that is lent to people. Are the banks profiteering?
We are already is a position where the rental market in some areas has shrunk too far and people cannot find houses to rent. They are renting because they cannot afford to buy.
The housing market in the U.K. is in a total mess. We need a lot more housing. That will provide for would be buyers and renters. That would also drive down housing prices making both rents and prices more affordable.
We need a much bigger social housing market. One built on high quality homes and one which does not involve profits. Housing Associations were supposed to do that, but instead they did profiteer and many are now quoted on the Stock Exchange and a portion of the rents go to pay the share holders. They do not use the profits to build many houses.
Victor - going down the route of vilifying private landlords, or even more making it illegal, will only worsen a bad position. It does not make more houses available, or lower house prices. Look at the percentages in this video.
And, when you come to claim a pension one day ask not where that money to pay you has been invested. There are far more terrible places than housing.
@@kevinu.k.7042 I can't afford a mortgage because people like you are landlording all the extra homes, and renting at exorbitant prices. Many people earn enough to get a mortgage, but can't save up a deposit because most of their income goes on rent, when a mortgage would be smaller. House prices are ridiculous, rents are worse. People need a place to live, being kicked out of your home because it's inconvenient for someone else's business is awful.
@@Fireclaws10 Were private landlords creating a housing shortage I would agree with you.
Please, watch more of the housing videos on this channel.
There simply aren't enough private landlords to affect house prices.
Additionally as per my reply to the poster above. Were private landlords all to sell up it would create a shortage in the house rental market.
There are many people who could not afford to buy anyway and the shortage of houses in the rental market has driven rents very high indeed.
We need more houses. The issue is a failure to build. Ire should be directed at a failure of government on this issue.
Please watch more videos on this channel Tejvan has gone into this issue in quite some depth.
@@kevinu.k.7042 whatever makes you sleep at night. Landlords provide housing in the same way ticket scalpers provide tickets. You add zero added value. You only bankrupt young families. We need more housing and landlords don't build houses.
The buy to let sector just feels broken you're always going to end up with a vast amount of landlords selling up whether it is like now because of economics or it's time to retire and cash in that nest egg... They'll always exit... and chuck out tenants. Given the value of property councils across the UK have missed a trick now they have zero investments, zero housing and mountainous housing benefit bills... We need a complete rethink on renting and go back to what was before. The biggest landlords should be councils...
And all the immigrants can go to the top of the waiting lists. Great.
@@jonathanjonathan7386 are you actually saying we shouldn't have social house because immigrants? 🤔 I would suggest that the immigration issue is exacerbated by central and local governments absolute lack of planning around social housing over the last 20-30 years.
@@Drunkenmeows I'm happy to invest in social housing if it goes to british working taxpayers not foreign colonisers, many of whom have entered the uk illegally
@@jonathanjonathan7386 like I said if housing wasn't an issue then where supposed asylum seekers being housed wouldn't necessarily be an issue. It's the fact that there aren't any social houses that stress the system. Illegal immigration is just a joke here. I lived in Korea for over a decade they deported anyone illegally residing... But I guess they don't have to follow some court dictating shit. France must be reallllllly bad to come here. 🤣
Why doesn’t the government use a portion of taxpayer money to build new build houses/flats and hold onto them. Rent them out cheaply to the public and then private owners will have to follow suite. Mr private won’t be able to rent out for 2k per month for a long period of time if the rent in neighbourhood is 1k from the government.
BTL LLs thought zero rates would last forever. Bad luck.
But who will provide all the housing, when the landlords are gone? I'm concerned.
/s
It's always sad to see the hatred to landlords in these comments. You're getting the best deal from them as renters but jealousy will always prevail. Just wait until the corporates move in with their shareholders and annual rent increases similar to mobile phone contracts and then you will finally learn that its the Government's that have not once met their home building figures this side of the millennium that are the real problem. But please feel free to go ahead and blame the landlords when it was Maggies Conservatives that started selling off the council houses without putting the proceeds back into building replacements....
I will sell my Forest Gate house on the next bull run in 2035. Meanwhile im waiting on a 60k£ rent a year, not too bad.
“The UK population is set to grow significantly, and with an aging population…”. The determination to avoid mentioning the source of this population growth is weird, though I think I understand it. If the population grows because existing citizens are having lots of babies, there isn’t any real element of political choice in it. It just happens, and we have to deal with it. But if it’s growing because of immigration, that means it’s the result of a political choice made by those in power. You could say, “the government has decided to grow the UK population significantly through mass immigration, and this will put pressure on the housing market, unless the government imposes an immigration tax to fund extra house construction”…
How can the government make English natives have more sex? Please explain
What about "Current members of the Tory government promised that getting the UK out of EU would be the only way to lower migration. Despite wild rethoric from successive Home Secretaries, annual net migration has since risen to unprecedented levels, (and yet the economy is not growing)". You are welcome!
@@lozkko 1) You can’t reject immigration from EU countries if you’re a member of the EU. You can argue that immigrants from Poland are, on average, more productive and more culturally compatible than immigrants from Somalia. I think you’re probably right about that. But such immigration cannot be moderated or stopped by domestic political means if you’re in the EU.
2) It doesn’t follow that every country NOT in the EU has to accept infinite non-EU immigration. Japan is not in the EU, and they have fairly strict immigration controls. If you’re outside the EU, high mass immigration is a political choice which somebody somewhere is making.
3) What we’ve learned since leaving the EU is that many politicians, and virtually the whole of the civil service and the judiciary, want effectively infinite immigration for extremist ideological reasons. A succession of Home Secretaries have tried to control immigration, against the wishes of the civil service. In every one of those battles, the unelected civil service won and the elected minister was removed. Keir Starmer’s current Chief of Staff is the UK’s second most powerful civil servant, Sue Gray. She plans to make it even harder for elected ministers to tell the civil servants to enact policies they disagree with politically. That’s the Britain we have to fix if the British people are ever to be allowed to control immigration via the ballot box.
4) You are completely correct that the current combination of highest ever immigration, plus declining GDP per capita, disproves the arguments of David Card, Bryan Caplan etc, that immigration is always a net economic positive for the immigration recipients. Recent studies in Denmark and the Netherlands, which analyse immigration by country of origin, have shown that virtually all immigration from non-OECD countries is a significant fiscal drag on their economies. The only significant exceptions are very highly skilled people - typically PhDs - from China and India. The UK’s Office for National Statistics has responded to these surveys by declaring it stop collecting the data which would allow such a study to be conducted in the UK.
@@georgesdelatourI stated that migration was lower when the UK was in the EU. That is a fact, despite the fact that you couldn't control EU migration. If you wanted a slogan I would give it to you "Net migration was lower when we couldn't control our borders😂". The current migration policy hasn't been produced by civil servants, or Labour, but by the Tory party, with visas issued by the Home Office. The BS about flights of asylum seekers (who barely move the dial with net migration of 700k) to Rwanda is just a cover up for the Tory party's failed demagoguery on the issue.
@@lozkkoImmigration was lower still before we joined the EEC. And lower before the Maastricht Treaty established a European Citizenship. Can you please confirm that you understand that non-EU countries don't automatically have to have infinite immigration. You keep insisting that it's the unavoidable consequence of being one of the 170+ countries which aren't in the EU. It’s not. It’s a political choice. For the love of Jesus, please confirm I’ve got at least this point through to you!
Under John Major, net immigration was around 40,000 per year. Under Tony Blair, it rose to around 250,000 a year. Blair decided to take the “full hit” of East European immigration in 2004, choosing not to phase it in, even though EU rules allowed a slower introduction. Blair also did more than anyone to politicise the civil service. I’d say the Home Office is the office of state where bureaucrats hold most power. That may explain why we've had five Home Secretaries in this Parliament. The blob keeps getting rid of the ones they don't like. The terrible OBR keeps telling ministers that infinite immigration will help grow the economy, something you agree isn't true.
I am not a supporter of the Conservative Party. My EU-scepticism derives from Hugh Gaitskell, Michael Foot, Peter Shore, Bryan Gould and Tony Benn (plus the recently deceased German poet Hans Magnus Enzensberger - read his "Brussels - the Gentle Monster"). I actually voted remain because I agreed with Jeremy Corbyn that the EU was vile, but leaving it might prove more vile. It’s still vile, however. For me, my memory of the EEC/EU is of figures like Giulio Andreotti, Bettino Craxi, Edith Cresson, Giscard, Charles Haughey, and above all the delusional Jacques Poos saying Yugoslavia was Europe’s Guatemala (the implication of his remark was that he was the EU's John Foster Dulles).
One of the most odious human beings on the planet right now is Thierry Breton. He wants to be the EU’s version of Andrei Zhdanov - and he seems to be succeeding. He constantly lays turds on the graves of Europe’s great free speech advocates, from Erasmus to Voltaire to Émile Zola to Václav Havel. He disgusts me, precisely because I actually love Europe. If you love Europe, work to get him fired, any way you can, instead of carping at me on the internet.
Unfortunately the UK needs a long overdue period of uncomfortable destructive capitalism.
House prices need to fall to far more affordable, sustainable levels as they were in the not so distant past.
The average house could be bought with 4x the average salary at the end of the 70s whilst today it's over 8x.
Overall lack of housing stock is far less of an issue than claimed than the actual concentration of ownership and the vested financial interests and government policies that help sustain that current iniquitous 'status quo'.
Excellent bit in the guardian today recalling the history of landlordism in the 70s.
They were selling up in droves....all too keen to offload due to.
1. 10pc plus mortgages
2. Rent caps
The councils became net buyers of them , 4000 being bought up by camden.
This needs happening again....
With some tweaks so to adjust to todays high prices.
Legislate for rent caps....at say ...the bank of england inflation target...ie 2pc
Force btl mortgage interest rates up
Landlords will then have to sell up or go bust
Then introduce a 100pc capital gains tax on their properties with an 80pc reducrion if aold to the councils...who ahd be able to negotiate a good price.
Government shd itself borrow to fund the council purchases and the coucil pay the government bk by way of rents recieved.
Why is this a good thing?
@@stuartmc18 So one of the most basic necessitates in life is actually met? Not to worry about where you gonna live next month/year?
I personally feel for the landlords - not an easy situation, but they have been investing in a risky business, brought nothing in, but were ready to take(limited availability of the properties). Time to cash in and let someone else to have the property. Let's hope that bug corporations will be blocked from buying.
@@nothereandthereanywhere that's a naive view of the situation. They've brought in good quality housing to supply to the rental market. Most landlords I know, myself included, take extra care to provide decent quality housing with good maintenance service. If you think these new 'policies' are not designed just to kill the private landlord and provide houses to big corporations and government elites, you live in cloud cuckoo land. The rental market will be dominated by big business (banks) which will drive up rents as far as they can push them as they will basically have a cartell on rental properties.
My buy to let property was my pension pot which has been decimated over the last few years. I know people think that landlords are just rich hooray Henrys but most are just ordinary working people who have just made the next step up over their working life only to be ruined by nasty governments driven by corporations.
Why bother with all that if they just want to steal from the populace. Hopefully you have something someone else would like and get to experience what you propose.
What you want to sale with your Countries Economy come on Line
it should be. its just a way to leech off those less fortunate. buy a house and get a renter to pay your mortgage in 10 years.
You will own nothing and you will be happy.
I think it would be positive if most rental homes were owned by corporate landlords. With economies of scale and professional standards of service the affordability and quality of homes should improve.
A little to the left... Up a bit... There you go. Now you are kissing the entire hole.
@@salkoharper2908 No. I own (shares in) the property companies. I'm sure that some amateur landlords are good people. The same goes for corner shop owners. My point is simply that consumers benefit from economies of scale. That's why the groceries in your local corner shop are more expensive than at Tesco.
@@Paul.Morgan Can you provide any examples where corporate landlords charge lower rents than private landlords? This is not the case where I live, they tend to charge a couple of hundred pounds more per month.
@@stevenwilliamson6234 No I can't. When a competitive market is established and maintained by regulators we'll see the results.
Good, if buy to let finishes. It has destroyed communities like Cornwall. It is also why young people have been priced-out of buying a house. Let the numbers fall and let's get back to sensible distribution and availability.
if you think this is bad, try farming post brexit
this sucks for people who got suckered into the worlds greatest ponzi scheme. i dont want a house as i retired early and left the uk.
You don't live in a house?
This guy is just a whinging doom-monger, creating click bait for the easily influenced
Check UK tax rates on Capital Gains... (houses not principal residence)... Different story
People have just paid off the properties as they dont need mortgages anymore.
I haven't!
I'm sure a very few have, but the majority of people still have a mortgage!
Inflation has helped you a lot eating away at your loan
The banks were giving away nearly free money for years, it was obvious it couldn't continue. I managed to sell some of my properties and pay off all of my mortgages on the rest with what I'd made, six months before the first interest rate rise. My agent has insisted that the rents stay in-line with other comparable properties so that his percentage isn't affected.
Interest rates going back to anywhere near as low as what they were for the next ten years or so is for the birds. Unfortunately like others in my position, if house prices fall considerably, I'll be a cash buyer with what I've got left.
Turns out that diversity doesn't pay the rent.
Good. A rent seeking economy is garbage. Build more houses, more social housing, stop having many people having a vast sum of their income paying someone else's mortgage. We also need to do the same for corporate landlords though. Force them all to sell.
Won't somebody please think of the poor landlords?
Immigration
Boring 🙄
I think buy to let’s should be abolished. Houses should not be there to bankroll retirement pots and bank balances on the backs of people who just want somewhere to live. Totally immoral and I hope they sell at a loss!!! GREED GREED AND MORE GREED!!!
No no no I don’t want to sell up 😳👀🫣🤔😔👎