Should All Landlords QUIT?
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- เผยแพร่เมื่อ 30 ก.ย. 2024
- Should All Landlords QUIT?
In this video, we tackle the big question on every property owner's mind: Should landlords quit the market? With rising taxes, tighter regulations, and ongoing challenges in the rental sector, many landlords are reconsidering their options. We’ll explore the current landscape, weigh the pros and cons, and discuss what the future might hold for landlords in the UK. Is it time to cash out, or is there still hope?
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Yes, don’t bother, invest elsewhere, previous government killed it, and this lot will finish it off. Of course they forget the rental sector still have to live.
Unfortunately…… 😢
George Osbourne started all this !
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Let it get a little bit worse then invest. Buy when there is fear, sell when everyone's buying, do the opposite of everyone else hardly ever fails.
I'm investing in ex-Army tents. The Government will HAVE to house them in something ! These will be the answer.
I must admit that as a landlord with a small portfolio, I am seriously considering the options. With capital gains getting much lower (i.e. I do believe the massive increases in property prices are well and truly over), maybe as low as 2%-3% pa, if you have a mortgage free property, it almost seems more sensible to sell up and just invest the money. Example, for a £650K property, I'm able to achieve a rent of say £2,500pm which is about a 4.6% return. I could easily invest that £650K and look to get a return of hopefully 6%-7% quite easily, without the hassle of tenants, Gas certificates, insurance, repairs, etc etc. And now that the property price is likely not going to increase significantly, the 'loss' in capital gain is pretty minimal - if at all...
Good points
i'm not sure yet,only 1 flat with a mortgage and still 2 years to go before my mortgage ends,new rules and future EPC puts me off
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I'm holding out. Weathering the storm. In five years time, i'll be charging £1,400 rent for a two bedroom terraced. My mortgage will likely be £400. Do the math.
Same for me.
rent caps on there way
@@marcwaters2600 i think they'll hurt area's more like London etc, where Landlords aren't playing fair. The average landlord putting their rent up £60 yearly, or even £100 a year, is still only an extra £8 a month in rent. I see no need for rent caps there. Plus didnt they already try rent caps in scotland and it was a mess
@@marcwaters2600There is broad consensus that the Rent Act 1977 led to a reduction in quality of the UK rental stock and a failure to improve or invest in rental property. But why?
If a landlord's overhead costs continue to increase in an inflationary environment, including maintenance and repair costs, mortgage costs, energy costs etc., but the landlord is unable to match said increases in the rent, his profit is eroded until eventually the business becomes unviable (because not all landlords work on healthy margins) causing him to either sell the property (thereby removing another unit from the PRS) or choose not to carry out proactive property repairs so he can keep costs low and margins stable.
Assar Lindbeck, a Swedish economist who chaired the Nobel prize committee for many years, once reportedly declared that rent control is "the best way to destroy a city, other than bombing."
A rental management company has informed me that the small house that i rent in a rather ordinary area is now worth £100-£150 more a month than this time last year.. Scary times.
Go back to school….my btl properties have ALL & always been on repayment even though I was advised/recommended the alternative my broker of 20+ years!
There’s no set rule for btl & especially as you can’t off set your mortgage now so it’s best to pay off your loan monthly & not have a massive lump sum in a few years!
Ps……. 🦉💙🦉 UTMO!!!
Your broker was correct! Had you only had interest-only mortgages, you would have been able to acquire more properties for your portfolio adding to your profits.
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@@johnporcella2375 that may be the case however ALL of my btl properties have doubled in price in less than 10 years plus a commercial as well!
As the old saying goes quality over quantity! 👍
Waiting for the budget to see what that brings and from that fathom out a way forwards. If they go after CGT and IHT as a way of raising revenue then might be the best policy to gamble and rough it out. Don't sell and definitely don't die! Just be massively choosie who you rent to and be prepared to have a property left empty until the right tenants come along. Which seeing there is a reduction in the overall number of landlords operating, hopefully it will speed up the process. All my properties have lovely tenants and will be trying to retain them for as long as possible so reduce the risks.
Selling maybe a mistake as they could go after savings and ISA interest too, so who knows. Rents will undoubtedly increase so happy to offset any additonal tax by bringing outside help to service the properties rather than do it all myself. So might be making less profit but less of the hassle too. I must look to see if you've made a video on converting your portfolio into a limited company, as that maybe a way forwards. Cheers
Don't you think going after ISA accounts is an absolute sign of desperation because the whole point of those things are to encourage people to save to better their lives!
@@500res I so agree. It will fuel inflation as its the signal to spend rather than save. And a high percentage live for today already which is one of the reasons for the growth of people choosing to rent as an attractive option. Hopefully they won't do that as placing a CAP on ISA's is fraught with complications. One being that if interest is added to fixed ISA's for example, it could by itself push savers over any limit with rates commonly offer over the past 2 years around the 5% mark. So a headache and expensive for banks to monitor.
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We speak this about landlords why have 200 properties in bad conditions and they literally skinned people. We don't need these landlords anyway. Companies like orbit way better than this scrutiny private housing business ruled by greedy people
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Im actually buying and looking to expand my portfolio .. good deals out there which were not available last few years...time to accumulate when there is fear in the market ..
There’ll be a lot of F rated properties on the market 😂😂😂
I agree
Labour are saying taxes will rise significantly. Searing people, so they sell to get the capital gains. When the budget happens it won't be so bad.
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That’s a completely dishonest strategy from Labour - and doesn’t bode well
This is what iv been waiting for. Dont be scared out of the market, take advantage of the ones looking to get shot of there properties quick because of fear. Fear is a buyers freind. Let the good times roll.
Agreed
Feeling the pinch as our blt mortgage increased by 4.5 %, but I am sure better days will come, we have one property at the moment hoping to get another one when remortgaging next 🤞
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Any news on marriage value yet ? and lease hold renewal ! ? Is anyone offering a 990 year lease at a lower cost ?
No nothing new it seems to have slowed down.
Only nuclear war can disrupt the market in a big way and that is never going to happen other than that we should keep calm and carry on
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Mass migration, left wing judges, and taxes.
Good luck
Anyone on here cheering on house prices is GREEDY. It’s a roof above young people’s heads not a vehicle to become rich. You do the f’*cking math! How on earth can house prices keep increasing into infinity? Well they can’t can they. In the current model were Dave with no o levels can buy a house and sell it on and buy a Ferrari in 10 years well there will be an end point won’t there ffs. That end point will be DINCS in their 30’-40’s with no kids. Were at that point now aren’t we? Tate made this point after I realised this bleeding years ago. Who in their right minds would sell their or anyone else’s kids down the river with the cost of a house. Any parent marching their child into a bank to insist they keep the market moving with a LOTTERY sized mortgage is mental.
Properties are just assets.
Demand and property scarcity increases prices
Warm Home Local Grant scheme is due to come out this month. From what i have read you can get a grant for upto 15K per house to get your property from a D-G EPC rating to a C. So you can get insulation and any heating measures. Its availible for landlords on 1 of there properties then they get 50% of the funding on the rest of there portfolios. The Great Bristish insulation scheme is also running now for Cavity & internal wall insulation as well as loft insulation the property just needs to be council tax band A-D in England or A-E in Wales
Thanks, what we need as well is the EPC rules clarified. If people use that grant and spend money now does that count towards the 10k minimum.
There is a lot of wishful thinking here and not backed up with fact. Take the EPCs the facts are it is set to happen. Sticking your head in the sand is not a wise move. I wish I had your optimism.
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Good video, don’t over leverage, don’t rent out sub par draughty poorly insulated properties. Don’t be a shifty landlord and it’s still profitable and worthwhile.
Agents always have a list of good tenants looking for good landlords. Most of these properties don’t even need to get advertised.
Thanks 🙌
Good reassurance for landlords. My question is what to do if you want to renovate your property during a long term tenancy which could disturb the tenants for a long period. Can't get them out and refresh the property now can we
Yeah thats a tough one not sure how that would work. These are the points they will clarify as the bill passes through.
I wonder if I could get my tenant to 'gift' the rent to me, they could do it monthly. Similar to how Kier is taking his 'gifts' left right and centre.....
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@@stevew3226 oh la la lol
Great video I love the optimistic outlook. Bravo👏
Thanks so much!
In addition to the £10,000 on upgrading your EPC - am I wrong or is there a proposal to say that kitchens should be no more than 20 years old and bathrooms no older than 30 yrs? In London it is average £5,000 to £12,000 for a new kitchen with a luxury property it's upwards of £28,000. Would be great if you could investigate this for us!
I cant find anything online about kitchens and have not heard about it. But I will keep an eye out and if I find something will report on it thanks for the heads up.
Time to fill my boots.
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please do a video of how what landlords will have to do if we want to sell or move back in under the new bill
LL can't move into a BTL property as that would be mortgage fraud!
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😅just ask each tenant if they have pets, if you have 30 people applying then you get to pick, the new tenant, pick the ones that don’t have pets, I actually don’t mind pets people tend to stay longer if they have pets and they always wreck the house so the deposit is not going back, is it, I always tell a new tenant and if they moan the application goes in the bin, all this needle from the government is just going to make it harder for the tenants,
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If you are leaving, I think you are either much older, already done well or tend to self manage and can't be bothered.
If you are younger, with some fire in you and you are not easily scared, then this is going to be a huge opportunity for you and those that stay the course.
With less stock, that means higher rents.
With less stock it makes the 2 month notice period essentially void, because, where are tenants going to go exactly? As they will be faced with few options.
Tenants will be better behaved when they realise how hard it is to get a property.
And soon, rates will come down.
Very true, I am looking for more deals.
Yep, run to the hills with a white flag high. Why? Because rents will go up and Labour gov will step in and set caps on rents. Interest rates will not go as low in the past. Take the cash invest elsewhere. If market changes with reform or tory gov in the future, then get back into renting game.
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As a FTB is it financially better to buy a £250k flat and pay the mortage completely in 5 years and then move to get a house so the flat can be rented and returns used partly for payment for the house that will likely be in mortgage for 25 years. This way, one will have a house and a flat instead of first buying a house that is £450k plus.
I would do exactly that.
I'm just starting out with my first property, it's not that painful, I think landlords insurance was the hardest to find at a reasonable rate with no no claims bonus on the first year, it can be pretty expensive. I was lucky enough not to have a mortgage.
Exactly follow the rules you will do great.
if LL's have minimal outgoings they can simply allow their properties to lie fallow ... and wait for the prices to rise which they enevitably will!
Thats what foreign investors do with London properties.
Here in scotland , we have rent caps at 3% , we are not allowed to put rent up between tenants, all flats are C energy certificate , and paid off BUT still selling going down here,,,, i thought my pension was set up.
Not great Ive seen its almost impossible for tenants to get a property due to lack of supply.
I too agree with not worrying too much about in regards for them getting it through but out of curiosity when I had an epc done on my own proprrty it came up 2 points short of a c and with whst was needed the first thing was internal/external insulation between 4k and 11k so can you clear upbwhy i need to spend 10k on it?
Its a random number they plucked out the air, same with most Government stuff.
Why do landlords do interest only BTL instead of capital repayment BTL? Isn’t there an advantage to own the property in the long term? Sorry, I’m new to this
Great question I have made a video on that - th-cam.com/video/-W_Cfbzj3HA/w-d-xo.htmlsi=GzCeTfkQOZB7XChh
You're more likely to get problem tenants these days and getting them out will be very difficult.
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At last you wrote down bullet points before filming! Therefore you have more time to talk about your content
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Thanks James!!! This is the video I’ve been waiting for! 🙌🏼🙌🏼🙌🏼🙌🏼🙌🏼🙌🏼 Top man!!
No problem glad you found it useful.
I have never seen as many landlords selling up like it is at the mo,there’s going to be a problem in the near future,
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With the Tories now Labour trying to get rid of landlords where will all the people live who will never get offered a mortgage?
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If the country goes into recession there is no way landlords can maintain current rental prices!
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Are you saying that if Labour do align CGT with income tax rates in the upcoming budget, that any increase will not become effective until April 2025?
Thats what a lot of news outlets are saying, it would be announced in Oct and live in March in line with the tax year which makes sense.
@@propertyaccelerator Great. Thanks for clarifying (although, I appreciate no-one knows for certain).
Good to know as I am selling one of my btl properties at the moment and am yet to exchange.
Yes, lets the "Service" Government house everyone who wants to rent.
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My comment Only ❤
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I'm staying but I've only got one flat with a small repayment mortgage
Its good to keep debt low good job.
@@propertyacceleratorWhy so?
I agree with James, no hasty decisions. Keep calm. My only concern at the moment is that with Section 21 no fault evictions abolished and a property that's been on rent for a while and for example needing a new kitchen or some other major disruptive work to be carried out and the tenant unable to work around it, how can a good landlord achieve this without getting the tenant out? Is there any clause that the Renter's Rights Bill could have to cover this scenario?
@MS-rv4cw No. You would have to ask them nicely or put them up in another place whilst the works are done.
Maybe you could give them one free week due to the disruption?
I will remain optimistic, adapt my game plan and carry on, Ive worked to hard to build my little “pension” portfolio to throw the towel in now! Just imagine selling everything because of this current government, and then in 4 years time a new government retracts said rules to attract the PRS again, and that’s quite likely I would say!. Thanks for the vid James
Probably a good analogy, I think the reality is we all will need to make our portfolio more profitable so that probably means ensuring there is more profit for the hassle involved. So maybe if you are unencumbered you should stay if you have debt maybe look to reduce it a little bit
Anytime
Epc changes won’t happen maybe change it to a D
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Yes
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Any good deals on HMO mortgages?
Check The Mortgage Works they have some great rates.
I don’t like the rolling contract thing.
A landlord I know has migrated to rolling contracts on two properties with good tenants. They made the change after one year and getting to know the tenants. One stayed for 12 years and consequently the LL saved a fortune on contract renewal fees etc otherwise billed annually by their letting agent.
@@dennishaggerty463 a rare lucky LL
Its risky during the first few months for sure.
Yes
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YES, let people who really need to buy, first time buyers I mean, to BUY. Landlords OUT
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That’s not what will happen. These properties are being bought up by corporations. One of the banks have stated they wants to be the biggest landlord. I don’t think you realise how damaging this will be
@@meggriffin4802 Nonsense. You must be a landlord not liking the SQUEEZE that is/will happen. BANKS have nothing else to do but to buy, renovate and than find tenants, and later check if rent got paid (??) - WHAT PLANET ARE YOU FROM?
@@gabymotsoloc9295 - your wrong - the banks and financial institutions are looking to increase their property holding. You could presume off the backs of smaller landlords getting out of the market as the government is making it a less and less attractive option for smaller time investors. Once they do gain control of rental property they will be MUCH more harsh with tenants than " regular " landlords. Any deviation from your AST ? - your out, late payments ? - your out, rent increases - fully up to market value, you want a pet - tough - etc etc. Under the corporates renters will pay more and be treated worse - at the moment all these tenants revelling in the demise of smaller landlords is like turkeys voting for Christmas.
@@gabymotsoloc9295No I’m not a landlord nor want to be. I rented for 20 years before buying my home I live in with my husband. I would love if the stock was bought up buy young buyers but unfortunately it won’t be. My point was corporations will buy up the stock and rent it out at the top market value and increase annually. Councils will not buy they are going bankrupt and council housing is a thing of the past. The demonising of small landlords like I had where they rented out at a good rate and never increased over the tenancy will sadly be a thing of the past. I have moved about a lot so have dealt with many landlords over the years and I had also worked for a housing association who hands down were the worst landlords. There is also no need to be rude in your comment. Defensiveness doesn’t make you right. mine is an opinion as yours and both have a place