Here in Cumbria it has been the case for several months that properties come on the market & within a month are reduced by 10%-20%. This is not fantasy it shows up on Zoopla etc.. & yet we keep hearing that the housing market is doing ok. A buy-to let-property nearby is priced at about 65% less than an equivalent non-tenanted freehold property & it has been on the market 7 months. B2L is dying.
I have rented three properties for a long time at low rents Current tenants have been there over twelve years and I have never put their rents up. Like the lady on here my rents are way lower than the going rate. I am elderly and have tried to make things easier for young tenants. but now with the new EPC rules I will have to sell or dramatically raise the rents. I can't afford the changes. I might add that my properties are the older type terraced houses and currently have D ratings. The profits on my houses has always been minimal due to my social conscience, and now the new legislation feels like a slap in the face.
It is! In Ireland they brought in Rent Pressure Zones and essentially your low rents are frozen and you will be punished going forward. My advice Ditch your social conscience bring your rents up to market levels ASAP. If your social conscience does not permit this scenario then sell up!
That's the bit that never shows up in the analysis. If landlords were so bad, people would be moving more often. They're not.... because they're paying less than what's on the agents windows. The only issue you will face is when you need to put rents up or give them notice as they will be in for a shock.
The worst thing that has happened to small private landlords in the last 5 years is the tax situation that has moved from being tax on the profit, to tax on the whole amount - costs. That's a devastating difference for an accidental landlord. Here's some basic maths and rough costs as far as I'm concerned. I own 1 house that I rent for 700 a month, thats probably 10/20% below the going rate, but I dont want to increase it further. The estate agent charges me 9% , 700 x 0.91 = 637, Minus about £40 a month for landlords insurance and I'm left with 600 give or take. I'm a higher rate tax payer so the tax man wants 40% of that 600, that leaves me with £360 The mortgage is about 420, which represents well under 50% the value of the house and puts me at a £60 loss each month for the privilege of owning the house. That's before taking into account costs associated with further regulation, annual gas certificates, or any maintenance whatsoever. Add to that the management effort on my behalf, the fact I have to do a self assessment tax return because of income from the property and you have a situation which just isn't worth while by a mile. Even if I increased the rent by £100, I would still only break even, BEFORE maintenance costs. It's completely unsustainable and yet we have renters having the opinion that landlords are greedy money grabbing rich people. There are loads of people who are landlords who are not rich at all and make Nothing from renting their properties. That's why I'm selling up even though I believe that keeping assets would be good in the long term, the powers that be have made it deliberately unaffordable to strip people of their assets.
This is the situation tenants and most of the general public have no idea about. When I discuss the current situation with people they are shocked at the madness of the prs created by government policy. You are spot on in every point. Landlords are dubbed "leeches, money grabbing, parasites etc etc. If this sort of situation was implemented on public sector workers there would be rioting. So calls for wage rises for public sector workers etc falls on my very deaf ears, they should try a 95% actual pay cut.
@@willboa5365 Short lets are next on the government list of things to destroy in case ordinary people may have a chance of making a few quid. Why should i ask my disabled tenant to leave because Michael Gove has re written the PRS to no-ones benefit.
@@razorphone77 Why can't you be happy with breaking even and having someone paying off the mortgage for you, adding silly amounts extra on top of the mortgage is what has pushed up rents to insane levels.
@Stefanski30100 I would have been. But I wasn't breaking even by quite a distance. The only way of doing that would have been to increase the rent. Which I didn't want to do and would have fed the situation you highlight. Also note, that I did mention that the mortgage was less than half the value of the house (as an expense) and even then I can't make it work.
Good discussion. I'm selling up, but not until summer next year, as I've agreed with my tenants that they can stay so that a child can complete that year at school. I'm an "accidental" landlord, having let the house I used to live in before I retired abroad 13 years ago. My main reason for getting out is that I'm nearly 80, so want to "clear the decks" for my inheritors before I die. But a lot of what was said in this discussion chimed with me. Comparing my spreadsheet for the tax year just finished with that for 5 years ago (2018-19) I see that the gross rent has increased by 18.5%, agents' fees by 33%(!!), and my nett income by 3.8%. Of course, a major factor is maintenance costs, only to be expected as a property ages, and in the last 2 years I have spent nearly 3 times what I did 5 years ago. But not being there, you are at the mercy of rapacious contractors, with limited ability to shop around. I couldn't believe the quote I got of 250 pounds to clear 2 x15ft of gutter (front and back of a terrace house) - I managed to get it down below 200, but it's still an outrageous figure for what is an unskilled job. That's just one example. I think I would sell up anyway, because of proposed legislation, particularly abolishing the Section21 right to reclaim your property at the end of a tenancy. And if I bank the proceeds of sale in my instant access account now paying 3.75%, I'll be earning more than I get in rent.
Patrick, your circumstances are very similar to my own. I bought my house back in 2001 and lived in it before retiring abroad in 2012. I am now 60 and have the best tenants living in my house since renting began but I desperately want to sell when the current term ends (March 2024). As an overseas landlord of one single property in the UK the sale will incur CGT on gains made since April 2016. Add this to more years of NIC required (was 30, now 35) for a full state pension and more and more regulations for landlords appearing on the horizon the desire to sell and be done with it is very real. I use a reputable managing agent and have done so since the beginning. They can also sell for me without me returning to the UK as it can be 'signed' online. My only concerns are for my tenants who 'live' there as it's their home. In the coming weeks I intend to instruct my agent my intentions to sell in March 2024 in order to give the tenants as much notice as possible, plus first dibs on buying the house with time to arrange the finance etc. and offering flexibility with the dates, if they so desire.
@@keithclunk3125same here. I’m 54 so not so desperate to sell. My tenants are great look after the house so as soon as they decide to leave it’s getting sold. I suspect they won’t want to leave. Once I retire at 60 they will get the opportunity to buy. I don’t think they will afford the mortgage.
@@pataleno Yes, I'm selling up as my tenants decide to leave. Many of us are but neither political party cares that the supply of properties is drying up.
You should sell now. I understand your reasoning but you are doing those you wish to leave things to a major disservice just to favour people that you have no ties to.
Great video, and agree with all except the lady saying Landlords should use a Letting Agent. Presume she has skin in that game? I have let my properties for over 30 years and have never used an agent. They are inexperienced, clueless kids who just want the fees and the cut from the tradespeople they use to do repairs. Who is the tenant going to call in an emergency after office hours? Me! As for an agent being more vigilant about the quality of tenant they would choose for me? Not a chance! They would put in anyone just to get their fees. I will interview and choose my own tenants, thank you! And I will choose my own tradespeople to do any necessary repairs. As for dealing with tenant related issues & legislation being all too complex for us - if I am smart enough to own 5 flats, I think I can figure out the rules about my chosen career!!
From my experience of being a landlord it is the good compliant landlords that are selling up, including myself (for all the reasons mentioned). All the non-compliant landlords I know are carrying on as usual as if nothing has changed. The governments big stick approach is just not getting to the root of the problem.
Totally agree with you. I am absolutely on top of my properties and keep all like new but I’m let down by government and now rent smart wales as they are tying me up in legislation and costs and charges. Just greed. I have to pay because I’m honest while others just don’t get involved. Wish I hadn’t been so honest now
We're not selling because of the number of regulations, we're selling because of what the regulations mean. Lack of control over our own properties due to up coming regs is the nail in the coffin for many. "Fairer rented sector" lol.
I've been an accidental landlord since 2010. I would hate it if I were forced to use a letting agency, having only had bad experiences with letting agencies. Hopefully I'm a good landlord and offer a reasonable rent - home for a local family.
@@nauxsi Which is why I do my own accounts too. In the past I had to tell my accountant at the time what the rules were, so since then I just do it myself.
My husband and I have one property bought with an inheritance. We do everything in our power to help our tenant and have kept her rent low for 5 years. We have to sell now as the interest rates are too high. I used to think all landlords were money grabbing uncaring people. Now I know it's not true. Most are doing their best to provide a service, and trust me, after all expenses it's not worth the stress. And it is stressful!
I'm truly staggered at this bizarre tax policy, I'm looking at the awful situation of selling my rental. It's been occupied for eight years by a lovely couple in the bungalow that suits their needs. I don't think Michael Gove will be going round to explain why they may have to move. I'm surprised how many tenants are unaware of this weird counter productive tax policy. More tax = more rent - and or evection/ selling. But we are dubbed "greedy landlords " .
My wife and I have been accidental landlords for the last 16 years which has been an interesting and educational journey but are selling up due to our age, abolishment of Section 21, cost of having work done and lack of tradesmen to do it and the fact that the property now needs a pretty comprehensive refurbishment. We’ve endeavoured to keep out tenants happy during this time and all but the last tenant have all moved out to suit their circumstances not ours but it is difficult serving a Section 21 at the end of a tenancy if a tenant wants to stay but out circumstances are just as important as theirs. All out tenants have been very happy in the property which is quite satisfying I do think that the vast majority of landlords do have their tenants interests at heart but the term ‘home’ is becoming more and more used to describe a let property when in fact it is a contractional agreement and not a sentimental one this is mainly the fault of a government who has sold off all the social housing stock and expected landlords to pick-up the slack
You should also have a rouge tenant register - what is good for one sector should also be good for the other - the redress scheme is quite good but you should remember that the increased costs have to be passed to the tenants via increased rents - there is a limit
If a tenant seriously damaged my property I would always sue them. Even if I could not make a profit out of the court judgment I would sue them. Homelet (a very big checker of tenants in the UK. They insure that you get your rent for a fee), who check up on tenants would find that there was a CCJ (County Court Judgment) against that tenant and would not allow them into any property that they check up on. Homelet is pretty much a register of bad tenants.
I totally agree. I'm sick of the hate crime against the landlord profession. Anyone would think the tenants are Angles. I bet you they are not LLs themselves. Anything the Government is doing under the guise of protecting the tenants is poppycock. What they don't tell you is that it's purely for their benefit to saved lots of money, as they don't want to house the tenants.
Great discussion. I spent 13 years working in social housing and since 2020, my wife & I have also become a landlords. I found many of the points discussed in this conversation quite valuable. This year, we were seriously considering selling both of our tenanted properties. However, after having discussions with both tenants, who interestingly are single parents with two children each and facing similar situations, we made the decision to extend their leases for another 2 years. Our primary reason for doing so was to allow their children to complete their current schooling without any disruptions. Unfortunately, this decision has come at a cost for us. In Rental 1, we are now facing a loss of £460 per month due to the need to renew the mortgage at a higher interest rate of 4.97% (compared to the previous rate of 1.63%). As for Rental 2, we are absorbing an additional £360 per month, as the interest rate increased from 1.79% to 3.5%. Essentially, Rental 2 only breaks even before taxes, in terms of cash flow. The only thing that somewhat eases the situation for us is the generous US tax system, which allows us to offset approximately 80% of our rental revenue through various deductions. If we were still in the UK, it would have been impossible for us to continue as landlords. In that case, we would have had to sell both properties in order to sustain ourselves financially. We stay compliant with all regulations and respond to all issues reported by our tenants regardless of cost or effort. The notion that landlords are greedy or make money effortlessly is a difficult one to accept. We didn't receive any cash injection; we had to put ourselves in a financially stable position to afford to purchase and maintain these homes. We take pride in being able to provide decent homes for people through renting. We have been incredibly fortunate to have great tenants who understand this and have looked into the costs of buying homes themselves, so they don't hold that view. I also believe that people often fail to appreciate what they don't understand. In order to be in a position where it may seem like "doing nothing and making money," a significant amount of work had to be done in the first place to achieve that and to navigate the continual ups and downs. It's akin to the classic metaphor of success being an iceberg, where only a small portion is visible while the majority lies beneath the surface.
This is why the UK has better homelessness numbers than the USA. In the USA, landlords have the power. A single parent can never own a home. It's disgusting and thankfully the UK isn't quite as bad yet, with single mothers filling the streets, sleeping under highway bridges.
Excellent, enjoyable, and well-moderated debate. The tax issue was raised but what is never really mentioned is that Section 24 changed the basis to landlords being taxed on revenue, not profit. This fundamentally alters the financial dynamics - what is left in a landlord’s pocket POST tax, coupled with interest rates rising, is pitiful. It can literally be losing money, very likely so for landlords on SVR and with 60% gearing (or anyone coming off a fixed rate), even if the nett yield looks like it’s (just) above water. Government strategy needs to encompass both tax change and energy investment grants, otherwise continued exit is inevitable
Section24 is the worst legislation ever and the main cause of people exiting the industry IMO. Even Ireland reversed it when they realised it was a disaster. George Osbourne to blame.
@@gladitsnotme When prs is virtually non existent in the coming future, go down to the local council and rent a property from them, if they have any, good luck with that one.
@@gladitsnotme when prs Is finally extinct via government policy (new or old) then join the que for a council property. Heads up, they don't have any available.
It's the rogue landlords who are bringing our sector into disrepute and creating the anti-BTL anti-landlord rhetoric in the MSM as well as providing ammunition to the likes of Shelter to lobby the government. The government then bring in more legislation to regulate landlords which good landlords adhere to, but rogues don't, and there is not enough enforcement to make sure they do. Therefore rogue landlords blight our sector on many levels and need to be dealt with and expunged from it.
@@davidowen2859 sorry typos in here are ridiculous! I’ve been a private tenant for over 2 decades it’s been a landlords world for too long x so they have to make improvements? That’s why they are getting flustered , it’s been a landlords world too long x they can complain all they want no one is going to evict them! X
I rented my house and went abroad for 2 years. I used a well known letting agent. I came back to a house full of damp in the bedrooms and bath room. I was offered a measly £500 as compensation. I could not fight it as I needed to get back in. To add insult to injury they made the tenancy go through the eviction process I had only signed a 2 year contract so it went over by 6 months. Causing great inconvenience to my family. To add insult to injury I had to spend about 4K initially to bring house up to the standard they required at the start of tenancy.
I'm staggered there seems no accountability for tenants leaving houses in a bad state. Try returning a hire car in a shitty state and walking away from that.
Hi Phil, thanks for great content! Please do a video on problems with HMO licences, especially additional licences that have been put in place, in places like Nottingham! My son and 2 friends, that are all saving for their first property, can not rent a house because of this! And a friends son had similar problems in London!! They are now forced to go into an HMO where they are now having to pay a lot more and having to share with people they don't know!! Did councils not understand what they were doing with this additional license scheme, they are not protecting anyone they have just increased rents for young people! I'm a Landlord so I understand regulations need to be there for maybe 5 or more renters but three is just a step to far, especially as this is a smaller number than the average family!
I am a landlord and I try to address everything and create / deliver accommodation where I would want to live. Often we see being discussed how landlords should be managed and regulated. Should there be something equal for tenants where there is a database for good tenants? I have on occasion had tenants who don’t pay or create trouble. Referencing is challenging as someone with a bad tenant can be just keen to get rid of them and so it can be challenging to trust a reference. Would love to hear peoples thoughts on this?
I am not a Landlord or a tenant but I agree with you wholeheartedly, however that would not in reality be a simple task i.e. what 's the criteria for a bad tenant? Personally I think signing a fixed agreement for term of tenancy and its rules should stand without Parliamentary legislation.
Totally agreed. There are some bad tenants causing damages to the property and the government is only putting pressure on landlords but not tenants. This is unfair.
The government just want to get the voting from tenant, they are the majority. It is really unfair legislation in freedom world. All the repair cost is higher and higher, also EPC requirement. Or maybe, the government just want all individual landlord to sell the properties at lower price to institutional landlord. Or maybe government buy all the houses for private rental market. It can resolve all issue and ban any private landlord.
Having been a portfolio landlord for many years i have found no matter how nice youre property is when you let it the tennant will always bring it down to there level .never in 30 years have i seen a tennant improve my properties. Whatever happens its never there fault and 100% of them lie
Soon we’re going to have a similar rental property shortage crisis to what’s going on in Ireland. Years ago the Irish government implemented similar policies upon their private rental sector to what the English government are doing now and at one point last year there was only 700 properties available for rent in the entire country of Ireland, England is unfortunately hurtling full throttle in that same direction. People can bash landlords all they want but the sector is 100% the target of over legislation and that’s a fact, and when the small land lords leave the sector and corporate landlords replace them people will be begging for the small landlords to return.
As a landlord I do this as a job now and all these problems are just occupational hazards, I get my hands dirty and get on with it, I have no intention of selling any of my houses I have good tenants and I do my best to look after them. Treat people good and they will stay. help them out if there is any problems, the interest rate is the problem
Agree entirely, I am in the same position as you. The greatest dilemma however is having to remortgage, one fix is about to expire. I rent these properties as a business, I am not a charity and I cannot afford to be a charity. If the asset is falling in value and my margin after deductions and much higher mortgage costs disappears, as much as I like to support my tenants, the house will have to go. I will feel terrible about this, however I also know my tenant could never meet the rent increase necessary for me to keep the property in the private rental sector.
The vast majority of landlords do treat their tennants well, there are a few that dont but its in the media interest to portray them as bad landlords, its also in the government interest to keep that view because they want rid of private landlords. What nobody can work out is that if there are fewer and fewer houses to let then where do these people go
I have 8 months saved up for bills and an emergency fund set aside for repairs. I did just buy a house and was able to get it for 8%. It was on the higher end of my budget but I have a few extra hundred to put away each month for repairs. The home is turnkey but I know expenses will come down the road which I'll be prepared for. Hypothetically speaking, given the worst case scenario and layoffs start happening; can my emergency fund be in good use to invest and linked to our mortgage to increase interest overtime? rather than defaulting on mortgage Is that a feasible way to pivot?
Nice Aaron, online It appears margaret is well established in the financial field. Would her advisory give access to more interest to offset my mortgage overtime?
that's the only way to become debt free. I've already paid off two previous mortgages. Now I'm working on my third and I cannot wait since it has to happen before retirement in four years
Laws that penalise owning multiple properties encouraging landlords to sell will drive down house prices. Allowing more people to own their own homes which means more people will benefit from building their wealth through equity in their home rather than simply contributing to their landlords wealth. Of course it would be better if the government simply built more houses in the arrears people want to live in rather than push landlords to sell their properties.
The problem with your comment is, the assumption that people who rent are all aspiring home owners. You'll find that most people who rent do it out of choice, not because they cannot afford to buy. I have tenants who for example don't believe in home ownership, they have done their numbers and decided having someone else maintain a property for them and the freedom to move allows them to invest into their index funds. One of my tenants is a millionaire and their dividends pay their rent many times over. They are happy renting. I used to rent for years in the city as I moved around with work, I didn't want to be tied down. Lots of people are like this which is why a strong private rental sector offering homes of a better standard than say social housing is so important. At the moment the measures so far have driven rents up and/or driven landlords from the market reducing the supply. It is a real problem for tenants, I would say more so than landlords. I'm either scaling back residential into commercial, or turning to nightly rents to contractors so that's multiple quality properties leaving the market that professionals want to rent. How do you feel this is going to play out?
Forcing people to buy will force up demand so that nets out to nothing. ALSO there are more households being formed than houses being built - and thats WITHOUT the burden of excess immigration. What will happen is the rental market will freeze and this will hurt the economy as jobs are mobile now. This government is STUPID on renting.
People shouldn’t aspire to have toe majority of their will in the equity in their home, it doesn’t pay them. This country needs to shift the focus from property to equity in businesses that create jobs and growth!
The government like to do something many like to hear, just like Brexit. But at last, just make it worser and worser. I would suggest government to buy all the properties to rent to tenant. No more private landlord. Not just push the individual private landlord to sell the properties at low price to institutional landlord. What a shame!
My view - house prices are already falling - I’m seeing for sale signs building up and affordability is going to pull down house prices at least 20 % over the next 2 years .Landlords should sell at least part of their portfolio and cash in where they can . I cannot see us returning to house price growth for many years . Unwanted chickens home to roost I’m afraid (IMHO)
It’s common knowledge that the government haven’t built enough ‘affordable homes’ but I would argue that it has a lot more to do with wealthy distribution, meaning the working class is not making nearly enough money and the emphasis on building luxurious apartments to attract foreign capital.
People are quick to assume tenants want to become homeowners. They forget how many are students with no fixed income, foreign people wanting to live in the UK for work/study, or even Brits who travel with work and don’t want to buy/sell whenever they change job. It buys flexibility. Repairs and maintenance isn’t to be sniffed at either. A new slate roof, and stone masonry repairs in a conservation area just cost me & 3 other owners £260,000 (combined). A lot of cheddar!
That's a fair enough point, its why my son is renting. Wasn't sure what he & his girlfriend wanted to do long term, found a lovely house , landlord seemed realy nice when they first started renting (4 years ago) never missed a payment even through covid, year 2 rent went up £75 a month year 3 they had a leak under the bath, before it was fixed the landlord accused them of causing the leak (the waste had come off under the bath) 2 weeks after the repair the landlord put the rent up £100 a month, they questioned another rise so soon the landlord said its going rate for your area if you don't like it leave !
@@martinhammett8121 The sad fact is rents are rising not to add more profit, but rather to fill the coffers of HMRC. Any “evil landlord” tax is actually a tax on tenants. Clever media campaign.
As a deposit-saving-renter disgruntled at the current housing situation in the UK, I predicted that an exodus of landlords from the market would actually be fatal to renters, and not the schadenfreude everyone else claimed it would be. UK housebuilding has been woeful and running behind for decades, partially because we became so fixated on property-as-investment, so kept the supply limited to shore up values. I know property-owners don't like to hear this word, but government intervention is really the only answer in getting us back on track. Relying on the market to organically keep everything in check has obviously failed.
@@sarahann530 If you are making "great money", that must mean tenants are being ripped off with rents that are artificially high. Part of what is preventing them from obtaining property themselves. You need to remember you are not entitled to a high-yield investment just because you want one.
@Luke Capitani Learn how to read English you dopey bollix . If there is money to be made renting property landlords would provide more not less . It is quite obvious why the govt has to provide you with accommodation.
It all depends on people's circumstances. As a 23 year old who is currently buying their 4th investment property, I understand that the benefits from property are long-term and not short term. I have a great letting team who is always in close communication with the tenants who then form a relationship with me as well. So there is a "triangle" of support. Unfortunately, I am not one of those landlords who do not increase rent. Interest rates have tripled, which has resulted in a rent increase.
2 yrs ago I inherited some money. 20 years ago I may have been persuaded to buy an investment property as a prudent retirement investment. But today, Landlords are so demonised and vilified by the press. The weight of the law & the tax regime is now also heavily loaded against Landlords. Today, I would not want to be thought of as a "Landlord". The money will just sit earning 4% interest when it could provide accommodation for someone. This is the world our so-called politicians & so-called journalists have created for us. UK letting agents are probably best placed to regulate the sector but most are crooked & dishonest and would laugh at any attempt at reform, they give landlords a terrible name.
I totally agreed with you to regulate the agent more than the landlord because the agent knows that the council go against the landlord rather the agent.if the council go on agent than the agent will rent the property with more responsible way .I let my property to the agent on the guaranteed rent and he rent the property on room by room without telling me ,only I realised when i received the letter from local authorities that I should apply for hmo .
All this sympathy for lazy and filthy tenants is ridiculous! The landlords are not helped at all and often need financial help. Rogue tenants are evident everywhere as indicated by the weeds seen in gardens and filth encrusted windows. Landlords are not to blame. There is an excuse for poverty but it costs very little to keep a place clean and tidy! It costs too much to restore a rented property after tenants have trashed it! The embittered rhetoric of the deluded does not provide roofs over heads and does not give landlords incentives.
Last 2 years the property prices in most UK areas just shot up high. It was just after big government spending due to known issues in the world. With the right knowledge it's good time to invest in property.
It would also be good to recognise the amount of pressure put on to the staff grafting in lettings, doing the groundwork under tremendous stress, and pressure to always get it right in the face of relentless changes to legislation in the sector. I respect the focus placed on the market and how it affects landlords and tenants, but there is neglect on the agent holding it all together.
Agents holding it all together turn it in .most agents are rubbish only interested in there commission rent to any one .dont give a monkeys about youre properties
12:51 - Only if the letting agent knows what they are doing....so many in our area are staffed by people barely out of their teens with almost no common sense. A young office worker couldn't believe I rejected a £1100 quote for new conservatory blinds after one of them got slightly water damaged due to the tenant forgetting to close the window. This was on a £500 a month rental.
Hi Ed, again it boils down to education as of course there are reputable agents and rogue or poor agents. Landlords need to learn how to do due diligence to find a reputable agent. I have written many threads on Property Tribes to explain how to do that.
Agreed, we'd recommend looking for a regulated and qualified letting agent if you're not familiar with the quality of your local letting agent. This article might help www.moveiq.co.uk/advice/renting/best-letting-agents/
I rent and have been in the same house for fifteen years, my landlord has never spent a penny on the property, i even had to replace the joists and floor in my kitchen. I am disabled and the local housing pay my rent which i am very grateful for .Even though i have spent thousands of pounds on the property my landlord put my rent up £100 pounds which i have to find myself every month because it is above the rent allowance ,allot of landlords are most certainly bad but obviously there are good landlors aswell .
I own just one UK rental property and I'm just about to sell because I'm getting lower rents (my 2-3 house in Coventry now falls under HMO so I have chosen to let to a single family instead than 3 individuals rather than pay to install fire doors etc), facing higher maintenance costs, and experiencing a rapid deterioration in the capability of the agent since the local firm I initially used was taken over by a national chain. I have no financing costs but the returns from elsewhere are improving.
I'm a private renter and my property recently went on the market. The landlord couldn't sell the place so it went up for auction earlier this year. it wasn't long before the new landlord of the property issued me with notice to vacate, after 8 years in the property and in spite of the estate agents trying to plead a case for me stay as I've been a good tenant, always paid rent on time, never had any complaints, don't earn much money, and can't really afford to leave, the new landlord said and I quote "I don't care" and still issued the eviction notice. Because of this I could potentially end up homeless, due to not being employed at the moment private landlords aren't touching me with a ten foot barge pole because I'm currently on DSS. Someone so heartless with dollar signs in his eyes only caring about himself simply said "I don't care". cost of living crisis is bad enough without landlords forcing people from their homes like myself 😒
Very sorry for your situation but blame the government for creating an environment where your origional landlord couldn't probably wait to get out of the market.
The end part of your sentence and I quote "forcing people from their homes like myself" in reality is not true. The "home" is owned by the landlord not yourself.
Did you have any sort of safety buffer in savings to cover emergency's like unemployment or any unemployment insurance to cover bills if you lost your job? If so and you burnt through that and the house is modest then your problem isn't the landlord, its that housing benefits haven't kept up with market rents. If the property was bought at auction you will probably find it was bought on an expensive bridging loan and he had to refinance with a proper mortgage pretty quickly. The lenders stress tests will tell the landlord how much rent he needs to collect, if you cant pay that amount the landlord has no choice but to find someone who can. Its not heartless, if he doesn't do what the lender tells him, the house is repossessed and you are homeless anyway. Either way you cant expect a private individual who doesn't know you to subsidise you any more than you can expect the stranger behind you in the supermarket queue to pick up your grocery bill. Your last landlord was subsidising your living costs and ultimately decided to sell, presumably because he didn't want to do it anymore or couldn't afford to when rates went. Private landlords are not the government, they dont exist to pick up other peoples bills when they cant afford to. We have a social security system for that. Landlords have bills to.
As an accidental landlord with a house in Trust the returns are less than others might expect. We, like Vanessa have not increased the rent in entering the market. With the current onset of new regulations I feel that we will exit this market as the returns on not worth the worry. Simple maths and a return rate of 4% now available from bank etc makes it harder to believe the worry factor is worth it.
Youre absolutely right ... BOE will raise rates - height to 5.5% by this autumn and tail off to 4-4.5% end of next year ... but its easier to put money into a 5 year Bond of 5.25% with no worries and with monthly and yearly interests ... you dont have the stress .... The UK govt at the moment is totally out of touch ...
Many people dp not realise that the return is 4% in many parts of the country. Any increased costs or regulation at all, basically makes it a losing proposition.
I started stacking to SAVE wealth. I've always been the type of person to spend my entire paycheck. I hate having money just sit in the bank. I am under pressure to grow my reserve of $950k. before I turn 60, I would appreciate any advice on potential investments.
I can feel your pains. New guys need to realize the risks that come with all of this. You could lose it all and you could win it all. It goes both ways. Second, what works for A may not necessarily work for B and you should not be a bandwagon investor. A good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge.
@@devereauxjnr Factos!! Since the market became extremely volatile and pressure increased (I should be retiring in 17 months), I took the decision to work closely with a financial advisor. It has already been 9 months and counting, and I have made approximately 600K net from all of my holdings.
@@Tsunaniis-j5l That's impressive, my portfolio have been tanking all year, tried learning new strategies to gain in the current market but all of that flew right over head, please would you mind recommending the Adviser you're using.
@@DreamweaverShade-h9p My advisor is the quite famous NICOLE DESIREE SIMON She has been making a fortune online worth millions of dollars in digital assets for a select few for years. Lately, these types of services have appeared that allow you to copy the results of the experts. She demonstrates how to copy it automatically using that system.
There should be a Government Run Register of Landlords and Tenants, which should include observations of Landlords and Tenants, like the EBay does of its Customers,.....Which would encourage GOOD behavior. The Government should be quick to fine Bad Landlords, but also Evict the Bad Tenants within weeks not months.
Don't be silly. The government has cut and cut the local authorities so who is going to put the register together and then police it ? They would probably put the cost onto the landlords to pay for if it happened !
I think all the council houses being sold off has to some extent resulted in a passing the buck on to the private landlord - what if the tenant has caused the mould - i.e. showering without opening windows for ventilation etc. I rented my property out years ago via a letting agent when I worked in the US - and agree they are worth their money. No vandalisation occurred and no horror stories of missed payments due to good vetting.
A very good debate which explains where we are and what the problems are, what it will not do is to get this govt or the next to listen and do something sensible. So my plans to sell up are still there and are going forward.
I'm neither tenant or landlord but I'm interested to see the efforts made in defence of tenants with sanctions against bad landlords...but what about bad tenants who can create a nightmare for a landlord in terms of damage and arrears and then walk away and do it to another landlord.
tenants who can create a nightmare for a landlord in terms of damage and arrears walk way more oftern then what the media talk about. You will hear tenants and the media bashing the landlords 90% of the time and the rest of the time you only see few bad landlords but the problem is that 100% of the landlord get the bullshit crap
Everyone I know who rents out properties , myself included, are selling our rented houses as soon as they become empty due to ever more rules and regulations, no power to evict bad non paying tenants, and high interest rates... within the next 2-3 years there will be no more houses to rent, let the government sort it out, they,re making these rules and raising interest rates. My friend had 7 rented houses, his mortgages will soon be more than the rent he gets, so it,ll cost him money to house non paying tenants...crazy. I had 4 , sold one, another just fine in the market, rest will be sold when current tenants leave.
This is all part pf the government’s plan of you will own nothing and be happy…big companies and corps will buy from those landlords who are selling their properties (rightly so) due to such ridiculous rules and then those corps and conpanies will rent out those properties on a completely different basis/loophole etc.
People will be on the side of the road in large numbers soon. Hundreds of applications for every property that comes up for rent here in Worcester. UK.
Mine has a reasonable mortgage for another 3.5 years. The issue is I now need a HMO licence from the local authority to let it out to 3 professionals. I think I'll sell up when the mortgage needs rearranging, there is just no money in it at the current interest rates.
As a landlord I find comments about mould laughable. If the majority of properties are heated and ventilated properly there will be no mould. Tenants hermetically seal our properties leaving no opportunity for air flow and then dry washing on radiators hence mould. As an owner occupier i have no mould but if i saw any i would immediately use bleach to remove even the slightest appearance. Constantly amazes me that we see in media walls covered in mould when at a tiny tiny cost in terms of cleaning agents and minor work this could be stopped in its tracks. Why do they just sit there and watch it grow. Ive on occasion visited tenants properties who have bought after leaving my properties. Guess what, no electrical safety check, no gas safety check and mould everywhere buts thats ok because they own. As a 30 year landlord with some 15 year tenants I've reduced to only 6 properties. Some of my tenants have never had a rent increase. I really like my last 6 tenants but I'm out and cant wait to be fully gone.
This. I lived in my property in 3 different stints and had no mould issues whatsoever. A tenant was in there for 2 years and turned the place black due to high heating temperatures, drying clothes on radiators and not opening any windows.
I looked into buying a flat/ house as an rental income about 10 years ago. After lots of talking with landlords and doing the maths I thought that the only way to make any money was not to use a letting agent. So as I didn’t want the Argo didn’t buy anything
I became an accidental landlord last September due to serious illness and the need to move in with my partner following major surgery. I rented my home via a reputable agent and got landed with tenants who left the house filthy and full of mould then had the cheek to say they would sue me unless I allowed them to stay. It has cost me £3000 in repairs and restoration so I have already lost money. They then found me in FB and sent threatening messages which are now with the police. I now have other tenants in on a 6 month tenancy but will sell up after that ends in October. Once the agents take their monthly fees, insurances and other maintenance costs are paid I receive approx 2/3 of the rent they pay. Last month ( their first) I received less than half the rent because of the set up fees from the agents. I never set out to make money just cover my costs but I cannot afford to lose money or the worry as my health has suffered from the stress and anxiety the first tenants caused me. Most of my children rent and I have had many battles on their behalf with rogue landlords and utility companies so I do understand the other perspective but I have been a good landlord and treated appallingly by my tenants. I’m sorry but my house/ former home will no longer be available to rent once this tenancy ends. I would say the rental market will be run solely by large corporations in the future because they are the only entities who can afford to absorb the costs of changing legislation and actions of rogue tenants
It's really disappointing that section 24 was not discussed in more detail. Section 24 has caused alot of rental properties to become loss making for the landlord. Of course they are going to sell. They will not subsidised a tenant.
I've been letting properties since 1991 and have 5. I use letting agents and this has provided a reasonable steady income. But I will have to sell up, I don't want to, I have got a lot of experience in letting property and it all runs like a well oiled machine. My problem is inheritance tax. The tax rate on passing on investment properties is very high. Some how the Blairs (Tony and Cherie) have passed on a large portfolio with no tax but how they did that has never been explained. The IHT rules require that transfers are made at least before 7 years of death so its no good delaying. I hope to have many years of life, but capital gains tax means that I can only sell one property per year and so with 5 that's at least 5 years and could easily run to 10 if each house is restored for sale. The housing market has no bearing on my decision to sell, I've seen it go up and down, and rents go up and down, what is driving me is the tax regime. The rental maker where I am is current very hot and I am achieving my best rents ever, but giving 40% of my portfolio to the tax man is a serious hit.
We paid tax on a loss for last year and that despite raising rents. (Unique tax position only for landlords) we need to put in more money or sell. Given that we can get 4% on a 3 year fix with sale proceeds, we now have listed 5 properties, 1 to sell to tenant, 2 empty and 2 with tenants included. I must sell two. After that I will see what happens.
Update after only one day, two properties under offer with landlords at asking price. I am surprised no interest from first time buyers apart from the third one that the tenant is buying.
@@stephengreen2626 There's the proof this policy really doesn't and will never work. So no houses freed from your part to be on the affordable housing market we are told is needed. Small landlords being rubbed out to make way for the big guns, Cerco, John Lewis etc etc. The tenants suffer as well as the btl owner.
I sold my rental property last year, not because of tenants who were very good but due to the toxic nature of Government ‘Incentives’. I was an accidental landlord due to difficulty of selling inherited property when my dad passed away. Sold to a new landlord for 80k loosing 50k on current value. I did want to help the tenants in any way possible rather that selling to a private buyer. Was very satidpsfying to get out of the worries of being a landlord.
It’s my right to manage my own places, if it’s far away then yes makes sense to pay 8% so it’s looked after but I’m building a local portfolio and won’t pay a % for mandatory management she suggested as it would put me further out of pocket..
Thank you for your comments. Some of the issues caused by this government are costing you much more than 8% imho! This is an acute crisis and needs an urgent solution to protect both responsible landlords and responsible tenants and to protect responsible landlords from rogue tenants and responsible tenants from rogue landlords. My suggestion was a simple and quick - perhaps even temporary - solution to fix this problem. However, it won't ever happen so don't worry.
My son complained to the land lord (bath leaking) the land lord accused him of causing the damaged after have it fixed, they put the rent up £100 a month & said thats the going rate for this area like it or leave !
My Landlord has Decided after 6 years of payments on time, to kick out my family, because women looked after by the council makes more money. So now in 5 weeks my family with three children will be homeless. All because to get more money in rent, he would have to fix up the property. So better to let council funds pay him.
The problem is there will always be a segment of the market that will never own property due to their circumstances. i.e. lack of funds, lack of employment, socioeconomic and other personal issues etc... Thus landlords are essential to fill that void. Prices wont drop because demand will rise to match supply at price. If you have a growing population, you have to make more houses if you want prices to fall or not increase. Simple as that. Everything else is pssing in the wind.
@@KernowFay I've heard of them but I have never met any. Our tenants love our houses. We make very little coz we cater to their every whim and we are glad we are ok. The rents are not too high. Mostly universal credit and they only have to pay 4.00 per week top up but we keep the garden nice..paint it when they ask and treat their home like we do ours. Xx
Private rented is here to stay; houses cost 9X average pay, 1.6 million on local authority waiting lists (1.1M 2010), 49% first time buyers enabled by BoMoD (bank mum dad), 30% of young people will own a home by age 50 (cited by Labour 23/4/23). No unpicking this. UK property (£7TRN) is valued more than the combined values of all UK businesses, pension funds and savings.
It’ll shift private rental sector towards high capital investors. Banks are stepping in already: they don’t need mortgages and can raise capital at the base rate as opposed to mortgage rate. That will ofcourse mean rental increases at RPI+3% like a phone bill. Over time I guarantee it’ll shift money out of the UK to the USA. The big corporates don’t pay tax, which again makes them anti-competitive against small landlords.
In my line of work, as a Realtor and Apartment Locator in Phoenix, tenants can do nothing about rents rising. Tenants are having to move to a renovated unit (higher priced) or leave at the end of their lease. Gone are the days of appreciating long term renters, especially when new management takes over.
I don't use an agent and I will NEVER use an agent. I hear nothing but complaints about them and I think there are very few that do a good job. Plus the expense. Make me belong to the same organisation as agents and do training, but DO NOT make me use an agent. I have been doing this for decades with many long standing happy tenants who choose to use a private landlord precisely because they get a bad service from agents. It's another example of penalising the many because of the few.
Hi Ian, unfortunately, your solution would mean landlords bearing the cost of training , which responsible landlords would do, and rogues wouldn't. Therefore, there would need to be strong enforcement of people not doing the training. Who would enforce it? With a lack of existing enforcement, it doesn't seem too hopeful. I have a different view of agents as all my properties are fully managed. I've been with one agent since my first BTL purchase 19 years ago! I am very happy with my current cohort of agents. I've had a few poor ones along the way, but I've learned from that and share those learnings with the Property Tribes community to assist them in making wiser choices when choosing an agent. Unfortunately, if I post links, my comment gets deleted so I cannot send you my content in this regards. I think managing a property safely and compliantly is a fair bit of work (as well as keeping up to date with legislation and regulation) and I don't mind paying 10% for all that hard work, but I respect everyone is different in this regards, hence why this debate is much needed. Did you know the government released an up-dated "How to Rent" Guide recently? How would you say self-managing agents keep up to speed with this kind of important information?
P,.S. I regularly come across self-managing landlords who have never heard of deposit protection. At the Property Investor Show a few years ago, I was chatting to a man with 40 BTLs and he'd never heard of it. So educating landlords is very important imho to ensure they provide safe and compliant homes to their tenants and meet all their legal obligations.
@@propertytribes I absolutely do know that there is an updated How to Rent guide. I belong to the NRLA to keep up to date and use all their documentation. I once did their training to become an NRLA accredited landlord when the local Council were threatening to introduce a licensing scheme (which they didn't). With every new tenancy I check and double check if there's anything new and I comply with everything to make my properties safe. I find that managing everything myself and having a direct relationship with the tenants helps me to have very successful long term tenancies and my tenants appreciate the prompt service I provide if there's ever any problems. I do agree that it is shocking how many landlords don't know basic things and I see them all the time on forums asking questions that they really should know the answers to. Personally I would prefer to be allowed to pay to become an accredited landlord, perhaps through an organisation such as the NRLA, which wasn't expensive at all, rather than pay 10% of my rent to an agent to do what I can do perfectly well myself. Perhaps there should be a choice.
@@propertytribes In answer to who would enforce it. As part of the Rental Reform Bill there's supposed to be a national register of landlords/properties. Presumably it will have details of compliance of EPC, EIRC, gas safety etc. So perhaps it could show details of a landlord's accreditation too.
Helpful discussion and relates a lot what's going out there. FYI, there is a loot going in East of London which is aka a cess pit and living hell of uncontrolled illegal immigration. 4 people living in 1 room with two bunkbeds & paying insane rent of £110-£140 p/w. There are more than 9 people living & the money that sublet person is making is not even declared to HMRC. This is a perfect example of potassium cyanide situation where a renter is smothered to death by paying rent to the scale of mortgage instalments & the sublet & landlord getting rich for doing nothing. WHY AUTHORITIES IN UK are allowing people to flow so easily & NOT deporting those who are illegal & overstayed their visas? This country is good in trash talks & expecting action from this wanker government & authorities is like expecting donkey to teach physics.
@@jackpot7898 Now we've got a new wanker to carry on the fiasco. Things need to get tough on housing unwanted economic migrants, to name but one issue.
The writing has been on the wall for years, i sold my renting property because there was always some new regulation that cost you more and more. Renters rights trumping those of people who who actually own the property and the hassle of getting money from renters. The worry of a large lump of capital in the hands of renters who couldn't give a stuff about the property either, whilst all the time any potential profit being erroded. Not worth the hassle any more. Their loss !
I have had good yield and increase on house price over the last 28 years but with the latest bank rate increases my yield is small, I got a rent increase recently (first in5 yrs) but if rates increase by a further 1% (6%) i will be loosing money, I am already on an interest only mortgage.... how to pay repairs and EPC costs on an older house....time to sell.....
44:08 in response to the lady’s suggestion, if you enforce property management, estate agents WILL abuse this power and overcharge, leaving small landlords with even less profit margin.
It's ok to report to the local authorities for mold damp etc but this happened to someone I know and they got issued a section 21. So it's another way for the landlord to get rid and find someone else after they do work. If they do it
@@victoriahope-vv9rh I work for a landlord, mold and damp issues can be lifestyle related. Some houses had said issues with certain tenants but miraculously dissappear when they move out and new tenants move in and don't dry washing on radiators or turn kitchen/bathroom extractor fans off and open curtains and windows on a regular basis, etc etc. Somehow it's always the landlords fault because some people don't understand basic physics re moisture and temperature.
I’m an accidental landlord who inherited a house. I’m lucky my tenant is good and pays the rent and looks after the property. I make absolutely zero from the property once all the tax and maintenance is paid. I’ve never raised the rent on the property. Fortunately the capital is rising on the property. As soon as the tenant decides to leave it’s getting sold. I would not recommend anyone investing in property now. I earn as much on my SIPP pensions and ISA without all the hassle.
Hey, i also own a house and was thinking of selling just because my kid wont be able to inherit it. I read that in such a case he will lose 40% of the property
Very honest comment from the landlord class - they want a Tory government because they know they'll always have their backs. The fact that the Tories have created this crisis, first with Right to Buy, then with the failure to reinvest in new council housing, and finally with their culture of nimbyism which keeps housing stock low and landlords rich. Tenants aren't at breaking point, they passed that ages ago. Tenants are in a deep existential crisis caused by the greed of the owner class.
No doubt there are some greedy people out there. But you've seen how people's energy bills have increased recently, right? Do you think that landlotds are exempt from these rises? I understand that first and foremost you will see things from your own perspective. But sometimes understanding someone else's perspective might give a more accurate picture. I also believe that some people chew off more than they can handle hence when interest rates increase they're screwed. This obviously isn't good for tenants.
@@juliuswi8767 So you want renters to pay for your bills?! And you claim not to be greedy?! Someone's home should never be another person's profit-making venture. It's sick. Get a job and pay for your own bills like the rest of us.
Vanessa speaks for many small landlords who have good intentions and act in a positive way. And yes, the houses still exist and may be bought by owner occupiers but replacement of good small, local landlords by heartless private corporates is not good news for tennants.
You have to remember Buying Property is an investment and investments can go up or down in value. Buy to let pushed the price of First time buyer’s property out of reach of many, now they are realising that they many have forced prices too high and their loan will not be covered . It would be better for a big drop prices to increase buyer affordability. Massive amounts of British Tax goes on very poor standard houses in the form of housing benefit. What is needed is a licensing system where you need a licence to own a rental property either through an agency and if there is no licence a landlord will be barred from renting.
@@doug2279 Pretty much all of the properties rented out by the landlord I work for are certainly not rented by " the poor" it's the choice of the tenant to rent at their affordable level. Rent or buy it's up to you, poor or not, depending on your definition of 'poor'.
Arguably a good self managing full time landlord would prefer to choose their own tenants since many agents won’t look after your asset as well as the landlord can. Why force full time landlords to pay for an agent? I agree with Vanessa on many points but I don’t agree this is a solution at all unless this rule only applies to those landlords on the rouge landlord list.
Thanks for your comment John. It's fine not to agree. It's great that this interview is sparking debate, as that will help tease out the issues and bring clarity to them.
@@callumryan8283 Ive had a house trashed by tenants chosen by agents on three occasions and the agents only collect rent take a cut and pass on the remainder. My own self managed tenants on the other hand have been great so far.
Her closing remark - "There's plenty of properties out there to buy anyway, but many tenants are preferring to stay in the private rented sector". Such an ignorant statement on so many levels.
It's not ignorant at all but I apologise unreservedly if it came across as such. Let me clarify. If someone doesn't want to buy a property - for whatever reason - maybe they don't want the responsiblity or they are concerned about rising mortgage costs or rising maintenance costs or they haven't decided yet where to put down roots - where else can they live if not in the private rented sector which is now a form of social housing, as discussed in the video?
@@propertytribes you make it sound like a lifestyle choice. Many would love to escape the misery of the private rental sector and own their own home but it's now more unaffordable than ever.
I am renting 1 property, which I am now being forced to sell. I have given the tenant a section 21 order to vacate in 2 months that did not happen. We gave the tenant 1 more month. The tenant still did not leave. Even though the tenant said they would b moving up north to a seaside area has now spoken to the local council and they have advised her to stay put and force me to evict. So because the council will not help this tenant until being evicted I am forced to go through all the hassle of eviction. My mortgage has now gone up so far that it is costing me to keep the tenant and it doesn't matter that we are retired and my husband has a heart condition and luchemia. It seems that we have less help than the tenant.
@@knittys3712 Sadly that is the future for a lot of landlords. I'm staggered at the councils advice to the tenant to stay, apparently its standard advice to buy time for the councils. So yet again no help for landlords. The council don't mind charging you 150% council tax if you're property is empty while you have to refurb it because a tenant has trashed it.
Is any of this applicable to business premises? We have a landlord/agent ignoring water ingress/damp for over a year now and need to take things further but don't know how...?
If EPC changes are genuinely to deal with Climate Change, why is it only aimed at Landlords property, rather than everyone. The point some may chose to put forward in answer is cost to the tenant of energy costs, but this ignores the same costs to the homeowner and also ignores the fact the Climate doesn't care whether your are a tenant or homeowner. It's not about the tenant not having a choice either, they can select to only rent in a higher EPC and pay a higher rent. The real problem is the simple fact successive governments have proven incapable of understanding business issues outside their personal experiences (failures like Blair's Dome, Labours NHS computer system, Y2K the list goes on from all parties..and Scotland is now looking at the impact of rent controls) and so change a market with disastrous consequences. . Also, why an EPC of C, why not D or B ...and then we talk about the lack of qualified EPC surveyors able to grant the rating, the fact there is no "standard" as views amongst EPC approvers differs and the fact, once again, government is going to cause rents to increase along with homelessness because they just do not understand people are not lining up to buy ex rental property. There is also ignorance by government (and some others) unaware that many landlords take a property requiring money to be spent the homeseeker doesn't have, and yet the landlord will take on the risk of borrowing or spending to improve rental capability for longer term good tenants to move in, or bring an unmortgagble property back to life the homeseeker cannot docommunication
Totally disagree re landlords having to have agents as in Wales. I’m so frustrated here in many ways. I am professional in the way I handle my business. Purpose built one bed flats built to the very latest building standards in 2010 but because they are heated via electric ( so called green energy), they are band D. How is this possible? Air sealed, absolutely fantastic fully insulated modern purpose built properly? Then there’s rent smart wales. I have to have a licence, then I have to have an agent… then the agent needed to re do his exam but it’s no longer £40, it’s over £300 for him this time- and now he needs to belong to an independent body for looking after deposits and now they want him to have his own insurance indemnity. That’s on top of me having to sort my own stuff. The prices and costs are just the thin end of the wedge. It’s all about control and taking more and more money. This time I simply added 10% on to the costs and divided it so the tenants will pay for it. I’ve had enough of all the extra taxes/ costs. The capital gains tax, second property tax and the abolishing of being able to claim your interest is proof that government don’t want landlord’s. It’s shocking how we’re treated. During Covid, I couldn’t get rid of one of my tenants due to government interference. When I managed to gain entry, the flat was trashed. The government should have paid to put it right. They helped cause the damage by allowing bad tenants to stay in our properties. It took months to re build… a financial loss to me and a perspective new tenant. Too much interference
And after the mortgages are paid off, you, the landlord, end up with properties worth hundreds of thousands of pounds, if not millions of pounds. How will you cope? My heart bleeds, the poor, poor landlords... LOL.
@@johnthomas338 it’s a business like any other and a big gamble. Unlike you who probably works at a job and gets paid a wage, as a landlord it’s very different. You gamble everything you have knowing that if a bad tenant decides to wreck your house or interest rates become unaffordable, you stand to lose everything including your home. You pay tax on your income even though you are in fact making a loss as your mortgage payments and interest are higher than the rent. All this in the hope you get to the end of your 25 year mortgage and retain your house which for most of us is around £200,000. So, we pay more to purchase the house through landlords extra stamp duty, then when we sell, we pay 40% of whatever profit there is and the way things are going, there won’t be many landlords willing to take the gamble. We pay a massive amount of tax so it’s not as simplistic as you make out.
@@musicplacenz You wouldn't be allowed to get a Buy To Let mortgage if the rent wasn't higher than the mortgage repayments. You are still getting somebody else to pay for an ENTIRE HOUSE for you, for free. What's with the "massive amount of tax"? What amount would that be?
@@johnthomas338 when we took out the mortgages the interest rate was 2% and like all businesses, you only paid tax on the profit after costs… like every other business. So within the last few years the government stopped landlords claiming the loan interest- so that’s one tax. At the time you could have an interest only mortgage and as the interest rate was low, you made a profit… it’s called business. You should have done it yourself! That model only worked as interest rates were so low. The government also relied upon landlords so they didn’t have to build new council housing… a win win for them. This wasn’t enough though so they also added an extra tax when a landlord purchased a house. That’s a second extra tax. We pay more for any property we buy. Then, when we sell it, we pay a capital gains tax on anything we make from when we purchased it 20 years ago at it’s price then and what we sell it for now. And we obviously already pay tax on the income we get each month even if the income doesn’t cover the bank loan. That’s why landlords are leaving and that’s why tenants are paying more. The government have gone way too far. Tenants are also the victims of this government. They are the reason that costs are high. Fewer and fewer landlords and far more costs and those costs ultimately ho to the tenants.
@@johnthomas338 The mortgages don't get "paid off" by the tenant as you imply. I'm suspecting finance, interest only mortgages, taxes and financing property purchases isn't your strong point. Try it and see how you get on.
I’m a single home owner with a lovely six bedroom house , but can only rent out 3 of my rooms without becoming a hmo. Meaning No more than four unrelated people can live in my home without breaking renting rules .If I was a family I could have as many kids and relatives as possible filling up my rooms . This is so stupid when I can’t even take couples or use those two spare rooms I have sitting there empty to help more local workers .iI don’t work , this is my only income and live in this house. I can’t afford the HMO yearly fees , The HMO rule should be changed to cover how many good sized rooms a house has . This is my only income but the rents I get don’t cover my rising bills , I’m 60 and will be forced to sell my home if rules don’t change to help good private landlords who live in their homes and rent to local working lodgers .
Remenber. Everytime a property changes hands somebody makes a mistake. Either the seller sells too cheap or the buyer pays too much. The skill is knowing who is right.
I'm not convinced we need to build more homes. We have tens of thousands of empty properties around the country. The problem we have is these properties are in neighbourhood's that have been allowed to decay. We need a policy that tackles deprivation, anti social behaviour and the yob element in these areas to attract people to buy and occupy these properties but this is never talked about.
@@defunctt Tens of thousands is a phrase and you know it. There are actually over 600 thousand empty properties in the UK. If they were all brought back into use that would make huge inroads into the so called housing shortage. Not all renters want to buy. Less than 10% of mine would if they could. But the way we landlords have been vilified they will all have to find somewhere else in the future as I sell up.
I have two flats in Croydon, and after paying the agent fees the income does not even cover the service charge, I am desperate to sell, forget about selling it, I cannot give it away.
There exemptions to the EPC for costs over 3,000£. If this is an historical property, understandable if not no sensible tenant should rent such a property as bills will be astronomical and usually due to poor maintenance such as lack of insulation, drafts windows etc.
Database of rogue tenants? This constant squeeze of the Landlords is creating a perfect storm. Landlords leave and rents skyrocket. To get out a bad tenant is a nightmare. When you look at it as a business also it just isn't worth it anymore. I'm out next year for sure.
Learn to do due diligence on an agent. There are links posted in the comments here on how to do that. It will help you find your way to a reputable agent.
You can talk all you want about EPC's and funding but until the EPC assessment is upgraded and a uniform standard landlords have not and will not have any confidence in EPCs. I recently had 3 EPC assessors on the same property. I got a low D, a high D and a low C. Complete joke.
I'm selling up after being shafted by yet another nightmare tenant. Even though they left the property in July and paid no rent since June, I still have to wait at least 2 more months, while the Section 21 runs its course. Can't wait to get out of this business, especially since us decent landlords, get such a rough deal.
Politicians interfering in Markets always end in disaster. "Vote for Me and I will bring in Rent Controls " is the usually scam. Best example is the South Bronx where building owners could not cover their mortgages or fire insurance. In UK the owners of HMO's housing very poor men on housing benefit no longer able to keep up with crazy and expensive regulations , close down , sell up and the homeless population grows by the day.
Thank you so much. I paid advance to an agent and then he rejected my offer. Now he is not refunding the deposit saying I didn't give a guarantor. Is providing a guarantor is mandatory?
No, a guarantor is not mandatory. You should make a formal complaint to the agent, and, if it is not resolved, you should make a complaint to the independent redress scheme the agent is a member of. It should be clearly displayed on the company website and in the premises. Good luck getting your deposit back.
Making the interest on your BTL mortgage no longer tax deductible has killed any profits in being a landlord now unless you can buy properties for cash outright.
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Here in Cumbria it has been the case for several months that properties come on the market & within a month are reduced by 10%-20%. This is not fantasy it shows up on Zoopla etc.. & yet we keep hearing that the housing market is doing ok. A buy-to let-property nearby is priced at about 65% less than an equivalent non-tenanted freehold property & it has been on the market 7 months. B2L is dying.
I have rented three properties for a long time at low rents Current tenants have been there over twelve years and I have never put their rents up. Like the lady on here my rents are way lower than the going rate. I am elderly and have tried to make things easier for young tenants. but now with the new EPC rules I will have to sell or dramatically raise the rents. I can't afford the changes. I might add that my properties are the older type terraced houses and currently have D ratings. The profits on my houses has always been minimal due to my social conscience, and now the new legislation feels like a slap in the face.
It is! In Ireland they brought in Rent Pressure Zones and essentially your low rents are frozen and you will be punished going forward. My advice Ditch your social conscience bring your rents up to market levels ASAP. If your social conscience does not permit this scenario then sell up!
That's the bit that never shows up in the analysis. If landlords were so bad, people would be moving more often. They're not.... because they're paying less than what's on the agents windows. The only issue you will face is when you need to put rents up or give them notice as they will be in for a shock.
It feels like a slap in the face because it is a slap in the face. This world and the political slievieens that run it are appalling people!
More like you and the regulations would not be needed.
The worst thing that has happened to small private landlords in the last 5 years is the tax situation that has moved from being tax on the profit, to tax on the whole amount - costs. That's a devastating difference for an accidental landlord.
Here's some basic maths and rough costs as far as I'm concerned. I own 1 house that I rent for 700 a month, thats probably 10/20% below the going rate, but I dont want to increase it further.
The estate agent charges me 9% , 700 x 0.91 = 637,
Minus about £40 a month for landlords insurance and I'm left with 600 give or take.
I'm a higher rate tax payer so the tax man wants 40% of that 600, that leaves me with £360
The mortgage is about 420, which represents well under 50% the value of the house and puts me at a £60 loss each month for the privilege of owning the house. That's before taking into account costs associated with further regulation, annual gas certificates, or any maintenance whatsoever.
Add to that the management effort on my behalf, the fact I have to do a self assessment tax return because of income from the property and you have a situation which just isn't worth while by a mile. Even if I increased the rent by £100, I would still only break even, BEFORE maintenance costs.
It's completely unsustainable and yet we have renters having the opinion that landlords are greedy money grabbing rich people. There are loads of people who are landlords who are not rich at all and make Nothing from renting their properties.
That's why I'm selling up even though I believe that keeping assets would be good in the long term, the powers that be have made it deliberately unaffordable to strip people of their assets.
Two options - Short lets or sell and put your money into a 5 year bond of 5.25% with no hassle ...
This is the situation tenants and most of the general public have no idea about. When I discuss the current situation with people they are shocked at the madness of the prs created by government policy. You are spot on in every point. Landlords are dubbed "leeches, money grabbing, parasites etc etc. If this sort of situation was implemented on public sector workers there would be rioting. So calls for wage rises for public sector workers etc falls on my very deaf ears, they should try a 95% actual pay cut.
@@willboa5365 Short lets are next on the government list of things to destroy in case ordinary people may have a chance of making a few quid. Why should i ask my disabled tenant to leave because Michael Gove has re written the PRS to no-ones benefit.
@@razorphone77 Why can't you be happy with breaking even and having someone paying off the mortgage for you, adding silly amounts extra on top of the mortgage is what has pushed up rents to insane levels.
@Stefanski30100 I would have been. But I wasn't breaking even by quite a distance. The only way of doing that would have been to increase the rent. Which I didn't want to do and would have fed the situation you highlight. Also note, that I did mention that the mortgage was less than half the value of the house (as an expense) and even then I can't make it work.
Be nice if as well as having a list of bad landlords we had a list of bad tenants!!
Good discussion. I'm selling up, but not until summer next year, as I've agreed with my tenants that they can stay so that a child can complete that year at school. I'm an "accidental" landlord, having let the house I used to live in before I retired abroad 13 years ago. My main reason for getting out is that I'm nearly 80, so want to "clear the decks" for my inheritors before I die. But a lot of what was said in this discussion chimed with me. Comparing my spreadsheet for the tax year just finished with that for 5 years ago (2018-19) I see that the gross rent has increased by 18.5%, agents' fees by 33%(!!), and my nett income by 3.8%. Of course, a major factor is maintenance costs, only to be expected as a property ages, and in the last 2 years I have spent nearly 3 times what I did 5 years ago. But not being there, you are at the mercy of rapacious contractors, with limited ability to shop around. I couldn't believe the quote I got of 250 pounds to clear 2 x15ft of gutter (front and back of a terrace house) - I managed to get it down below 200, but it's still an outrageous figure for what is an unskilled job. That's just one example. I think I would sell up anyway, because of proposed legislation, particularly abolishing the Section21 right to reclaim your property at the end of a tenancy. And if I bank the proceeds of sale in my instant access account now paying 3.75%, I'll be earning more than I get in rent.
Patrick, your circumstances are very similar to my own. I bought my house back in 2001 and lived in it before retiring abroad in 2012. I am now 60 and have the best tenants living in my house since renting began but I desperately want to sell when the current term ends (March 2024). As an overseas landlord of one single property in the UK the sale will incur CGT on gains made since April 2016. Add this to more years of NIC required (was 30, now 35) for a full state pension and more and more regulations for landlords appearing on the horizon the desire to sell and be done with it is very real. I use a reputable managing agent and have done so since the beginning. They can also sell for me without me returning to the UK as it can be 'signed' online. My only concerns are for my tenants who 'live' there as it's their home. In the coming weeks I intend to instruct my agent my intentions to sell in March 2024 in order to give the tenants as much notice as possible, plus first dibs on buying the house with time to arrange the finance etc. and offering flexibility with the dates, if they so desire.
@@keithclunk3125same here. I’m 54 so not so desperate to sell. My tenants are great look after the house so as soon as they decide to leave it’s getting sold. I suspect they won’t want to leave. Once I retire at 60 they will get the opportunity to buy. I don’t think they will afford the mortgage.
You are a good man Peter. I wish well for you!!
@@pataleno Yes, I'm selling up as my tenants decide to leave. Many of us are but neither political party cares that the supply of properties is drying up.
You should sell now. I understand your reasoning but you are doing those you wish to leave things to a major disservice just to favour people that you have no ties to.
Great video, and agree with all except the lady saying Landlords should use a Letting Agent. Presume she has skin in that game? I have let my properties for over 30 years and have never used an agent. They are inexperienced, clueless kids who just want the fees and the cut from the tradespeople they use to do repairs. Who is the tenant going to call in an emergency after office hours? Me! As for an agent being more vigilant about the quality of tenant they would choose for me? Not a chance! They would put in anyone just to get their fees. I will interview and choose my own tenants, thank you! And I will choose my own tradespeople to do any necessary repairs. As for dealing with tenant related issues & legislation being all too complex for us - if I am smart enough to own 5 flats, I think I can figure out the rules about my chosen career!!
From my experience of being a landlord it is the good compliant landlords that are selling up, including myself (for all the reasons mentioned). All the non-compliant landlords I know are carrying on as usual as if nothing has changed. The governments big stick approach is just not getting to the root of the problem.
We are hearing this a lot
Totally agree with you. I am absolutely on top of my properties and keep all like new but I’m let down by government and now rent smart wales as they are tying me up in legislation and costs and charges. Just greed. I have to pay because I’m honest while others just don’t get involved. Wish I hadn’t been so honest now
Same. I'm sick of all the Landlord bashing.
Seems many complaint for bad Maintenace house is social housing. The government did not do it good.
@@saml7449 yes absolutely true but they don’t have to keep to their own rules, that’s only for private landlords
I thoroughly enjoyed this discussion and it's great to see Vanessa and hear her insights again. I hope this becomes a regular feature on this channel.
Thank you
@@propertytribes Thanks for posting this. Made it much easier for me to subscribe over there with you too.
@@keithclunk3125 Great to have you as a subscriber. :)
An informed discussion. Makes me wonder ) again) whether government knows anything about the society they run.
Quick answer - NO .... they are all in their Westminster Bubble or leafy second homes in Islington ....
We're not selling because of the number of regulations, we're selling because of what the regulations mean. Lack of control over our own properties due to up coming regs is the nail in the coffin for many. "Fairer rented sector" lol.
I've been an accidental landlord since 2010. I would hate it if I were forced to use a letting agency, having only had bad experiences with letting agencies. Hopefully I'm a good landlord and offer a reasonable rent - home for a local family.
I went travelling for a year and half so I had to use a letting agent. They were ok.
It's not about them be helpful. It's whether is value for money. Remember you carry all the risk, the agent makes all the profit. Makes little sense.
@@allanhutton1123 Same with anything else. Your accountant can advise and do your accounts, but you are liable.
@@nauxsi Which is why I do my own accounts too. In the past I had to tell my accountant at the time what the rules were, so since then I just do it myself.
I employ a letting agent because of tenants who were dreadful.
My husband and I have one property bought with an inheritance. We do everything in our power to help our tenant and have kept her rent low for 5 years. We have to sell now as the interest rates are too high. I used to think all landlords were money grabbing uncaring people. Now I know it's not true. Most are doing their best to provide a service, and trust me, after all expenses it's not worth the stress. And it is stressful!
I'm truly staggered at this bizarre tax policy, I'm looking at the awful situation of selling my rental. It's been occupied for eight years by a lovely couple in the bungalow that suits their needs. I don't think Michael Gove will be going round to explain why they may have to move. I'm surprised how many tenants are unaware of this weird counter productive tax policy. More tax = more rent - and or evection/ selling. But we are dubbed "greedy landlords " .
My wife and I have been accidental landlords for the last 16 years which has been an interesting and educational journey but are selling up due to our age, abolishment of Section 21, cost of having work done and lack of tradesmen to do it and the fact that the property now needs a pretty comprehensive refurbishment. We’ve endeavoured to keep out tenants happy during this time and all but the last tenant have all moved out to suit their circumstances not ours but it is difficult serving a Section 21 at the end of a tenancy if a tenant wants to stay but out circumstances are just as important as theirs.
All out tenants have been very happy in the property which is quite satisfying I do think that the vast majority of landlords do have their tenants interests at heart but the term ‘home’ is becoming more and more used to describe a let property when in fact it is a contractional agreement and not a sentimental one this is mainly the fault of a government who has sold off all the social housing stock and expected landlords to pick-up the slack
You should also have a rouge tenant register - what is good for one sector should also be good for the other - the redress scheme is quite good but you should remember that the increased costs have to be passed to the tenants via increased rents - there is a limit
If a tenant seriously damaged my property I would always sue them. Even if I could not make a profit out of the court judgment I would sue them. Homelet (a very big checker of tenants in the UK. They insure that you get your rent for a fee), who check up on tenants would find that there was a CCJ (County Court Judgment) against that tenant and would not allow them into any property that they check up on. Homelet is pretty much a register of bad tenants.
I totally agree. I'm sick of the hate crime against the landlord profession. Anyone would think the tenants are Angles. I bet you they are not LLs themselves. Anything the Government is doing under the guise of protecting the tenants is poppycock. What they don't tell you is that it's purely for their benefit to saved lots of money, as they don't want to house the tenants.
Great discussion.
I spent 13 years working in social housing and since 2020, my wife & I have also become a landlords. I found many of the points discussed in this conversation quite valuable.
This year, we were seriously considering selling both of our tenanted properties. However, after having discussions with both tenants, who interestingly are single parents with two children each and facing similar situations, we made the decision to extend their leases for another 2 years. Our primary reason for doing so was to allow their children to complete their current schooling without any disruptions.
Unfortunately, this decision has come at a cost for us. In Rental 1, we are now facing a loss of £460 per month due to the need to renew the mortgage at a higher interest rate of 4.97% (compared to the previous rate of 1.63%). As for Rental 2, we are absorbing an additional £360 per month, as the interest rate increased from 1.79% to 3.5%. Essentially, Rental 2 only breaks even before taxes, in terms of cash flow.
The only thing that somewhat eases the situation for us is the generous US tax system, which allows us to offset approximately 80% of our rental revenue through various deductions. If we were still in the UK, it would have been impossible for us to continue as landlords. In that case, we would have had to sell both properties in order to sustain ourselves financially.
We stay compliant with all regulations and respond to all issues reported by our tenants regardless of cost or effort.
The notion that landlords are greedy or make money effortlessly is a difficult one to accept. We didn't receive any cash injection; we had to put ourselves in a financially stable position to afford to purchase and maintain these homes. We take pride in being able to provide decent homes for people through renting. We have been incredibly fortunate to have great tenants who understand this and have looked into the costs of buying homes themselves, so they don't hold that view.
I also believe that people often fail to appreciate what they don't understand. In order to be in a position where it may seem like "doing nothing and making money," a significant amount of work had to be done in the first place to achieve that and to navigate the continual ups and downs. It's akin to the classic metaphor of success being an iceberg, where only a small portion is visible while the majority lies beneath the surface.
Youre bang on the mark ... US prob a bit better with taxing the landlord than here in UK ...
100% spot on. The UK is becoming impossible to be a landlord.
This is why the UK has better homelessness numbers than the USA. In the USA, landlords have the power. A single parent can never own a home. It's disgusting and thankfully the UK isn't quite as bad yet, with single mothers filling the streets, sleeping under highway bridges.
Excellent, enjoyable, and well-moderated debate. The tax issue was raised but what is never really mentioned is that Section 24 changed the basis to landlords being taxed on revenue, not profit. This fundamentally alters the financial dynamics - what is left in a landlord’s pocket POST tax, coupled with interest rates rising, is pitiful. It can literally be losing money, very likely so for landlords on SVR and with 60% gearing (or anyone coming off a fixed rate), even if the nett yield looks like it’s (just) above water. Government strategy needs to encompass both tax change and energy investment grants, otherwise continued exit is inevitable
Section24 is the worst legislation ever and the main cause of people exiting the industry IMO. Even Ireland reversed it when they realised it was a disaster. George Osbourne to blame.
@@pataleno They know what they are doing. They want Blackrock and co running all of it with MPs getting £10k from them for their elections.
Good, during a housing crisis like the one we're in now, landlording should be disincentivized.
@@gladitsnotme When prs is virtually non existent in the coming future, go down to the local council and rent a property from them, if they have any, good luck with that one.
@@gladitsnotme when prs Is finally extinct via government policy (new or old) then join the que for a council property. Heads up, they don't have any available.
Why is this conversation concentrating on bad landlords? Most of the landlords pulling out are good landlords.
Apologies we didn't think we were - we concur most landlords are good landlords.
It's the rogue landlords who are bringing our sector into disrepute and creating the anti-BTL anti-landlord rhetoric in the MSM as well as providing ammunition to the likes of Shelter to lobby the government. The government then bring in more legislation to regulate landlords which good landlords adhere to, but rogues don't, and there is not enough enforcement to make sure they do. Therefore rogue landlords blight our sector on many levels and need to be dealt with and expunged from it.
I don’t think that’s true it’s always been a landlords world not nice people x
@@ashleydavis5557 Explain
@@davidowen2859 sorry typos in here are ridiculous! I’ve been a private tenant for over 2 decades it’s been a landlords world for too long x so they have to make improvements? That’s why they are getting flustered , it’s been a landlords world too long x they can complain all they want no one is going to evict them! X
I rented my house and went abroad for 2 years. I used a well known letting agent. I came back to a house full of damp in the bedrooms and bath room. I was offered a measly £500 as compensation. I could not fight it as I needed to get back in. To add insult to injury they made the tenancy go through the eviction process I had only signed a 2 year contract so it went over by 6 months. Causing great inconvenience to my family. To add insult to injury I had to spend about 4K initially to bring house up to the standard they required at the start of tenancy.
Agents are thieves x
Shocking but I did a private let and came back after 2 years to a wrecked house. It’s heartbreaking but at least I didn’t pay an Agent.
I'm staggered there seems no accountability for tenants leaving houses in a bad state. Try returning a hire car in a shitty state and walking away from that.
Hi Phil, thanks for great content! Please do a video on problems with HMO licences, especially additional licences that have been put in place, in places like Nottingham! My son and 2 friends, that are all saving for their first property, can not rent a house because of this! And a friends son had similar problems in London!! They are now forced to go into an HMO where they are now having to pay a lot more and having to share with people they don't know!! Did councils not understand what they were doing with this additional license scheme, they are not protecting anyone they have just increased rents for young people! I'm a Landlord so I understand regulations need to be there for maybe 5 or more renters but three is just a step to far, especially as this is a smaller number than the average family!
Thanks for the suggestion we'll be sure to cover it at some point.
I am a landlord and I try to address everything and create / deliver accommodation where I would want to live. Often we see being discussed how landlords should be managed and regulated. Should there be something equal for tenants where there is a database for good tenants?
I have on occasion had tenants who don’t pay or create trouble. Referencing is challenging as someone with a bad tenant can be just keen to get rid of them and so it can be challenging to trust a reference. Would love to hear peoples thoughts on this?
I am not a Landlord or a tenant but I agree with you wholeheartedly, however that would not in reality be a simple task i.e. what 's the criteria for a bad tenant? Personally I think signing a fixed agreement for term of tenancy and its rules should stand without Parliamentary legislation.
Totally agreed. There are some bad tenants causing damages to the property and the government is only putting pressure on landlords but not tenants. This is unfair.
The government just want to get the voting from tenant, they are the majority. It is really unfair legislation in freedom world. All the repair cost is higher and higher, also EPC requirement. Or maybe, the government just want all individual landlord to sell the properties at lower price to institutional landlord. Or maybe government buy all the houses for private rental market. It can resolve all issue and ban any private landlord.
Referencing is useless, they have ways of generating a positive reference.
Having been a portfolio landlord for many years i have found no matter how nice youre property is when you let it the tennant will always bring it down to there level .never in 30 years have i seen a tennant improve my properties. Whatever happens its never there fault and 100% of them lie
Soon we’re going to have a similar rental property shortage crisis to what’s going on in Ireland.
Years ago the Irish government implemented similar policies upon their private rental sector to what the English government are doing now and at one point last year there was only 700 properties available for rent in the entire country of Ireland, England is unfortunately hurtling full throttle in that same direction.
People can bash landlords all they want but the sector is 100% the target of over legislation and that’s a fact, and when the small land lords leave the sector and corporate landlords replace them people will be begging for the small landlords to return.
Thanks for sharing this
As a landlord I do this as a job now and all these problems are just occupational hazards, I get my hands dirty and get on with it, I have no intention of selling any of my houses I have good tenants and I do my best to look after them. Treat people good and they will stay. help them out if there is any problems, the interest rate is the problem
Lovely, you are an angel.
Agree entirely, I am in the same position as you. The greatest dilemma however is having to remortgage, one fix is about to expire. I rent these properties as a business, I am not a charity and I cannot afford to be a charity. If the asset is falling in value and my margin after deductions and much higher mortgage costs disappears, as much as I like to support my tenants, the house will have to go. I will feel terrible about this, however I also know my tenant could never meet the rent increase necessary for me to keep the property in the private rental sector.
The vast majority of landlords do treat their tennants well, there are a few that dont but its in the media interest to portray them as bad landlords, its also in the government interest to keep that view because they want rid of private landlords. What nobody can work out is that if there are fewer and fewer houses to let then where do these people go
I have 8 months saved up for bills and an emergency fund set aside for repairs. I did just buy a house and was able to get it for 8%. It was on the higher end of my budget but I have a few extra hundred to put away each month for repairs. The home is turnkey but I know expenses will come down the road which I'll be prepared for. Hypothetically speaking, given the worst case scenario and layoffs start happening; can my emergency fund be in good use to invest and linked to our mortgage to increase interest overtime? rather than defaulting on mortgage
Is that a feasible way to pivot?
Nice Aaron, online It appears margaret is well established in the financial field. Would her advisory give access to more interest to offset my mortgage overtime?
that's the only way to become debt free. I've already paid off two previous mortgages. Now I'm working on my third and I cannot wait since it has to happen before retirement in four years
Laws that penalise owning multiple properties encouraging landlords to sell will drive down house prices. Allowing more people to own their own homes which means more people will benefit from building their wealth through equity in their home rather than simply contributing to their landlords wealth. Of course it would be better if the government simply built more houses in the arrears people want to live in rather than push landlords to sell their properties.
The problem with your comment is, the assumption that people who rent are all aspiring home owners. You'll find that most people who rent do it out of choice, not because they cannot afford to buy. I have tenants who for example don't believe in home ownership, they have done their numbers and decided having someone else maintain a property for them and the freedom to move allows them to invest into their index funds. One of my tenants is a millionaire and their dividends pay their rent many times over. They are happy renting.
I used to rent for years in the city as I moved around with work, I didn't want to be tied down.
Lots of people are like this which is why a strong private rental sector offering homes of a better standard than say social housing is so important.
At the moment the measures so far have driven rents up and/or driven landlords from the market reducing the supply.
It is a real problem for tenants, I would say more so than landlords.
I'm either scaling back residential into commercial, or turning to nightly rents to contractors so that's multiple quality properties leaving the market that professionals want to rent.
How do you feel this is going to play out?
Forcing people to buy will force up demand so that nets out to nothing. ALSO there are more households being formed than houses being built - and thats WITHOUT the burden of excess immigration. What will happen is the rental market will freeze and this will hurt the economy as jobs are mobile now. This government is STUPID on renting.
People shouldn’t aspire to have toe majority of their will in the equity in their home, it doesn’t pay them.
This country needs to shift the focus from property to equity in businesses that create jobs and growth!
@@ploutus8368 Too risky. Many companies come and go, land and property is always there.
The government like to do something many like to hear, just like Brexit. But at last, just make it worser and worser. I would suggest government to buy all the properties to rent to tenant. No more private landlord. Not just push the individual private landlord to sell the properties at low price to institutional landlord. What a shame!
A Warren Buffet quote: When others are fearful be greedy and when others are greedy be fearful.
My view - house prices are already falling - I’m seeing for sale signs building up and affordability is going to pull down house prices at least 20 % over the next 2 years .Landlords should sell at least part of their portfolio and cash in where they can . I cannot see us returning to house price growth for many years . Unwanted chickens home to roost I’m afraid (IMHO)
It’s common knowledge that the government haven’t built enough ‘affordable homes’ but I would argue that it has a lot more to do with wealthy distribution, meaning the working class is not making nearly enough money and the emphasis on building luxurious apartments to attract foreign capital.
People are quick to assume tenants want to become homeowners. They forget how many are students with no fixed income, foreign people wanting to live in the UK for work/study, or even Brits who travel with work and don’t want to buy/sell whenever they change job. It buys flexibility. Repairs and maintenance isn’t to be sniffed at either. A new slate roof, and stone masonry repairs in a conservation area just cost me & 3 other owners £260,000 (combined). A lot of cheddar!
That's a fair enough point, its why my son is renting. Wasn't sure what he & his girlfriend wanted to do long term, found a lovely house , landlord seemed realy nice when they first started renting (4 years ago) never missed a payment even through covid, year 2 rent went up £75 a month year 3 they had a leak under the bath, before it was fixed the landlord accused them of causing the leak (the waste had come off under the bath) 2 weeks after the repair the landlord put the rent up £100 a month, they questioned another rise so soon the landlord said its going rate for your area if you don't like it leave !
@@martinhammett8121 The sad fact is rents are rising not to add more profit, but rather to fill the coffers of HMRC. Any “evil landlord” tax is actually a tax on tenants. Clever media campaign.
@@martinhammett8121 The landlord sounds like he's the type who gives decent landlords a bad name.
As a deposit-saving-renter disgruntled at the current housing situation in the UK, I predicted that an exodus of landlords from the market would actually be fatal to renters, and not the schadenfreude everyone else claimed it would be. UK housebuilding has been woeful and running behind for decades, partially because we became so fixated on property-as-investment, so kept the supply limited to shore up values. I know property-owners don't like to hear this word, but government intervention is really the only answer in getting us back on track. Relying on the market to organically keep everything in check has obviously failed.
If I am making great money renting a property my next move would be to buy more units which increases supply . Your argument is silly
@@sarahann530 If you are making "great money", that must mean tenants are being ripped off with rents that are artificially high. Part of what is preventing them from obtaining property themselves.
You need to remember you are not entitled to a high-yield investment just because you want one.
@Luke Capitani Learn how to read English you dopey bollix . If there is money to be made renting property landlords would provide more not less . It is quite obvious why the govt has to provide you with accommodation.
Too many people in this country is the problem.
Net migration of 600k in one year is ridiculous.
@@lewis72 Too many old Brits on pensions and work shy tossers on the dole . You can't even pick your own farm produce .
It all depends on people's circumstances. As a 23 year old who is currently buying their 4th investment property, I understand that the benefits from property are long-term and not short term. I have a great letting team who is always in close communication with the tenants who then form a relationship with me as well. So there is a "triangle" of support.
Unfortunately, I am not one of those landlords who do not increase rent. Interest rates have tripled, which has resulted in a rent increase.
2 yrs ago I inherited some money. 20 years ago I may have been persuaded to buy an investment property as a prudent retirement investment. But today, Landlords are so demonised and vilified by the press. The weight of the law & the tax regime is now also heavily loaded against Landlords. Today, I would not want to be thought of as a "Landlord". The money will just sit earning 4% interest when it could provide accommodation for someone. This is the world our so-called politicians & so-called journalists have created for us. UK letting agents are probably best placed to regulate the sector but most are crooked & dishonest and would laugh at any attempt at reform, they give landlords a terrible name.
I totally agreed with you to regulate the agent more than the landlord because the agent knows that the council go against the landlord rather the agent.if the council go on agent than the agent will rent the property with more responsible way .I let my property to the agent on the guaranteed rent and he rent the property on room by room without telling me ,only I realised when i received the letter from local authorities that I should apply for hmo .
They demonise themselves! X
Are you sure the agent was compliant? It sounds that you were the victim of a rogue Rent to Renter to me.
All this sympathy for lazy and filthy tenants is ridiculous! The landlords are not helped at all and often need financial help. Rogue tenants are evident everywhere as indicated by the weeds seen in gardens and filth encrusted windows. Landlords are not to blame. There is an excuse for poverty but it costs very little to keep a place clean and tidy! It costs too much to restore a rented property after tenants have trashed it! The embittered rhetoric of the deluded does not provide roofs over heads and does not give landlords incentives.
Last 2 years the property prices in most UK areas just shot up high. It was just after big government spending due to known issues in the world. With the right knowledge it's good time to invest in property.
It would also be good to recognise the amount of pressure put on to the staff grafting in lettings, doing the groundwork under tremendous stress, and pressure to always get it right in the face of relentless changes to legislation in the sector. I respect the focus placed on the market and how it affects landlords and tenants, but there is neglect on the agent holding it all together.
Agents holding it all together turn it in .most agents are rubbish only interested in there commission rent to any one .dont give a monkeys about youre properties
12:51 - Only if the letting agent knows what they are doing....so many in our area are staffed by people barely out of their teens with almost no common sense. A young office worker couldn't believe I rejected a £1100 quote for new conservatory blinds after one of them got slightly water damaged due to the tenant forgetting to close the window. This was on a £500 a month rental.
Hi Ed, again it boils down to education as of course there are reputable agents and rogue or poor agents. Landlords need to learn how to do due diligence to find a reputable agent. I have written many threads on Property Tribes to explain how to do that.
Agreed, we'd recommend looking for a regulated and qualified letting agent if you're not familiar with the quality of your local letting agent. This article might help www.moveiq.co.uk/advice/renting/best-letting-agents/
Saddest bit is, all of this changes will just increase the rent.
I rent and have been in the same house for fifteen years, my landlord has never spent a penny on the property, i even had to replace the joists and floor in my kitchen. I am disabled and the local housing pay my rent which i am very grateful for .Even though i have spent thousands of pounds on the property my landlord put my rent up £100 pounds which i have to find myself every month because it is above the rent allowance ,allot of landlords are most certainly bad but obviously there are good landlors aswell .
I own just one UK rental property and I'm just about to sell because I'm getting lower rents (my 2-3 house in Coventry now falls under HMO so I have chosen to let to a single family instead than 3 individuals rather than pay to install fire doors etc), facing higher maintenance costs, and experiencing a rapid deterioration in the capability of the agent since the local firm I initially used was taken over by a national chain. I have no financing costs but the returns from elsewhere are improving.
Thanks for sharing
How much you selling for ?
What part of coventry?
I'm a private renter and my property recently went on the market. The landlord couldn't sell the place so it went up for auction earlier this year. it wasn't long before the new landlord of the property issued me with notice to vacate, after 8 years in the property and in spite of the estate agents trying to plead a case for me stay as I've been a good tenant, always paid rent on time, never had any complaints, don't earn much money, and can't really afford to leave, the new landlord said and I quote "I don't care" and still issued the eviction notice. Because of this I could potentially end up homeless, due to not being employed at the moment private landlords aren't touching me with a ten foot barge pole because I'm currently on DSS. Someone so heartless with dollar signs in his eyes only caring about himself simply said "I don't care". cost of living crisis is bad enough without landlords forcing people from their homes like myself 😒
Very sorry for your situation but blame the government for creating an environment where your origional landlord couldn't probably wait to get out of the market.
Very sorry to hear this
The end part of your sentence and I quote "forcing people from their homes like myself" in reality is not true. The "home" is owned by the landlord not yourself.
Go and get a job and stop wanking and playing video games at home
Did you have any sort of safety buffer in savings to cover emergency's like unemployment or any unemployment insurance to cover bills if you lost your job? If so and you burnt through that and the house is modest then your problem isn't the landlord, its that housing benefits haven't kept up with market rents.
If the property was bought at auction you will probably find it was bought on an expensive bridging loan and he had to refinance with a proper mortgage pretty quickly. The lenders stress tests will tell the landlord how much rent he needs to collect, if you cant pay that amount the landlord has no choice but to find someone who can. Its not heartless, if he doesn't do what the lender tells him, the house is repossessed and you are homeless anyway. Either way you cant expect a private individual who doesn't know you to subsidise you any more than you can expect the stranger behind you in the supermarket queue to pick up your grocery bill. Your last landlord was subsidising your living costs and ultimately decided to sell, presumably because he didn't want to do it anymore or couldn't afford to when rates went. Private landlords are not the government, they dont exist to pick up other peoples bills when they cant afford to. We have a social security system for that. Landlords have bills to.
Rather then a rent cap, gov should be looking at mortgage interest rate cap. Increase in mortgage is one of the main reason in increase in rent.
As an accidental landlord with a house in Trust the returns are less than others might expect.
We, like Vanessa have not increased the rent in entering the market.
With the current onset of new regulations I feel that we will exit this market as the returns on not worth the worry.
Simple maths and a return rate of 4% now available from bank etc makes it harder to believe the worry factor is worth it.
Youre absolutely right ... BOE will raise rates - height to 5.5% by this autumn and tail off to 4-4.5% end of next year ... but its easier to put money into a 5 year Bond of 5.25% with no worries and with monthly and yearly interests ... you dont have the stress .... The UK govt at the moment is totally out of touch ...
Many people dp not realise that the return is 4% in many parts of the country. Any increased costs or regulation at all, basically makes it a losing proposition.
I started stacking to SAVE wealth. I've always been the type of person to spend my entire paycheck. I hate having money just sit in the bank. I am under pressure to grow my reserve of $950k. before I turn 60, I would appreciate any advice on potential investments.
I can feel your pains. New guys need to realize the risks that come with all of this. You could lose it all and you could win it all. It goes both ways. Second, what works for A may not necessarily work for B and you should not be a bandwagon investor. A good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge.
@@devereauxjnr Factos!! Since the market became extremely volatile and pressure increased (I should be retiring in 17 months), I took the decision to work closely with a financial advisor. It has already been 9 months and counting, and I have made approximately 600K net from all of my holdings.
@@Tsunaniis-j5l That's impressive, my portfolio have been tanking all year, tried learning new strategies to gain in the current market but all of that flew right over head, please would you mind recommending the Adviser you're using.
@@DreamweaverShade-h9p My advisor is the quite famous NICOLE DESIREE SIMON She has been making a fortune online worth millions of dollars in digital assets for a select few for years. Lately, these types of services have appeared that allow you to copy the results of the experts. She demonstrates how to copy it automatically using that system.
@@Tsunaniis-j5l Thanks for the info, i found her website and sent a message hopefully she replies soon.
There should be a Government Run Register of Landlords and Tenants,
which should include observations of Landlords and Tenants, like the EBay does of its Customers,.....Which would encourage GOOD behavior.
The Government should be quick to fine Bad Landlords, but also Evict the Bad Tenants within weeks not months.
Don't be silly. The government has cut and cut the local authorities so who is going to put the register together and then police it ? They would probably put the cost onto the landlords to pay for if it happened !
More regulation just makes things worse, never wanted to be on any sort of register.
I think all the council houses being sold off has to some extent resulted in a passing the buck on to the private landlord - what if the tenant has caused the mould - i.e. showering without opening windows for ventilation etc. I rented my property out years ago via a letting agent when I worked in the US - and agree they are worth their money. No vandalisation occurred and no horror stories of missed payments due to good vetting.
A very good debate which explains where we are and what the problems are, what it will not do is to get this govt or the next to listen and do something sensible. So my plans to sell up are still there and are going forward.
I'm neither tenant or landlord but I'm interested to see the efforts made in defence of tenants with sanctions against bad landlords...but what about bad tenants who can create a nightmare for a landlord in terms of damage and arrears and then walk away and do it to another landlord.
tenants who can create a nightmare for a landlord in terms of damage and arrears walk way more oftern then what the media talk about. You will hear tenants and the media bashing the landlords 90% of the time and the rest of the time you only see few bad landlords but the problem is that 100% of the landlord get the bullshit crap
Everyone I know who rents out properties , myself included, are selling our rented houses as soon as they become empty due to ever more rules and regulations, no power to evict bad non paying tenants, and high interest rates... within the next 2-3 years there will be no more houses to rent, let the government sort it out, they,re making these rules and raising interest rates.
My friend had 7 rented houses, his mortgages will soon be more than the rent he gets, so it,ll cost him money to house non paying tenants...crazy.
I had 4 , sold one, another just fine in the market, rest will be sold when current tenants leave.
Thanks for sharing
This is all part pf the government’s plan of you will own nothing and be happy…big companies and corps will buy from those landlords who are selling their properties (rightly so) due to such ridiculous rules and then those corps and conpanies will rent out those properties on a completely different basis/loophole etc.
People will be on the side of the road in large numbers soon. Hundreds of applications for every property that comes up for rent here in Worcester. UK.
The govt is trying to crash the market short-term so that blackrock and co buy up everything.
Mine has a reasonable mortgage for another 3.5 years. The issue is I now need a HMO licence from the local authority to let it out to 3 professionals.
I think I'll sell up when the mortgage needs rearranging, there is just no money in it at the current interest rates.
As a landlord I find comments about mould laughable. If the majority of properties are heated and ventilated properly there will be no mould. Tenants hermetically seal our properties leaving no opportunity for air flow and then dry washing on radiators hence mould. As an owner occupier i have no mould but if i saw any i would immediately use bleach to remove even the slightest appearance. Constantly amazes me that we see in media walls covered in mould when at a tiny tiny cost in terms of cleaning agents and minor work this could be stopped in its tracks. Why do they just sit there and watch it grow. Ive on occasion visited tenants properties who have bought after leaving my properties. Guess what, no electrical safety check, no gas safety check and mould everywhere buts thats ok because they own. As a 30 year landlord with some 15 year tenants I've reduced to only 6 properties. Some of my tenants have never had a rent increase. I really like my last 6 tenants but I'm out and cant wait to be fully gone.
This. I lived in my property in 3 different stints and had no mould issues whatsoever. A tenant was in there for 2 years and turned the place black due to high heating temperatures, drying clothes on radiators and not opening any windows.
More mold to come as gas and electricity rise.
I looked into buying a flat/ house as an rental income about 10 years ago. After lots of talking with landlords and doing the maths I thought that the only way to make any money was not to use a letting agent. So as I didn’t want the Argo didn’t buy anything
Thanks for sharing
I have a couple properties & refuse to line the pockets of a letting agent.
If you did 10 years ago and sold out at the end of 2022 you would have a nice financial nest egg right now.
I became an accidental landlord last September due to serious illness and the need to move in with my partner following major surgery. I rented my home via a reputable agent and got landed with tenants who left the house filthy and full of mould then had the cheek to say they would sue me unless I allowed them to stay. It has cost me £3000 in repairs and restoration so I have already lost money. They then found me in FB and sent threatening messages which are now with the police.
I now have other tenants in on a 6 month tenancy but will sell up after that ends in October.
Once the agents take their monthly fees, insurances and other maintenance costs are paid I receive approx 2/3 of the rent they pay. Last month ( their first) I received less than half the rent because of the set up fees from the agents.
I never set out to make money just cover my costs but I cannot afford to lose money or the worry as my health has suffered from the stress and anxiety the first tenants caused me.
Most of my children rent and I have had many battles on their behalf with rogue landlords and utility companies so I do understand the other perspective but I have been a good landlord and treated appallingly by my tenants.
I’m sorry but my house/ former home will no longer be available to rent once this tenancy ends. I would say the rental market will be run solely by large corporations in the future because they are the only entities who can afford to absorb the costs of changing legislation and actions of rogue tenants
They have special funds to pay govt coffers to look the other way.
It's really disappointing that section 24 was not discussed in more detail. Section 24 has caused alot of rental properties to become loss making for the landlord. Of course they are going to sell. They will not subsidised a tenant.
It was discussed in great detail in a previous video. th-cam.com/video/1nDPBiV7AUQ/w-d-xo.html
I've been letting properties since 1991 and have 5. I use letting agents and this has provided a reasonable steady income. But I will have to sell up, I don't want to, I have got a lot of experience in letting property and it all runs like a well oiled machine. My problem is inheritance tax. The tax rate on passing on investment properties is very high. Some how the Blairs (Tony and Cherie) have passed on a large portfolio with no tax but how they did that has never been explained. The IHT rules require that transfers are made at least before 7 years of death so its no good delaying. I hope to have many years of life, but capital gains tax means that I can only sell one property per year and so with 5 that's at least 5 years and could easily run to 10 if each house is restored for sale. The housing market has no bearing on my decision to sell, I've seen it go up and down, and rents go up and down, what is driving me is the tax regime. The rental maker where I am is current very hot and I am achieving my best rents ever, but giving 40% of my portfolio to the tax man is a serious hit.
We paid tax on a loss for last year and that despite raising rents. (Unique tax position only for landlords) we need to put in more money or sell. Given that we can get 4% on a 3 year fix with sale proceeds, we now have listed 5 properties, 1 to sell to tenant, 2 empty and 2 with tenants included. I must sell two. After that I will see what happens.
Update after only one day, two properties under offer with landlords at asking price. I am surprised no interest from first time buyers apart from the third one that the tenant is buying.
@@stephengreen2626 There's the proof this policy really doesn't and will never work. So no houses freed from your part to be on the affordable housing market we are told is needed. Small landlords being rubbed out to make way for the big guns, Cerco, John Lewis etc etc. The tenants suffer as well as the btl owner.
I sold my rental property last year, not because of tenants who were very good but due to the toxic nature of Government ‘Incentives’. I was an accidental landlord due to difficulty of selling inherited property when my dad passed away. Sold to a new landlord for 80k loosing 50k on current value. I did want to help the tenants in any way possible rather that selling to a private buyer. Was very satidpsfying to get out of the worries of being a landlord.
Brilliant conversation. Great questions Phil. Thanks for posting.
Any reason the renters reform bill didn’t get a mention? Isn’t it supposed to be going through parliament in May?
Superb video. Excellent questions and equally interesting and informative answers from both interviewees.
Thanks for your feedback
It’s my right to manage my own places, if it’s far away then yes makes sense to pay 8% so it’s looked after but I’m building a local portfolio and won’t pay a % for mandatory management she suggested as it would put me further out of pocket..
Thank you for your comments. Some of the issues caused by this government are costing you much more than 8% imho! This is an acute crisis and needs an urgent solution to protect both responsible landlords and responsible tenants and to protect responsible landlords from rogue tenants and responsible tenants from rogue landlords. My suggestion was a simple and quick - perhaps even temporary - solution to fix this problem. However, it won't ever happen so don't worry.
My son complained to the land lord (bath leaking) the land lord accused him of causing the damaged after have it fixed, they put the rent up £100 a month & said thats the going rate for this area like it or leave !
My Landlord has Decided after 6 years of payments on time, to kick out my family, because women looked after by the council makes more money. So now in 5 weeks my family with three children will be homeless.
All because to get more money in rent, he would have to fix up the property. So better to let council funds pay him.
The problem is there will always be a segment of the market that will never own property due to their circumstances. i.e. lack of funds, lack of employment, socioeconomic and other personal issues etc... Thus landlords are essential to fill that void. Prices wont drop because demand will rise to match supply at price. If you have a growing population, you have to make more houses if you want prices to fall or not increase. Simple as that. Everything else is pssing in the wind.
I've never come across a bad landlord. Plenty of bad tenants. They know how to play the system
I could introduce you to a few.
@@KernowFay I've heard of them but I have never met any. Our tenants love our houses. We make very little coz we cater to their every whim and we are glad we are ok. The rents are not too high. Mostly universal credit and they only have to pay 4.00 per week top up but we keep the garden nice..paint it when they ask and treat their home like we do ours. Xx
Private rented is here to stay; houses cost 9X average pay, 1.6 million on local authority waiting lists (1.1M 2010), 49% first time buyers enabled by BoMoD (bank mum dad), 30% of young people will own a home by age 50 (cited by Labour 23/4/23). No unpicking this. UK property (£7TRN) is valued more than the combined values of all UK businesses, pension funds and savings.
It’ll shift private rental sector towards high capital investors. Banks are stepping in already: they don’t need mortgages and can raise capital at the base rate as opposed to mortgage rate. That will ofcourse mean rental increases at RPI+3% like a phone bill. Over time I guarantee it’ll shift money out of the UK to the USA. The big corporates don’t pay tax, which again makes them anti-competitive against small landlords.
This is happening in Ireland too , the council are buying alot of them back to home the people that's on thier housing list
In my line of work, as a Realtor and Apartment Locator in Phoenix, tenants can do nothing about rents rising. Tenants are having to move to a renovated unit (higher priced) or leave at the end of their lease. Gone are the days of appreciating long term renters, especially when new management takes over.
I don't use an agent and I will NEVER use an agent. I hear nothing but complaints about them and I think there are very few that do a good job. Plus the expense. Make me belong to the same organisation as agents and do training, but DO NOT make me use an agent. I have been doing this for decades with many long standing happy tenants who choose to use a private landlord precisely because they get a bad service from agents. It's another example of penalising the many because of the few.
Hi Ian, unfortunately, your solution would mean landlords bearing the cost of training , which responsible landlords would do, and rogues wouldn't. Therefore, there would need to be strong enforcement of people not doing the training. Who would enforce it? With a lack of existing enforcement, it doesn't seem too hopeful.
I have a different view of agents as all my properties are fully managed. I've been with one agent since my first BTL purchase 19 years ago! I am very happy with my current cohort of agents. I've had a few poor ones along the way, but I've learned from that and share those learnings with the Property Tribes community to assist them in making wiser choices when choosing an agent. Unfortunately, if I post links, my comment gets deleted so I cannot send you my content in this regards.
I think managing a property safely and compliantly is a fair bit of work (as well as keeping up to date with legislation and regulation) and I don't mind paying 10% for all that hard work, but I respect everyone is different in this regards, hence why this debate is much needed.
Did you know the government released an up-dated "How to Rent" Guide recently? How would you say self-managing agents keep up to speed with this kind of important information?
P,.S. I regularly come across self-managing landlords who have never heard of deposit protection. At the Property Investor Show a few years ago, I was chatting to a man with 40 BTLs and he'd never heard of it. So educating landlords is very important imho to ensure they provide safe and compliant homes to their tenants and meet all their legal obligations.
@@propertytribes I absolutely do know that there is an updated How to Rent guide. I belong to the NRLA to keep up to date and use all their documentation. I once did their training to become an NRLA accredited landlord when the local Council were threatening to introduce a licensing scheme (which they didn't). With every new tenancy I check and double check if there's anything new and I comply with everything to make my properties safe. I find that managing everything myself and having a direct relationship with the tenants helps me to have very successful long term tenancies and my tenants appreciate the prompt service I provide if there's ever any problems. I do agree that it is shocking how many landlords don't know basic things and I see them all the time on forums asking questions that they really should know the answers to. Personally I would prefer to be allowed to pay to become an accredited landlord, perhaps through an organisation such as the NRLA, which wasn't expensive at all, rather than pay 10% of my rent to an agent to do what I can do perfectly well myself. Perhaps there should be a choice.
@@propertytribes In answer to who would enforce it. As part of the Rental Reform Bill there's supposed to be a national register of landlords/properties. Presumably it will have details of compliance of EPC, EIRC, gas safety etc. So perhaps it could show details of a landlord's accreditation too.
www.gov.uk/government/publications/how-to-rent
Helpful discussion and relates a lot what's going out there. FYI, there is a loot going in East of London which is aka a cess pit and living hell of uncontrolled illegal immigration. 4 people living in 1 room with two bunkbeds & paying insane rent of £110-£140 p/w. There are more than 9 people living & the money that sublet person is making is not even declared to HMRC. This is a perfect example of potassium cyanide situation where a renter is smothered to death by paying rent to the scale of mortgage instalments & the sublet & landlord getting rich for doing nothing. WHY AUTHORITIES IN UK are allowing people to flow so easily & NOT deporting those who are illegal & overstayed their visas? This country is good in trash talks & expecting action from this wanker government & authorities is like expecting donkey to teach physics.
@@jackpot7898 Now we've got a new wanker to carry on the fiasco. Things need to get tough on housing unwanted economic migrants, to name but one issue.
Good debate with interesting points from experts in the markets.
The writing has been on the wall for years, i sold my renting property because there was always some new regulation that cost you more and more. Renters rights trumping those of people who who actually own the property and the hassle of getting money from renters. The worry of a large lump of capital in the hands of renters who couldn't give a stuff about the property either, whilst all the time any potential profit being erroded.
Not worth the hassle any more. Their loss !
I have had good yield and increase on house price over the last 28 years but with the latest bank rate increases my yield is small, I got a rent increase recently (first in5 yrs) but if rates increase by a further 1% (6%) i will be loosing money, I am already on an interest only mortgage.... how to pay repairs and EPC costs on an older house....time to sell.....
44:08 in response to the lady’s suggestion, if you enforce property management, estate agents WILL abuse this power and overcharge, leaving small landlords with even less profit margin.
It's ok to report to the local authorities for mold damp etc but this happened to someone I know and they got issued a section 21.
So it's another way for the landlord to get rid and find someone else after they do work. If they do it
Sorry to hear that -thanks for sharing this
Unfortunately any significant works are only really feasible if the property is empty. If it was that bad, why didn't they move voluntarilly?
@@victoriahope-vv9rh I work for a landlord, mold and damp issues can be lifestyle related. Some houses had said issues with certain tenants but miraculously dissappear when they move out and new tenants move in and don't dry washing on radiators or turn kitchen/bathroom extractor fans off and open curtains and windows on a regular basis, etc etc. Somehow it's always the landlords fault because some people don't understand basic physics re moisture and temperature.
I’m an accidental landlord who inherited a house. I’m lucky my tenant is good and pays the rent and looks after the property. I make absolutely zero from the property once all the tax and maintenance is paid. I’ve never raised the rent on the property. Fortunately the capital is rising on the property. As soon as the tenant decides to leave it’s getting sold. I would not recommend anyone investing in property now. I earn as much on my SIPP pensions and ISA without all the hassle.
Hey, i also own a house and was thinking of selling just because my kid wont be able to inherit it. I read that in such a case he will lose 40% of the property
@@florinserbabh4560 I recommend speaking to an accountant there are ways around it with trusts;
Very honest comment from the landlord class - they want a Tory government because they know they'll always have their backs. The fact that the Tories have created this crisis, first with Right to Buy, then with the failure to reinvest in new council housing, and finally with their culture of nimbyism which keeps housing stock low and landlords rich. Tenants aren't at breaking point, they passed that ages ago. Tenants are in a deep existential crisis caused by the greed of the owner class.
Thanks for sharing your views on this
No doubt there are some greedy people out there. But you've seen how people's energy bills have increased recently, right? Do you think that landlotds are exempt from these rises? I understand that first and foremost you will see things from your own perspective. But sometimes understanding someone else's perspective might give a more accurate picture. I also believe that some people chew off more than they can handle hence when interest rates increase they're screwed. This obviously isn't good for tenants.
@@juliuswi8767 So you want renters to pay for your bills?! And you claim not to be greedy?! Someone's home should never be another person's profit-making venture. It's sick. Get a job and pay for your own bills like the rest of us.
Housing is a right not a privilege
@@johnfowler4820 Not if you're a male.
Vanessa speaks for many small landlords who have good intentions and act in a positive way. And yes, the houses still exist and may be bought by owner occupiers but replacement of good small, local landlords by heartless private corporates is not good news for tennants.
You have to remember Buying Property is an investment and investments can go up or down in value. Buy to let pushed the price of First time buyer’s property out of reach of many, now they are realising that they many have forced prices too high and their loan will not be covered . It would be better for a big drop prices to increase buyer affordability. Massive amounts of British Tax goes on very poor standard houses in the form of housing benefit. What is needed is a licensing system where you need a licence to own a rental property either through an agency and if there is no licence a landlord will be barred from renting.
we have that system already where landlords pay for a licence. It is simply a cash cow for the councils for not much work.
Pure home ownership doesn;t work with such an unequal society where the homes can be rented to the poor or second homes to the rich.
@@doug2279 Pretty much all of the properties rented out by the landlord I work for are certainly not rented by " the poor" it's the choice of the tenant to rent at their affordable level. Rent or buy it's up to you, poor or not, depending on your definition of 'poor'.
Arguably a good self managing full time landlord would prefer to choose their own tenants since many agents won’t look after your asset as well as the landlord can. Why force full time landlords to pay for an agent? I agree with Vanessa on many points but I don’t agree this is a solution at all unless this rule only applies to those landlords on the rouge landlord list.
Thanks for your comment John. It's fine not to agree. It's great that this interview is sparking debate, as that will help tease out the issues and bring clarity to them.
Because landlords who don't use an agent either don't know or don't comply with regulation. Agents are more likely to know and comply with regulation.
@@callumryan8283 Ive had a house trashed by tenants chosen by agents on three occasions and the agents only collect rent take a cut and pass on the remainder. My own self managed tenants on the other hand have been great so far.
@John B but how else can the current public opinion of landlords / renting improve? It's become a huge social issue..
@@johntbaxter they are imo, regulations stop smaller companies from competing..
Her closing remark - "There's plenty of properties out there to buy anyway, but many tenants are preferring to stay in the private rented sector". Such an ignorant statement on so many levels.
It's not ignorant at all but I apologise unreservedly if it came across as such. Let me clarify. If someone doesn't want to buy a property - for whatever reason - maybe they don't want the responsiblity or they are concerned about rising mortgage costs or rising maintenance costs or they haven't decided yet where to put down roots - where else can they live if not in the private rented sector which is now a form of social housing, as discussed in the video?
@@propertytribes you make it sound like a lifestyle choice. Many would love to escape the misery of the private rental sector and own their own home but it's now more unaffordable than ever.
@@patpalloon Well we agree then. "Many but not all" is the case.
I am renting 1 property, which I am now being forced to sell. I have given the tenant a section 21 order to vacate in 2 months that did not happen. We gave the tenant 1 more month. The tenant still did not leave. Even though the tenant said they would b moving up north to a seaside area has now spoken to the local council and they have advised her to stay put and force me to evict. So because the council will not help this tenant until being evicted I am forced to go through all the hassle of eviction. My mortgage has now gone up so far that it is costing me to keep the tenant and it doesn't matter that we are retired and my husband has a heart condition and luchemia. It seems that we have less help than the tenant.
@@knittys3712 Sadly that is the future for a lot of landlords. I'm staggered at the councils advice to the tenant to stay, apparently its standard advice to buy time for the councils. So yet again no help for landlords. The council don't mind charging you 150% council tax if you're property is empty while you have to refurb it because a tenant has trashed it.
Is any of this applicable to business premises? We have a landlord/agent ignoring water ingress/damp for over a year now and need to take things further but don't know how...?
Excellent programme!
If EPC changes are genuinely to deal with Climate Change, why is it only aimed at Landlords property, rather than everyone. The point some may chose to put forward in answer is cost to the tenant of energy costs, but this ignores the same costs to the homeowner and also ignores the fact the Climate doesn't care whether your are a tenant or homeowner. It's not about the tenant not having a choice either, they can select to only rent in a higher EPC and pay a higher rent. The real problem is the simple fact successive governments have proven incapable of understanding business issues outside their personal experiences (failures like Blair's Dome, Labours NHS computer system, Y2K the list goes on from all parties..and Scotland is now looking at the impact of rent controls) and so change a market with disastrous consequences. . Also, why an EPC of C, why not D or B ...and then we talk about the lack of qualified EPC surveyors able to grant the rating, the fact there is no "standard" as views amongst EPC approvers differs and the fact, once again, government is going to cause rents to increase along with homelessness because they just do not understand people are not lining up to buy ex rental property. There is also ignorance by government (and some others) unaware that many landlords take a property requiring money to be spent the homeseeker doesn't have, and yet the landlord will take on the risk of borrowing or spending to improve rental capability for longer term good tenants to move in, or bring an unmortgagble property back to life the homeseeker cannot docommunication
@@brianlentz2080 you are so spot on, the EPC system is a farce and won't change a thing.
Totally disagree re landlords having to have agents as in Wales. I’m so frustrated here in many ways. I am professional in the way I handle my business. Purpose built one bed flats built to the very latest building standards in 2010 but because they are heated via electric ( so called green energy), they are band D. How is this possible? Air sealed, absolutely fantastic fully insulated modern purpose built properly?
Then there’s rent smart wales. I have to have a licence, then I have to have an agent… then the agent needed to re do his exam but it’s no longer £40, it’s over £300 for him this time- and now he needs to belong to an independent body for looking after deposits and now they want him to have his own insurance indemnity. That’s on top of me having to sort my own stuff. The prices and costs are just the thin end of the wedge. It’s all about control and taking more and more money. This time I simply added 10% on to the costs and divided it so the tenants will pay for it. I’ve had enough of all the extra taxes/ costs. The capital gains tax, second property tax and the abolishing of being able to claim your interest is proof that government don’t want landlord’s. It’s shocking how we’re treated.
During Covid, I couldn’t get rid of one of my tenants due to government interference. When I managed to gain entry, the flat was trashed. The government should have paid to put it right. They helped cause the damage by allowing bad tenants to stay in our properties. It took months to re build… a financial loss to me and a perspective new tenant. Too much interference
And after the mortgages are paid off, you, the landlord, end up with properties worth hundreds of thousands of pounds, if not millions of pounds. How will you cope? My heart bleeds, the poor, poor landlords... LOL.
@@johnthomas338 it’s a business like any other and a big gamble. Unlike you who probably works at a job and gets paid a wage, as a landlord it’s very different. You gamble everything you have knowing that if a bad tenant decides to wreck your house or interest rates become unaffordable, you stand to lose everything including your home. You pay tax on your income even though you are in fact making a loss as your mortgage payments and interest are higher than the rent. All this in the hope you get to the end of your 25 year mortgage and retain your house which for most of us is around £200,000. So, we pay more to purchase the house through landlords extra stamp duty, then when we sell, we pay 40% of whatever profit there is and the way things are going, there won’t be many landlords willing to take the gamble. We pay a massive amount of tax so it’s not as simplistic as you make out.
@@musicplacenz You wouldn't be allowed to get a Buy To Let mortgage if the rent wasn't higher than the mortgage repayments. You are still getting somebody else to pay for an ENTIRE HOUSE for you, for free. What's with the "massive amount of tax"? What amount would that be?
@@johnthomas338 when we took out the mortgages the interest rate was 2% and like all businesses, you only paid tax on the profit after costs… like every other business. So within the last few years the government stopped landlords claiming the loan interest- so that’s one tax. At the time you could have an interest only mortgage and as the interest rate was low, you made a profit… it’s called business. You should have done it yourself!
That model only worked as interest rates were so low. The government also relied upon landlords so they didn’t have to build new council housing… a win win for them. This wasn’t enough though so they also added an extra tax when a landlord purchased a house. That’s a second extra tax. We pay more for any property we buy. Then, when we sell it, we pay a capital gains tax on anything we make from when we purchased it 20 years ago at it’s price then and what we sell it for now. And we obviously already pay tax on the income we get each month even if the income doesn’t cover the bank loan. That’s why landlords are leaving and that’s why tenants are paying more. The government have gone way too far. Tenants are also the victims of this government. They are the reason that costs are high. Fewer and fewer landlords and far more costs and those costs ultimately ho to the tenants.
@@johnthomas338 The mortgages don't get "paid off" by the tenant as you imply. I'm suspecting finance, interest only mortgages, taxes and financing property purchases isn't your strong point. Try it and see how you get on.
‘Good’ landlords attract and retain good agents, good agents attract good tenants and help to keep good tenants. It’s a virtuous cycle.
I’m a single home owner with a lovely six bedroom house , but can only rent out 3 of my rooms without becoming a hmo. Meaning No more than four unrelated people can live in my home without breaking renting rules .If I was a family I could have as many kids and relatives as possible filling up my rooms . This is so stupid when I can’t even take couples or use those two spare rooms I have sitting there empty to help more local workers .iI don’t work , this is my only income and live in this house. I can’t afford the HMO yearly fees , The HMO rule should be changed to cover how many good sized rooms a house has . This is my only income but the rents I get don’t cover my rising bills , I’m 60 and will be forced to sell my home if rules don’t change to help good private landlords who live in their homes and rent to local working lodgers .
Remenber. Everytime a property changes hands somebody makes a mistake.
Either the seller sells too cheap or the buyer pays too much. The skill is knowing who is right.
I'm not convinced we need to build more homes. We have tens of thousands of empty properties around the country. The problem we have is these properties are in neighbourhood's that have been allowed to decay. We need a policy that tackles deprivation, anti social behaviour and the yob element in these areas to attract people to buy and occupy these properties but this is never talked about.
Thanks for sharing your views and feedback.
There are more than tens of thousands of renters that would like to buy so tens of thousands of empty properties is insufficient.
@@defunctt Tens of thousands is a phrase and you know it. There are actually over 600 thousand empty properties in the UK. If they were all brought back into use that would make huge inroads into the so called housing shortage. Not all renters want to buy. Less than 10% of mine would if they could. But the way we landlords have been vilified they will all have to find somewhere else in the future as I sell up.
I have two flats in Croydon, and after paying the agent fees the income does not even cover the service charge, I am desperate to sell, forget about selling it, I cannot give it away.
There exemptions to the EPC for costs over 3,000£. If this is an historical property, understandable if not no sensible tenant should rent such a property as bills will be astronomical and usually due to poor maintenance such as lack of insulation, drafts windows etc.
Database of rogue tenants? This constant squeeze of the Landlords is creating a perfect storm. Landlords leave and rents skyrocket. To get out a bad tenant is a nightmare. When you look at it as a business also it just isn't worth it anymore. I'm out next year for sure.
Great insight. Vanessa is a legend ⭐️
We'll pass it on to @propertytribes
Thank you so much for your kind comment. :)
What about rogue or just hopeless agents. Every time I've used an agent they have been more trouble and effort than they have been worth.
Learn to do due diligence on an agent. There are links posted in the comments here on how to do that. It will help you find your way to a reputable agent.
You can talk all you want about EPC's and funding but until the EPC assessment is upgraded and a uniform standard landlords have not and will not have any confidence in EPCs. I recently had 3 EPC assessors on the same property. I got a low D, a high D and a low C. Complete joke.
I'm selling up after being shafted by yet another nightmare tenant. Even though they left the property in July and paid no rent since June, I still have to wait at least 2 more months, while the Section 21 runs its course. Can't wait to get out of this business, especially since us decent landlords, get such a rough deal.
Politicians interfering in Markets always end in disaster. "Vote for Me and I will bring in Rent Controls " is the usually scam. Best example is the South Bronx where building owners could not cover their mortgages or fire insurance. In UK the owners of HMO's housing very poor men on housing benefit no longer able to keep up with crazy and expensive regulations , close down , sell up and the homeless population grows by the day.
Retaliatory eviction is only stopped if the LA have issued an improvement notice. Often not easy to get!
Thank you so much. I paid advance to an agent and then he rejected my offer. Now he is not refunding the deposit saying I didn't give a guarantor. Is providing a guarantor is mandatory?
No, a guarantor is not mandatory. You should make a formal complaint to the agent, and, if it is not resolved, you should make a complaint to the independent redress scheme the agent is a member of. It should be clearly displayed on the company website and in the premises. Good luck getting your deposit back.
Extremely interesting and informative
Glad it was helpful!
The government to fix housing and financial stability we need them to get fixed mortgages for the life of the loan.
pity, in the end, the tenants will take the hit with all of such additional cost via their rent. What's the point?
Making the interest on your BTL mortgage no longer tax deductible has killed any profits in being a landlord now unless you can buy properties for cash outright.