Rent Freeze Announced Today

[Richlist]

A rent freeze in Scotland has been announced today without consultation or discussion with affected parties.

Is this the shape of things to come ?????

[bil8999]

11 hours ago, Richlist said:

A rent freeze in Scotland has been announced today without consultation or discussion with affected parties.

Is this the shape of things to come ?????

Yes, then they will look at raising how much tax we pay. 

[Melboy]

Almost certainly going to happen in the rest of the UK as well. The Scottish Parliament rent freeze has not produced any details as yet but no doubt they will be fairly severe. Any Scottish landlords reading this posting?

[Melboy]

Resurrecting this topic.    In the Daily Telegraph yesterday.

"Olaf Scholz is considering imposing a three-year rent freeze on Germany’s landlords as his ruling Social Democratic party attempts to ease the strain of the cost of living crisis on tenants".

I have heard a few whispers from LA's that ALL 3 political parties are giving serious consideration to applying a rent freeze to England landlord rents. The reason apparently the Tories have not done so yet is due to the looming general election. I would think it would be a dead cert. if Labour or the Lib. Dems. were ever to gain power, but the latter party is very unlikely to happen.

Would this be another nail in the coffin for BTL to get out of the business if a 3 year ruling was to be applied in England or would there be quickly applied rent rises for tenants before the new ruling were ever to be applied?

[Richlist]

Melboy has identified the 'Achilles heel' of this proposal. Any introduction of a plan to freeze rents for 3 years that involves notice, will initiate a rent rise across the board. No landlord who is able to increase their rents will choose not to do it, thereby resulting in an immediate cost of living rise......the very thing it is designed to avoid !

The only good thing on the horizon is that interest rates look to be near their peak.

[kanrent]

On 9/7/2022 at 1:06 PM, bil8999 said:

Yes, then they will look at raising how much tax we pay. 

Rachael reeves had already stated that landlords will pay a higher rate of tax

[Richlist]

Labour look like they are going to massively inflate the housing shortage crisis. 

There will be even fewer landlords......new BTL entrants will decide it's not for them, existing landlords who have ridden the last few years of increased legislation & interest rate rises will view landlord targetted tax rises as the last straw.

For any tenants reading this.....fewer landlords = fewer rental properties & higher rents.

Vote Labour if you want to risk it !

[kanrent]

It's become perfectly clear that both governments want the PRS finished, in a time of a housing crisis I'm wondering what  the real motive is behind their thinking. Is it to try and win votes (a politicians main objective) or is there a hidden agenda. 

[Carryon Regardless]

I have been trying to understand the agenda for years. Feasibly it might give me / us a foresight of how far this will go.

But all relevant parties are the same. The increase in our responsibilities is most apparent, as this let's the benefits system off the hook some.

Then there is the increase in housing stability, I feel measures toward that have only just begun. For that to be effective we must come under greater controls. And it will be designed so as not to impact on social mobility for those requiring that. So that must be heavily loaded against us.

The country is skint, and so taxation must be increased across the board. And so our returns are hit, additional to the financial burden of legislated responsibility, and losses while trying to recover a property from abusers.

Do the civil service (as this is going to transfer to any new Gov't) have a master plan for the replacement of the BTL investors that are going to cash in? Should we care?

Well 1st off in principle the cashing in should provide near instant tax revenues.

Next, properties will be transferred, they don't become non homes for long, they will be lived in by someone. Us cashing in doesn't affect housing availability in the long term. They may in fact become more affordable to those in the rent trap.

In a small way, wasteful as it 'may' be, it also generates work. Property renovations are v common with new owners, it may even be a ripping out of whatever the seller thought was a good idea done recently to promote the sale.

Happy to be pointed out where I'm wrong, but our main value is for those requiring social mobility. Thus far we try to stay away from those as tenants, as ideally we want a family to live in our properties indefinitely. But for the good of social stability those families would be better as owners (in general).

 

[Melboy]

Latest from the Newspapers.  

Landlords fear Angela Rayner could hit them in the pocket  with rent controls and tax rises".

I would say it would almost be a certainty from Labour.   If this does becomes a Labour policy then there will be an avalanche of landlords getting out of the business rather than a steady drift as it is now.

Full story here:

Landlords fear Angela Rayner could hit them in the pocket with rent controls and tax rises (msn.com)

[Richlist]

Yes it reads like a horror story BUT........

I know we are at least a year away from a General Election (unless the Tories suddenly decide to call it earlier) and a lot can happen in a year but Labour aren't winning any friends anywhere. Starmer is totally unelectable and at the moment I don't see Labour winning a majority.  Who in their right mind would vote for the rag tag of inexperienced Labour MPs who repeatedly fail to impress on every level. We are much more likely to get a mix of Labour, Lib Dems & Greens so Rayner won't get it all her own way.

[kanrent]

I been reading that rayner is closely affiliated with Corbyn, what really worries me is that she might introduce a tenant right to buy at a discount

[Melboy]

1 hour ago, kanrent said:

I been reading that rayner is closely affiliated with Corbyn, what really worries me is that she might introduce a tenant right to buy at a discount

I doubt that will ever happen as the the legal consequences would be a tangled mess especially if you are going to involve the small private BTL landlord. If this law was ever to be introduced imagine the mass exodus to the door of private landlords and there again it has to pass into law through the house of Lords so I wouldn't be too concerned at the moment.

[Carryon Regardless]

Unless it's a 100% discount I can't think of any of my tenants that could afford it.

Although it would be interesting to see how they could design that formula. If the property is mortgaged could a transfer be forced with a mortgage outstanding? With that in the wind I would cease paying mine.

[Richlist]

All I see Labour doing in the media is moaning, complaining & criticising. Any policies or ideas they have are totally left field just like this one. AVOID at all cost.

The future is blue.

Can I suggest we stop people using this forum to air political views ?😇😇

[Melboy]

11 hours ago, Richlist said:

All I see Labour doing in the media is moaning, complaining & criticising. Any policies or ideas they have are totally left field just like this one. AVOID at all cost.

The future is blue.

Can I suggest we stop people using this forum to air political views ?😇😇

Sadly Richlist in today's World of landlording political views have to be aired because it affects every landlord due to the constant interference from government most of which does not favour the landlord. I wish we didn't. I can remember a time when you never heard anything from government about how the private sector operated when it came to the private landlord.

If I was to say when did it all change I would say it started with Nicholas Adolf von Hessen, who previously went by the name of Nicholas von Hoogstraten was born in Shoreham in 1945 and by the late sixties he owned 350 properties around Sussex and called himself the UK's youngest millionaire. The papers went on and on about this Guy and forced the Government to take some action which they did and they have not stopped since.

Any "Youngsters" reading this:   Google this Nicholas von Hoogstraten character. He did verge on the evil.

[kanrent]

22 hours ago, Melboy said:

I doubt that will ever happen as the the legal consequences would be a tangled mess especially if you are going to involve the small private BTL landlord. If this law was ever to be introduced imagine the mass exodus to the door of private landlords and there again it has to pass into law through the house of Lords so I wouldn't be too concerned at the moment.

If I can remove my tenant before it's passed through the house of Lords that would be fine,a matter of which would take the longest