BTL timebomb

[sasguru]

I think the rental sector is here to stay, maybe even as the mainstream option.
Will take people a while to get used to it.
There needs to be more legislation to protect both landlords and tenants, so that it becomes a flexible, attractive alternative to buying for young people.

[AtW]

Rents will go up.

[AtW]

Would you want to live in a house built by someone that very grudgingly got out of bed to build it? I have seen what skilled trades can do when they are ******* idiots let alone one that is conscripted and an unwilling toss pot to boot...

No problems, get highly motivated immigrants then. It's not about solving unemployment, it's about building lots more houses cheaply.

The other problem is we do not need 1,000,000 homes built where most of them are nowhere near a job that pays enough to buy it. We need affordable first time property that is price controlled. not £1.5mil flats...

1 mln houses worth £100k each max - nice income to Govt that will allow to reduce income tax rates.

[sasguru]

Rents will go up.

Need rent controls in London like NY, but by enacting policies that will concentrate rental property into the hands of large business, the govt. has achieved precisely the opposite effect.
So, yes, on current policy, rents will go up.

[unemployed]

The government is going about this exactly the wrong way.
Those who have one or two BTL properties for their pensions have an incentive to keep the properties in good condition and develop good relationships with tenants.
These are the people who will be affected and sell up.
The big landlords who own large amounts of properties and run them as a business, will buy them up for cash, get a monopoly and hike up rents.
Tenants will lose out.

What they should have done is beef up rental conditions, even introduce price caps as they do in New York for example, realising that in a world city you need housing for the low paid too.

wow i actually agree for once

[AtW]

Need rent controls in London like NY

You mean by crime?

[vetran]

If their margins are that thin, they aren't doing it right.

what if they aren't making 40% profit currently then they deserve it

Its not Dodgy Agent its BTL.

The interest only Mortgage is £1000 and the rent is £1200 if you factor in non payers, empty and refurbishing once every 2-5 years its just breaking even or losing a few hundred quid a year.

Once you get established or if you bought a while ago then you may well be doing ok.

[vetran]

wow i actually agree for once

indeed who has SAS's logon details?

[AtW]

The interest only Mortgage is £1000 and the rent is £1200 if you factor in non payers, empty and refurbishing once every 2-5 years its just breaking even or losing a few hundred quid a year.

What would your mortgage be at normal 6-7% interest?

[PurpleGorilla]

Stop foreign investment

Stop uncontrolled immigration

Tax BTL

Move to cashless society and tax the millions of polish plumbers and builders paying zero tax.