Housing Shortage

**Zorba** · 23 May 2007, 10:45

I can see where you're coming from. Unfortunately, what has probably driven you to suggest this is the recent visibility of 'new landlords' - people getting into buy-to-let because they can now afford to. The reality is that there have been big rental landlords for centuries... consider people like the Duke of Westminster. Even on a smaller scale, when I was at uni my landlord owned around sixty houses in that town which were all let to students. The rise of mortgages that are calculated against rental income rather than the borrower's personal situation have unlocked this rise in property ownership for the 'common man' - but the big landowners will still hold onto their property.

**TheRightStuff** · 23 May 2007, 10:48

Originally posted by Zorba

I can see where you're coming from. Unfortunately, what has probably driven you to suggest this is the recent visibility of 'new landlords' - people getting into buy-to-let because they can now afford to. The reality is that there have been big rental landlords for centuries... consider people like the Duke of Westminster. Even on a smaller scale, when I was at uni my landlord owned around sixty houses in that town which were all let to students. The rise of mortgages that are calculated against rental income rather than the borrower's personal situation have unlocked this rise in property ownership for the 'common man' - but the big landowners will still hold onto their property.

I agree this has always been the case but now every tom dick and harry has bought another property or is thinking about it.

**scooterscot** · 23 May 2007, 10:51

I own 2 living in neither! Not even living in the country in fact...

**Old Greg** · 23 May 2007, 10:53

Originally posted by TheRightStuff

On top of building new houses/flats to fight the shortage of propertys does anyone believe a limit should be set on the number of propertys per individual.

One of the big reasons there's a shortage is because of the buy to lets. You have 1 person owning 10, 20, 30 propertys while another person can't even afford to buy 1 flat.

There are often unforeseeable consequences of this kind of thing. Would this lead to a reduction in supply of rental property, which might increase rents? Or, would it reduce house prices (a good thing in my view) to make it more affordable to those looking to buy houses, which might in turn decrease demand of rental property, cancelling out to a greater or lesser extent the effect of reduced supply. Who knows?

I think the effect your suggestion would aim to achieve is desirable, but I would probably try to use the tax system to achieve the same: increase taxation (don't know how - stamp duty, tax on ownership, mortgage payments, and/or increased Capital Gains) and use the tax receipts to subsidise first time buyers and to improve the quality, availability and desirability of social housing, which if successful, would decrease the demand on privately rented housing and consequently rents and the viability of the buy-to-let model.

**tim123** · 23 May 2007, 10:54

Originally posted by TheRightStuff

On top of building new houses/flats to fight the shortage of propertys does anyone believe a limit should be set on the number of propertys per individual.

One of the big reasons there's a shortage is because of the buy to lets. You have 1 person owning 10, 20, 30 propertys while another person can't even afford to buy 1 flat.

How can owning a buy to let possibly add to a housing shortage? Does a buy to let house magicaly disappear when a BTLer buys it?

Nope! It reamains in the housing stock, someone rents it and then lives in it. That someone is not living on the street in exactly the same way that they would have done if they bought their own house.

The idea that BTL adds to the housing shortage is complete and utter b0llocks. (I agree that it adds to house price increases)

tim

**scooterscot** · 23 May 2007, 10:58

Originally posted by tim123

How can owning a buy to let possibly add to a housing shortage? Does a buy to let house magicaly disappear when a BTLer buys it?

Nope! It reamains in the housing stock, someone rents it and then lives in it. That someone is not living on the street in exactly the same way that they would have done if they bought their own house.

The idea that BTL adds to the housing shortage is complete and utter b0llocks. (I agree that it adds to house price increases)

tim

100% agree..

if anything I'm helping because my rental charge is less than 1st time buyer would pay in a mortgage payment. I'm doing you a favour!

**Causus Deli** · 23 May 2007, 11:00

I have a hatful, it's called investment and it works well if you want to do well.

**TheRightStuff** · 23 May 2007, 11:01

Originally posted by tim123

How can owning a buy to let possibly add to a housing shortage? Does a buy to let house magicaly disappear when a BTLer buys it?

Nope! It reamains in the housing stock, someone rents it and then lives in it. That someone is not living on the street in exactly the same way that they would have done if they bought their own house.

The idea that BTL adds to the housing shortage is complete and utter b0llocks. (I agree that it adds to house price increases)

tim

of course it adds to it. There's a shortage of houses to buy because of all the rentals. Most people are in rentals because they can't afford to buy.

**Moscow Mule** · 23 May 2007, 11:01

Originally posted by tim123

How can owning a buy to let possibly add to a housing shortage? Does a buy to let house magicaly disappear when a BTLer buys it?

Nope! It reamains in the housing stock, someone rents it and then lives in it. That someone is not living on the street in exactly the same way that they would have done if they bought their own house.

The idea that BTL adds to the housing shortage is complete and utter b0llocks. (I agree that it adds to house price increases)

tim

So rich people should buy all the property and the poor should give up on ever owning their own home?

Bit right wing isn't it?

Housing Shortage