Reply to: Renters leave London at highest rate in decade, research shows

[vetran]

Increase rent? Surely you only go into BTL if you can afford it ie. if you have enough deposit and low enough mortgage to charge market rental prices and still come out with some cash left in your pocket. If you are mortgage'd up to your teeth and the whole thing is costing you money, then it wasn't a good idea to begin with.

well as the government have recently adjusted the tax treatment of rent any calculations were in the fire when they did that.

[dsc]

[...]I struggle to see how landlords cover their costs and make a profit.

Increase rent? Surely you only go into BTL if you can afford it ie. if you have enough deposit and low enough mortgage to charge market rental prices and still come out with some cash left in your pocket. If you are mortgage'd up to your teeth and the whole thing is costing you money, then it wasn't a good idea to begin with.

[vetran]

If it becomes non viable economically then people will look for alternative pension substitutes. Many people have already moved to AirBnB as less risky ways to build equity and you get a free holiday home. What you don't get is more rental properties.

If you want rental properties you need landlords, if you remove the amateur landlords you end up with large companies who can take the issues caused by bad tenants these however won't be as nice to tenants as they expect or sometimes need.

Prices for anything won't go down as there is a pent up demand for housing because we haven't built enough.

[TheMortgageSquad]

I do have some sympathy for landlords as it seems the only type of landlord HMG want is the large corporate rather than small investors who become landlords for a myriad of reasons. The bad ones need better enforcement action but that shouldn't be penalising to those who look after their properties and tenants. Unless you have little/no mortgage to service, I struggle to see how landlords cover their costs and make a profit.

And this is why I, like Martin can see a lot of landlords deciding that being a landlord may not be the most profitable investment this year. With rising mortgage costs the profits are dwindling. Yes rents can be increased but only by a certain margin if retaining the tenant and costs for getting a new tenant now the tenant fee ban came in are not cheap either.

We could see a number of landlords deciding to sell up and put their money into other, more profitable investments and with more property coming into the market and less demand for property because of the higher interest rates and cost of living (and because obtaining new buy to let mortgages are a lot more difficult now due to the higher income calculation rates) supply will be increasing and demand reducing which simple economics dictate, prices will come down. That will only exaggerate the issue with landlords then faced with not only losing money on the rental income versus running costs of being a landlord but the actual value of the asset dropping too so more landlords could sell for that reason too.

Will be an interesting year or so in the housing market!

[ladymuck]

Even if they only cover costs they have an appreciating asset.

of course that may change very soon.

I get what you're saying but that comes back to why they became a landlord in the first place (talking about individuals, not corporates).

I'd struggle to say that there is a landlord out there comfortable with just breaking even as that leaves very little room should emergency repairs be needed.

[TheGreenBastard]

Even if they only cover costs they have an appreciating asset.

of course that may change very soon.

It only really affects landlords operating as individuals, not as Ltd companies. Essentially the big boys are pulling up the ladder, profiteering through real estate shouldn't be accessible to plebs!

[TheDude]

I do have some sympathy for landlords as it seems the only type of landlord HMG want is the large corporate rather than small investors who become landlords for a myriad of reasons. The bad ones need better enforcement action but that shouldn't be penalising to those who look after their properties and tenants. Unless you have little/no mortgage to service, I struggle to see how landlords cover their costs and make a profit.

Even if they only cover costs they have an appreciating asset.

of course that may change very soon.

[vetran]

or, in your case, - halfwits.

Damn if only you could manage some wit! Well apart from you being a feckwit.

[ladymuck]

I do have some sympathy for landlords as it seems the only type of landlord HMG want is the large corporate rather than small investors who become landlords for a myriad of reasons. The bad ones need better enforcement action but that shouldn't be penalising to those who look after their properties and tenants. Unless you have little/no mortgage to service, I struggle to see how landlords cover their costs and make a profit.

[sadkingbilly]

ah yet again you come totally unarmed to a battle of wits!

or, in your case, - halfwits.

[vetran]

oh, piss off you sanctimonious little fat twat.

ah yet again you come totally unarmed to a battle of wits!

[sadkingbilly]

some landlords may offer that service in exchange for cheaper rent though you would need someone pretty kinky in your case.

You know landlords provide a valuable service?

oh, piss off you sanctimonious little fat twat.

[vetran]

F**k the landlords!

some landlords may offer that service in exchange for cheaper rent though you would need someone pretty kinky in your case.

You know landlords provide a valuable service?

[sadkingbilly]

Won't somebody please think of the Landlords.

F**k the landlords!

[TheDude]

I suspect we may see a lot of landlords leave the rental sector this year due to the increase in BTL rates / tax changes and especially so if they are already higher rate tax payers.

Landlords call for tax review as ‘disinvestment’ plans rise

https://www.mortgagesolutions.co.uk/...nt-plans-rise/

Won't somebody please think of the Landlords.