Summer Budget 2015 – Landlords Reactions

Reply to the comment left by "John McKay" at "01/08/2015 - 16:03":

Yes, and how many of those people are likely to be granted a mortgage?

The mistake was the initial assumption that an association of landlords would support landlords.
How idiotic☺
One suspects it will not have given a 100% positive impression to existing or potential members.

Amazing amount of signers to the petition, it is all moving rather fast 🙂

I have a little concern about the use of tenants being evicted as a way to promote the movement. I have checked out shelter and it seems this is not always going to be the case, we should not slide to scaremongering on this item???:

"most private tenants have had stronger rights since 1 October 2010.

In some cases, the lender will become your landlord after it repossesses the property from your landlord. This happens only if your tenancy is binding on the landlord's lender, and the new law does not affect these cases."

Is the tenancy binding on the landlord's lender?

Most tenancies are not binding on the landlord's lender but you may have a binding tenancy if:

your landlord had a buy-to-let mortgage
the lender gave permission for the landlord to grant the tenancy
the landlord's lender has recognised the tenancy in some way – eg by asking you to pay rent direct to them or by accepting rent from you (although it does not count if this arrangement was made as part of an agreement to delay the date of possession for a non-binding tenancy – see below).
you were already living in the property at the time the mortgage was granted
the property was sold to the current landlord after your tenancy started.

If you are unsure about when your landlord's mortgage started, you can ask the landlord or the lender to confirm this. You can also search for this information on the Land Registry website, although you will have to pay a £4 fee for this.

http://england.shelter.org.uk/get_advice/repossession/about_repossession/repossession_by_a_landlords_lender

Do you think we should be campaigning on this idea?

Reply to the comment left by "Landing Lord" at "01/08/2015 - 16:28":

Lenders are unlikely to want to act as letting agent/LL for any longer than they have to, so tenant will get evicted, as soon as is practicable to lender, so lenders can offload the property just as soon as the law permits.

Reply to the comment left by "Landing Lord" at "01/08/2015 - 16:28":

I assume that this simply protects tenants against eviction during the fixed period of their tenancy ie the mortgagee in possession has no greater rights to evict than the dispossessed landlord had prior to the repossession.

Reply to the comment left by "Landing Lord" at "01/08/2015 - 16:28":

Ll,

It is an optimistic fallacy being spread about by vested interests.

'Evil landlords get their properties taken off them and lenders take over running them.'

Vive le Revolucion brother!

In reality.

The Shelter piece you quote is quite correct, the tenancy agreements are binding, but for how long?
2 months on a rolling periodic followed by a possession order then bailiffs, plus costs.

Sorry to continue to be contentious but tenants being made homeless is an overstatement. Yes many landlords may sell and in doing so, evict the tenant and thus pain will be experienced more widely than just us landlords....

But (and this is probably the thinking of some bright strategist in the treasury): At the start of the process we have about 26.5M homes, at the end of the process we will have about 26.5M homes, so there will be no more homeless people than there are now but... rents and house prices may have dropped which will please the most vocal lobbyists...

Reply to the comment left by "Martin Silman" at "01/08/2015 - 17:45":

If my houses in the South Wales valleys are repossessed, do you honestly think the banks will becoming letting agents? If they evict the tenants, where are the buyers going to come from? There is not a big pool of potential first time buyers on standby with deposits and good enough jobs to satisfy the mortgage companies. I think houses like that will be empty for a long time and fall into disuse. They are not easy to sell, especially in some less than salubrious areas.

Reply to the comment left by "John McKay" at "01/08/2015 - 13:28":

The slowdown has no doubt already started. The end of month reports will show fewer buy to let mortgages and fewer property sales.
I agree - Jim S wrote extremely well about the effects on many landlords. I am probably in the same position as Martin Silman, not that highly geared, can go Ltd with only fees rather than CGT, but the issues are more than selfish personal concerns. We all want to protect our businesses, capital, investments, but principles are under attack.
Why shouldn't the average man and woman make money, sustain growth and respond to need in the rental sector without the government attempting to ruin this whilst at the same time plugging up a gaping hole in the country's finances brought about by mismanagement and overspending. The government could learn from business people, not steal from them.

Reply to the comment left by "Ros ." at "01/08/2015 - 18:10":

I have two - soon to be three - buy to let flats in Portsmouth. The housing market is faster moving. Houses (two up two down) are very popular and get snapped up before they're even on Right move. It is easy to think that the rest of the country is exactly the same.
I was also checking out parts of Somerset. Some places are not fast moving at all. Houses are on the market for quite a while and end up at auction then back again as unsold stock. Many places up north will be the same. Perhaps Martin Silman thinks that the buoyancy of Portsmouth is everywhere.

Reply to the comment left by "Connie Cheuk" at "01/08/2015 - 18:22":

Well you certainly won't get any arguments from me there Connie!