Summer Budget 2015 – Landlords Reactions

I think it's a good idea to wait until after the public bill committee have concluded next week to see if there are any amendments. After that all of our energies should be spent lobbying the RLA, NLA and SAL to start legal action. If all three associations combined there is more chance of success. But I think it is going to take more than just emails to them. I think a good approach could be the representatives of property118, property tribes etc arranging face to face meetings with the associations on behalf of their members to organise direct action... Which could include a legal challenge. There has to be a joined up approach, and I think it has to come from the main associations who already have some political clout.

Reply to the comment left by "Manchester Landlord" at "10/10/2015 - 12:46":

Hi ML.
I would love a legal challenge and will be one of the ones who signs up to contribute if it can be got together. Personally, from what I've learnt over the last few months, I think the RLA should be the ones to be approached. Apparently the RLA and NLA will never work together - I have been told that this is a categorical no-no, but that's just what I have heard and I have no idea about their internal politics and history. And according to my observations of what both organisations have done over the last few months, I would say the RLA's contribution has been the best. There was, for example, a dreadful defeatist article based on the NLA's perspective about a month ago in the Evening Standard - which felt like treachery. So much has happened that I can't remember the details. Maybe someone can dig it up again.

I did a bit of digging around in the latest quarterly results for starwoodwaypoint. It looks a bit different to the current UK market

For transactions completed in April, May and June of this year:

(On page 17 of this document http://investors.sta...T=&iid=4423541)

Average acquisition cost per property $161,793
Average estimated upfront renovation cost $26,440
Average estimated investment per home $188,233

Estimated average monthly rental $1,660

So, annual rent $19,920 on $188,233 purchase = 10.58% gross yield

and (on page 14 of the same document)

Rent growth on leases

renewed leases average increase 2.2%
rollover leases average increase 3.7%
escalations on multi year leases 2.9%

So, a tenant of StarwoodWaypoint could reasonably be expecting to pay sufficient rent for the landlord to make 10.58% yield on the purchase price of the property they are living in and for up to 3.7% annual rent inflation.

Anyone considering selling to StarwoodWaypoint should expect them to aim to do a deal where the yield is around 10.58%

Reply to the comment left by "Manchester Landlord" at "10/10/2015 - 12:46":

Yes ML, completely agree with yr post. What you describe is what I have thought for a while now. Am sure others have too. In fact a group legal challenge (and the need for a thorough investigation in to the PRS which HMT obviously failed to do or perhaps actively chose NOT to do before proposing Clause 24) is something that occurred to me and I’m sure to many others as well, before GO had even finished speaking on July 8th.

However as Ros also pointed out in the post below yours, the problem may be getting RLA & NLA, as well as other LL groups such as SAL, as well as online only groups like P118 and Property Tribes etc to join forces & work together? This IS the biggest (non incorporated only, encumbered only, residential only) landlord attack ever, so these groups surely have no choice but to get together?

If not, the govt may ‘get away with it’ as they hope to.

PS Genuine question for Jon Pipllman re the other manipulative forum that you follow: Have you ever wondered why (1) the HPC school teacher dude who published a book on Amazon recently, as well as creating those Hitler videos featuring Mark A & Ros and (2) the chap who calls himself ‘Phil321’ (who claims to be a LL yet apparently hates all LLs)… are NEVER seen in the same room at the same time?? As you know the two of ‘them’ or rather the two of ‘him’ did appear to have an passionate onscreen love affair for a while.

Reply to the comment left by "Jon Pipllman" at "10/10/2015 - 17:05":

I think housing is much cheaper to buy in the US (or so the properties acquired by my US friends seem to show).

> Mark Shine. I don't recognise the other forum as manipulative, but I suppose it could be to more easily manipulatable minded folks.

I haven't ever wondered why those two posters (or indeed any two posters) are never seen in the same room at the same time and I can't even begin to understand why it might be in any way important.

It isn't unusual (and hasn't been for as long as I can remember looking at forums) that some posters on some forums use multiple posting IDs.

bland unsight even 'admits' a previous posting ID in the 'about me' section on the left of every one of his / her posts.

Am I missing something?

> Kathy Evans

Houses are indeed generally cheaper like for like in the US than here. There are notable exceptions in places like San Francisco, LA and other places but, as a generalisation, it stands up as well as any other.

Debt is cheaper too and (another generalisation with exceptions) easier to get in the US than here, which makes the 10.58% yield over there even more startling (to me) than it would over here or in Europe.

Reply to the comment left by "Mark Shine" at "10/10/2015 - 18:17":

Hi Mark S,
Couldn't agree more regarding a united front to challenge this madness.
I sounded out various parties regarding a collaborative approach back in July. Unfortunately, the consensus was that this was highly unlikely.
It seems that personal rivalries are paramount.
The people concerned know who I am and no doubt follow this thread.
Perhaps we could all try to get them to set aside their differences and work together for the common good?

Could we just use rla, property 118, property tribes and sal in order to build up the numbers I found nla a waste of time as they don't seem to be supporting members

Maybe a face to face forum could be arranged somewhere mid British Isles for any property118 members, property tribes etc etc, as well as inviting representatives from RLA, NLA, SAL etc. Call it an action summit if you like, where voices can be heard in an open forum and an action plan formulated, with responsibilities delegated. We need to start walking the walk.