Is it time for landlords to take action?

Is it time for landlords to take action?

9:44 AM, 19th August 2024, About 2 days ago 16

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The last so-called Conservative government enacted some terrible policies on the PRS. After our initial shock, many of us flexed and adapted and eventually habituated to greater risks for fewer profits, many of us sold up and left the sector.

All of this pales into insignificance when compared to what our current socialist government has up their sleeves. And to be clear the last time our government was this far left, was in the late 1940’s under Clement Attlee. Even the governments of Wilson in the 60s and Callaghan in the 70s were more centrist.

Starmer was criticised for not saying much during the run-up to the election, and it is now plain to see why. The less he said, the less he can now be accused of going back on. What little was said, has already, as we have seen, been cast aside. Who would have thought they would pull the winter fuel allowance for the elderly given the pressure they placed upon the Conservatives to maintain it.

How many Labour politicians were NIMBYs when the Conservatives wanted to build? Yet now, as a party they have run roughshod over the wishes of their own lower ranks and their constituents. How many times did we hear taxes will not be raised? We are not dealing with rational or reasonable people any longer. We are facing the views of narcissistic ideologists, who will stop at nothing to get what they want.

It’s a bit like fighting against a religious army, you need to be far better prepared and with greater numbers to win against their zeal and conviction.

This is what we are facing. If they are allowed, they will decimate the sector. Do not think that what has been announced so far is the totality of what is planned. To EPC C, Section 21 abolition, increased CGT and ‘the hardship clause’ you can add rent controls, mandatory nationwide licensing, PRS tenants right to buy after a specific tenure and compulsory purchase orders. At the same time you will be vilified and demonised for being a landlord. It is time to fight back in every way we can. Every proposed imposition must be robustly challenged. Every MP in the country needs to be called to speak with local landlords, agents, finance providers, insurers, to discuss and oppose the carnage they are attempting to wreak.

I have written to my MP. My managing agent has written to the same MP. Other local agencies have written to the same MP. I will continue to get others to do the same, each asking to talk with the MP and/or inviting him or her out to their business to discuss said issues.

At the least this will begin to feel very uncomfortable, at best it will ensure that consistent communication is fed back to the Cabinet nationwide. We need to learn from those minority groups, who despite their small stature, have a voice and appearance much bigger than they are (Generation Rent for example).

We are the opposite, we are a big group, with lots of power, albeit fragmented, and we have relied on the NRLA to represent us. They have not and will not. It is time to stand up and be counted – every single one of us.

I implore you to act. Write to your MP outlining your concerns and your thoughts on the negative impact their policies will have. Get others to do the same. Invite said MPs to meet and talk. Above all – do something! If anyone has any other ideas as to how we can challenge what is coming, please share your thoughts in this forum.

Thanks for reading,

Steve


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Judith Wordsworth

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11:31 AM, 19th August 2024, About 2 days ago

I proposed when the Renters Reform Bill first rose it's head under the last Government that ALL PRS landlords should serve a s21 on the same day and with the same expiry date 3 months hence.

No-one needed to have followed through as a s21 is purely a notice of intention and not action need be taken.

This would have made the government of the day and local authorities sit up and take note of the service PRS landlords provide as there would be just over 4 million families (just over 10 million people according to Labour statements) in PRS accommodation who could be homeless all on the same day.

This would/should have led to governments working with and not against PRS landlords.

But suggestion was sadly ignored

Cider Drinker

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11:40 AM, 19th August 2024, About 2 days ago

Reply to the comment left by Judith Wordsworth at 19/08/2024 - 11:31
That wouldn’t have worked. The Courts provide a control mechanism such that the numbers being evicted are manageable. A quick call from the government and hearings would have been delayed for years. The move could have hindered those landlords that genuinely needed to regain possession of their properties.

Cider Drinker

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11:41 AM, 19th August 2024, About 2 days ago

I’ll wait until I see the White Paper or the Bill before making my views known.

The Forever Tenant

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11:59 AM, 19th August 2024, About 2 days ago

Reply to the comment left by Judith Wordsworth at 19/08/2024 - 11:31
This would likely have had the completely opposite effect to the one desired.

Upon seeing thousands of S21 notices being issued on the same day it would have given the relevant groups enough evidence to show that S21 was being used for malicious purposes by landlords and that it should be removed immediately and retroactively.

With this proof that landlords were being malicious with their evictions they could then act to remove the ability to remove tenants in order to sell or move in.

There is already a bad feeling about landlords out there. It can only be made considerably worse by acting maliciously as a group.

TheBiggerPicture

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12:59 PM, 19th August 2024, About 2 days ago

Reply to the comment left by The Forever Tenant at 19/08/2024 - 11:59What is your solution then to landlords having no representation? (But being taxed)

Jason

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13:42 PM, 19th August 2024, About 2 days ago

They want to kill the P in PRS that is their plan and it’s working. It’s too late now especially with Labour we all knew this was coming. It’s a business investment so if it’s no longer viable or too much hassle there is only one way out. Sell up and invest in something else, you may suffer losses but that’s the nature of the game. The rules keep changing so adapt or leave.

Reluctant Landlord

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14:08 PM, 19th August 2024, About 2 days ago

Reply to the comment left by Judith Wordsworth at 19/08/2024 - 11:31
I completely understand where you are coming from, but any tenant who gets a S21 will not care a hoot that the LL has potentially no intention at the end of the day of using it or now, its the fact they have received it.

We all know LL's are being pushed to the limit at the mo, and the pressure is only going to intensify as the bill starts to progress through the system and the race for accommodation becomes more intense, but for that good T getting a S21, the tables could turn. A good tenant could suddenly stop paying altogether. It then sets good T against good LL.

Then what?

The Forever Tenant

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14:11 PM, 19th August 2024, About 2 days ago

Reply to the comment left by TheBiggerPicture at 19/08/2024 - 12:59
I cannot say what the solution is, it could be that there isn't an obvious way to change public perception.

However if you are seen to punishing tenants, because you are unhappy with the way you are treated by the government, I can absolutely guarantee that is not the way to go.

Cider Drinker

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15:14 PM, 19th August 2024, About 2 days ago

There’s a single problem, above all others, that is creating the housing crisis.

Net migration is too high and is unsustainable. Labour seem to have even less desire to reduce net migration than the previous Conservative government.

We need fewer people to be allowed to come to the U.K. and/or we need to encourage more people to leave.

We can either provide homes for migrants or we can provide homes for U.K. Nationals. Wi (avera have sufficient houses. Government MUST provide a figure for net migration over the next five years. Without a number, planners have nothing to work to. 1.5 million homes will barely touch the sides of the problem. And of course, there’s no money to build 1.5 million new homes.

As for the RRB, I sometimes don’t increase rents for 10 years or more. With the RRB I will definitely increase rents every year if the market allows. My rents are between 9% and 27 % BELOW LHA rates. They’ll be increased every year from now.

Martin

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16:43 PM, 19th August 2024, About 2 days ago

I feel moved to comment on this post and it's replies for several reasons.
I do think there is a real misunderstanding of how and why these things are happening to us.
The thing about being a landlord is that it's a lonely business, how many of us have had "oh you must know so and so, he's a landlord as well". We of course just don't, which means we don't have a cohesive voice. The consequence of this is that when some new tax or hurdle happens there is no unified or high level response and it just happens and becomes accepted. We then have to adapt or die. I refuse to believe there is a plan to kill the PRS .In the current climate that would be the very definition of madness, there is instead a slow creep towards making it less desirable to be a landlord.
Obviously there are more tenants than landlords so more votes to be had from tenants. Anecdotal evidence and TV shows talk about rogue landlords, so more legislation appears which of course doesn't help because the real rogue landlords ignore that as well. Then we have the additional taxes, the country is broke so of course taxes will go up. The net result is the older landlords like me bring forward their exit plans and no one is coming in at the bottom to replace us as it no longer makes sense.
If we want a cohesive voice, what we need in my opinion is a well structured open letter detailing how we would deal with the housing crisis, how various legislation impacts upon us and how we would encourage the PRS. This letter should then be simultaneously sent to every MP by landlords in their constituency and to all the newspapers.
The letter should describe the problems and offer solutions. It should not just be a moan.
For example, developers have to put in a certain number of affordable houses on a development at planning stage, but another legislation says they have to be able to make a certain profit so after planning is passed they are allowed to reduce the number of affordable houses. Screams loophole to me. My suggestion is scrap both and put 5% VAT on newbuild houses on developments of 3 or more.
Ring fence that tax to be used for affordable housing.
Section 24 needs to be reversed especially with higher interest rates. Or delayed on new BTLs to enable new landlords to get a foothold. SIPPS need to be able to invest in residential property.
I'm sure if we put our heads together we can bring up the problems and suggest solutions. It's no good simply saying someone must stop immigration or someone needs to speed the courts up. Explain the problem and offer a solution is the only way forward. Doing it en masse carries weight, but a moan is just a moan. A solution might just grab traction. Especially if one of the other parties latches on. We need to write a policy and offer it up.
If enough agree lets see if property 118 will lead the charge.

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