9:51 AM, 6th December 2023, About A year ago 89
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The Labour Party says it wants the UK to outlaw tenant bidding wars for rented homes, adopting a New Zealand policy, the Party’s Shadow Housing Minister, Matthew Pennycook, says.
Several Australian states have also apparently followed suit and Labour says the practice ‘creates a competition among tenants’ which only benefits the landlord.
Mr Pennycook says: “Those tenants who lose out on a property because of bidding wars are in a worse situation.
“And those who manage to get a property by that method are often stretched to the maximum of what they can pay.”
Labour now wants to amend the Renters (Reform) Bill that is working its way through Parliament.
And on 5 Live Breakfast, Nottingham landlord Mick Roberts was questioned by presenter Rachel Burden over the bidding practice, when she asked: “Do you get your tenants outbidding each other for your properties?”
Mr Roberts replied: “I do, and I’ve had that in the past, but I don’t get into it. But I can understand why other landlords are doing it.”
He was then asked why this situation is happening and Mr Roberts replied: “Well, you’ve got a shortage of landlords and since 2015 there’s been this anti-landlord rhetoric and the landlords are packing up like wildfire.
“And now you’ve got a supply and demand issue – and we never know what is coming next.”
He added: “For example, in Nottingham we’ve got a selective licensing charge of £900 and for some landlords, if they’re going to get to tenants bidding against each other, then they are going to take that bid.”
Along with the prospect of Labour banning tenants bidding for a rented property, Mr Roberts asked Ms Burden whether we should also ban bidding on the shopping site eBay and ban house sellers when bidding puts the price up.
Ms Burden asked: “Having somewhere to live is kind of a basic human right and need, isn’t it? And if people are being priced out of the market, this is really problematic.”
Mr Roberts replied: “I agree, but is it the landlord’s job to provide that basic human right?
“The landlord’s job is to provide a home – they are not a charity. It’s not the council providing that home, it’s not a housing association, it’s a human being. And he can take his money elsewhere.”
Ms Burden said that a landlord advertising a property at a certain price will know that the amount covers all the landlord’s costs and gives a buffer zone.
She then asked: “Then maybe there should be a system whereby you don’t allow people to come in and offer over that price.
“So, in other words, the landlord isn’t losing out. But you’re equally being fair to the renters.”
Mr Roberts said: “Well, you just hit the nail on the head. The landlord knows he’s covering his costs, but he isn’t because he doesn’t know what is coming next.
“Labour is proposing rent caps and if you look at Scotland, where they’ve done the rent cap, tenants have ended up much worse off from that. Now the new tenants can’t get a house.
“And when the landlord comes to rent it out again, he charges the most. And that’s what is happening in these bidding wars.”
Ms Burden said: “Obviously, we’ll have to wait and see all the parties’ different manifestos as to how they’re going to deal with this.
“But I guess that’s always been the case for any landlord. There’s always going to be some uncertainty for landlords.”
Mr Roberts replied: “There’s not as much certainty now and most of us are aware that a lot of Labour are anti-landlord, but you get rid of the landlord, and you’ve got no houses.
“You know, they’ve been calling for landlords to pack up and more great landlords are packing up when given the choice.
“There will be lots of landlords fighting for tenants – my tenants can’t leave me anyway, you know, I’m probably one of the rare ones.
“I want to sell a lot of my houses, but I can’t because they can’t get anywhere because of things like this bidding war.”
He continued: “I won’t leave them in that position because I’ve got morals and a conscience.
“But a lot of landlords, it’s something like 60% of landlords, don’t give rent increases, but because we don’t know when the next tax is coming from, I’ve got to get in as much as I can because I just don’t know.
“There’s no certainty anymore. I can’t even look after a family anymore.”
Mr Roberts added: “Lots of landlords are packing up and the more you talk about banning bidding wars and landlords not refusing pets, you’ll have no landlords left.”
The chief executive of the National Residential Landlords Association, Ben Beadle, told BBC’s Newsbeat that he accepts that bidding wars happen but says many problems in the private rental market are due to supply issues.
He said: “You can’t go around banning everything.
“What I would say is we need to look at what’s forcing people to make these decisions.”
A government spokesperson told the programme: “It is ultimately for landlords and tenants to agree the amount of rent that should be charged when a tenancy begins.
“Our Renters (Reform) Bill will deliver a fairer, more secure, and higher quality private rental sector for landlords and tenants.”
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Mick Roberts
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Sign Up10:26 AM, 6th December 2023, About A year ago
Reply to the comment left by Freda Blogs at 06/12/2023 - 10:08
Ha ha yes, same old spiel on RRB like a chatbot is replying.
Mick Roberts
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Sign Up10:26 AM, 6th December 2023, About A year ago
Reply to the comment left by Martin Roberts at 06/12/2023 - 10:10
Yes, that's what will end up happening.
Mick Roberts
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Sign Up10:27 AM, 6th December 2023, About A year ago
Reply to the comment left by Easy rider at 06/12/2023 - 10:11
That will be our fault next And it has I kid u not on one of my houses, the text between me & tenant here:
From family member tenant at 5pm on a Friday. Who thinks I stripped him naked and put him on his missus in bed and said u MUST MAKE BABIES!
I’ve spoken to XXXX and she’s says she’s thinking about having an house from you and staying in one of your properties, we have been in this rabbit hutch for to years and the houses you’ve offered us so far are dirty and not even close to what we want, I said 2 years ago could you get us anything and it’s been yes one week and no the other, we have the environmental health coming out so we will see what they say,
From me
Ok,
When u can talk to me politely at a respectable time and have more respect for the person that has housed u and offered every one that come up.
And tried to help u with your finances which you've now blew. How u can spend £12000 in 6 months is beyond me especially when all your outgoings are paid.
Please work with me XXXX, it's not my fault u in this position.
I will do my best to get u buying, but your negativity is holding u back.
You had brand new house when u moved in there.
U moved in on your own.
The rabbit hutch was big enough for u before u decided to move missus in, then have 2 kids in the rabbit hutch, the gorgeous 1 bed brand new build in Warren Hill.
The one u refused is now gorgeous and the family in there love it.
Your negativity is holding u back.
https://www.rightmove.co.uk/property-to-rent/property-79169417.html
Riccardo Agostino
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Sign Up10:28 AM, 6th December 2023, About A year ago
I am a multi-property landlord, and I did not have a clue of what tenant bidding is until my potential tenants started offering more of the asked rental to secure the property for themselves; they do so because they are aware there is too much unbalance in the housing market (the demand is much higher than the flats on the market): it is entirely last thirty years government's responsibility, including labour. A ban is not the solution: build fewer nuclear submarines and more affordable social houses for those in need, and stop blaming landlords for your mistakes.
howdidigethere
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Sign Up10:28 AM, 6th December 2023, About A year ago
Reply to the comment left by Easy rider at 06/12/2023 - 10:11
What!? I'm sorry, could you please explain the rationale behind your comment?
Are you saying that government has the right to dictate to people how many children they should, have and at what time they are to be euthanised?
And this in turn is the solution to a rental housing matter?
Mick Roberts
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Sign Up10:31 AM, 6th December 2023, About A year ago
Reply to the comment left by Martin at 06/12/2023 - 10:16
That's exactly it. Making life hard for good landlords is making life hard for the majority of tenants.
Govt & Councils & Shelter & Generation Rent are gradually making all us Landlords who have been charging cheap rent, we now start putting the rent up, as we trying to be good, we get slated, we get charges & costs, we may as well charge top whack. At least then we being paid better to be abused.
NewYorkie
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Sign Up10:31 AM, 6th December 2023, About A year ago
Reply to the comment left by TheBiggerPicture at 06/12/2023 - 10:05
These people don't seem to understand landlords do not provide social housing, and have a choice over how they use their assets. Try to restrict or take them away, and landlords will take their money elsewhere. That's been happening since S24 was introduced, and has since accelerated.
You can't lose 30% of the PRS, bring in 1 million immigrants in a single year alone, keep hitting landlords from all directions, and expect them to cope.
With an election looming, landlords will continue to be demonised, and renters will be the battlefield casualties.
Lee Bailey
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Sign Up10:33 AM, 6th December 2023, About A year ago
Wakefield council (DWH) have benefits tenants bidding on properties. I have no doubt other councils operate this way too?
Old Mrs Landlord
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Sign Up10:35 AM, 6th December 2023, About A year ago
Reply to the comment left by Easy rider at 06/12/2023 - 10:11
Worked well for Communist China after all - not!
Mick Roberts
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Sign Up10:39 AM, 6th December 2023, About A year ago
Reply to the comment left by Riccardo Agostino at 06/12/2023 - 10:28
Yes,
I didn't till it happened to me last year.
Last year, I had gal with me 15 years, 10 years in last house. Paying £565. Had Inheritance, bought a house. New gal (existing one of mine) I had to charge her £850 (same as all surrounding rents) as I said u now new again, we signing up to all the latest new laws/regs & got to charge these rents. She said No problem, I want to stop with u, they all £850+ anyway & other Landlords sell on u.
Once all me other tenants got wind I had this 3 bed coming up, they all started bidding up and offering me more money. I declined of course as I have morals and conscience, but is the state of it out there.