11:29 AM, 29th August 2023, About 12 months ago
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The buy to let sector is facing a lot of challenges in the UK, from tax changes to higher mortgage rates – but there’s another factor affecting the reputation and morale of landlords: the media.
According to Stuart Haire, the chief executive of Skipton Building Society, the private rental sector is being ‘demonised’ by the media, which portrays landlords as greedy and exploitative.
He told the Telegraph that landlords ‘are getting squeezed from a tax basis and from the increased mortgage rates they are having to pay’.
And in a story in the Sunday Times last weekend, Paragon Bank’s Nigel Terrington said landlords ‘are not evil’ and added ‘everywhere landlords turn they hear they’re ‘bad people’ and ‘profiteers’.
But a new survey reveals that landlords have had enough – of being called ‘landlords’
The research was carried out by Mortgages for Business (MFB) and its managing director, Gavin Richardson, said: “Sections of the media have vilified the buy to let community.
“The government has hammered them — think Theresa May’s 3% Stamp Duty surcharge and other tax deterrents.
“It’s got to the point where the buy-to-let community doesn’t want to be associated with the term ‘landlord’ anymore.
“The term carries much more baggage than it once did. No wonder the community wants a rebrand.”
The MFB survey reveals that most of the buy to let community (59%) would rather not be called ‘landlords’ in the media, as they feel it is a dated and derogatory term.
Some parts of the US media, such as NBC, have already stopped using the word ‘landlord’ after complaints from the buy-to-let sector.
In the UK, however, the term is still widely used and often associated with negative stories.
The MFB survey also asked the BTL community what they would like to be called instead of ‘landlords’.
The most popular option was ‘Small Housing Providers’ (43%), followed by ‘Landlords’ (36%) and other alternatives such as ‘Rental Accommodation Provider’ (7%).
Mr Richardson said: “The majority of landlords are paying 40% tax on their rental income – plus stamp duty – which means the Government is profiting hugely from Generation Rent.
“And to what end? Hammering landlords over the last five years has done first-time buyers no favours – research from Nationwide suggests first-time buyers now need to save a huge 113% of their annual salary for a typical home deposit of 20%!”
He added: “What would happen if we took landlords out of the housing equation?
“The impact on the property market would be significant and almost entirely negative.
“It’s not as if the Government is pouring money into social housing — or making any progress on house building.”
The survey also found that almost three-quarters of the respondents (73%) felt that they were ‘unfairly portrayed as this generation’s financial bogeyman’.
Only 8% said that they were not ‘financial bogeymen’ at all, while the rest admitted that there might be some truth to the stereotype.
Mr Richardson said: “Frankly, the government should be championing landlords and lauding their contribution to the housing sector — landlords are bailing the Government out!”
He said that landlords who are preparing for retirement by investing in property are being ‘reviled’ for building a nest egg.
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PropCo Owner
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Sign Up10:43 AM, 30th August 2023, About 12 months ago
Reply to the comment left by York student landlord at 30/08/2023 - 08:22
There are very few reasons a “business” can’t incorporate, although I do concede some who have been in the game for decades may have setup alternative legacy planning.
The majority who are hit by S24 are not a business and have one or two properties doing it as a side hustle.
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Sign Up10:46 AM, 30th August 2023, About 12 months ago
Reply to the comment left by Jack Craven at 29/08/2023 - 16:44
Yes, I’d like them to be called Renter or customer.
Dennis Leverett
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Sign Up12:23 PM, 30th August 2023, About 12 months ago
Reply to the comment left by PropCo Owner at 30/08/2023 - 10:43
"The majority who are hit by S24 are not a business and have one or two properties doing it as a side hustle"
Is this statement backed up by actual fact or just another statement plucked out of the air. I think I can guess the answer.
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Sign Up12:36 PM, 30th August 2023, About 12 months ago
Reply to the comment left by Dennis Leverett at 30/08/2023 - 12:23
Let's hope you guessed right...FACT!
Landlord Today:
It is estimated that these properties are owned by 2.74m landlords, with each landlord owning an average of *just over two* properties.
The key points for property rental income statistics are:
the total number of unincorporated landlords that declared income from renting property in 2020 to 2021 was 2.74 million
of these 2.74 million *unincorporated landlords*, 89% claimed some form of expenses
property income is concentrated in London. In 2020 to 2021, 16% of unincorporated landlords were based in London, but they accounted for 23% of property income for unincorporated landlords
all figures show a decrease between 2019 to 2020 and 2020 to 2021. This is the first Covid-19 impacted tax year
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Sign Up12:38 PM, 30th August 2023, About 12 months ago
Reply to the comment left by PropCo Owner at 30/08/2023 - 12:36
The "The key points for property rental income statistics" came directly from the Government's website!
Dennis Leverett
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Sign Up13:05 PM, 30th August 2023, About 12 months ago
Reply to the comment left by PropCo Owner at 30/08/2023 - 12:36
Note the word "estimate" not fact. The use of words like "side hustle" are just another insult to people that risk their own capital to house others whilst preparing to improve retirement prospects rather than be claiming benefits from us taxpayers. Are you or have you ever been in business for yourself? I have since 1974 and worked very hard to give my family a reasonable life and my wife and I a comfortable retirement. I'm not rich by any means and have certainly struggled through many recessions including interest rates at at around 18%. I'm also not motivated by money but wanting to be the best at whatever I do, do a job properly and the rewards follow. I didn't whinge about all the problems thrown at me but worked hard and smart to get through. As my tenants leave I am selling up simply because I've had enough of this crazy situation and place the blame entirely on weak government and ridiculous leftie interference. It's people that don't live in the real world and never have a balanced consideration that cause the problems. Have a nice day.
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Sign Up13:38 PM, 30th August 2023, About 12 months ago
Reply to the comment left by Dennis Leverett at 30/08/2023 - 13:05
Not at all, if I dabble in stocks and shares I'm certainly not a TRADER. I'm just creating an alternative income stream for XY purpose.
It's exactly the same thing!
If you'd read my earlier comments you would see I am both a multi business owner and a shareholder in other businesses. That means scaling and having teams, adopting business practices and operating as a business.
Like you, I've worked very hard to get where I am.
Teessider
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Sign Up14:26 PM, 30th August 2023, About 12 months ago
I think I’ve worked out what PropCo stands for 😂
PropCo Owner
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Sign Up14:27 PM, 30th August 2023, About 12 months ago
Property Company 😉
Teessider
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Sign Up14:40 PM, 30th August 2023, About 12 months ago
Reply to the comment left by PropCo Owner at 30/08/2023 - 14:27That what I thought initially. Then I read your comments. Proper Co…