11:29 AM, 29th August 2023, About A year 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 Up14:43 PM, 30th August 2023, About A year ago
Reply to the comment left by Teessider at 30/08/2023 - 14:40
I would have thought the comments would further reinforce the fact....simples really!
Dennis Leverett
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Sign Up14:44 PM, 30th August 2023, About A year ago
Sorry, don't understand your answer which is "not at all" to my question of "have you ever been in business for yourself" you then state you are a " multi business" owner. Either you are or not. How can trading in stocks and shares be compared with buying run down properties and renovating them to let out. This includes various normal business expenses, finance costs, buying materials, using tradesmen, most work done myself. Sometimes flipping. I also used to have multiple streams of incomes as part of my other business's. Still went through the business as income less expenses. As far as averages go, on my tax forms I fill in with regard to income from property the question of how many properties do I own is optional and I along with others I know do not answer it. Therefore even HMRC can only guess at numbers owned. Are you or have you been a residential Landlord?
PropCo Owner
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Sign Up14:46 PM, 30th August 2023, About A year ago
Reply to the comment left by Dennis Leverett at 30/08/2023 - 14:44Seriously....how can you not understand it.
I own several businesses therefore I am and have been in business.
Aside from that I am a shareholder in several other businesses where I advise.
The stocks and shares example was based on me doing that as a side hustle relating back to those who dabble in property in a similar manner eg own circa one or two properties, don't get involved with them, don't think of it as a business and have some other form of job totally unrelated as their career.
GlanACC
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Sign Up14:54 PM, 30th August 2023, About A year ago
Reply to the comment left by PropCo Owner at 30/08/2023 - 14:46
Tending to agree there, a side hustle in my opinion is an activity (or even hobby) that does not generate your main income. I have had several over the years, one of which did become a main income stream.
PropCo Owner
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Sign Up14:57 PM, 30th August 2023, About A year ago
Reply to the comment left by GlanACC at 30/08/2023 - 14:54
Exactly, and as you say it can later become a business over time but equally it may not.
Like you I've had several side hustles over the years including stocks and shares 😉
Dennis Leverett
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Sign Up15:07 PM, 30th August 2023, About A year ago
I haven't read anywhere that you are a multi business owner, point me in that direction please. Are you or have you ever been a residential Landlord?
PropCo Owner
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Sign Up15:11 PM, 30th August 2023, About A year ago
Read the whole thread, I can't screenshot and attach unfortunately......[updated]. I can copy this below however....
Reply to the comment left by George Pearson at 29/08/2023 - 16:31
Interesting, we very much run businesses and provide a service.
Your answer explains why the term Landlord isn’t suitable as it’s used as a one size fits all and clearly it doesn’t.
Reply to the comment left by HMD HMD at 29/08/2023 - 16:57
I’m definitely not, as we’re business shareholders (in some cases), directors and a service provider.
There is way too much toxicity with the term Landlord and how it has come to be used.
student landlord
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Sign Up6:29 AM, 31st August 2023, About A year ago
Reply to the comment left by PropCo Owner at 30/08/2023 - 10:43
PropCo, you are very wrong to assume that the reason I can’t incorporate is because I’m not in “Business” and only run a side hustle. I can categorically say that I am indeed classed as being in full-time business, running a portfolio of 10 HMOs. I have done this as my full time job and sole income for over 20 years, and despite this, it has been impossible to incorporate or set up / restructure to any legal and legitimate hybrid model without paying a huge amount of capital gains tax. Even P118 were unable to find a solution (let’s see if this is redacted by them) so please stop being so arrogant as to assume you know everything about everyone and accept that other landlords also have valid and valuable contributions to these forums. Do you not think that if there was a way i could incorporate I would have done so by now? Of course in hindsight I wish I’d set up as a ltd company when I first started over twenty years ago, but at the time sole trader was the appropriate model. Neither I or my accountants could have anticipated section 24 or the other challenges that we are all facing. PropCo Well done for being so perfect, those of us lesser human beings can only stand back and admire your magnificence.
PropCo Owner
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Sign Up7:12 AM, 31st August 2023, About A year ago
Reply to the comment left by York student landlord at 31/08/2023 - 06:29It is you who is misquoting....I stated "most" adding the following caveat.....
"I know there are several who setup other mechanisms and it isn't easy or viable for them to change....but in general"
So when responding please do so having read what was written and stop being so rude....this is about the third time I've had to pick people up due to their inability to read what was "actually" stated before they start throwing stones.....
student landlord
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Sign Up7:26 AM, 31st August 2023, About A year ago
Reply to the comment left by PropCo Owner at 31/08/2023 - 07:12For heaven’s sake what is your problem? You clearly have issues. Not being rude, just defending myself. Why be so abrasive and defensive? We are all in this together and trying our hardest to make things work in our own circumstances. A little support rather than judgement and hostility would be so much more pleasant