A Level Playing Field Between Homeowners and Landlords

A market is about what you see but even more about you don't see. What I see is that hundreds of thousands of LLs are reading/participating in this discussion. I see that 'The Petition' was signed by around 20k, i.e. 10% of the readership of this blog.

So what is it that we don't see, i.e. we don't understand. Landlords are not fighting for their daily bread, complacency, etc ? It is so easy to sign The Petition that my first thought when I read about it was LLs will sign in droves simply because there is nothing to lose, it costs nothing and takes no time at all. Then why not just sign it even if one does not believe in it ?

I feel that Mr Market thinks this. Total PRS about 10-15% of the market (in units). Total undersupply in the market at least 10% (my guess). So let's say the most geared LLs are forced to sell, that would be say 5% of total housing market (to be extreme). But 5% sudden supply is not enough to balance the market. So the market continues to be under-supplied, and the rents go up. Basically the LL community thinks this is all for the good actually !

I am also puzzled by this 20k number of signatories to The Petition. Perhaps this is more or less the number of LLs really in trouble (some LLs signed simply because they think is right, but on the other hand there may be some LLs who never heard of it). It feels to me about 20k LLs are burning on this issue, if true then say each want to lighten up some, not all, properties, let's say 5 each, so we have around 100k properties coming up on the market over and above the 'normal' supply over the next 2-3 years, far less than first calculation. No big deal I would say, if my guess is right.

I haven't signed the petition, as unfortunately I think it's pointless for the following two reasons:

1) Are there any examples of such petitions having an impact?

2) As I understand the rules of the parliament petition scheme, if the 100k threshold is reached a subject is considered for discussion. I would expect the conclusion to their consideration of holding a debate to be that as this is part of the Finance Bill it is already being exposed to parliamentary debate as the Bill passes through parliament, and therefore no extra action is required.

The lobbying of MPs (particularly in marginals), local authority landlord liaison people, etc, is likely to have more impact.

Reply to the comment left by "Some One" at "07/09/2015 - 15:15":

Well, if you are a landlord I find it amazing you won't even put yourself to the trouble of signing a petition. I don't take that negative view of life and my contribution to the world.

Reply to the comment left by "Some One" at "07/09/2015 - 15:15":

Hello Someone,

It's not so much that the petition by itself will have an effect, it's more of an holistic approach, that the more we raise awareness everywhere, including the MPs in Parliament,, the more likely it is that this new tax will be seen for what it is. Unjust! Not just for the landlords but the whole of the wider community .

So I would ask you, please, to sign it...if it gets us nowhere at least we will have tried .

Reply to the comment left by "Some One" at "07/09/2015 - 15:15":

Have you signed yet?
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With regard to Graham's point about social housing providers buying up all the properties PRS landlords will have to sell, this seems unlikely, given that a growing number of housing trusts/associations are saying they will have to 'downsize' when the 1% cap on social rents come in. They are talking about redundancies and real fears that the cap will prevent any expansion or positive development. They are also saying they may not be able to offer properties to people on benefits because when they bring in affordability criteria, people on benefits wouldn't be able to meet the criteria. You couldn't make it up! The SRS and PRS will be so messed up tenants will be falling over themselves to rent whatever is available.

Reply to the comment left by "Annie Landlord" at "07/09/2015 - 17:11":

That's what worries me too Annie, the only landlords who will take them will be the true criminal elements who ignore all regulation regardless. People need a roof over their head and if an overcrowded, unsafe mouldy old property or perhaps a bed in a shed is all that is available then sadly they will be forced to accept that. We already know that the local authorities in the areas with the worst housing issues often turn a blind eye. If they don't they have to deal with the problem but don't even get any of the fine money for successfully prosecuting at their expense. The whole system is bonkers!
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Reply to the comment left by "Some One" at "07/09/2015 - 15:15":

May I ask you, is this issue going to impact you to the extent that you need to sell and/or move off-shore, etc, or will you be able to go through it albeit with lower profits ?

On average the petition is adding about 1,000 people per day, limping along at that sort of rate shows that this is not an issue that has captured the public imagination. Compare it to the asylum petition that has been running half as long and has over 400,000 people (or the anti-asylum one that has garnered over 100,000 in a few weeks). Since it didn't achieve the groundswell in the first couple of weeks, I think it now does more harm than good.

As before, all these petitions do is ask for a parliamentary debate, which is happening anyway as part of the Finance Bill. Talking/writing to people (including relevant ministers and their shadows) who will be part of that debate is far more worthwhile than a meaningless box ticking exercise.

(As a landlord this may cost about £5,000 per year, as a tenant I should do better as my landlord is incorporated.)

Reply to the comment left by "Some One" at "08/09/2015 - 12:01":

There's no point trying to discourage us from signing the petition. We already have. And what a strange thing to attempt anyway. We'll do whatever we need to, thanks, to get this reversed.