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10:34 AM, 13th October 2023, About 7 months ago 23
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And so, to the Labour Party conference where the sparkling wit and wisdom of Angela Rayner on the opening day managed to chill landlords everywhere.
There was nothing much to be surprised about, the normal platitudes about poor tenants having to put up with shoddy homes.
And did anyone else notice how she practically spat the words ‘no-fault evictions’ out of her mouth?
Though I did smile at the Property118 story about her appearance on LBC when poor old Angela couldn’t (wouldn’t?) accept that landlords leaving the PRS is causing an issue.
We all know why she would not answer because she would have to accept that not all landlords in the UK are bad – and we deliver a vital service.
Anyway, fair play to Andrew Castle who tried to get Angela to answer – it’s obvious she either doesn’t know the answer or doesn’t want to engage with the issue of what happens during a landlord exodus.
She just keeps repeating the mantra that she will provide social housing with no indication of when (if?) this will actually happen. This interview is just a sad reflection on the quality of our politicians and the scale of the problem now facing landlords in the private rented sector. If you haven’t seen this video, brace yourselves:
@lbc Andrew Castle wants to know what Labour plans to offer landlords #LBC #ukpolitics #labour #landlord #uk #rent #politics #angelarayner
Remember, we have a ‘countless amount of landlords at the moment’ and none of us appear to be fed up and wanting to pack this game in.
I’ve said it before, and I’ll say it again – there is very rarely not a reason for an eviction and Labour could unveil a law that ALL evictions must have a reason.
To anyone supporting this notion, that means understanding that the awful landlords whom you regularly malign are, in fact, dealing with horrendous arrears, our properties are getting trashed, and we are dealing with anti-social behaviour.
So, I’m left wondering should Labour brings in rent controls, will landlords then hike rents before the deadline to the ‘market rate’?
But wait. What if other landlords decide to do the same and ALL rents start going up – so what was the ‘market rate’ when we started putting rents up becomes a laughable figure very quickly.
This is what has happened in Scotland with their never-ending rent controls.
Is there a member of the Labour Party reading this who can understand how rents might spiral?
And that’s because you thought you were helping tenants BUT you don’t understand the private rented sector or market economics.
Talk about shooting yourself in the foot.
Reality doesn’t appear in a Labour Party manifesto but let me help you.
You say there is a housing emergency but you don’t understand why.
Uncontrolled migration and not building enough homes for people to rent are major reasons.
Both of these are not the fault of landlords.
But you blame us anyway but fail to understand that as we leave the sector, the market of PRS homes will shrink.
And with less choice and more renters wanting somewhere to live means they must pay more in rent.
That is market economics in action right there.
And if you bring in a rent cap, the market will be gutted as landlords either leave to avoid the prospect of not getting their homes back – or put up rents to take into account the cap on rent rises.
That, in turn, leads to less choice and a shrinking market, rents go up and people can’t afford to rent.
It’s a vicious circle and one that has been created by politicians. Not landlords.
How long can we afford to be the whippings boys and girls of politicians and tenant activist groups?
At the Labour Party conference, you said you want to encourage home buying with a mortgage guarantee scheme – which leaves taxpayers on the hook for trillions – but you never talk about capping house prices.
Does that mean you do understand market economics or not?
Along with the law of unintended consequences, these loons don’t appreciate the law of freedom of choice.
We decided to invest our money into an asset and deliver a (much-needed) service to tenants.
We are free to decide to sell our property because it’s ours to do what we want. It’s not the tenant’s property and it’s certainly not the government’s.
I fear we are heading into a world run by lefties who believe the world is as they see it – not as it really is.
What will happen when landlords do sell up and there are no extra social houses for the tenants?
It takes years to build and deliver homes.
Why will that timescale change because Labour says it will wave its magic wand and ease planning restrictions? It won’t.
As the French say, the more things change, the more they stay the same.
C’est la vie!
Until next time,
The Landlord Crusader
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LaLo
20:29 PM, 13th October 2023, About 7 months ago
Where’s the incentive to get on when hammered by tax? I may as well sat in a blob with not a care in the world - everything laid on for free in a lovely hotel! Where did I go wrong?
Dylan Morris
21:02 PM, 13th October 2023, About 7 months ago
Reply to the comment left by LaLo at 13/10/2023 - 20:29If CGT increases to 40/45% there will be no incentive at all for landlords to purchase new rental properties. Yes it could well stop landlords from selling, but no new stock will be entering the rental market.
Let’s say a landlord buys for cash a property worth £100k which increases over say 15 years to £200k. Capital gains tax due of £40k to £45k so net proceeds on sale no more than £150k when taking account of the 3% stamp duty to purchase and legal fees to buy and sell also estate agents fees when selling.
A similar property worth £200k so £50k has been stolen by Government using inflation. You’ve basically lost £50k. CGT is a huge scam.
With huge deficits and total debt now £2.6 trillion and set to go off the scale expect massive increases in taxation. Basically there’s no way out of this mess.
Crouchender
21:19 PM, 13th October 2023, About 7 months ago
Reply to the comment left by Dylan Morris at 13/10/2023 - 21:02
CGT used to be 40% before Labour (Brown/Darling) changed it downwards to 18% in 2008!!
But Labour have tricks up their sleeves.They just have not revealed them yet until we get closer to the election.
Either way it won't be pleasant/easy ride for those that stay in the market.
Stella
0:16 AM, 14th October 2023, About 7 months ago
Reply to the comment left by Crouchender at 13/10/2023 - 21:19
Pre 2008 the taper relief helped to reduce the tax and rewarded people who held the property for longer but paying 40% on the remainder was far too high.
If Labour charge 40 - 45% CGT assuming that they get in next time it would be day light robbery.
They are probably assuming that build to rent will be well enough established to fill the void when we run for the hills.
M&SFAN
9:49 AM, 14th October 2023, About 7 months ago
I think it'll be good to have more social housing,i don't like having to chuck people out when there isn't anywhere for them to go. it only helps those who want to portray us as bogeymen
M&SFAN
9:54 AM, 14th October 2023, About 7 months ago
Reply to the comment left by Elena Sh at 13/10/2023 - 16:58
reform haven't done anything except talk, a vote for them is a vote wasted
M&SFAN
9:56 AM, 14th October 2023, About 7 months ago
Landlords have never had a fair deal in the UK. In the 70s a lot of tenants had first chance to buy the properties where they lived at a low price.And before that there were controlled rents which were never put up for years. so landlords couldn't do any repairs even if they wanted cos the rent was something like a pound a week.
Adrian Alderton
10:52 AM, 14th October 2023, About 7 months ago
We have had 13 yrs of Tories which has been a disaster for landlords and the country. With massive increase in taxes including the absurd S24 and costly regulation causing a mass exodus.
Labour clearly want to focus on the supply of social housing and haven't got a clear plan for the PRS except that they want the tenant vote. They are also very likely to increase the LHA allowance making this sector more viable.
In my view it would be impossible for them to do a worse job than the Tories so scaremongering landlords is irresponsible.
Crouchender
12:11 PM, 14th October 2023, About 7 months ago
Reply to the comment left by Adrian Alderton at 14/10/2023 - 10:52
To be fair...
S24 and selective licensing was introduced 2015/16. 2010-2015 was a fairly benign time for LLs.
Admittedly the last 7 years has been toxic for LLs but don't expect it to be much better via Labour/ Rayner.
Mick Roberts
16:36 PM, 14th October 2023, About 7 months ago
Fantastic Andrew Castle video.
She ain't building the houses tenants need. And even if do, WHAT ARE WE DOING FOR LANDLORDS & TENANTS NOW NOW?
That Andrew Castle says in 1 min 04 seconds what we can't seem to get through to Govt & Councils.
Great words Landlord Crusader:
And with less choice and more renters wanting somewhere to live means they must pay more in rent.
We are free to decide to sell our property because it’s ours to do what we want. It’s not the tenant’s property and it’s certainly not the government’s.