Critic says tenants paying off a landlord’s mortgage ‘can’t be right’
12:01 AM, 5th February 2025, 1 year ago
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John Bird, the founder and editor-in-chief of the Big Issue, has criticised tenant-landlord dynamics and highlights the urgent need for more public housing.
In an article for the magazine, he writes: “All I know is that we have to end the vulnerability of tenants who are caught in a trap that only enriches the landlord at their expense.
“Tenants in most agreements have only one role, and that is to pay off the landlord’s mortgage.
“That can’t be right in this day and age.”
He adds: “There must be a cleverer way to end this tyranny of housing over getting on with your life.”
Only benefit the landlord
Mr Bird argues that private rentals only benefit the landlord or the tenant depending on the prevailing legislation.
He notes that the new Renters’ Rights Bill could mark the beginning of a tenant-favouring period.
He goes on: “The vulnerability of the tenant, with such things as section 21 ‘no fault evictions,’ undermines the security of the tenant.”
Mr Bird points out that even the threat of eviction can cause stress for tenants, particularly those raising families or living alone.
He is advocating for a ‘vigorous public housing corporation’ which serves the community, including the homeless, trainee doctors, police officers, disabled individuals and students.
A well-thought-out public housing programme, he claims, could alleviate the century-old housing crisis and address the socio-economic disparities that have plagued the UK.
Shift the balance in favour of tenants
Mr Bird says: “Public house building for the public should include mixed usage, incorporating different demographics in need of housing.”
The Renters’ Rights Bill, he believes, could shift the balance in favour of tenants once again, much like Harold Wilson’s Rent Act of 1965.
He adds: “Ending section 21 has become a priority for those of us who do not want to see insecurity legalised.”
Mr Bird proposes borrowing land for temporary housing and utilising brownfield sites for new homes.
He also points to post-World War II prefabricated homes and says we need modern equivalents to deliver temporary relief while permanent solutions are developed.
Tags:
affordable housing, housing crisis, John Bird, landlord tenant laws, Landlords, public housing, renters rights bill, section 21 eviction, Tenant rights, tenants, UK Housing Policy
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Member Since July 2019 - Comments: 12
3:01 PM, 9th February 2025, About 1 year ago
All for it. The electricity, gas, water, EV, banking, dynamics should all be shifted in favour of the end user. In fact let’s do away with the whole capitalist system. I will live free and in style anytime they like. Nothing works any longer. Policies are more important especially if people CAN’T AFFORD THEM. The madness circle is approaching completion and will disappear up it’s own backside about 2030…..
Member Since July 2024 - Comments: 1
3:03 PM, 11th February 2025, About 1 year ago
What kind of idiotic thinking is this?
Member Since June 2023 - Comments: 8
9:59 PM, 11th February 2025, About 1 year ago
Reply to the comment left by Abhishek Swarup at 05/02/2025 – 22:34
There are some landlords who buy without a mortgage, so the tenants can’t make that argument. I have one rental with a small mortgage as I sold a previous house to buy it. My tenants keep the house spotlessly clean which I am thankful for. I have only been renting it out for12 months. Every 2 months they have whinged about something that they think should be done at my expense. They would have had to pay for those things if they were buying a house. Some people rent for that reason, so they don’t have to take the responsibility.
Member Since February 2025 - Comments: 52
10:12 PM, 11th February 2025, About 1 year ago
Reply to the comment left by Steph Brownlow at 11/02/2025 – 21:59
actually there are many none buy to let landlords. so the term buy to let is restricted to those who have a mortgage. the world owes no one a living. and everyone needs to pay for their food clothes living costs and a home. even home owners don’t get free repairs.
Member Since October 2024 - Comments: 186
11:34 PM, 11th February 2025, About 1 year ago
Reply to the comment left by Jo Westlake at 05/02/2025 – 10:21
Yes, also paying rent on time, builds up a good credit rating to show their lender that they can understand their commitment to pa their mortgage on time because of their regular payments of rent to their landlord.
So Mr Bird, are you going to keep all renters. What is your solution for the renters. The landlord are not buying properties to let the tenants stay free, as apart from interest, they have paid deposit, paid for certificates works, maintenance of the property.
Are we turning into a nation of communist. Even communist countries, somebody has to pay rent. Do you want renters to live in tents, as that is exactly the direction we are moving within 4 years. There are not sufficient homes for your socialist renters.
Member Since September 2018 - Comments: 3508 - Articles: 5
7:19 AM, 12th February 2025, About 1 year ago
no tenant pays a LL’s mortgage.
T pays to rent the space a LL has offered up.
The two are not connected.
LL & lender is one contract based risk on financial standing of LL. It takes into account only the ability of the LL to pay the loan and irrespective if the actual property is tenanted or not. Its a loan on the security or value of the asset not the income generated from it.
Member Since February 2025 - Comments: 52
7:44 AM, 12th February 2025, About 1 year ago
Reply to the comment left by Reluctant Landlord at 12/02/2025 – 07:19
not all rental properties are mortgaged some are owned outright…some tenants will not be able to buy due to age income poor credit history…so they can’t expect free accommodation..
Member Since November 2020 - Comments: 51
8:01 AM, 12th February 2025, About 1 year ago
Reply to the comment left by Reluctant Landlord at 12/02/2025 – 07:19
Not strictly true of course, rental income is a qualifying factor of most BTL mortgages.
Member Since March 2023 - Comments: 1506
8:16 AM, 12th February 2025, About 1 year ago
And what he forgets is that if you are in social housing, the rents there pay off the borrowing that was needed to purchase the properties and any profits (yes, some do make a profit) go to the council or the housing pot.
Member Since February 2020 - Comments: 20
11:39 AM, 5th March 2025, About 1 year ago
Only just seen this headline story –
what planet is this person on? So a tenant pays rent, landlord pays his mortgage – how in anyones world is that wrong?? So – tenant pays rent – landlord doesn’t pay mortgage – houses gets repossessed – tenant is homeless? What am I missing.
This is how this government and previous governments have damaged tenants
1. Tenant Fee bill – fairer for tenants. WRONG. Agents had to up their fees, landlords had to pay more so upped the rent. Tenants ended up paying MORE over time.
2. Cap at 5 weeks rent as deposit – fairer for tenants. WRONG – this removed the ability for pet bonds but allowed Pet Rents – Tenants ended up paying MORE over time.
3. Renters Rights Bill – Fairer for tenants. WRONG
Landlords exiting, rents increasing, fewer choice, Tenants paying more in the long run.
I see that The House of Lords have issued their recommended amendments and they make sense. I simplified 59 pages of the amendments to 2 pages and the feedback from my landlords was generally positive. Looks like it could be released in stages and it will be reviewed annually to assess the impact on the property market, rental supply and the courts ability to cope. Well we already know the answers to these questions…….