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11:29 AM, 29th August 2023, About 8 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
11:48 AM, 29th August 2023, About 8 months ago
100%, I've been shouting about this for ages.
Landlord is used like a one size fits all term and comes with so many negative connotations.
When you ask people what a “Landlord” is they have no idea and usually describe a Fagan type character. They have no idea of the underlying costs of running a PropCo or all the compliance knowledge required.
For some odd reason, folks believe a so-called Landlord is greedy when they put up their costs and yet in their job they expect a pay rise. They forget a PropCo (or solopreneur business owner) has increased too for example, finance, salaries, compliance, their business premises rental etc etc………
If I write a legal document, I'm not a lawyer, so why would somebody with no clue about property and never touches their property year on year have the same label as a Professional PropCo or Solopreneur business owner?
We need new modern terms for example PropCo and tired no longer relevant, medieval language needs to disappear.
Puzzler
12:02 PM, 29th August 2023, About 8 months ago
Don't have a problem being a landlord. Keep it simple
GlanACC
12:09 PM, 29th August 2023, About 8 months ago
another woke idea (GR or Shelter could have dreamt this up), I am happy with landlord, and it doesn't matter what landlords want the tenants will always refer to them as landlords anyway.
PropCo Owner
12:22 PM, 29th August 2023, About 8 months ago
Reply to the comment left by GlanACC at 29/08/2023 - 12:09
Absolutely not woke, but something very necessary.
We're no longer in medieval times.
C-cider
12:31 PM, 29th August 2023, About 8 months ago
I’m a landlord.
I’m proud to be a landlord.
I’m proud of the properties that my tenants call home.
I’m embarrassed when I read how some landlords treat their tenants. I’m also embarrassed about the lack of knowledge that many landlords have regarding their responsibilities (legal and moral).
PropCo Owner
12:38 PM, 29th August 2023, About 8 months ago
Reply to the comment left by Whitby Host at 29/08/2023 - 12:31
Interesting....do you not see what you do as a "business"?
I'm happy being a business owner and shareholder of several other buisnesses. Leveraging underlying business processes and concepts, with strong values underpinning said businesses.
I can't bear the term Landlord and never use it.
Peter
12:56 PM, 29th August 2023, About 8 months ago
I would like either housing provider or rental service provider
Mark Harvey
13:04 PM, 29th August 2023, About 8 months ago
I'm happy with landlord, but I agree that the media constantly portray us as the bad guys. That sells better for them.
They typically show a tenant, usually on UC, who has been served a section 21, or 8.
Why do they always say, " the council recommends waiting for the bailiffs, or they will get no help on emergency accommodation". Doesn't matter to them that said tenants have not been paying rent for months.
I agree rents are rocketing, pricing many out of affordability, but so has my mortgage, by 120%. And still going up.
The media hardly ever explain that mortgage relief has ended, and therefore rent has to go up, or risk losing the property. And that a landlord can only do this once a year, or at the end of a tenancy. As many landlords have sold up,the availability has increased dramatically, which makes it harder on tenants to move anyway. What is the average now, 20+ viewings per property on the market.
The government need to build more social housing, on a massive scale, which they are reluctant to do, cant afford, and can't get around planning, in their own constituencys.
It's an ever decreasing cycle which helps none of us.
Ending section 24 is something the media should, and must report about, then perhaps then Gove will finally recognise that its not working,hasn't done in ages and change it. Lower rents will ultimately follow.
PropCo Owner
13:05 PM, 29th August 2023, About 8 months ago
Reply to the comment left by Peter at 29/08/2023 - 12:56Those are quite decent terms too.
We are a service provider for sure.
Freda Blogs
13:07 PM, 29th August 2023, About 8 months ago
I cant even be bothered to discuss.
Its good that this chap is highlighting some of the issues LLs are facing, and that's what I would welcome being shouted from the rooftops, so that tenants, media and the rest of the populace could see what is happening in the housing industry.
Those issues are far more important than what we are called for heaven's sake!