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11:29 AM, 29th August 2023, About 9 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
13:14 PM, 29th August 2023, About 9 months ago
Reply to the comment left by Freda Blogs at 29/08/2023 - 13:07
The issue starts with the term Landlord. It's medieval and as I stated above many see a Fagan type character, not a business.
That must be tackled as a started for 10.
We need to professionalise the whole industry, those who operate professionally and are a business and need to be treated as such and appropriate business language should be used.
S24 is only a problem for those holding properties in their personal name. I understand historically some soloprenuers may be in that situation, however many have chosen to incorporate.
Keeping on about S24 which is done and dusted isn’t the right approach. Where you're a business there are options (caveat I know there are several who setup other mechanisms as it isn't easy or viable for them to change....but in general).
PropCo Owner
13:18 PM, 29th August 2023, About 9 months ago
Reply to the comment left by Freda Blogs at 29/08/2023 - 13:07Actually the issue starts with the term Landlord. It's medieval and as I stated above many see a Fagan type character, not a business which isn't a great place to start from.
We need to professionalise the whole industry, those who operate professionally and are a business (Ltd wrapper or solopreneur) need to be treated as such and appropriate business language should be used.
S24 is only a problem for those holding properties in their personal name. I understand historically some solopreneur may be in that situation, however many have chosen to incorporate.
Keeping on about S24 which is done and dusted isn’t the right approach.
Caveat I know there are some exceptions due to other approaches such as trusts already being in place.
Energy should be focused on reforming the industry so that it is more business centric and fair for all stakeholders.
kirklean
14:43 PM, 29th August 2023, About 9 months ago
As with many of us, my role is in 2 parts, so I describe myself as a property investor foremost and that I also rent those properties.
You can't do the 2nd part well (think slumlord) if you also don't do the first part just as well.
Judith Wordsworth
16:09 PM, 29th August 2023, About 9 months ago
A landlord is what I am, and cannot see the point in a new title for doing what I do, though do get fed up with the confusion between landlord of property (be it a freeholder or landlord of a property let to a tenant) and landlord of a pub!
If the name was changed then all the "Landlord and Tenant" legislation would need to be changed too. What a waste of public money.
GlanACC
16:11 PM, 29th August 2023, About 9 months ago
The Oxford English dictionary definition of a landlord is 'a person who rents out land, a building, or accommodation'. Sound pretty good to me. The rest of these fanciful suggested names are just PR spin. Property Investor is the worst as it suggests that you are just interested in making money (which I agree), so landlords is much more preferable to that. I have worked for a lot of organisations that tried to put a PR spin on job titles. Director of this and director of that, when in fact although I was a mere employee I was the only real director running my own business (as a contractor) as you could at least look me up in companies house. Keep it plain and simple LANDLORD
Teessider
16:31 PM, 29th August 2023, About 9 months ago
Reply to the comment left by PropCo Owner at 29/08/2023 - 12:38
No, I don’t see it as a business. I have 4 x properties with tenants. That makes me a landlord.
I have a low LTV. I understand leverage (including how you lever risk as well as potential reward).
For me, it’s a passion more than a business but it did help me to retire early.
Jack Craven
16:44 PM, 29th August 2023, About 9 months ago
Reply to the comment left by PropCo Owner at 29/08/2023 - 13:14
Do you think that tenants should be called something else also, or am I being
pedantic ?
PropCo Owner
16:53 PM, 29th August 2023, About 9 months ago
Reply to the comment left by GlanACC at 29/08/2023 - 16:11
In that case Landlord isn’t suitable PropCo or service provider as the assets are owned by a business and it’s said business that is offering a service.
PropCo Owner
16:55 PM, 29th August 2023, About 9 months ago
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.
H MD
16:57 PM, 29th August 2023, About 9 months ago
I'm happy to be a call the Lord of the Land & Property that I own and let to my tenants.
I am the LANDLORD not their social worker or their master. We are in transactional business arrangement: I provide excellent homes for them to live in, they pay me for that.
Nothing to be embarrassed by at all.