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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
17:00 PM, 29th August 2023, About 9 months ago
Reply to the comment left by HMD HMD at 29/08/2023 - 16:57
I’m definitely not, as we’re business shareholders (in some cases), directors and a service provider.
There is way too much toxicity with the term Landlord and how it has come to be used.
GlanACC
17:06 PM, 29th August 2023, About 9 months ago
All this is irrelevant, street cleaning operatives are still referred to as roadsweepers, refuse collectors are still referred to as bin men. Nothing wrong in that at all. a person or a business can be a landlord (i operate as both). I have just scanned an Assured Tenancy Agreement and there are 12 references to LANDLORDs. This is the legal term thats used, change it at your peril.
Teessider
17:22 PM, 29th August 2023, About 9 months ago
Reply to the comment left by PropCo Owner at 29/08/2023 - 16:55I think the term ‘landlord’ perfectly describes somebody who lets property to others.
I’m not sure what your ulterior motive is but please, do enlighten us.
PropCo Owner
17:25 PM, 29th August 2023, About 9 months ago
Reply to the comment left by George Pearson at 29/08/2023 - 17:22I’m responding to the article, no other motive stating I agree with its sentiment 💯
What’s yours?
Dennis Leverett
17:49 PM, 29th August 2023, About 9 months ago
I am a business man including being a Landlord. I am a good Landlord and proud to be so. It's very naive to think a change of name will make any difference to how people perceive us. The media are a very powerful, good and bad, thing and it wouldn't be long before we would be accused of changing our name to hide our "badness" and become hated even more. My tenants are more than happy and fully understand why I have to up my rents now and then. As a business man I have always given my customers, 1000's of them, the best I can and it has always paid off.
Monty Bodkin
19:41 PM, 29th August 2023, About 9 months ago
Have the Wokerati considered the time and expense of re-writing 1000 years of landlord law?
I think the comments on here from *genuine* landlords are more of a representative sample.
Dan Johns
19:57 PM, 29th August 2023, About 9 months ago
If you are have a role in a social system which takes advantage of inequalities that are a fundamental part of the design of said system and you are fulfilling a role the system needs; then it isn't your fault that it is your position. Rentier capitalism 100% needs a landlord class which will by its very design oppress those who are without capital. Unless the proletariat rise and overthrow the system then landlordism will remain the privileged position we occupy. The sector drastically needs reform as small landlords in particular are finding ourselves pushed out of the market by bigger holders of capital (corporate landlords etc), but we do not wish to join the dispossesseds calls for the sort of changes that would benefit us all.
GlanACC
20:52 PM, 29th August 2023, About 9 months ago
Reply to the comment left by Dan Johns at 29/08/2023 - 19:57 I don't see corporate landlords pushing anyone out. Corporate landlords aren't interested in the general kind of tenant us smaller landlords handle, they are certainly not interested in the 'social' housing sector. Probably the only cross over between smaller landlords and corporates is in the student HMO type properties where they can build newer purpose built lodgings and charge a premium price. Smaller landlords have nothing to fear from corporates.
student landlord
8:22 AM, 30th August 2023, About 9 months ago
Reply to the comment left by PropCo Owner at 29/08/2023 - 13:18
I think you forget that there are thousands of us that for many reasons are not able to incorporate.I personally have spent years trying to go down every route possible, including paying thousands of pounds for professional and legal advice, but ultimately, in my position, it is impossible to incorporate. Therefore, I and many landlords like me are massively impacted by section 24 and so you really should not dismiss it just because those of you who have been fortunate enough to be able to incorporate are not affected by it.
GlanACC
8:27 AM, 30th August 2023, About 9 months ago
Reply to the comment left by York student landlord at 30/08/2023 - 08:22I agree, I have 4 properties incorporated and 2 that are a partnership with the wife. I have discussed moving the 2 in the partnership with my accountant to the LTD company but the costs of doing so just don't stack up. It would seem that 3 properties unincorporated and moved into LTD company would be the break even point for incorporation (needless to say a lot would all depend on crystal ball gazing as to what future governments intend to do)