Half of renters are living in cold, damp homes – Citizens Advice
2 years ago | 46 comments
Zoopla’s boss predicts a shift to corporate landlords for the PRS
12:01 AM, 31st July 2024, 2 years ago
36
The boss of property listings website Zoopla, Charlie Bryant, says that being a private landlord is no longer financially viable – and corporate landlords will move into the market.
Speaking to the Telegraph, Mr Bryant, who leads Zoopla’s parent company Houseful, highlighted that individual buy to let investors are retreating from the private rented sector (PRS).
He points to rising taxes, high mortgage rates and increased regulation for the exodus.
However, in their place he is predicting that pension funds and private equity firms will replace private landlords, capitalising on the profitable build-to-rent (BTR) sector.
He notes that the removal of tax relief on BTL mortgages and the 3% stamp duty surcharge on second homes, introduced in 2016, have significantly impacted the attractiveness of being a landlord.
‘More corporate institutional landlords’
Mr Bryant told the Telegraph: “Undoubtedly the next iteration [of the rental market] is, particularly with potential planning changes, will be larger, more corporate institutional landlords, under the build-to-rent guise.”
Data from UK Finance supports his view, showing a contraction in the buy to let mortgage sector for the first time since 1996.
This trend coincides with Labour’s plans under Sir Keir Starmer to overhaul planning rules and build 1.5 million homes, potentially favouring corporate BTR investors.
The build-to-rent model, which is already prevalent in the US and Germany, is rapidly expanding in the UK.
According to JLL property consultants, the number of BTR flats in Britain has surged from 7,200 in 2015 to more than 90,000 today, with another 90,000 in development.
Despite this growth, these figures are still small compared to the 4.6 million households in the private rental sector.
Build-to-rent will be integral
Various property experts believe that build-to-rent will be integral to Labour’s housing strategy of building 1.5 million homes in the next five years, especially as high immigration levels drive rental demand.
Mr Bryant said: “Net migration remains high. The UK remains a very, very popular destination for overseas students and migrant labour.
“We are still a very strong financial centre and therefore we get a lot of expats coming in.”
To address the increasing demand, Mr Bryant is urging the government to construct a variety of homes, including social and affordable rent.
Tags:
BTL, BTR, build to rent, Buy to let, Charlie Bryant, corporate landlords, immigration and housing, Labour housing plans, Property investment, UK Finance, UK rental market, zoopla
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Member Since May 2014 - Comments: 147
12:18 PM, 31st July 2024, About 2 years ago
The driving out & diminishing of landlords in the PRS is a sustained & deliberate strategy by the Home Office/big corporations & banks to remove landlording for the ordinary individual.
Selective licencing, punitive tax laws, overbearing LA`s (hypocritically, as they breach many housing laws) Mortgage brokers unwilling to lend on B to L.. ect.
Complete conspiracy..it`s now come to pass.
Member Since January 2015 - Comments: 1446 - Articles: 1
12:35 PM, 31st July 2024, About 2 years ago
Corporate landlords wont be bending over backwards to assist tenants with minor rent arrears and other problems then will they, lol
Member Since May 2024 - Comments: 47
12:56 PM, 31st July 2024, About 2 years ago
Reply to the comment left by MPD at 31/07/2024 – 11:00
What is your setup? Private ownership, LLP, Ltd? TIA
Member Since July 2013 - Comments: 467 - Articles: 1
1:33 PM, 31st July 2024, About 2 years ago
Reply to the comment left by Ardee at 31/07/2024 – 10:32
Well said.
Member Since July 2013 - Comments: 467 - Articles: 1
1:36 PM, 31st July 2024, About 2 years ago
It is all a part of the Great Reset in which there is no place for small private landlords, only big corporations.
Thus far, they cannot compete on price and offer with smaller landlords, though no doubt Labour will try to skew the market even more in favour of the big pension funds, who after all, will not buy their crap government bonds any more.
I have written a number of articles on this: https://www.lettingfocus.com/blogs/category/build-to-rent/
Member Since July 2013 - Comments: 467 - Articles: 1
1:37 PM, 31st July 2024, About 2 years ago
Reply to the comment left by John MacAlevey at 31/07/2024 – 12:18
Yes!
Member Since May 2018 - Comments: 2020
1:43 PM, 31st July 2024, About 2 years ago
Reply to the comment left by David Lawrenson at 31/07/2024 – 13:36
If they want choice in the rental market they should let us invest in private rental property directly in our SIPPs and they should stop penalising us for investing outside of our SIPPs by stopping us deducting our finance costs. Small landlords face a CGT bill anyway. There’s no good reason for it…it’s just a vendetta.
Member Since July 2013 - Comments: 467 - Articles: 1
10:10 AM, 1st August 2024, About 2 years ago
Reply to the comment left by Beaver at 31/07/2024 – 13:43
It is indeed. They want as much business as possible controlled by global corporations, which the government can then control and get to do their bidding – climateageddon, wokey pokey practices, forced injections of “vaccines” that don’t even work, or else no job etc. It is a form of global fascism.
Member Since May 2018 - Comments: 2020
11:44 AM, 1st August 2024, About 2 years ago
Reply to the comment left by David Lawrenson at 01/08/2024 – 10:10
Not sure about the vaccines that don’t work thing (except in Russia and China as their vaccines didn’t work). Certainly the lockdown policy didn’t work. Many conservative politicians didn’t want to lock down for as long because of the devastating effect on the economy and the collateral damage, which was enormous. There never was any chance of them stopping Covid by doing what they did and that’s where the enormous deficit came from…that deficit is every bit as much the responsibility of labour and the SNP as it is the conservatives so it is very difficult to hear them bleating now about the mess the conservatives left the public finances in.
The vendetta against small private landlords was kicked off by Gordon Brown continued by labour and now has been passed back to labour. The people paying the price for it in high rents are actually renters.
Member Since July 2013 - Comments: 467 - Articles: 1
11:57 AM, 1st August 2024, About 2 years ago
Reply to the comment left by Beaver at 01/08/2024 – 11:44
Agree with most of that, (but take a look at Yellow Card data).
All politicians elevated to any senior level these days are part of the same globalist mindset. For the Tories, that is why half sensible ones like Esther McVey and David Davis never get considered for the real top jobs and the same goes for Labour, who have done an even better job of purging independent minded MPs with Keef Starbucks already whacking eight remaining rebellious MPs from the Corbyn era.