The Reality Of Price Caps Being Implemented On The Private Rented Sector
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- Äas pĆidĂĄn 2. 08. 2024
- In this episode of Property Summits, Emma Birchley is joined by 5 of the top figures in the Property industry John Howard, Ranjan Bhattacharya, Paul Mahoney, Richard Bush & Nicholas Wallwork to discuss all things property including 'Rent Caps' and the consequences of them being implemented on the private rented sector.
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Service charge caps should also be enforced!
If governments Interduce rent cap then they should put BTL mortgage interest cap too.
Indeed! But thatâs far too logical for any politician to understand.
Why? If you know what rent is permissible and the interest rate (assuming you get a long term rate) then you can calculate the value of the property. Properties are currently overpriced because the Bank of England kept interest rates too low for too long and there aren't enough properties being built to cater for the level of immigration. P.S. I don't actually agree with rent caps but the housing market in this country is dysfunctional and something needs to change.
@@stumac869 So how about reforming the planning system to allow more new builds?
Iâd advice anyone who can to move abroad to do so. This countryâs finished!
In communist countries, all residential properties are owned by the government. Or massive corporation wich are controlled by the government.
What is happening now is private landlords are being put out of business.
Next the government will come in as a "saviour" to the housing crisis wich the government created by putting private landlords out of business.
And what governments will do is build high rise buildings that people can rent. Like it is in Russia.
Once the population is contained in high density populated areas and cities, it is easier for the governments to control the population.
"You will own "NOTHING" and be happy."
(Claus Schwab, World Economic Forum.)
What Ranjan says here is true. It will be disaster for tenants because there will be no choice. Everybody will be accommodated in high rise box rooms. No other choices.
This is the plan of mad globalists. But we the people can stop it by refusing to comply.
Totally agree, If price caps come into force how will we be able to remortgage? Property prices dropping, interest rates rising, mortgage stress tests raised, Landlords will be forced to sell as the mortgage companies wonât want to finance our properties, our tenants then forced into box rooms! Extremely difficult times for Landlords, All part of the WEF agenda!
Agreed but I think in the UK all property will be owned by private companies like Blackrock etc...then when they own all the monopoly board rents will rise again
Part of the issue is the crap they are building and passing it off as a place to live (especially in Cities)
Most new builds are tiny, cannot even fit a double bed in a room without finding it difficult to move; walls are so thin, you can literally punch through to next door,; living rooms/kitchen are one area; no baths but showers only. You can't even swing a cat in one of these places let alone raise a family without feeling claustrophobic.
Why do you think so many are moving out of the cities to the countryside? Price everyday workers (key workers) out of an area (except the doctors, lawyers, bankers, as the video mentions), guess what will happen to the vibrant cities - they become ghost towns).
The needs of the people and the needs of the corporate world, rarely every coincide. People want to be able to raise families and build a good life; Corporations do not care if 10 people living to a room, they want cheap labour to maximize profits.
if they bring in rent caps then it's only fair for tenants to be responsible for undertking all repairs to that property.
You lot have had it good foe too long since 2008 when interest rates were at 0. Now you see that that was not the reality and now you are taking it out on tenants. It shows exactly how greedy people have become in his godforsaken society
@@cryptoreport8762 No, it shows how interfering in the free market results in prices not being efficient, leading to unintended consequences like properties being withdrawn from the rental market, hurting those the laws were meant to protect!
@@johnporcella2375 you would say that because you have a few buy to let's.
@cryptoreport8762 I have none and have never had any.
FYI, the plural of buy to let is buy to lets; the apostrophe is to indicate possession, not plurals.
@@johnporcella2375 is buy or us buy?!!!!!
Rent caps will kill future rental market , landlords will pull out or just let to students (who leave after study) or air b n b type lets
Air bnb 100%
Yeah, except they're fking the student market under the current proposals.
Landlords will just turn to Airbnb or sell. There will be far fewer houses to rent, and tenants in situ will stay where they are even longer, for fear of trying to find somewhere else to live. Meanwhile, rental properties have wear and tear that never gets addressed because the tenants are always there. So no new kitchens, carpets, sanitary ware. Theyâll slowly decline over time and landlords will remain powerless, and then theyâll have to sell up but the house will look tired and the value will suffer. Then there will be fewer houses to rent. We can all see where this is heading.
Very well analyzed.
Surely to deny a landlord their property is denying them their fundamental human rights to enjoy their property to ban evictions is illegal surely under ECHR.
Lol. You gunna argue morality to government. Western laws were not created to guide morality.
@@allykhan8594 itâs a qualified right and as you own the property I think that trumps someoneâs right to camp out in it for 6 months to a year! Wasnât thinking of east or west.
@@darrensullivan6173 i agree. But u looking for a balance approach to this u won't get it in this political system, where the gov must appease the majority not because it is right but because of consensus.
@@allykhan8594 itâs all about what gets them the votes but not at the expense of legality surely
@@darrensullivan6173
The Government will decide what the laws are.
In New Zealand, Building Depreciation and Interest ( other than on new builds ) are no longer allowed as Deductible expenses.
Caps will ultimately lead to a fire sale in the property market, this will in turn crash the property market causing job losses, banks receding mortgages from individuals. All remaining properties to rent will fall to the lowest standard in an attempt to survive the constraints.
Good
Fire will play a big part in insurance claims if the govt force too many into a corner it always happens but we are administered by the incurably stupid I wont use the word ruled............ they couldnt rule a sewage farm.
Now in Dublin, a house is marketed for 300K Euros is bid up to 350K!
I own over 200+ properties. They have rent cap and rent freeze in the whole of Scotland not zones, there is no zones, Iâm no sure of this is an old video, it is a blanket across the whole of Scotland.
So now we have 100+ people applying for houses, and new rents have went through the roof by 2 to 300 extra per month.
People are leaving the industry, and the SNP & Greens, have made a mess of it all.
SNP and the greens made a mess of it all. Thereâs a shock!!
Yes heâs talking absolute bollocks
I had 400 apply for a room within 48 hours. Itâs crazy out there, but I attribute it to lockdown which created a frenzy of foreign graduates seizing the opportunity to travel to the UK once lifted.
Ultimately, the rich want to get richer. So, applying these rules keeps the middle income people from gaining additional wealth.
The poor want to get richer too! Your point being?
@@johnporcella2375 My point being.. that the poor do not make the laws that suit their own agenda and protect their wealth. Meanwhile making sure the poor will struggle to obtain any substantial wealth.
@@alaninsley5005 Judging by the wailing and gnashing of teeth, the relatively wealthy do not seem to be happy with the laws being brought in, eg Section 24.
@@johnporcella2375 An accidental landlord with one property does not make them wealthy and section 24 makes sure of that. Not being able to offset a legitimate mortgage expense against your profits makes absolutely no sense to anyone except the chancellor of the day.
@@alaninsley5005 Very true. Mind you, for 20% taxpayers it makes no difference whatsoever; the higher rate taxpayers are limited to a 20% tax credit. Either way, people buying houses for themselves cannot offset any of the financing costs, now that MIRAS is long dead.
Will they apply cap to Mortgage interest as well? And to private wealth next..
A bit disappointed, it feels like an eco chamber to me.
As a developer/landlord myself, I would have loved to hear more from others with opposite opinions to the overwhelming one against rent control which align with my own stands. I didnât learn much, waste of time to be honest.
thats interesting, what are your views then?
There are no opposing views to rent-caps. It has been tried time and time and time again around the world...every time it has collapsed the market.
I believe regulated tenancy will be back in with a new name. The current govt has a socialist centre and that's the direction of travel.
Rent cap,don't put up interest rates then you don't have to put rents up đ€
Actually you do still need to put rents up. Management costs- Inflation entails higher maintenance costs too. Fences blow over in storms, roof tiles get damaged, flooring needs replacing, boilers age and need replacingâŠ
Most in videro would be washing car screens if not cheap interest rates. "Investors"
"You will own nothing and you will be happy!"
My theory is that it is designed to indirectly make buying a home more motivating. Sure my mortgage has gone up but rentals have gone up too.
I own 2841 houses throughout South East and north west England. Rent caps d
won't harm my business. I have 12% blended leverage. Do not let the government force you as a landlord to quit the business. They are doing this to push the private rented sector into the corporate sector.
What if the service charge on the lease increases a lot, then the only way to cover it is to increase rent.
Only purchase freehold. Leasehold is definitely not for me.
You'd be screwed the government does care
Sir Tony Is a Legend.
Interesting but the conversation was too dominated by John, whereas I'd liked to have heard more from the other members of the team
Exactly what I was thinking. He hogged it all.
Indeed. He should learn to be a better meeting chair, which means contributing less, and conducting more.
đđđđđđ
How about Mortgage caps?
The government / Bank of England have been doing exactly that via their ZIRP policies which have kept interest rates below inflation and why house prices are now completely out of kilter with earnings (overpriced).
Hi.. can someone tell me if no fault eviction comes into play , will I not be able to even sell my property if there is a tenant?
You can sell, but who will buy a property with sitting tenants???
@Ally khan85 i meant is not i want to sell good enough reason to get vaccant possession like i want to live in the property will be accepted as justified reason to evict tenant?? Sitting tenant strictly means those tenants who have some kind of right to live as long as they want , i am asking about AST tenants only.
@@allykhan8594 Don't answer if you don't know the facts.
@@arinray73 as far as i know if you want go bk to live in there, the propose legislation allows you that. Will it be amended before it passes??
@@ChrisLee-yr7tz which statement i made was incorrect? I don't mind been corrected.
If rent caps come in I will only rent to foreigners who are likely to vacate and leave after a year or two. Maybe students who will clear off after their studies.
In 1910, 90% of all housing was privately rented, interesting times ahead as country is more skint
Would be good to get someone on this panel from the other side of the fence.. someone from acorn or something. Because then we could see the arguments and the counter arguments and get into all the issues and maybe things will come up that the other side hasn't considered
Altho I'm sure both sides will meet in the common ground of blaming the government
$REMINT
Rent caps is necessary because landlordsâ greediness is too much. They are just crazy with their ambitions. All the money for the landlords.
Jeremy Corbyn was right to consider the idea of Right to Buy for private tenants. All theyâll need to do would be to stay in your property until the value tanks enough. The bank will even give first dibbs when they repossess you. It will be a win/win for tenants. Oink! Oink!
Dream on Edward..
2025 Dec EPC C Rating all private rentals (some exceptions). By Law you won't be able to rent out.
Yes, but to totally transparent, it's not law yet..
This is politic - 70% of properties in the UK technically cannot reach a level C
@@kofsphere Where did you get that from? Only 55% are above a C.
It is short term, but thatâs ok for politicians, as they are only in power for 4 or 8 years, and they want votes, thatâs all
True. And vilifying landlords is a vote winner. They treat us like weâre rich. Most arenât.
There missing the real issue, rents are too expensive, house prices are too expensive
The gov is trying to solve the issue but resort to the wrong way. They find it harder to build but easier to introduce rent cap to reduce rent in the short term. The labours should go to college and study economic 101 (they actually know but still prefer price cap because they only care votes during the election time) Can the gov set up a price cap on supermarket?? Yes they can - they did so in communist countries.
Rent control is nothing new but do not forget that it is not in the interest of any society to let "living on rent" to take hold.
Thanks Karl for that big brain comment
Ranjan used the annalgy with Nike and Primark shoes . But does he know that Nike shoes are all made in china these days by the millions . Which last for upto 4 to 6 months... Times changed boyz
Bring on a Labour government. These Tory MPs are too conflicted perosnally to make objective policies. Supply needs to be increased. Sunnak should be acting but he's appeasing his back benchers. I don't agree with caps, but we can't have it both ways. Not increase supply and have social decay or increase supply and have a more balanced economy?
The way to increase supply is to make supply side reforms like rolling back planning restrictions. Profit is a clarion call that encourages entrepreneurs.
Surely a lack of landlords will mean an increase in property supply so prices will decrease allowing a better market for property acquisition for FTB likes me. Landlords required; they are a middleman. Rents are far too high compared to wages. It's interesting to hear the veiws on this podcast cause usually I only hear left wing veiws I think the true answer is somewhere in between.
Surely what you suggest would deny renters a choice? There is far more to the property market than just properties priced to suit first time buyers. If the overall market falls, thereâs widespread negative equity. Then the Banks wonât lend and everyone loses.
Not sure that is correct logic. If landlords leave the market, those that were renting those houses will be turfed out, and will have fee options but to try to buy. So whilst the supply of properties for sale may well increase, so will demand to buy because the rental market will have shrunk also.
The gentleman on the far left made the best comments đ
They donât have a house for life, your wrong again.
What will happen is if, you have a tenant and the rent is too low and you canât get the rents up, Your allowed to evict the tenant, and then sell properties in Scotland.
So thatâs all that will happen, landlords will evict the tenant, then sell the property, maybe to another landlord to get the high rent
The landlordâs greediness has to be ban. They donât care about people they Just want profit and profit and more profit. No more greediness. This is bringing homeless and more poverty. I am into cap rents!
I happen to know that not all landlords are greedy and the genuine and sensible ones save for many, many years because they may have been unfortunate to get a proper works pension from their employer/s or possibly may have had less opportunities in life.
Just think about these people but do you care?
These genuine landlords aren't greedy and they actually do give a damn. Furthermore, they are trying to earn a living from the money THEY have decided to put into their property and hope that the tenants they choose will respect their property and vice versa. The tenants are well treated throughout their stay and the landlords I know absolutely do not charge extortionate rents whatsoever. When repairs are carried out, they are carried out immediately. Over time, if the landlord has no option but to increase the rent a little to cover inflation, their landlord informs their tenants and a compromise is made.
Today, all that society hears today are worse case scenarios from crooks posing as landlords, and the impression that particularly comes across from your comment is that you seem to like to accuse ALL landlords. Most are genuine landlords and they ARE NOT GREEDY and at the end of the day, irrespective of whether you like it or not, it is THEIR property and THEIRS IT STAYS!!!!!!!!!!!
Do you have any statistics to support your ridiculous across the board comments and landlord bashing?
Go to shelter
What is wrong with making a profit? Profit is ultimately, a metric of success.
Home free from everyone. The system of landlords and mortgage is just bring poverty and stress! Free homes for everyone.
That John is a self-centred so and so. Why do we have to listen to him more than the others on this panel. There's more intelligent panellists than John but becos he's been in the rental game for 30-years plus, he's shows complete lack of consideration for anybody else.
Don't we have any female landlords?
@@victoriawalsh8615 U make a very good point. Talk abt old skool boys club (i'm a female too).
@@bostonlincolnshire8745 I would be happy to take part, I'm 43 and been a landlord since I was 26 and also female!
Should help first time buyers ! Not the landlords to carry on buy to let! Muppets!
Issue with asset inflation is stopping young people from living in prime locations. This will harm the economy in the long term.
Exactly. If you price nurses ,teachers, transport workers, shop workers, etc etc out of prime locations, how does the prime location except to remain prime?
If prohibitive rents drive people away, how does an area develop? It does not, it dies.
From a contrarian point of view I don't mind all this anti landlord legislation.
Drives the amateurs out of the market and it gives first time buyers an opportunity which they aren't going to take anyway.
@Billy The Goat I'm not bashing landlords. All I'm saying is all this stuff the government is doing will only affect investors who have bought the wrong sort of properties.
I buy to let landlords aren't buying and neither are owner occupiers then there'll be downward pressure on prices.
The market is long overdue a correction
I'm a professional landlord and I'm already working out a plan to remove all my tenants before all this nonsense comes into effect. I will be investing in them, turning them into executive serviced accommodation instead. I'm not going to stick around servicing the tenant market, it's a recipe for insolvency.
@Billy The Goat what I mean is there are landlords who have invested purely for capital appreciation ( not income) and in their personal name.
This was a viable strategy before section 24 when mortgage interest could be deducted from income.
But now these same landlords aren't just not making income but losing money.
Not a good financial model investing for capital growth that may not materialise for a long time.
The sector of being profesionalised whether you like it or not
@Billy The Goat I guess you have to do what works for you, but you could have where possible converted to nice 3 to 4 bed HMO's and brought in a professional serviced accommodation company to run them as room rents per night to professionals. Or just the whole house depending on where it was. You can get hundreds per night for some houses and you've got no fixed tenancies. You can also take out a license with companies that need a base for employees to stay, so you're not engaged in am AST, just a right to reside with that company. They are easy to terminate if there's a problem and you can agree full maintenance as well. Sorry to hear you got put off by all the BS.
Really diverse set of views youâve collected for this⊠đ
yada yada yada self serving bull
Most of the information youâve got on Scotland is wrong, sorry guys.
Lets see what these six, self-important piggies have to sayâŠ
Communism incoming
its here
Rent control equal far less rentals in the future inverter will get out of the bissnes.