Capital Gains Tax

[EpsomWolf]

wonder if it is likely to result in an influx of properties onto the market?

Most definitely.

Will be good news for those looking to get on the housing ladder and the shift from housing used as commodities is no bad thing, but if you’re renting and not in a position to buy and for just about everyone else there’s trouble ahead.

Section 21 was used by arsehole landlords to evict decent people who dared to complain. It needed amending not removing. There are bad tenants and landlords and there needs to be protection on both sides. Section 8 (breach of contract (normally non-payment of rent)) was ineffective because after months of costly legal action the tenant could make a payment and you’re back to square 1. Section 8, Ground 1 (Landlord wishes to move back in) works but only in a handful of cases where the landlord can prove they have previously occupied the house.

Section 21 was previously the only realistic option for a landlord had to recover a property. Its removal altogether potentially paralyses the landlord and no one in their right mind is going to put themselves in that position.

Completely understand the importance of housing meeting approved standards, but I think the likelihood is these changes will make the the already difficult situation for renters a whole lot tougher.

 

[Paddingtonwolf]

While this is taking a lot of headlines it is actually a smokescreen for a sneaky little vote of removing Housing with Multiple Occupancy licencing so all those nasty immigrants can be shoved in slums.

 

[Johnny75]

Not sure where to put this but it’s been touched on in here briefly so here goes. Massive news on rental reforms with the removal of Section 21 which will have an affect on every one of us, landlord, tenant or homeowner.

No-fault evictions to be banned in reform of rental sector

The government is introducing a new law designed to overhaul the rental sector in England.

www.bbc.co.uk

No doubt Section 21 has been used and abused by landlords and needed reform but Michael Gove has just made Liz Truss look competent. Other changes in the pipeline for 2025 had already seen many landlords prepare to abandon the sector before then and the removal of S21 will finish any doubters off.

Not difficult to see what the good intentions are and landlords are not going to get much sympathy, but rental properties will be dumped on the open market en masse and the consequences of that are anyone’s guess.

About as well thought through as Brexit this one. Interesting times ahead.

It's a good thing.

Housing controlled by the few is never a good thing. Even Thatcher worked that out

 

[EpsomWolf]

I think the intentions are good but the way they’ve gone about this will prove to be a disaster.

 

[leedswolf]

It's a good thing.

Housing controlled by the few is never a good thing. Even Thatcher worked that out

Didn't Thatcher's right to buy policy result in millions of Britons living in grotty privately rented accommodation?

 

[PuntsWolf]

I find the situation the current housing market an absolute joke. The fact someone can rent a property out for more than the mortgage and agency fees so still make an immediate income whilst paying off a long term asset a farce.

How are people supposed to get on the housing ladder if all of their income is going on a rent 50% more than the mortgage therefore removing ability to save for a deposit. So you’re just pissing money away into a rich persons pocket.

 

[EpsomWolf]

Didn't Thatcher's right to buy policy result in millions of Britons living in grotty privately rented accommodation?

Thatcher’s policy at least turned many renters into home owners who otherwise may never have had the chance. The aftershocks of that though are still being felt to this day.

This legislation isn’t going to do anything bar create a flood of properties affecting the housing market which may help some first-timers. The renters will be left scrabbling for the limited supply with rents going up accordingly - investors then calculate the sky-high rents once more being worth the risk and off you go again.

Such a hash they’ve made of this.

 

[Alan]

I find the situation the current housing market an absolute joke. The fact someone can rent a property out for more than the mortgage and agency fees so still make an immediate income whilst paying off a long term asset a farce.

How are people supposed to get on the housing ladder if all of their income is going on a rent 50% more than the mortgage therefore removing ability to save for a deposit. So you’re just pissing money away into a rich persons pocket.

And from their perspective they don't see it as taking advantage, they see it as savvy entrepreneurship. (Well, suppose I can't speak to the UK specifically, but I'd be shocked if the mindset was different).

Something something capitalism, something something bad.

 

[Nando]

I find the situation the current housing market an absolute joke. The fact someone can rent a property out for more than the mortgage and agency fees so still make an immediate income whilst paying off a long term asset a farce.

How are people supposed to get on the housing ladder if all of their income is going on a rent 50% more than the mortgage therefore removing ability to save for a deposit. So you’re just pissing money away into a rich persons pocket.

The market in Bristol is completely and utterly fucked.

Incredibly common for 200+ enquiries per property which leads to agents encouraging inviting sealed bids - for fucking rentals! Even then, landlords are requesting twelve months up front.

My mate is currently paying £1200pm for a 'maisonette' with one window onto an internal courtyard in a converted brothel, where he doesn't even have access to an oven and washing machine. He's now looking to move in with his partner and a modest two-bed terrace with a tiny garden will set you back at least £1600 before bills. So that's £2000 down the drain before you've even walked out your door.

 

[EpsomWolf]

The market in Bristol is completely and utterly fucked.

Incredibly common for 200+ enquiries per property which leads to agents encouraging inviting sealed bids - for fucking rentals! Even then, landlords are requesting twelve months up front.

My mate is currently paying £1200pm for a 'maisonette' with one window onto an internal courtyard in a converted brothel, where he doesn't even have access to an oven and washing machine. He's now looking to move in with his partner and a modest two-bed terrace with a tiny garden will set you back at least £1600 before bills. So that's £2000 down the drain before you've even walked out your door.

Would like to know how Micheal Gove thinks reducing the number of rental properties available is going to make that better. I guess if there’s a property market crash whereby your mate’s £1200 could suddenly buy him said maisonette then people in that situation are on to a winner, but my money is on rents up more than values down.

I agree though, I’ve got kids renting in London in the same situation. It’s a fucking nightmare.

 

[PuntsWolf]

Only have experience from the Bristol housing market from my uni days. Was paying £400/month back in 2010 and there was 8 of us. That obviously got us a massive house (one of the big 3 story terraces) but it was a shithole with nil upkeep. We lived there 3 years so between us paid £120k. Was 3 lads in the basement paying similar (I guess) so that’s over 50k a year the landlord is getting for fuckall and I bet he didn’t even have a mortgage and probably owned several other properties doing the exact same thing. Including properties he’s renting out to the general public like your mate and fleecing them.

So a bloke with millions of pounds worth of assets in his portfolio is making even more money purely by hoovering up properties with his excess cash preventing others buying it which then further escalates the problem.

 

[Johnny75]

Didn't Thatcher's right to buy policy result in millions of Britons living in grotty privately rented accommodation?

Right to buy wouldn't have no. It was literally the right to buy your own home.

She didn't reinvest the money in new housing stock. That was the shame of that policy.

 

[Johnny75]

Would like to know how Micheal Gove thinks reducing the number of rental properties available is going to make that better. I guess if there’s a property market crash whereby your mate’s £1200 could suddenly buy him said maisonette then people in that situation are on to a winner, but my money is on rents up more than values down.

I agree though, I’ve got kids renting in London in the same situation. It’s a fucking nightmare.

You reduce the number of rentals by putting them on the market for sale. The renter's can then afford to buy.

 

[Del Woppio]

I don't know, I think it's largely not the mortgage payments that are the problem (although obviously the rate of increase is definitely unhelpful). It's the near impossibility of scraping together £30-40k while renting that's the biggest barrier

 

[Johnny75]

I don't know, I think it's largely not the mortgage payments that are the problem (although obviously the rate of increase is definitely unhelpful). It's the near impossibility of scraping together £30-40k while renting that's the biggest barrier

Some building societies offer 100% mortgages and there is the right to buy scheme which is mooted to be brought back soon.

I think other legislation should be in place too, rent controls and second home occupancy tax for example.

 

[lemonjelly]

Sadly no government has had a rational housing policy since right to buy was introduced. The non investment in housing stock, especially replacing those sold under rtb created this excessive private sector market.

I'm unsure though that this removal of s21 is going to result in a flood of landlords selling up and getting out.

 

[jlo]

Some building societies offer 100% mortgages and there is the right to buy scheme which is mooted to be brought back soon.

I think other legislation should be in place too, rent controls and second home occupancy tax for example.

One building society offers a 100% mortgage and trust me, it doesn't offer you anywhere near what you'd expect - though it's a start.

 

[leedswolf]

A 100% mortgage will still be capped on the x3.5 salary. If somebody is on 30k p.a. they will get £105k mortgage.

Median average UK wage £33k

Average UK property price £288k

 

[Johnny75]

A 100% mortgage will still be capped on the x3.5 salary. If somebody is on 30k p.a. they will get £105k mortgage.

Median average UK wage £33k

Average UK property price £288k

I doubt there are many single wage first time buyers. Typical lending is 4 - 4.5 x wage

Also that figure is skewed by location and ultimately not useful. £288k in the West Midlands buys you a lot of house.

 

[Alan]

“Median average”?