just read some interesting stats about the PRS .( public rented sector) in NRLA mag. Nearly half those who have left say its because of costs, and effects of changes already in and expected in law. and about 40% will not proceed with expanding… This will leave the housing associations well able to tenant all those who need housing. (sarcastic). Covid and tax changes are affecting their decisions also
In reality the policies are designed to discourage buy to let investment so they are working. Whilst it is not good for landlords it is a sensible policy and popular with general public. Given that most landlords won’t let to those on benefits they can hardly say that them leaving the sector will make it harder for those on benefits to find a place to rent.
If a landlord sells or doesn’t buy that property will be owned by someone who would otherwise be a tenant, thus decreasing demand for rental property and maintaining equilibrium.
if people are renting isnt that because they cannot afford to buy ? to buy is better than to rent… I can only think of one tenant of mine who moved out to buy in 40 or so years . Most moved for jobs or family reasons… The property market has its ups and downs. We need more affodable homes AND homes built to rent
If landlords were not buying houses there would be more available for purchasers to buy.
Less competition to buy would mean prices do not spiral ridiculously (also encouraged by property agents). Therefore the less well off may afford to purchase instead of renting.
Most rental prices are greater than mortgage repayments, , it is almost impossible to save up a deposit whilst paying rent for most ordinary working people. Wealthier families can donate/lend the house deposit. It is those without parental contributions that I feel for.
I don’t think there is any easy solution to the housing problem and there will always be a rental market as some people need to rent for a multitude of reasons even if they already own a house.
It seems to me that the government are trying to put a brake on house purchases by those who are seeking to supplement their pensions and savings but without being upfront about it. We can all understand the excessive stamp duty for buying a second property but the recent LL bashing by the government re electric surveys, licensing in some areas and ending section 21’s under the guise of protecting tenants, appears to just be an underhand way of achieving a brake on house purchase by landlords.
That is an extremely naive view on why people do not buy property.
Landlords fill a void in the market. If anything, we’re providing a service/opportunity for those who cannot get into social housing because of incompetent governments who have sold off their stock.
Lots of people don’t buy because they are still studying/uni or flexible on jobs, career not settled or just not want to be tied down. They may want to live with a partner but not have the financial commitment of a mortgage. Or they may want to travel later etc. -