What’s Wrong With Landlords Forced To Sell? - brokers’ claims

This is the ruthless mentality behind the anti-landlord legislation. The existing landlords and tenants are just collateral damage in an aim to increase owner occupation and reduce renting.

There are a huge number of tenants who don't want to, or can't buy for various reasons and they are left to go to the wall.

I don’t think I would take mortgage advice from this bloke. Perhaps he thinks lots of new potential owner occupiers are going to come knocking on his door for a mortgage. He clearly doesn’t understand the market or chooses not to!

Flawed thinking. Firstly it's is clear PRS landlords aren't buying more properties, so supply is shrinking. Normal model is that people buy a knackered property, renovate with their own free labour, and then rent it relatively cheaply. Most people on this forum are supplying property well below the market rate. When they are pushed out, the financial institutions will be charging a lot of money for a pokey flat. Mass immigration is the problem, the elephant in the room.

This 'properties don't disappear' is just flawed thinking. Not everyone who buys is already in the rental sector & many owner occupied houses are occupied at a lower density. The number of tenants entering the rental market is greater than the number leaving - if this were not the case why has the slow trickle of LLs leaving created such a problem for renters?

This constant denial of the facts right in front of us means we continue to sleepwalk deeper & deeper into this housing crisis. The RRB will do nothing to improve the situation & with EPC C coming hot on its heels we are heading for a car crash!

Ruthlessly efficient advice 😱 he would have made an excellent’ camp guard’ 👨🏻‍✈️. As said the only downside he doesn’t address are those poor souls who cannot buy the new properties or want too 😱😱🆘🆘

A great many FTBs aren't already renting. They are living in their parents spare room trying to save a deposit so when they do eventually buy an ex rental property that's one less rental available to a tenant and another under occupied house that their parents are living in.

• Henry S
• 18 May 2023 10:55 AM

Absolutely, and those 'concealed households' living at home with parents are likely to be able to save more for a deposit.
IF there is a mass sell-up or rentals, house prices might drop a bit in the short term. But is that going to be enough to make housing affordable to FTBs in large numbers?

And a drop in prices may be soon overtaken by the house price inflation that has generally happened over decades; made worse by any repeat of Govt. schemes (like Help To Buy -Votes and the Stamp Duty Holiday) that inflated prices even more.

The 'reforms' might be best for Mortgage Advisers like the pair quoted, not LLDs or tenants, including those who don't want to buy. I've had several tenants like that (usually older single females who don't want property maintenance responsibilities and if on a pension may not want the high rents of BTL investors).
May be more student lets available if remaining LLDs switch to them (they don't stay long, and generally don't have the bigger pets).

As to the new 100% mortgages, I'll wait to see the effects long-term. I don't recall 100+ % mortgages fared too well, but no experience of those. Can't see too many people being offered 100%; unless perhaps some sort of guarantor involved? If 100% is great, why were not loads of mortgages of say 95% previously popular?

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Well two sets of brokers I will not be going anywhere near. As previously posted considering moving out of BTL and putting everything with AirBNB, restriction in supply is not only down to BTL LL moving out of the sector but switching to AirBNB. Looking at Preston where all mine are located and currently 225 properties available. Unless there is common sense I cannot see how LL's can make it work .

Someone has read: HOW TO MAKE FRIENDS AND INFLUENCE PEOPLE
Sell up, get out, buy again if the writing on the wall is wrong.
(dance if you are out and all hell breaks loose)

Lewis forgets about all the rentals that will now become holiday lets and not be sold on as further rentals or first time buyer homes... 🙄

Mortgage brokers with a vested interest, wanting property transactions to increase,

New first time buyer need to secure a mortgage. What better customer for a savvy broker then a wet behind the ears first time buyer taking out a 100% mortgage at a higher interest rate with a nice high commission for the mortgage broker.

This compared to a very slow BTL property market were the more the knowledgeable BTL investor will drive a hard deal at a low commission for the broker.

Another vested interest ‘warping’ the real position to further their own ends. As can be seen from previous posts, there are ‘no winners’ from the RRB.
Sit tight or sell, the housing crisis is about to become a whole lot worse.

Mass exodus of landlords means more problems for tenants. Those properties might stay as rentals if they are lucky, but more likely sold to owner occupiers. Those buyers may well not be current renters but living at home or in shared houses, so no property gets freed up there. Or might just end up as short term lets.