The Telegraph (subscription might be required) has run two articles on the recent White Paper anouncement
Ben Wilkinson starts:
‘Housing secretary Michael Gove hailed the new buy-to-let shake-up as a long overdue reform of renters’ rights and a hammer blow to unscrupulous landlords.
What he didn’t say is that it will strip away many valuable rights for honest and decent private landlords – and could well be the final straw for many.
Investing in property used to be a prudent way of putting your money to use outside of the stock market so you could have a comfortable retirement. That way you can hedge against market falls – after all, people will always need somewhere to live.’
The Government’s anti-landlord leaning could well trigger an exodus of buy-to-let landlords
Going on to say, ‘The prime minister’s half-baked version of Margaret Thatcher’s Right to Buy will only diminish the volume of social housing further.’ Finishing ‘The Government’s anti-landlord leaning could well trigger an exodus of buy-to-let landlords that would only serve to push up rents further for struggling tenants.
It has failed to create enough social housing and is now passing the buck, and the responsibility, over to private landlords – who did not sign up to any of this.’
Melissa Lawford has run two pieces: ‘There won’t be any small landlords left by next year’ June 17th
She starts ‘Landlords are preparing to sell up in the wake of housing secretary Michael Gove’s sweeping measures to shake-up the private rental sector. ‘
Quoting an interview with a landlord who says ‘“I’m appalled at the Government’s constant interference in the private rented sector. Landlords own the properties, not the Government. We have paid for these properties and they are our pension. It is a big assault on our property rights.’
On June 18th under ‘Landlords will lose money by next year as buy-to-let Britain falls apart ‘she states ‘An average landlord on the higher rate of tax will see their investment turn a loss if the Bank Rate hits 2.75pc. At this point, a typical buy-to-let mortgage rate would be 4.11pc, meaning they would lose £97 per property per year. At 3pc, their annual losses would jump to £403.’
Going on to say ‘Landlords in cheaper areas, where yields are higher, will be more protected than in London, but rate rises will still take their toll. If the Bank Rate hits 2pc, net profits for a higher-rate taxpayer in the North East will fall by 37pc. In the North West the drop would be 67pc.
The Mail online believes joint celebration is called for with the headline ‘Every dog has its day: Landlords and tenants in rare joint celebration as Government paves the way for renters to own pets without causing massive risk for property owners’ without appearing to question whether the proposal in the White Paper to force landlords to accept pets in return for demanding pet insurance paid for by the tenant (see also Generation Rents objection to this)
iHowz are concerned that we are unsure how to stop a tenant cancelling the pet insurance as soon as they have the keys, and/or how to ensure the insurance is renewed after the first year. Plus, many leases won’t allow pets.
We feel a lot more work needs to be done on this.
Needless to say the Guardian has a different slant. Under At last, the government is clamping down on England’s rogue landlords Alicia Keys thinks it should go futher. But she does admit to being a director of Generation Rent, who have already commented on the White Paper
iNews leads with Renters Reform Bill: Tenants’ rent to be refunded by dodgy landlords as Michael Gove reverses Thatcher reforms complaining “Having more control as a tenant over when you leave your tenancy is a good thing, but it doesn’t help with the problem of affordability.”