Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
"Because it means there are fewer houses to buy, and therefore prices for buyers are higher."

Yes, but the alternative means fewer houses to rent, and therefore prices for renters are higher. Which is worse when there are already too many owner-occupied houses.

"And because landlords have to make a guaranteed return - or they lose the property - rents are higher too."

Well, having no tenant certainly does not give you a guaranteed return.
Now you may argue that banks should not be allowed to demand a guaranteed return. But to talk about banning buy to let seems crazy.

Earth provides enough to satisfy every man's need, but not every man's greed. Gandhi

by Cyrille (cyrillev domain yahoo.fr) on Fri Jun 3rd, 2011 at 11:50:04 AM EST
[ Parent ]
Well, having no tenant certainly does not give you a guaranteed return.

When there's high demand this doesn't happen much. A bigger problem - so I'm told - is the cost of wear and tear, decoration, and repairs after tenants leave.

As for landlords, owner-occupiers traditionally rent out spare rooms anyway. So owner-occupiers don't necessarily push rents up. Generally they're less likely to be demanding about rent because they don't have to pay the extra cost of repairs/maintenance/redecoration. And they can choose to rent out casually, or not.

BTL landlords don't have that choice. They're on the hook for all expenses, they don't live with tenants so their costs are likely to be higher, and they have to pass those costs on tenants to keep up with payments.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Fri Jun 3rd, 2011 at 12:19:31 PM EST
[ Parent ]
This is just a hunch, but I guess Helen would be pretty satisfied with "regulating BTL so it is no longer pushing BTO out of the market". Giving rights to tenants would be a logical step.

Sweden's finest (and perhaps only) collaborative, leftist e-newspaper Synapze.se
by A swedish kind of death on Sun Jun 5th, 2011 at 11:27:58 AM EST
[ Parent ]

Display:

Top Diaries

COVID19: Iceland

by gmoke - Apr 8
2 comments

PM Johnson Taken to ICU

by Oui - Apr 6
43 comments

Hurlers on the ditch

by Frank Schnittger - Apr 4
6 comments

Bordering on madness

by Frank Schnittger - Mar 31
49 comments

Occasional Series