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Government warned for 3 years lending changes would create issues
#27
Coming back to the original heading - the government was warned for years. Not just about bank rules, but about everything else too. That all their changes would just make things harder for everyone but of course they didn't listen.

"Rents went up consistently before property investors were bailing out big time ... Renters have been squeezed for ages, it's only now that that squeeze is finally tight enough to hit landlords."

-Rents have always gone up, just like everything else. They used to be primarily linked to interest rates, but now also have to incorporate all the extra costs imposed by the government - which the government was warned about... And so on.

"Instead of crying about how hard it is now, they should be grateful they got away with creaming it for so long".

-On the whole, landlords have never "creamed it". They are just trying to make a living like everyone else. Supermarket owners, power companies, mechanics, furniture shops, etc are all essential businesses expected to make a profit but somehow landlords are expected to work hard and give everything to the tenants. Sorry, but they work hard (often harder than others) and need to make a profit =just like everyone else in business. Except that the free market no longer applies and interest is no longer deductible... And so it goes.

"There is no shortage of rental properties. I have a friend looking now and she has seen a lot of flats. Thing is they are all too expensive..."

-Sorry, but there is a shortage. Our town has a whole 2 available and the adjacent city has only 33. There are a LOT more people than that looking for properties, and overall the number is down. One benefit of the current situation is that good tenants are staying put because they know they can't find any alternatives.

"IF property investors really are baling out, then there may be some hope of a return to affordable rents."

-The landlords bailing out has  been a significant contributor to the housing shortage - fewer rentals available. Remember that when a formerly rental house becomes owner occupied, it most often doesn't free up a rental. The shortage then forces the prices up, just like any other commodity.

"Presumably not too many landlords want empty properties..."

-There have always been property owners that landbanked instead of having tenants. Now there are likely more than ever when they can get capital gain without the risk of having the property wrecked along the way.

"...would prefer to set a realistic rent rather than have the risk of possible damage while sitting empty."

-The biggest risk is that caused by tenants, especially now that the landlord has to jump through hoops to get rid of a bad tenant. Even a good tenant costs wear and tear over time. Leaving a house sitting empty is far safer.
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RE: Government warned for 3 years lending changes would create issues - by SueDonim - 19-01-2022, 02:20 PM

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