Why I’m Quitting Buy-to-let
Property Market
The latest episode of the Charles Kelly
Money Tips Podcast he explores the truth behind the buy-to-let market and exactly
why he is getting out of buy-to-let after 30 years. Please like and subscribe -
https://www.youtube.com/@charleskellymoneytipspodca9121
Brief history of the
buy to Let market
Watch video - https://youtu.be/Vy6NTf38uR8
My story of finding a rental property before BTL and pre-ASTs
- It was worse than now.
No council house building since the 1970s and the
introduction of right to buy
The BTL model has worked well since the 1990’s.
Properties were relatively cheap
Returns were good, even with higher mortgage rates
With higher interest rates so you could just about break-even, but enjoy fast
capital growth
Now the government thinks the pendulum swung too far in
favour of landlords. Tenants are unhappy about high rents and insecurity. But
is that the fault of landlords or a symptom of 50 years of short-term thinking
government policy?
The buy-to-let boom has led to a massive transfer of wealth into
property, as well as the banks, and it seems the ‘powers that be’ want to apply
the brakes with legislation and taxes,
We are now living in a new socialist regime after 30 years of relatively
business friendly government, which includes the Blair labour government.
My personal experience
30 years dealing with tenants - nothing against tenants, I just haven’t got the
patience for it anymore!
New threats from various BPU’s (business prevention units)
Lack of social housing being built for 50 years
Mass immigration from all governments since the Blair years leading to an
unprecedented population explosion
Swinging from unrestrictive to tighter lending
Planning hold-ups leading to housing shortage
Anti-landlord policy starting with Conservative Chancellor George Osbourne and
his Section 24 landlord tax
Renters rights bill, which was born out of a conservative policy
End of section 21 no fault of evictions and a ban on so-called “back door”
evictions
Open end of tenancies – how is that going to work in practice?
New minimum housing standards and more red tape - many councils and large
housing associations would fail these standards but only private landlords will
be hit
Ban on Advanced rent payments, often used where tenants fail referencing or are
from overseas.
Even more rights for tenants
Less security for property owners
Ban “discrimination”
Right to request adaptation of Properties in the case of disabilities
Restrictions on rent increases
Rent repayment orders
More powers for local councils to sanction landlords
New digital Landlord database, but no rouge tenant database
County court backlogs, meaning that enforced evictions will take up to a year
Renters rights was mentioned in parliament recently during
PM’s questions after a labour MP raised the point that tenants were being
priced out by landlords.
Prime Minister Sir Keir Starmer said that his new renter’s
rights bill will help 11 million tenants.
He said they will end no fault of action something which the
Conservatives had failed to do. .
Landlords could be obliged
to take pets and tenants on benefits
Over the past year, only 6.6% of room-offered ads on SpareRoom explicitly
welcomed pets, while a striking 93.4% did not.
One third of people in the UK have pets and 29% own a cat.
On a Spare room survey 93% of landlords display that they
are unwilling to accept pets, this will be banned under the future law.
If a tenant wants to keep a pet at home, landlords will not
be able to unreasonably withhold their consent.
If a tenant feels you’ve made an unfair decision they can
challenge it by taking their complaint to the Private Rented Sector Ombudsman
or even to court.
Falling returns
Soaring house prices means it’s difficult to get a positive yield on
straightforward buy-to-let property
Landlords have turned to HMO strategies, but local authorities are introducing
more article 4 areas.
The yields on properties in London and the Southeast have been driven down by
high prices.
Landlords are increasingly buying in the Midlands and the
north of England, but who wants to drive 300 miles to find and manage property?
Many have adapted and move into furnished Holiday lettings in order to avoid
section 24 and the end of section 21 notices, but now the BPU are heading them
off at the pass!
Tax changes abolishing the advantages of furnished holiday Lettings , brought
in by Jeremy “Hunt” the left leaning former Chancellor under the last ‘high tax’
conservative government.
I know some landlord I’ve spoken to are happy to stay in the
market and feel that they can adapt to the new laws. That’s fine there’s still
a profit (sorry if that’s a dirty word, but without profit there is no service)
to be made and in a long-term it’s still a good investment, but not for me and
thousands of other landlords anymore. As the TV Dragons say, I’m out!
Am I quitting property altogether? No!
Property is still a good long-term investment and will survive the idiots that
run the country downwards because the markets and demand will prevail.
Despite warnings of our demise, the UK will also survive the fools in power.
See other videos:
Labour’s Renter’s Rights
Bill and the end to Sec 21 ‘no fault evictions’ - https://www.youtube.com/watch?v=Wx1HXgVW1bM&t=400s&sttick=0
Nigel Farage SLAMS
HMO BUY-to-Let Landlords
In an astonishing attack on private enterprise, right wing Farage
claimed that HMOs are not only damaging communities but are increasingly being
used to house illegal migrants and asylum seekers, often at the taxpayer’s
expense. Watch video - https://youtu.be/NKaPZj-APgw
Better property strategies are needed.
Learn property strategies from experts
There are many more money making property strategies than
buy-to-let. The important thing is to get the right property education from
experts who have made millions in UK property.
For more information on a free “NO MONEY DOWN PROPERTY”
webinar, email charles@charleskelly.net
#NigelFarage #HMOScandal #UKHousingCrisis
#IllegalImmigrationUK #AsylumSeekersUK #HMOUK #PropertyInvesting #LandlordLife
#UKPolitics #MoneyTips
