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  • Buy-to-Let

    DPS Private Landlord Survey - anyone else?

    I completed this survey today, and thought it was a general mail shot until I checked with Lisa Orme whether she'd completed it. Re-reading the email, turns out I'm one of a selection of LLs. I would have preferred this to be a free for all, but what struck me was how pertinent the questions were, about current issues and pressures on Landlords from government policy (specifically stamp duty, S24, PRA criteria, UC caps, not paying HB to LLs directly), and how government may finally be questioning policy consequences.

    Not sure how big the survey is, but hopefully lots of people will answer as I did, and I really hope plenty of decent, informed PT LLs were on the survey.

    The questions were very topical. I was glad to confirm I am a member of the RLA, and that I did all my lettings legally and properly (e.g. right to rent, rent guide help thing, deposit protection and prescribed info, annual gas safe certs, smoke detection and alarm, CO detection and alarm); that I wouldn't touch UC, benefits etc with barge pole, reason being, and I gave this as an answer on a number of questions, how difficult and lengthy eviction process was for defaulting tenants.

    They will be bringing in compulsory electrical testing - mark my words. Not a bad thing, but I wonder how many people do you know who’ve been electrocuted in their homes? It maybe a fire thing though I suspect - a Grenfell development.

    I have checked on PT a number of times today to see anyone had posted about the survey (before I realised it wasn't a general mail shot). I thought V would be beside herself, shouting from the rooftops as PT was an "e.g." response to a question asking "where do you get your LL info from … online property forums (e.g. propertytribes.com, Landlordzone.co.uk)" - quite some kudos for a .gov survey! Well done PT! And thanks for keeping us informed!

    Openrent were also an "e.g." answer - massively well deserved too; I can't recommend them highly enough.

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    Rachel 

    "Change is a prerequisite to longterm survival".

    The establishment is rigged so that the rich stay very rich, and the poor get poorer.

    Hi Rachel,

    The survey you responded to is a Government survey, not a survey by the DPS.  They just distributed it on behalf of Government.

    The survey was only sent to selected landlords.

    Shane Brownie, managing director of Mutton Research which has been contracted by the Ministry of Housing, Communities and Local Government to undertake the project, told EYE that 100,000 invitations have so far been sent out.

    Brownie said: “We are hoping for a good response.”

    The invitations have been sent out randomly to agents and landlords using one of the three tenancy deposit schemes.

    Asked why non-invited agents and landlords could not complete the questionnaire, he said that if they did, this would skew the sampling.

    It is good to know that Property Tribes was mentioned! Smile

    Could you be so kind as to let me know what all the options were to this question, as I have not been asked to participate in the survey, so have not seen sight of it.

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    Hi Vanessa,

    The question was along the lines of "where do you find out about LL info". One of the options was online property forums, and PT and Landlordzone were the only examples in brackets. The other options were, I think, TV, media, RLA/NLA, government websites. I think that was it. You could select multiple options.

    Do you know when they will be publishing the results? The survey closes 22 April. Thinking about it, I understand about their selective survey sample rather than being open to all, as it would be mostly people active online who would complete it whereas we know millions of LLs aren't active on line. I'm really really looking forward to the results.

    I also had the Cambridge University survey yesterday, which I did start to complete until it got quite detailed about income, and I would have needed to look up accounting info for last year's tax return. I may try to complete that over the weekend. It's important for us to give feedback for any research.

    Rachel

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    Rachel 

    "Change is a prerequisite to longterm survival".

    The establishment is rigged so that the rich stay very rich, and the poor get poorer.


    Thanks for the additional info. Rachel.

    It is indeed very gratifying that PT has been mentioned in a Government survey as an information source for landlords. Smile

    ‚ÄčThank you for making my day. Smile

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    You're very welcome. Anything to encourage you to keep on Smile

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    Rachel 

    "Change is a prerequisite to longterm survival".

    The establishment is rigged so that the rich stay very rich, and the poor get poorer.

    Hi RachelH

    Yes, I've just completed the survey now. I agree with you regarding electrical testing. It seemed to have as much emphasis as Gas Safety in the questions.

    I am sure I am not alone in answering that I will be looking to reduce the current number of properties held in the next two years. Sadly, the good times appear to be over and the increased burden of legislation and taxation make it prudent to reduce risk and deleverage as much as possible.

    Andy


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    Hi Andy,

    It seemed to be really intuitive about the effects likely on LLs. I'm a v small LL so I didn't indicate I would be reducing the portfolio, but that I wouldn't be expanding as planned as a direct result of legislation. I wonder if they're assessing whether the effects they wanted on the BTL market are happening, or whether they're concerned about the reduction of the rental stock and effect on tenants?

    Rachel

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    Rachel 

    "Change is a prerequisite to longterm survival".

    The establishment is rigged so that the rich stay very rich, and the poor get poorer.


    Well, it's easy to be cynical and look at it from the prospective that the Gov is getting exactly what it wanted - a reduction in highly leveraged BTL investors, additional taxation revenue from S24 changes, as well as a CGT boost from those forced to take action due to the changes imposed. I can't see it wishing to change that situation any time soon !

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    Andy - I don't know why you label that view "cynical" the Conservative Party Manifesto is for a "Home Owning Democracy" since forever. Mrs. Thatcher implemented some policies to give it a leg up (e.g. RTB), but it had a big set back under New Labour who were much more in favour of the PRS. George Osborne identified the PRS as a competitor to FTB (some would disagree, but that was his analysis) and set about tipping the balance away from the PRS. Simple facts, no cynicism needed.

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    Well actually Osborne was pretty cynical.

    If he was so concerned about tipping the balance towards FTB then surely he should have attacked ALL LL.

    If he wanted to attack leveraged LL then he should have attacked corporate  LL as well.

    But he didn't.............................well not yet anyway!

    Also he adopted retrospective legislation which is rarely used with new Govt tax legislation.

    He failed to attack unencumbered  LL

    Instead he chose to attack a very small part of the PRS

    Namely the mortgaged sole trader LL.

    He knew perfectly  well taxing turnover would force LL to sell up.

    A cynical tax grab.


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    I actually think the FTB line was just to please/fool the (especially young left leaning) voters, creating a political advantage by being disingenuous about the actual reason for S24 - to force LLs to reduce debt in the BTL sector, which is too big a risk to the economy which has still not recovered from the crash, and could crash again (it was always expected to crash again).

    Problem with a crash this time is that the tax payer can't afford another bail out like the last one, so the continued crazy lending that followed the crash (thanks to QE and low interest rates and banks who couldn't give a damn about economic risk since they've not had to pay for it) had to be stopped. We're still in austerity now, ten years on, with public sector and welfare sector shafted as there is no money, the banks had it all.

    Previous models encouraging LLs to leverage to the max and expand at a ridiculous rates based on nothing other than demand and easy lending create too much debt in the economy and encourage house price inflation. It's exactly the same thing happening all over again. House prices and rents are too high compared to wage inflation - they've inflated independently of each other and that is economically unsustainable, they should be linked. But thanks to the debt created by the classic high leverage model, rents have to increase to service the debt or LLs go bust - the model doesn't work.

    The risk isn't the same in the residential market - not because of defaults - I understand statistics show defaults are higher in resi market, but generally people are paying down the debt and reducing the risk, and they are not borrowing against the equity, generally because they can't afford to under regulated lending, certainly not to the extent of your classic high leverage LL.

    I'm certain the aim of S24 was to reduce leverage and derisk the sector - that's why it had to be retrospective. Trouble is, they don't seem to have forecast how this will affect the customer within the rental sector (whose numbers are increasing due to population growth, lack of housing development and house price inflation completely out stripping wage inflation).

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    Rachel 

    "Change is a prerequisite to longterm survival".

    The establishment is rigged so that the rich stay very rich, and the poor get poorer.