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  • Debt & Negative Equity

    UK needs growing number of BTL landlords.

    The UK will need more buy to let landlords in order to meet growing demand due to population growth and changes in the housing market.

    According to the latest forecast from the Office of National Statistics, the UK population is set to grow by 8.4 million people over the next 22 years from 65.6 million recorded last year, eventually reaching 74 million people in 2039.

    This growth in population is increasing demand for housing much faster than supply is being built, while at the same time wages have stagnated, leaving many people, especially first time buyers, unable to raise the finances to purchase a property.

    At the same time, a new survey of 2,000 UK adults by LetBritain has revealed that 39% of adults lack the money to buy a suitable property and have no choice but to rent their home. This figures increases to 49% of people living in London.

    According to the survey, more than a quarter, 27%, of renters are considering investing in a buy to let property in a cheaper area compared to where they live in order to supplement their income.

    This growing demand for rental properties and the interest on the part of renters to themselves make buy to let investments make the recent reforms to the private rented sector seem all the more perverse.

    With Section 24 changes to mortgage interest tax relief, the hike in Stamp Duty, the cap on tenants’ deposits and the ban on letting agents’ fees all threatening to push many landlords out of the sector, there is a growing danger that the supply of rental properties could be reduced at exactly the time it is most needed.

    Jonathan Stephens, managing director of Surrenden Invest, said; “Whilst it’s wonderful that we can all enjoy a longer life and a larger population can positively impact the size and capability of those of working age, it does also increase pressures on basic requirements such as housing, namely, where will we all live?

    “With population forecasts such as these, it would seem wise for landlord investors to be encouraged, not penalised through Stamp Duty reforms and tax hikes as we have seen over the past 18 months.”

    If you're a landlord concerned about the impact recent reforms to the buy to let sector are having on your properties or you have property debt worries, contact Landlord Debt Advisory on 0161 222 4311 or go online to landlorddebtadvisory.com.

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    Growing population requires more homes - this is true.

    Though I am not sure why the argument for more BTL Landlords? buy-to-let does not create homes for the growing populaion - its often just a change in tenure. Perhaps the article is saying that Build-to-Let should be encouraged? as that would increase housing supply.

    (P.S. Conor link in your post says your SSL Certificate is expired, if I click ignore it sends me to a Candle website.)

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    _________________________________________________________________________


    The above post is not financial advice, its often me rambling - passing time on a coffee break.
    If you are looking for the Best BTL Mortgage? Call the Specialist Team at Bespoke Finance.


    _________________________________________________________________________


    A large part of the growth in the rental stock and the need for landlords over the last 10-15 years was the very large influx of migrants who are far more likely to rent than buy. If I recall correctly 75% of recent migrants (those who have been here for 5 years or less) rent privately compared to only about 15% of the natives (mostly students and young people moving around the country for work)

    If we see a fall in migrants due to brexit then the need for more rental properties will disappear

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    Unfortunately UNLESS the Govt can force the feckless welfare scroungers to do the jobs migrants currently do then the economy will require continuing migration.

    The feckless remain a continual drag on the economy and effectively cause the housing problems.

    If they were forced to work then the housing demand from migrants wouldn't be there as they wouldn't be needed.

    The populace has to understand that their housing problems are caused by the feckless welfare scroungers

    There are about 2 million of them currently not counting all those working the system being unavailable for work due to alleged anxiety and depression, the new work avoidance 'bad back'!!

    Until the feckless are trained up for jobs migration will regrettably still be required in the hundreds of thousands.

    So don't worry about it required migration will keep rental demand up and ever increasing and along with ever dwindling rental supply rents will continue to increase.

    The low wage economy requires low wage migrants as it isn't worth the feckless working.

    Welfare simply pays too well!




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    I do not think there are many stable reasonable unemployed people who want to work. There may be a few million unreasonable non stable unemployable people but no one would want to hire them so its a huge challenge to change these people. For instance what do you do about an unemployed alcoholic? Is there any way you can turn his life around and what time and resources are needed for the task? What do you do about those who are mentally slow or have terrible upbringing, just a few days ago I confronted an English boy aged maybe 12 for shop lifting and got a huge amount of verbal abuse from him and that was a short skinny 100 pound child. Its quite likely that in five years time he will be on the streets or society will have to look after him via benefits for life. How can society fix that boy its not an easy task maybe impossible. While I was angry with him and if there was no law and order he would have got a good hiding from me in hindsight I feel sorry for him he will have a fucked up life and probably already does.

    Regarding migrants, I do not think we (politically) can sustain the numbers of the last decade post brexit.
    As such the numbers renting will stabilize and perhaps go into a small reversal. Migrants while heavily renting when they first arrive do buy as time passes. Those in the country for 5-10 years rent less and own more than those here for 0-5 years. And those in the country for 10-20 years own more and rent less than those in the country for 5-10 years etc

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    Agreed there is a feral part of society which seem to manage to coin in welfare and not work.

    These are actually very clever people.

    I doubt I could work the system as well as they do.

    As for migrants.

    It simply is the case that migrants are needed to support low wage jobs.

    Welfare claimants wouldn't bother with such jobs as welfare pays too well.

    This is why I don't believe migration will reduce much as I'd like it too.

    There are simply too many low waged jobs that only migrants are prepared to do.

    As long as wage differentials remain so large then migrants will continue if permitted to flock to the UK and repatriate their wages to hone countries where the minimum wage is 7 times less than the UK one.

    Until such wage differentials are reduced then the UK will remain an attractive work destination.


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    The UK will need more cars in order to meet growing demand due to population growth and changes in the transportation market.

    This growth in population is increasing demand for cars faster than factories can supply them, while at the same time wages have stagnated, leaving many people, especially first time drivers, unable to raise the finances needed to buy a car.

    39% of adults lack the money to buy a suitable car, rising to 49% in London. 

    Meanwhile changes to emissions taxes, fuel costs, car finance interest rates and the ban on dealership fees means that many in the car rental industry are looking to wind up, leading to a growing danger that the supply of cars could be reduced at exactly the time it's needed.

    Jonathan Stephens, managing director of Surrenden Invest, said "It's unclear what will happen when car rental dealerships place thousands of cars on the second hand car market at prices unaffordable to people who don't own cars already. Where will we all drive if there are no cars available from car rental dealerships?" He continued "It seems wise that car rental dealerships should be encouraged, not penalised. After all, you can't go wrong with oil and petrol and car prices only ever go up."

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    I take it you are using cars as an example to houses but the two are nowhere near the same

    Houses do well in places and times the population + economy is doing well, eg London over the last 10 years and they do poorly in places and times the population + economy is doing poorly, eg Middlesborough over the last 10 year

    Also in this country most houses are inherited (or an equivalent monetary sum) so most British born have no trouble in affording homes. This is how very expensive areas like London are affordable. Sure a modest house costs £500,000 in London but Londoners get much bigger inheritances (primarily due to their parents owning £500,000 London homes while the middlesborough children will be left £100,000 middlesborough homes)

    Something like £200 billion annually is left from old parents to younger kids annually via gifts and inheritances this is a hugely wealthy country.

    Its primarily the migrants that have a difficult life as they have no/little parental help oh and of course the locals who have shit parents who haven't saved anything for their kids/grandkids

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    Err!!

    Have you not been aware of all the controversy over PCP.

    To drive a new car you don't need lots of money

    People aren't bothered about ownership.. They just want usability of the latest shiniest car which can be had for about £200 per month.

    So car buying is not even an issue as people don't want to buy what they can't afford.

    Effectively they are just renting a vehicle.

    Renting a car is no different from renting a property.

    It enables one to have the latest for very minimal deposits.

    There is simply little point in ownership in the fullest sense of the word for those that stand not a chance of ever being able to afford a house or a car outright.

    Renting is the new way to own.

    There are millions of cars being produced.

    There is a serious overcapacity of cars in the world.

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