Wednesday, 10 February 2016

Landlord confirms that "bashing landlords" leads to an increase in owner-occupation levels

The Chairman of the Residential Landlord's Association in today's City AM:

When the UK last had [rent controls], the private rented sector fell from 55 per cent of households in 1939 to just 8 per cent in the late 1980s.

OK, allow me to rephrase that: "When the UK last had [rent controls], owner-occupation increased from 35 per cent of households in 1939 to 72 per cent in the late 1980s."

There then follows the usual gurgling about lack of supply, the old argument "we can cool the fire down by throwing more twigs on it. Twigs are cooler than fire, aren't they?".

... private landlords created 60 per cent of new homes homes between 1986 and 2012 - a total of 3m. There is a market for corporate investment as well as private.

Allow me to rephrase that: "Developers and construction workers created 100 per cent of new homes since 1986, and landlords snapped up most of them."


mombers said...

I've said it so many times but here we go again. Private landlords in the UK offer the worst value in the world as we have the highest rents for often lower quality than cheaper countries. The industry clearly needs to be completely reshaped, driving out the amateurs can only be a good thing. Who would ever choose an unknown landlord over a big corporate? And how can the government hope to regulate 2 million mom and pop landlords?

Steven_L said...

how can the government hope to regulate 2 million mom and pop landlords?

The answer is that they don't really try. Local Authorities just 'register' them, collect a fee, and (perhaps, depending on your LA, the attitude of its senior managers and the quality of its staff) take legal action against a handful of the worst offenders each year.

Lola said...

And City A.M. aren't letting (pun intended) anyone comment on the article.

Mark Wadsworth said...

M, yes, they offer the worst value, but most "regulations" completely miss the mark, make life a burden for the honest and increase incentives for them to become slumlords who aren't even on the radar for annoying stuff life gas safety checks, planning permission or income tax etc. See Lola's various posts on the topic.

SL, the way to regulate them is to have a lot fewer of them. People are prepared to rent a dump for a few years in their teens or early twenties, after that you want your peace and quiet and a 'home of your own', like in the good old days.

L, good pun!