Wednesday, 19 June 2019

The Disappearing Homes Conundrum

Using @yppuk, I mocked this wild claim:

Mr Ganatra added: “Dis-incentivising private landlords may end in a serious housing shortage, which will backfire, eventually should a new housing crisis take hold.

Our suggestion of rebating the mortgage interest rate relief tax charge to landlords who offer long-term tenancies would help maintain sufficient supply of properties in the market place and keep rental values in check.”

Various landlords tried to explain the Disappearing Homes Conundrum. So far they have claimed they won't be selling to other landlords (who according to their logic are net sellers) or sitting tenants (who are too poor, or who don't want to buy), but they refuse to answer the simple question - to whom do landlords sell? Ultimately it must be to former tenants, even owner-occupiers who sell and buy an ex-landlord home are former tenants, and to whom do they sell their old homes..?

This was picked up by @landlords_ltd (The Landlords Alliance) who came up with some genius non-logic:

"Yes and our advise [sic] to landlords is to sell up and invest abroad. To those that remain, do not rent to Dss unlss Shelter bond these tenants.

So the homes will go abroad? WTF?


Lola said...

..and the prices will fall to the market clearing level of the new buyers.

Mark Wadsworth said...

L, nope. Ex-tenants can't afford to buy at current prices, so landlords won't be able to sell to repay their mortgages, so they will stand empty until prices recover. Stands to reason, innit?

mombers said...

Watch the ONS rental index. All the squealing and threats from LL are simply not showing up in rent rises.
Hopefully we have a general election soon, let's see if any party stands on a pro amateur landlord platform

Lola said...

MW. Snort.

Mark Wadsworth said...

M, rents have been pretty flat for years, haven't they?

L, my pleasure.