What happens to the houses landlords are selling up?

They were discussing how in the UK you can rent a place with a long term lease of 5 - 10 years. Here leases are renewed every 12 months which is a very insecure situation for the renters. They were saying your system is much better for renters than here. Up until recently most people here would buy but that has changed in the last 15 years. I pity the young ones now with entry level houses $7-800,000. So many stay home until in their late 20s and 30s now. Unheard of when we were young.

I remember what a struggle it was with 17% mortgage interest rates and don’t recall it ever being much below 10%.

Seamus89

Granmarderby10

I find it incredible even after 45 years that the government ever allowed or encouraged the sale of council houses.
And without any obligation to build any more.
It just…😓

The tragedy is that Councils were forbidden from building replacement housing and ever since have been drained of funds .

Why Labour never repealed that law, when they had 13 years in which to do it, especially when many of them were endlessly berating Thatcher for introducing Right to Buy, I do still wonder.

They could have repealed that act, too,,but they didn’t. Far be it from nasty cynical me to suggest that they thought it would lose them votes…

We're buying an ex rental flat for our disabled kid, they would never be able to afford a decent home otherwise as renting is so expensive and mortgages unavailable for people with serious health problems that stop them earning good money. I'm an ex landlord, sold two rental properties a few years ago due to the tax changes which made it uneconomical, it's getting even more difficult now and I don't feel I need the stress and hard work involved on letting. I have several friends who have been landlords and sold or leaving the property empty. It's really hard for youngsters and people wanting to rent.

My autistic son was evicted from his flat (which needed really extensive renovations to comply with newer regulations that couldn’t be done with someone living there). He ended up sleeping in the back of his van for a few months until he found a room in an HMO paying more rent than he was paying for his flat but with all the bills included.

Witzend

Around here, ex council flats are often very good buys. Solidly built and more spacious than many new builds, in pleasant green areas with very good public transport nearby.

The problem with this is that the council decides the building needs a new roof. No charge to council tenants but if you own one 0f the flats you get a very hefty charge on your management fees.

It's a terrible situation. It's time for the government to fund social housing, Only permit new builds with a 50% social housing share, too many building companies are making profits out of a desperate housing situation. Empty ex private rentals should be offered to local councils first before going for private sale so that social housing stocks could be increased. Already councils are placing people in private rental properties as they cannot house enough people in their own properties.

cc

Norah

I don't remember 10-15% rates, perhaps I'm too old.

Were baby boomers actually impacted negatively?

We paid a very high mortgage rate on our home in the 1980's, just about managing to make the repayments. Fortunately we'd always made a point of keeping our loan down to the least we could, or I suspect that we might have lost our home. Others we knew had borrowed the maximum they could and had to sell at a loss and downsize to avoid losing their homes altogether.

We're older than most GN, I suppose. I read, here, about interest rates in the 80s - our home was paid, I was busy with babies, not paying attention. I remember inflation in 80s impacted my husband's business.

Granmarderby10

I find it incredible even after 45 years that the government ever allowed or encouraged the sale of council houses.
And without any obligation to build any more.
It just…😓

The tragedy is that Councils were forbidden from building replacement housing and ever since have been drained of funds .

My daughter completed on one such property last Friday.
It took 6 months and 3 court cases.
It’s ridiculous when you see that she will be saving £150 a month on her £1,650 rent.
We are going to view it tomorrow.

There are plenty of homes for sale around here. Some go at once, and others linger for ages. I live in a World Heritage town. The homes within the town walls, mostly two-up-two-own, sell for far more than ours, three bed semis and detached which are bigger and have plenty of gardens. The homes in town are empty half the year—holiday homes or airbnbs at astronomical rates.

I'm not sure that many of those are in a position to buy the homes landlords are selling.

Lots of potential occupants, at present living in hotels etc. It’s called integration.

Norah

I don't remember 10-15% rates, perhaps I'm too old.

Were baby boomers actually impacted negatively?

We paid a very high mortgage rate on our home in the 1980's, just about managing to make the repayments. Fortunately we'd always made a point of keeping our loan down to the least we could, or I suspect that we might have lost our home. Others we knew had borrowed the maximum they could and had to sell at a loss and downsize to avoid losing their homes altogether.

I have a really nice rental property, let out to an elderly man for a reasonable rent over the past few years. It looks as though it will be illegal for me to rent it out within a couple of years as the EPC is low and I can't do anything about it as it is a listed building. So someone will lose their home and I will lose my rent. The flat itself is probably not worth much more than I paid for it twelve years ago but I doubt I will find it easy to sell.

Yes interest rates were 10% and more but inflation was much higher, wage inflation was also high. Rentals were much more affordable so it was easier to save for a deposit too

I remember that too Mamardoit. We'd recently moved into our new home and were relieved to have gone for a 3 bed semi and not the detached version, as we'd have been unable to cover the increase.

DH was born in 1947 and I'm also a bloomer. I remember our mortgage rates going up to 15%. We were lucky not to lose our home.

I don't remember 10-15% rates, perhaps I'm too old.

Were baby boomers actually impacted negatively?

M0nica

The housing market is a classic exampe of supply and demand.

The price of houses go up and down so that the supply of houses equals the demand. Lenders decide what proportion of their income borrowers as a whole can afford to pay for a monthly mortgage. Usually this is around a third of monthly income after tax.

On a standard repayment mortgage this amount includes mortgage interest and capital repayment. If interest rates fall more will be available for capital payments, so prices will rise. If interest rates go up, less is available for capital repayments, so lenders will lend less, and prices will fall.

Put interest rates up to the 10-12% that many baby boomers paid on their mortgages and house prices would plummet, but it wouldn't help any more people onto the housing ladder because so much of their monthly payment would be paying the mortgage interst, so little left for capital repayment, that they would struggle as much as they do now to get on the housing ladder.

Good explanation, M0nica.

With interest rates low, demand high, and people worried about changes in tax rules - perfect time to sell investment rentals. IMO.

The housing market is a classic exampe of supply and demand.

The price of houses go up and down so that the supply of houses equals the demand. Lenders decide what proportion of their income borrowers as a whole can afford to pay for a monthly mortgage. Usually this is around a third of monthly income after tax.

On a standard repayment mortgage this amount includes mortgage interest and capital repayment. If interest rates fall more will be available for capital payments, so prices will rise. If interest rates go up, less is available for capital repayments, so lenders will lend less, and prices will fall.

Put interest rates up to the 10-12% that many baby boomers paid on their mortgages and house prices would plummet, but it wouldn't help any more people onto the housing ladder because so much of their monthly payment would be paying the mortgage interst, so little left for capital repayment, that they would struggle as much as they do now to get on the housing ladder.

fluttERBY123

Landlords are selling up, no longer profitable. Everyone moans there are no places to rent, rents too high etc. Young people say they will never be able to buy. So who buys these houses and who lives in them and under what terms? Surely they are not left empty?

I doubt many are left empty, rentals are scarce and sell easily here. Prices seem to be falling somewhat. The if - CGT rumours.

Victorian properties previously split into flats are converted back into houses to be sold.

lankords sell to other investors or first time buyers. However, whatever newspapers report, the housing market overall is as flat as a pancake, except in a few areas.

First people were awaiting the election, then a drop in interest rates, then the budget. That will be followed by being too close to Christmas so the chances of anyone, landlord or house dweller selling their property before January are slight.

They can be modernised without moving the tenants. We have had windows/kitchens/bathrooms replaced and carried on with life pretty much as normal. Some tenant will also decorate rooms. They enjoy getting a nursery ready for a new baby like anyone else.

Families should not be ordered out with just two months notice. If rent is not being paid and the property is being damaged that's different of course. That is easily spotted when the agent does an inspection.

I think a six months notice period for a family with school age children needs to be introduced.