Private landlords blamed for property price boom that prevents social mobility…

Disgracefully inept conclusions about the housing market and the Private Rented Sector by a “Think Tank” The Strategic Society Centre. Thankfully the response from the National Landlords Association is spot on, but who gets the headlines & publicity?

First time buyers being prevented from buying new builds by landlords? Supply & demand! Builders wont build unless there is sufficient profit & lenders take a bigger risk with first time buyers so they wont be so keen to lend.

A barrier to social mobility? Nonsense. A lack of rental accommodation would be a barrier to mobility. If you are on a relocation package it is essential to have a rental property whilst you look for a suitable town or village, never mind the right home to live in. If you want to look for a job, you dont want to have to pay hotel & eating out bills either.

Radical measures needed to transfer more households out of the PRS and into home ownership? Why is home ownership seen as a right? Look at the levels of home ownership across Europe and especially Germany – they are much lower than ours. Doesnt seem to cause them any problems.

Landlords in a privileged position? In many cases as the report states, landlords only own 1 property that they rent out. What alternative investment would they recommend when banks offer 1% returns and inflation is over 3% (and probably more like 6%)

Transfer of income & wealth from tenants? A landlord has a mortgage with an average gross yield of 6% across the country. After operational costs, void periods etc it can be marginal profit & the landlord relies on capital growth to make money.

PRS increases inequality in society? No, it provides people with homes that they can live in.

Give tenants 5 years in a property during which time they could not be evicted? Have they any idea of the damage many tenants inflict upon properties and neighbours, and how many do not pay their rent? You just need to network with landlords who operate in the housing benefit arena to understand many of the problems already being encountered in legally trying to evict non-paying, system-scamming tenants.

Reduce the rights of a landlord to end a tenancy if they sell the property? That will result in sitting tenants & therefore the property only being sold to another landlord, thus reducing home ownership and reducing the value of the property.

Restricting landlords to increase rents only by CPI? I can understand this issue, but CPI is a manipulated statistic, and it wont take into account all the additional legislation and inherent compliance & registration costs that will be incurred by landlords.

They are called a “Think Tank”. They should be disbanded immediately to save the taxpayer money. Who are these morons?

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