Why The Rentors Reform Bill Could Cause HUGE Rent Increases

Why The Rentors Reform Bill Could Cause HUGE Rent Increases
In this video, we examine the potential impact of the Renters Reform Bill and why it could lead to significant rent increases. We break down the key provisions of the bill, discuss the concerns of landlords and tenants, and analyse the possible outcomes for the rental market. Stay informed about this crucial issue and learn what it means for renters and property owners alike.
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[@propertyaccelerator]

🔥 Get Access to the Property Accelerator Course HERE: property-accelerator.co.uk/fundamentals-of-property-investing/

[@drewhodge3820]

The banks want to be the largest landlords in the UK. So while the media and the taxman attack small landlords, tenants are in for shockingly high rental increases.

[@hpatel5714]

Yes and the media don’t mention about the banks buying up the housing market. Maybe some of these banks own the media?

[@propertyaccelerator]

👍

[@fje1948]

Inevitable…. One of my properties is on the market to be sold….. Life has become more and more difficult. I have never used section 21 since 2008 when I bought my first BTL flat, but if I want to sell, I want my property back! Section 24 is another factor.

[@propertyaccelerator]

👍

[@davidgoodwin6731]

Soyou need to get on with it and put the rent up to make a profit - its the only lever you have - use it. Landlords have been chased away. Rents Up!

[@fje1948]

@@davidgoodwin6731 Hi, appreciate your suggestion. I have always treated my tenants with respect and section 21 is for me to be used as a last resort. If that goes (under Labour it definitely will) it interferes with the ownership of my property and I am no longer interested in the PRS and the hassle that comes with it in future!

[@scienceevolves4417]

​@@fje1948 What the hell man? Do you know how L&T law works in this country? 1) using s21 is no guarantee that court action will be avoided. It may still be needed to regain possession if tenant doesn't leave by due date. 2) sale of property will be a mandatory valid ground for possession under the proposed new law. (Ironically, no such ground exists under the current rules.)

[@fje1948]

@@scienceevolves4417 I am glad you pretend to know? Or do you?

[@OO-ex5iq]

Firstly I don't think the government are looking at this in a realistic way I do understand with regards tenants and that they should have proper housing. However some tenants do take advantage as you've stated non-payment of rent which causes a major headache all landlords so it is no wonder that landlords are leaving.

[@propertyaccelerator]

👍

[@scienceevolves4417]

That's bs argument... If a tenant doesn't pay his rent, that's prima facie grounds for LL to start proceedings under s8. Which means court action which is only fair. By all means, Sue the other party ie the tenant in such circumstances. So, in that scenario, the existence or non-existence of s21 is not a relevant consideration at all as far rights of LLs are concerned.

[@scienceevolves4417]

Moreover, you make it sound as though this circumstance will be new if the proposed changes come into effect. But it is already happening! Bad tenants are already a thing (if you're unlucky to have one) and it's nowt to do with the proposed legislation and obviously everything to do with the inefficiency of the justice system (which is not tenants' fault, not landlords' fault, but solely gubberment's fault!).

[@user-et4vb3dj6x]

The government and banks are forcing Landlords out of the market, the direction of travel for rent is upwards. What do they expect, where do they think people are going to live, clearing they thought this through, and Labour won’t be any better

[@tomjones8715]

Labour came up with reits so they have the track record to be the same.

[@propertyaccelerator]

👍

[@marcwaters2600]

RIP LANDLORDS

[@fje1948]

Rest In Peace - What a true analogy. That’s why I am selling up.

[@propertyaccelerator]

😬

[@paulmessenger9836]

Not this landlord no mortgage so able to pass that on to tenants

[@davidgoodwin6731]

Just put the rents up - easy

[@youtubeman5033]

Where I live I am seeing landlords selling up, I didn’t think this would happen, the small landlords I know have had enough if you get a few selling up and they have say 12 property’s each that’s a lot of people with nowhere to live I have people ringing me every day looking for a renter,because the landlord is selling up, it’s going to get messy

[@davidjohnbarnard]

Dont forget that we could have a Labour government in 6 months time and most of what applies today may have been scrapped so personally speaking I'm not concerned

[@propertyaccelerator]

👍

[@grzesiekniemogecipowiedzie7142]

But who gonna buy these and leave empty?owners gonna move in and free up something they have been renting

[@mattanderson6672]

Thank you

[@propertyaccelerator]

Welcome!

[@tobes1902]

Your section 24 analogy- are you referring to interest expense only right? All other expenses like letting agent fees management fees are all tax deductible

[@tundeuk]

That’s what I thought but he makes it sound like as though nothing is taxable.

[@davidjohnbarnard]

@@tundeuk When I do my tax return each year and read the HMRC notes there are quite a few expenses/allowances that can be used to reduce the tax payable so in my opinion James N is misleading people when in this case he says tax is payable on £10 - he should say tax is payable on the £10 AFTER allowed allowances

[@propertyaccelerator]

Yes the mortgage

[@scienceevolves4417]

​​​@@tundeukyes that's the impression that I got too! Funny thing is me lad had a whiteboard behind him to draw this whole example, but he's only used 10% of the board area for the whole video... 🤣 And I am still confused after the "explanation". Should be simple: suppose the rent is 1000 pcm. What is the tax charged on and how is it calculated and what factors does this depend on.

[@scienceevolves4417]

Okay I just double checked. Basically the cost of the whole mortgage payment can't be offset as an expense, that's all it means. So that LLs will pay tax on it too. Gosh took me 2 sentences to explain the same concept!

[@user-xu8mt3hw3b]

Great video and you explain the issues well I have a few questions though: When landlords sell their properties who buys them, large institutions or first time buyers if it is not new landlords? Why is it wrong for an institution like Lloyds to become a huge landlord? I get your point that they are less responsive to issues than conscientious landlords potentially, but rent is simply unaffordable for many. There need to be a multi tier rental system, and whilst tower blocks might be less appealing if new ones are built that are affordable, you’ll end up with a two or three tier system. You can get a rental property that is cheaper though less desirable or rent a house with a small garden at a premium. After all this is how healthcare works, the NHS provides a basic level of health care, but if you want a hip replacement quickly or an expensive cancer treatment you need to have private cover. I don’t agree with situation and would love all to have affordable nice housing and all to get quick medical treatments, but this is the way of the world, some renters I am sure would like to pay less for somewhere to live as it is affordable, as long as in is functional…. It’s just a thought, but I feel the days of everyone have a lovely rental property are gone it’s simply unaffordable for many.

[@propertyaccelerator]

It will be a mix of first time buyers, other landlords and people looking to move. Lloyds could be a good landlords time will tell, but most big landlords councils / housing associations are terrible landlords.

[@tobes1902]

James, with small landlords leaving in droves and rent shooting up, when inflation inevitably cools & economy slows down, rates will have to be lowered - this is I think when the big Build2rent landlords are going to make an absolute killing! It's a gamble, but could make sense to hold on to your BTL now's and ride this out if you can

[@propertyaccelerator]

Yeah I have no plans to ever sell.

[@scienceevolves4417]

​@@propertyaccelerator Awesome attitude 👍👍 As a tenant, I don't get the "let's sell up massively" brigade of landlords. What are they afraid of? Are they in it to make a quick buck off eg real estate appreciation in price? Are they not in it for a constant steady stream of cash flow as they should be? I can only blame their fear driven response on the lack of knowledge as to the upcoming changes in the law, I'm afraid.

[@jeremybevan5946]

What will be the result of Landlords not being able to get properties back that they are making a loss on?. How long will they be able to keep up making up the shortfall until eventually their lender repossess the house and there are no winners! This is going to end in tenants being homeless through no fault of their own or the landlords for that matter.

[@propertyaccelerator]

👍

[@Bazchu1]

The chip shop will get 20% VAT ripped off the total gross take before any tax on profits can be even considered (and zero vat can be claimed back on food expenses), then they get absolutely ripped off with business rates, commercial energy rates, commercial waste removal, music licensing. Having experience from both, property is a walk in the park to make money compared to hospitality

[@tundeuk]

I had a small bar and was printing money in the last two years and until the landlord TfL kicked everyone out. Tried to open up two other hospitality business afterwards and both failed. Now I just stick to the 9 to 5 and a couple of resi BTLs Luckily

[@propertyaccelerator]

Agreed.

[@propertyaccelerator]

👍

[@TheRichardgrime]

That wasn’t the point that he was trying to make, I don’t think. Just using a business to illustrate that all costs are tax deductible, whereas the landlord cannot.

[@samchan6482]

Everything designed to force landlords out and rents are sure to increase .

[@propertyaccelerator]

👍

[@Alexxx---101]

Hi, when can we expect some news on the leasehold reforms? Thanks

[@propertyaccelerator]

As soon as any new news is out I will share it dont worry.

[@scienceevolves4417]

Parliament is going to be dissolved so no changes in the law until GE is held in early July. After that any new proposed legislation will have to start from scratch as any bills in the current term not passed are washed down the toilet.

[@scienceevolves4417]

I've double checked so here's an update: LH and FH reform bill passed into law in the wash up process. But it will apply in a stripped down form. The provisions on ground rent didn't pass. RRB didn't make the cut so will have to be reintroduced in the next parliamentary term if MPs so wish.

[@philyewin4880]

I own all of mine outright and they're re all similar in the same area. I was renting them out for £900/mth. I've already increased them all to £1300/mth in anticipation of the Bill, and will now be able to withstand increasing them in-line with the Bill for the foreseeable future.

[@propertyaccelerator]

It will be very common, spoke to Dorking council today who said they see most rents up 15% for the year.

[@scienceevolves4417]

900--->1300? Are you kidding me? That's unreasonable and ridiculous. Unless it's for Chelsea and Kensington maybe.

[@philyewin4880]

@@scienceevolves4417 My agent had been insisting that I raise my rents significantly for a long time saying that they were now well below current market value. I'd resisted saying that he was only interested in his commission percentage. I accepted his advice when he explained that the Renters Reform Bill would cap the percentage of future annual rent rises on my already below market value rents and that the cost of evictions would also increase.

[@scienceevolves4417]

​@@philyewin4880 I see. Well for starters RRB hasn't made it into law yet. And there's no max cap provision there.😊 Having said that, the rate of evictions will deffo rise if rents go up. Something of a circular logic in there but it works😅

[@rikardsaje]

I'm keeping my BTL'S as rents are only going one way. I keep saying to these landlord hating channels, where do people with bad credit live or people who want to rent as they may have a temporary work contract, immigrants need somewhere to live. Councils are desperate for landlords as government's have sold all the council houses. Also banks make it very difficult for many people to buy, even if many landlords leave and these properties become available for FTB.

[@spencer2721]

Get in with Serco, if you can get contracts to house the boatmen, you can make some great money and your rent is guaranteed all courtesy of the taxpayer. Either that or contact a council about providing temporary accommodation. Easy money like all government or council contacts as they overpay for everything. I not sure why landlords are always moaning if you know what you are doing it’s a license to print money and with immigration the countries housing needs are only going to get more desperate.

[@propertyaccelerator]

Agreed and the government policies are going to continue pushing rents up.

[@propertyaccelerator]

👍

[@sfm5086]

Yep, landlords are selling up EN MASSE and supply is crashing hence rents are sky high and will stay there.

[@propertyaccelerator]

👍

[@kennethrussell1158]

What about month to month renters?

[@propertyaccelerator]

This is for UK

[@nikbassi3608]

If a landlord is forced to pass on the Section 24 tax to the tenant, is it a landlord tax or a tenant tax? Does that make the landlord a tax collector instead?

[@MalcolmXpat]

Basically means the Tories have taxed the tenants 20 percent of their own rent.

[@propertyaccelerator]

Exactly its the tenants who get hit.

[@davidgoodwin6731]

Its a Tenant Tax - but government are trying to sell it as a Landlord Bash /Pro tenant. Tenants are getting wise and are now beginning to realize that THEY PAY for anything that goes their way. Rents to the moon!

[@user-annie2020]

Interesting. Although such a harsh voice. And No, I'm not going to be an all round nice person for SMASHING the like button.

[@ultimatewarrior659]

You should tongue fcuk the like button 🍆

[@Juliukas101]

Agreed! I'm glad someone else noticed the harsh used-car-salesmanlike delivery and the begging for likes and subscribes, not to mention the touting of products via banners.

[@propertyaccelerator]

😂

[@propertyaccelerator]

The channel is not for everyone,

[@propertyaccelerator]

No problem thanks for watching, if the channel is not for you I hope you find one that helps.

[@nabazhamad5988]

❤

[@propertyaccelerator]

❤

[@trewjohn2001]

Not sure how many banks will want the hassle of private rentals long term. It’s a lot of admin for them for not much return. If they weren’t doing it when the yields were higher and stacked more in the landlords favour- why would they get involved when it’s less profitable and more hassle. If you had one million in cash to invest not many financial advisors would tell you to buy rental properties with it. They already technically own a lot of properties via mortgages. They just don’t have the hassle of maintaining and managing them.

[@propertyaccelerator]

I dont think they would buy single units. But there is value is building blocks of 100-200 those can work for them. But a 3 bed house in Doncaster is of no interest to them.

[@trewjohn2001]

@@propertyaccelerator I just don’t see it, they can make a lot more in other ways with less hassle and human interactions. Sob stories of evil banks kicking out families from rentals won’t go down well in the news. It’s very risky for them at the lower end of the market. If they re-posses they just want rid of the property and as much of their money back as they can get.

[@markjewell911]

some through immigration! the population increase over past years is more or less all down to immigration

[@propertyaccelerator]

👍

[@BsktImp]

Supply and demand, and the latter is going up. Stick on 50% or more on current rent. Current tenants will moan but so be it. No one said life is easy. Prospective tenants are desperate and will pay, many up front. Local area market values go up too as a result and around the cycle goes. No sign of the bubble bursting yet. Make hay while the sun shines.

[@spencer2721]

Lovely sentiments, good to see you are not just cashing in on desperate people looking for somewhere to live, if there was more people like you around the world would be a much better place

[@propertyaccelerator]

👍

[@scienceevolves4417]

All right , see ya next Thursday 👍