Episode Details

The latest episode of the Charles Kelly Money Tips Podcast he explores the truth behind the buy-to-let market and exactly why he is getting out of buy-to-let after 30 years. Please like and subscribe - https://www.youtube.com/@charleskellymoneytipspodca9121

Brief history of the buy to Let market 

Watch video - https://youtu.be/Vy6NTf38uR8

My story of finding a rental property before BTL and pre-ASTs - It was worse than now.

No council house building since the 1970s and the introduction of right to buy

The BTL model has worked well since the 1990’s.

Properties were relatively cheap
Returns were good, even with higher mortgage rates
With higher interest rates so you could just about break-even, but enjoy fast capital growth

Now the government thinks the pendulum swung too far in favour of landlords. Tenants are unhappy about high rents and insecurity. But is that the fault of landlords or a symptom of 50 years of short-term thinking government policy?The buy-to-let boom has led to a massive transfer of wealth into property, as well as the banks, and it seems the ‘powers that be’ want to apply the brakes with legislation and taxes,

We are now living in a new socialist regime after 30 years of relatively business friendly government, which includes the Blair labour government.

My personal experience

30 years dealing with tenants - nothing against tenants, I just haven’t got the patience for it anymore!
New threats from various BPU’s (business prevention units)
Lack of social housing being built for 50 years
Mass immigration from all governments since the Blair years leading to an unprecedented population explosion
Swinging from unrestrictive to tighter lending
Planning hold-ups leading to housing shortage
Anti-landlord policy starting with Conservative Chancellor George Osbourne and his Section 24 landlord tax
Renters rights bill, which was born out of a conservative policy
End of section 21 no fault of evictions and a ban on so-called “back door” evictions
Open end of tenancies – how is that going to work in practice?
New minimum housing standards and more red tape - many councils and large housing associations would fail these standards but only private landlords will be hit
Ban on Advanced rent payments, often used where tenants fail referencing or are from overseas.  
Even more rights for tenants
Less security for property owners
Ban “discrimination”
Right to request adaptation of Properties in the case of disabilities
Restrictions on rent increases
Rent repayment orders
More powers for local councils to sanction landlords
New digital Landlord database, but no rouge tenant database  
County court backlogs, meaning that enforced evictions will take up to a year

Renters rights was mentioned in parliament recently during PM’s questions after a labour MP raised the point that tenants were being priced out by landlords.

Prime Minister Sir Keir Starmer said that his new renter’s rights bill will help 11 million tenants.  

He said they will end no fault of action something which the Conservatives had failed to do. . 

Landlords could be obliged to take pets and tenants on benefits

Over the past year, only 6.6% of room-offered ads on SpareRoom explicitly welcomed pets, while a striking 93.4% did not.

One third of people in the UK have pets and 29% own a cat.  

On a Spare room survey 93% of landlords display that they are unwilling to accept pets, this will be banned under the future law.

If a tenant wants to keep a pet