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Right To Buy?
The war over second homes: Owners say they bring tourism and money but locals complain they are being priced out of their own towns... so whose side are YOU on?
Tempers flared again over the bank holiday weekend as residents in tourist meccas hit out at rich Londoners for flocking to their holiday homes and treating the towns like 'Chelsea-on-Sea'. Cumbrian Brendan Donnelly (left) says out-of-towners mean he can't afford to buy a house in his own hometown. Meanwhile Vicky Borman (right) is investing in a holiday let - and insists they bring tourism and money into local towns.
https://www.dailymail.co.uk/money/mortgageshome/article-10731417/How-second-homeowners-hated-people-Britain.html
Tempers flared again over the bank holiday weekend as residents in tourist meccas hit out at rich Londoners for flocking to their holiday homes and treating the towns like 'Chelsea-on-Sea'. Cumbrian Brendan Donnelly (left) says out-of-towners mean he can't afford to buy a house in his own hometown. Meanwhile Vicky Borman (right) is investing in a holiday let - and insists they bring tourism and money into local towns.
https://www.dailymail.co.uk/money/mortgageshome/article-10731417/How-second-homeowners-hated-people-Britain.html
Comments
When I let my caravan, I'm not thinking of the money the renter puts into the local economy, I'm thinking of how much of the money already in the local economy through my £5,000 a year site fees I can recoup.
Investing in a holiday let is just that, it's an investment, another buy to let opportunity that people seem so hooked on. Then they all **** like mad about negative equity when the housing market slows.
Buy to let is why there is so little affordable housing.
We liked it so much my good lady made enquiries into the cost for us to go for a weekend.
I forget to mention it was an “ Air B and B “
Holy ****
The nail in the coffin for me was the £170 “ cleaning fee” paid upfront, with zero returns if it wasn’t messy .
I never knew how much a trip to the laundry cost these days 😏
Housing for local people is in a separate allocated area where buy to let is not allowed.This seems sense to me.
To explain say person A makes £100,000 a year they can go and get a buy to let mortgage from the bank. The bank lends them money that does not exist they are literally allowed to make it up on the spot. the Bank do not care because they cannot lose like they absolutely 100% cannot lose because if person A cant pay they can seize the house and sell it anyway for a profit. Now its very difficult for Person A to lose firstly they charge more rent then they have to pay in mortgage so they get a guaranteed income for nothing.
Now also should they get bad tenants or no tenants at all its okay because they get landlord insurance for this to mean guaranteed income there even if bad tenants or no tenants. Of course that is priced in to rent cost and passed onto the renter so landlord does not even have to pay for that in effect the tenant does.
Meanwhile the working class are screwed they are permanently priced out of the market and forced to absorb all this debt that the richer classes get for free to charge them.
Now should somehow the banks manage to lose in all this scenario its okay because they get a bail out from the government which is fine because the government get backhanders from the bankers anyway. Now guess who pays the bail out so the bankers can get a massive bonuses anyway no matter what? the working class The rich never have to pay taxes through one tax dodge or another they end up paying less then the working class. and to be clear not a lower percentage just flat out less.
It has got to the point where the rent is literally charged so high in most places people can literally just afford to pay for rent and food from a normal job. If they want to pay for transport or heating or any electricity they will have to take an extra job. Food banks are going up throughout the country and energy bills are going to double,
people are already pushed to the max now they will be pushed to work 80 hour weeks or be on the streets. This situation is unsustainable.
Holiday lets are not the issue if people can afford property to let out of their own savings then fair enough, If they get given it for free from the banks and charge the working class doesnt matter what system you got in place the working class will be priced out eventually.
The “master stroke” was The right to buy Council Houses, which gave the lower classes a skewed sense of raised standard of living.
All that succeeded in doing was to get rid of a huge portion of cheap housing for the poor in society.
Under the system we have in the UK there will always be poor, and the rich get richer, the poor get poorer.
The lack of any political nous and education in state schools means the less well off are suckered time and time again by sound bytes and the Tory Press.
I have not got an answer as to how change can happen, but I think the younger generation have got SOME right ideas, the system may be too difficult to change though, probably needs a revolution in this Country but the Tories are putting things in place right now to stop that happening.
Usually focusing on areas that are in high demand for holidays.
I think that the example used in the article of a property being bought for £165,000 is not a good one.
Properties in this sort of price range are surely within the reach of many young people wishing to get on the housing ladder.
Some of the difficulties have been caused by things that went wrong in the past.
For instance mortgage brokers allowing people to exaggerate their income backfired, as did 100% mortgages, and self cert mortgages.
These have resulted in tighter controls, and bigger deposits being required.
I can remember the days when mortgage rates went up to 15.5%, and comfortably affordable mortgage payments suddenly werent.
If you visited any town in the UK you will probably find a wide range of property prices.
These will range from the sought after areas, to those that arent.
If it is true that in some areas property prices have risen due to increased demand from purchasers of second homes, then I dont suppose the local home owners that have also benefitted from the increased prices moan about it very much.
Yet the same people will complain that the prices are beyond the reach of their kids.
Millions of people commute to work in London, because they cant afford to live there.
The Tories keep promising to build more affordable housing, but never seem to get there, which doesnt help.
House prices have always increased in the long term
My Dad bought his first one, which was a 3 bed semi in a nice area for £2,250, and his mortgage was £20 per month.
I wish he had bought a dozen of them.
According to Zoopla its now worth between £323k, and £395k.
Quoting minimum wages as a plus is simply laughable, sure it gives the government of this day a get out of jail free card, but when you are young what will ( approx) £1200 a month purchase in this day and age? Hardly pays the fuel bill never mind mortgage ( ha, good luck getting a loan on that figure take home)
In some ways the “Right to buy” had its upsides , but far far more downsides, where’s the safety net these days for the less well off?
My daughter was on minimum wage working in a care home, she can’t get a mortgage, has to rent- paying £950 ( plus bills) a month to someone’s second home.
The system stinks.
People who rent their second homes could be forced to produce their mortgage statements for that home, then can only charge rent at the addiction of the current banks saving interest rates.
That would prove how thoughtful they are 😏
50 years ago I earned £8 per week, and couldnt afford to leave home.
At this point buying a house never even crossed my mind.
I think that in recent years the purchase of property has played a bigger part of many peoples retirement plans.
When I was growing up it was possible to obtain fairly decent interest rates on savings.
Those days are gone.
Many people have opted in to the buy to let market to fund their retirement.
Others may be planning to sell their main residence, and downsize as a way of supplementing their state pension.
Obviously an appreciation in property values helps in both the above examples, but hinders first time buyers.
I dont think anything much has changed in my lifetime.
I would make a law against foreign investment in UK residential property. Several other countries already have such laws.
Further I would build more property.
Of course this is all assuming that somehow I am King of the United Kingdom by some weird string of events.
Note I said King not Prime Minister. Simply put if I somehow became Prime Minister which would never happen, and tried to rebel against the power structure to bring in such laws, the bankers who own the media would have me ridiculed and falsely accused of some sexual misconduct or Nazism. Everyone would believe this because most of society read headlines and don't think for themselves and I would be destroyed. Further all my MPs would vote against me because most of them would be on the take.
solutions to this issue are simple implementing them is not because to do so you would likely need a civil war. I have no intention of getting involved in anything like that.
I think you have a simplistic view of renting out property.
This makes me wonder why you wouldnt have done it yourself.
I have known a couple of people that rent out property, and its not all plain sailing.
Simplistic ideas are always the best ones. They only get scuppered by red tape and greed.
The simplistic view of the selling off of council houses is- they are never given to / bought by people who need them most ( After the initial purchase)
I think you have a simplistic view of renting out property.
This makes we wonder why you wouldnt have done it yourself.
I have known a couple of people that rent out property, and its not all plain sailing. I am not sure what you mean here.
They could initially only be bought by existing tenants.
If they were resold anyone could buy them.
My sister was in a private rental until recently.
She was paying £880 per month.
It was a 4 bed detached in one of the nicest areas of Swansea.
She could probably have paid less than half the price elsewhere.
So she couldnt really moan about it.
I dont think that whether the owners had a mortgage or not, or how much profit they made, was relevant.
She needed a house to rent, and that was the one she wanted.
What I do have an enormous problem with is these second homeowners not paying their fair share.
Here is 1 example:-
https://www.eadt.co.uk/news/housing/second-home-loophole-closed-could-help-suffolk-8621424
A second homeowner is still often only paying half the Council Tax on a 2nd home that someone who only owns the 1, identical home pays. It is very rare they pay more than 100%-although Wales may be about to change this. So, in a lot of Suffolk, the Locals subsidise the multimillionaire Londoners.
To put this into perspective, 57% of all homes in Southwold are second homes or holiday lets.
Second homeowners are allowed to choose whether to pay reduced Council Tax, or Business Rates. The latter can be £0, and is always tax-deductible. Unlike Council Tax. Small Business Rate Relief is given to second home owners. People get tax advice as to how to minimise any tax bill. Noteworthy how much of a lower priority this sort of tax avoidance gets, compared to any benefit a poor person may get.
I have no objection to people using second homes as a business. I object to them paying less tax, and being able both to be a business and a private homeowner whenever it suits them.
The poor are subsidising the rich.
Which is mad. I, like you, have nothing against the mega-wealthy. I just don't want to pay their bills for them.
Because the lowest Council Tax rates in the UK are in the City of Westminster. You know, where Mayfair etc are situated. Where Band D and below are still under £1,000 p.a. And a Band H is only £1,728.26 p.a.
I live in a deprived area. Where a Band A pays over £1,300 p.a. And an H (which will be worth a fraction of 1 in Mayfair) is £4,000 p.a.
Ever felt conned?