‘The Renters’ (Reform) Bill, introduced to Parliament today, delivers the Government’s 2019 manifesto commitment to abolish section 21 ‘no fault’ evictions which will empower renters to challenge poor landlords without fear of losing their home’. So a triple whammy now that will confirm in the minds of many a buy-to-letter that it’s time to get out. Those with older properties were already having to spend £10k or more to bring them up to the new environmental standards required. Then interest rates soared, making letting break even at best for most with mortgages. The government’s ‘crackdown on rogue landlords’ will put the tin lid on it for many, with the capital gains tax they may have to pay if they sell being the least of their worries. The forthcoming gap in the market is likely, however, to be filled by a growing corporate sector, in many cases offshore-based and ‘leveraged’, which will care and share even less for its tenants. Just google it and you’ll find a stream of them offering ‘returns of up to 12% per annum’ ( with the warning that ‘your capital is at risk’; you can say that again!)
“John Lewis foray into BTR could result in losses of £57m”
I did predict a while ago that Waitrose Homes rather than Waitrose Home Deliveries could be the future. John Lewis were probably the most benign big business to decide to go into the housing rental market, a move which could swing things away from the unpredictability of the mass of private landlords who dominate the sector.
