But what landlords will soon learn us that when there are no tenants their priorities have remarkably little value. Evictions work when there are new tenants who can pay who are queueing for property. But such tenants will be few and far between soon. Then the financial crisis really begins.

At which point rents fall given the lack of willing tenants at current prices.

The government could solve this, of course. It could provide statutory deferral periods. And mandatory rent cuts.

Why should the government involve itself in something that is already solved?

12 thoughts on “Oh FFS”

  1. Whence cometh the dearth of tenants? Won’t those 3 million HK folks need to live somewhere? Or the other half-a-million a year who feel the need to come to a country which is well-known to be racist?

  2. At which point rents fall given the lack of willing tenants at current prices.

    And if the rents don’t pay the interest on the loan then the landlord goes bust. The property still exists but is recycled at a reduced capital value. So what?

  3. The Meissen Bison

    Why should the government involve itself in something that is already solved?

    I think that the first step is to unsolve it and then tinker, fiddle and coerce until a problem arises that is irretrievably worse than the original perceived problem.

    The property still exists but is recycled at a reduced capital value. So what?

    How does this recycling work? House prices fall, buy-to-let mortgages dry up, maintenance on buy-to-let properties ceases so properties change hands when either a new buyer appears who is able to finance both purchase and refurbishment or The National Housing Corporation steps in through some compulsory purchase mechanism.

  4. We have a major housing shortage in the South-east thanks to Tony Blair and to those who blocked David Cameron’s only libertarian policy (allowing some communities to determine planning conditions in their locality).
    So why should landlords learn this *soon*?

  5. “But what landlords will soon learn us that when there are no tenants their priorities have remarkably little value”

    So where will the evicted tenants go to live? Is Spud in fact suggesting that evicted tenants will be gulagged? He ought to be clearer if that is the case.

  6. @john77

    I fear that “allowing some communities to determine planning conditions in their locality” is not likely to alleviate the housing shortage, judging by the kind of people that angrily attend council planning meetings if any new housing is in the works…

    I suspect that if new housing somehow magically increaded the value of existing housing then there’d be far less furore, but it does the opposite so furore there will be (even if “protecting my house price” isn’t the reason people will say they’re protesting “overdevelopment”).

  7. @ MBE
    Cameron wanted villages to be able to waive the requirement to get plans approved by planning bureaucrats as well as the locals – so it would alleviate the shortage. Simply reduce the number of things/people blocking building can only increase building because a lot of villages have no spare houses for local youngsters growing up to move into when they get married and in those places a majority will vote in favour of single houses or small developments being built.
    Not a magic wand but it was a step in the right direction.

  8. ‘Evictions work when there are new tenants who can pay who are queueing for property. But such tenants will be few and far between soon.’

    They are still going to evict you. Evictions work. Always.

  9. Non paying tenants need evicted fast as they tend to destroy the property – wanna buy a combi-boiler & rads?

    We/economy does not need or want fake jobs. BloJo needs to deregulate and allow private sector to build and expand

    @john77

    +1 When Javid was housing minister he wanted a return to past where housing was built above shops

    My thought was “about time this happened”

    Site near me: locals campaigned for social housing not an Aldi (which I favoured). Aldi submitted plans for
    1. Store (good)
    2. Store with flats above (super)

    Anti-Aldi campaigned against both in deluded belief Aldi wouldn’t do 1 and walk away
    Council approved 1 and rejected 2

  10. @ Pcar
    New Labour gave a tax break to converting premises above shops into flats. I once wrote a research note on a company managing a fund investing in this and another fund investing in agricultural property and a couple of others. Did quite well for a time, then after 2010 new schemes seemed to fade away. Before that Labour councils gave planning permission for a government-backed scheme, after that … After a few years I lost touch, so I don’t know what happened to them but I do know that some people want to convert shops in my local High Street back into residential.
    When I was young almost all the corner shops had living accommodation above and behind the shop. That there was a phrase “lock-up shop” indicated that they were the minority.

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