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Labour could force landlords to sell homes to tenants at ‘reasonable’ prices in bid to end buy-to-let property profiteering

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Anyone seen these reports?|

Labour could force landlords to sell homes to tenants at ‘reasonable’ prices in bid to end buy-to-let property profiteering

https://www.independent.co.uk/news/uk/politics/labour-right-buy-scheme-houses-landlords-tenants-john-mcdonnell-corbyn-a9088211.html

Should we be worried?

Peter

 

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This Labour Party under JC are completely against ambition, independance, success, entreprenuership, wealth - what they want is equality, but specifically an equality of mediocrity, an equality of dependence. 

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I think its only sensible @loose chippings property to be wary of theft. Even if it is state-enforced, requiring a person to sell an asset at below its market value for the benefit of another. It is still theft.

That being said i'd not worry too much about Corbyn getting anywhere near to Number 10.

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Whilst I agree that Labour actually getting this onto the Law Books seems unlikely can you imagine the effect? Landlords exiting the PRS as fast as possible, house prices crashing, buy-to-let mortages disappearing overnight, LLs being left owing mortgage companies more than the get from the sale of their property, the economy crashing & a full blown recession.

If Labour demolish the PRS where are those who wish to rent or who can't afford to buy going to live - Council houses? For a man who I imagine has some knowledge of finances (he is the Shadow Chancellor) this seems naive in the extreme. It would put our economy into full blown meltdown and destroy the PRS completely. I imagine many LLs will just leave the market 'just in case'. In fact, maybe this is the ploy - frighten LLs into leaving the market so all those renters can suddenly buy their own home - whether or not they want to or can afford to is a different matter.

I hope this is an impossible scenario, but then who believed they would stop LLs from setting costs (mortgage interest) against profits?

I am certainly reviewing my own long term plans in the light of possible State Sponsored Theft becoming law.

Shame on you John McDonnell & Jeremy Corbyn for proposing such an unfair & punitive policy!

 

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This will never get past the first court case brought by one of the big build to rent investors. Unless it's the first thing they do, they'll have already caused a full on recession and a huge pension problem when they steal 10% of each business to give it to the workers, meaning a mass sell off of shares by the big investors. Not sure what happens if the worker decides to sell the shares - they end up back in circulation with the workers owning none, so do they steal another 10%? And there's the nationalisation of many private companies - are they planning on paying the market rate for those shares and where is that cash coming from?

Student level politics.

Interestingly, one of our properties had a tenant who'd been there around three years when we bought it. The house was on the open market for a number of months and the tenant is still there. So they could have bought it themselves and had a mortgage for less than their rent, yet didn't. So either they couldn't get the credit or just didn't want to. So if this becomes law, guess I'll be kicking them out so I can sell it as a family home. That'll solve the housing problems...

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9 hours ago, julia urquhart said:

Interesting development - Young Labour want to bring Right-to-buy (Conservative policy) to an end. How would this fit with John McDonnell's policy of extending it?

Presume it'll be that you have no right to buy a council property (which makes sense, considering the shortage), but you'll be given 10% of any private house for free. Although I could be conflating two of Comrade McDonnell's policies there.

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The Labour Party have private landlords in sights and have also stated that they want to shake up council tax and make owners responsible for payment of a new property tax and not occupants and will include punitive rates on second or empty properties.  This effectively means that if passed landlords and not tenants will pay the tax.  

A third declared policy is that they also want to place caps on rents

A fourth is that they want to add to the no Sect 21 by ending Assured Short Hold tenancies and tenants will have the right to remain at the property and a landlord will not be able to end the tenancy except for Sect 8 grounds  (This is also being consulted on by the current Government in a slightly different form)

This is a toxic mix that has the potential to make it very difficult for landlords and could have dramatic consequences on the whole housing market.  A Labour Government with the current team at the top will be likely to put the private rented sector into its most turbulent time ever and it is not easy to see anything good for landlords, tenants or banks

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