Buy-to-let is no longer a viable investment opportunity for many landlords due to the introduction in recent years of tougher tax treatments and tighter bank lending criteria, and yet they are often ‘vilified’ as rich and greedy in the press, leaving many of those who invest in the private rented sector now wanting a rebrand.
The buy-to-let market has taken a big hit in the last few years with the government phasing out mortgage interest tax relief, introducing a 3% buy-to-let surcharge on stamp duty, and scrapping the ‘wear and tear’ allowance for furnished homes, but that has nit halted the negative press reports abut those who invest in the PRS.
Gavin Richardson, managing director of Mortgages for Business, said: “Sections of the media have vilified the buy-to-let community. The government has hammered them – think Theresa May’s 3% stamp duty surcharge and other tax deterrents. It’s got to the point where the buy-to-let community doesn’t want to be associated with the term ‘landlord’ anymore. The term carries much more baggage than it once did. No wonder the community wants a rebrand.”
Some 59% of buy-to-let investors surveyed by Mortgages for Business deem the term ‘landlord’ dated.
Additionally, almost three-quarters of those surveyed – 73% – told Mortgages for Business they felt “unfairly portrayed as this generation’s financial bogeyman”.
When the buy-to-let community was polled on their preferred name, 43% said “Small Housing Providers”, 36% said they would prefer to remain “Landlords”, and 21% opted for other options – including “Rental Accommodation Provider” (7%).
Richardson commented: “The majority of landlords are paying 40% tax on their rental income – plus stamp duty – which means the Government is profiting hugely from Generation Rent. And to what end? Hammering landlords over the last five years has done first-time buyers no favours – research from Nationwide suggests first-time buyers now need to save a huge 113% of their annual salary for a typical home deposit of 20%!
“What would happen if we took landlords out of the housing equation? The impact on the property market would be significant and almost entirely negative. It’s not as if the government is pouring money into social housing – or making any progress on housebuilding.
“Frankly, the government should be championing landlords and lauding their contribution to the housing sector – landlords are bailing the government out!
“On top of that, millions of Brits face a financial crisis in retirement by not putting enough money aside for their pension. Two thirds of employees aged 45 and over face poverty in old age unless they act soon. One in five Britons say they have no form of private or workplace pension.
“It is regularly drummed into us that we need to invest for a comfortable retirement. And yet, when people start building a nest-egg – investing in property to try to ensure they have an income for their retirement – they are reviled!”
I prefer the term “Hero” because that’s the appropriate term for anyone who goes above and beyond, risking their own capital and taking on extra responsibilities to house the homeless.
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How about ‘local property lessor’ (LPL)?
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Landlord is a term which seems to be emotional. Leaseholders are in law “tenants” but would probably prefer to be referred to as Leaseholders and freeholders tend to be landlords. This has of course all be made worse by a certain housing charity and left wing renter pressure groups. The Government, Councils and Shelter have proliferated the term Rogue Landlord instead of criminal landlord and the term Landlord and Rogue are now linked in peoples minds so I now refer to Rogue Councils and Rogue Politicians when refering to those not behaving properly and Criminal Landlords where they are criminals. But there again I am of an age where I am less sensitive to names – Perhaps “property owner” might not offend the sensitive so much? Undercover agent I like the thought of being called a Hero!!! what a kind person.
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Not sure that National Small Housing Providers or National Rental Accommodation Providers trip of the tongue as easily as NRLA? Also would ASTs stop referencing the landlord and instead refer to the Small Housing Provider or the Rental Accommodation Provider?
Thinking about it referring to the Rental Accommodation Provider and calling it a Contract rather than an agreement, may emphasise the fact that it is a contract and there are legal consequences for not abiding by its terms for both the customer Rental Accommodation User) and the Rental accommodation Provider.
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With between 50 to 300 Tenant applicant per available rental property,
I think we should just demand to be called, ‘ Sir ‘ or ‘ Maam ‘ !
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