Desperate renters are offering landlords years of rent in advance in order to secure a tenancy, according to Matt Lanninge, founder of The Property Expert.
In an interview on GB News, Lanninge told Isabel Webster and Martin Daubney that the market was “brutal” at present. “It’s pretty sad times out there at the moment where tenants are having to go above and beyond to try and secure a rental property,” he said.
“It’s pretty crazy, but certainly a sign of the times and sadly, something that a lot of property experts like myself have predicted was going to happen many years ago.”
According to Lanninge, supply and demand and taxation are key factors in driving the market to extremes. “Section 24 was introduced by George Osborne which rolled over a four-year period and had an impact on the tax implications for landlords,” he explained. This, he said, has resulted in “a real reduction” in private landlords who are prepared to let their properties.
“The UK market is underpinned by private landlords but a lot of them will tell you, they’re not making a fortune because of the tax implications,” Lanninge said. “I don’t think it’s a particularly good situation for either party at the moment.”
Asked about changes to tenants rights, Mr Lanninge told GB News: “Tenants rights have certainly increased a lot over the last few years, for the good in my opinion. I think that that’s important but equally I don’t think that Liz Truss’s suggestion of making tenants invincible effectively was a good suggestion.
“I think we also need to consider the fact that if someone owns an asset, they should have an element of control over that and be able to decide who potentially is going to live there and also whether they are able to evict someone quickly for for soft reasons, if you like, as opposed to simply only able to sell the property or more harsh reasons perhaps.”
We get tenants pleading on their hands and knees, offering above rent and months of payments in advance …. to no avail. We offer an equal opportunities policy but you hear some heart breaking stories, circumstances I certainly wouldn’t wish on anyone. I just wish I had more stock but its going in the opposite direction and there seems to be no end in sight.
Central and local Government’s needs to stop the rot and its all down to mismanagement and extremely poor communication. They jumped on a band wagon without a care in the world, set their own agenda with absolutely no forethought of the consequences which we warned them and we can all now see.
If these officials were in the private sector they would have been sacked, certainly put on management special measures …… now where have we all heard that before! Civil Servants and the like are a law to themselves, that is the core problem.
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Shelter & Government have a lot to answer for. They have demonised the private rental landlords like a wasp on an illegal high. Just wait until S21 has been banned (a Shelter Demand) and more landlords will leave the market as they loose control of their investments. The government, who give the appearance of being an employee of Shelter, have followed the same nonesense. The Private Rental Investors see nothing but more and more regulation and taxation being piled on them more and more every year by idiotic politicians. Many from the Conservative parties try to emulate Thatcher but alas none have the same levels of intelligence and they continue like blind muppets with their anti landlord rhetoric. I guess those who stay, to some degree, must priase Shelter for reducing supply, and increasing demand. This give landlords who stay the power to benefit from the tenants fighting one another for property offering to pay more and more in rental – a sort of “Shelter generated Auction”. It is not landlords pushing up rents, it is desperate tenants who should be blaming shelter and the likes for creating scarcity. Our somewhat foolish policians however can’t see it, or more likely, choose not to as they will not be buying the votes they so desperately need at any cost. Then we have the Sadiq Khan’s of this world who seem to consider it a good idea to extend the ULEZ using pollution as the justification (which it may or may not be) yet want to raise funding by taking payments to ALLOW pollution – say pay me £12.50 a day (around £4500pa) and you can pollute – til your heart is content!! Same mentality and approach. Rant over – now who should I choose as my new tenant from the massive number of applicants ?? The one on benefits that has been evicted every year or perhaps the young highly paid well behaved executive in a highly responsible job???? So difficult perhaps I should ask Shelter and reverse the priority of the decision?. Hey Ho Merry Christmas.
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