Priced Out is currently preparing our response to a recently-launched Treasury paper on ‘Investment in the UK Private Rented Sector'. This paper, which can be viewed in full at http://www.hm-treasury.gov.uk/consult_investment_private_rented_sector.htm, is potentially disastrous for would-be first-time buyers and owner occupiers. Most worryingly, the paper seeks to reduce "the barriers to investment" for larger, institutional investors, such as pensions and insurance funds. More institutional investments would be disastrous for the UK housing market, continuing the trend of the last 10 years in the decline of owner occupation and the rise of buy-to-let properties.

This heavily biased report is most shocking in its:

• Failure to acknowledge the detrimental impact of the buy-to-let market on priced out first-time buyers;
• Failure to address the underlying issues, including the need to build more affordable homes and to create a more sustainable, affordable housing market. Instead, this report focuses on "the economic drivers of (property) investment";
• Flawed argument that the private rented sector, including buy-to-let, increases the "supply" of affordable housing. Purchasing a property to rent out is not the same as supplying one. Instead, buy-to-let often displaces first time buyers or would-be owner occupiers.

What can you do?

Priced Out will campaign hard on this issue, but needs your help in one of the following ways:

1. Write to your MP and let them know your views on this paper;
2. Send us your opinions and experiences to inform our response to this document;
3. Speak to your local press to get their interest in this issue, particularly if you live in an area where there is a strong feeling against buy-to-let. Please let us know if we can support you in respond 

The British disease of paying too much for houses hasn't been cured and the estate agents etc. are trying to get the boom times back with the help of the property pornsters. If you've had enough of not being able to afford your own home, please help our campaign  and volunteer your time and ideas. Contact katy@pricedout.org.uk if you'd like to help us.

 

After Yvette Cooper, Caroline Flint and Margaret Beckett there is another new Housing Minister -John Healey. The question must be asked, why no continuity in the housing job? Does the government take the post seriously?

 

All private landlords would have to be registered before letting residential property under government plans to curb abuses in the growing rental market. PricedOut supports any move to make landlords more responsible to their tenants and discourage speculative investment in buy to let.

 

Property is inflexible and illiquid: you can't get your money out at short notice or in small amounts.
Property is not tax-efficient: you will have to pay income tax on the rent and capital gains tax when you sell.
Property is not easy to manage: tenants can and will contact you in the middle of the night or when you are on holiday to sort out plumbing problems or a lost key. But if you employ an agent to make life easier, you will reduce your rental income.

 

Recent reports have shown confusion in the direction of house prices. As this article says. don't be fooled by any small upward movements in prices. Remember that after several years of house pirce inflation, the public psyche is condition to expect house price hyperinflation. The last five or so years have put massive pressure on people to buy at any cost for fear of losing out. The resulting house price bubble cost us all dearly. Don't be pressured into buying yet, prices have further to fall.