Economy The most common kind of business in the UK is Buy-to-Let.

[Fossor]

Where did I say any immigration is good?

Because this is the type of immigration that is happening now. They are not looking for housing specialists.

 

[avenue94]

Because this is the type of immigration that is happening now. They are not looking for housing specialists.

How would you structure a program that offers 1 or 2 year stays for specialized labor? Most specialized labor policies offer permanent residency or citizenship because that labor is valuable.

 

[Fossor]

How would you structure a program that offers 1 or 2 year stays for specialized labor? Most specialized labor policies offer permanent residency or citizenship because that labor is valuable.

Eh, no. You extend your visa while you work, all you need is a certificate from your employer. Millions of people work this way all over the world.

 

[avenue94]

Eh, no. You extend your visa while you work, all you need is a certificate from your employer. Millions of people work this way all over the world.

I mean how would you screen to make sure that migrants are capable of performing the more skilled roles in construction.

 

[Hellowhosthat]

maybe, but you cant say for sure that increased regulations have no effect on landlords. I'm betting that many of these landlords are renting out portions of the home and using business entities to get the best outcome. Government that charge fees on business entities are also tied to this, business entities come at a cost direct or indirect, it's something you need to manage. Renting out may be the way of life in the area, otherwise some folks would not be able to afford their home.

it's a complex issue, there are factors of population growth, and institutional buyers factoring in that growth, foreign buyers, how difficult the laws is to navigate, how desirable is the area, how difficult it is to build in that area, mortgage prices, all of those factor into why people do what they do. if a large holdings company snatches all of the houses, has no mortgage to pay, can structure taxes favorable to the entity..... then you're screwed.

I dont know why it's so difficult to stop them in their tracks, like having a limitation on how many units they can own, however I think it's pretty clear that private equity plays a significant role in unaffordable homes in the US and UK.

Yeah I would place a limit on how many properties a firm can own and would also have rent control in line with what they paid for the property if they're buying it in cash.

 

[Fossor]

I mean how would you screen to make sure that migrants are capable of performing the more skilled roles in construction.

You can simply shift the responsibility to contractors. Many companies have their offices in other countries where they hire. This is done in many countries. I bet you can even hire them online nowadays.

 

[avenue94]

You can simply shift the responsibility to contractors. Many companies have their offices in other countries where they hire. This is done in many countries. I bet you can even hire them online nowadays.

That's true but then you'll end up with compliance issues and people overstating. It's a trade off and why most countries just offer more permanent rewards for high demand skills.

 

[650lb Sumo]

maybe, but you cant say for sure that increased regulations have no effect on landlords. I'm betting that many of these landlords are renting out portions of the home and using business entities to get the best outcome. Government that charge fees on business entities are also tied to this, business entities come at a cost direct or indirect, it's something you need to manage. Renting out may be the way of life in the area, otherwise some folks would not be able to afford their home.

it's a complex issue, there are factors of population growth, and institutional buyers factoring in that growth, foreign buyers, how difficult the laws is to navigate, how desirable is the area, how difficult it is to build in that area, mortgage prices, all of those factor into why people do what they do. if a large holdings company snatches all of the houses, has no mortgage to pay, can structure taxes favorable to the entity..... then you're screwed.

I dont know why it's so difficult to stop them in their tracks, like having a limitation on how many units they can own, however I think it's pretty clear that private equity plays a significant role in unaffordable homes in the US and UK.

Aristotle completed philosophy.

 

[Fossor]

That's true but then you'll end up with compliance issues and people overstating. It's a trade off and why most countries just offer more permanent rewards for high demand skills.

Those issues are contractors problems and not fall onto the shoulders of tax payers.
The alternative is to just bring in anyone and hope that one in a hundred will be a specialist you need. Sounds like a waste of money.

 

[Deleted member 110072]

Property management firms are a thing around here, and you've got to get a lawyer to evict******* however, if you have some experience going to court, willing to learn (I am), then you can fight for yourself. With AI tools, it's arguably easier than ever to avoid lawyers, still a daunting process.

serving proper notice in itself is not pretty, had a tenant ball their eyes out because I personally served the notice....... she's two months overdue, I'm not the bad guy, just doing what I gotta do

I have consulted with a few realtors, and lawyer recommendation after lawyer recommendation....... there's a sub business in this which typically jacks up rent at least 10% to cover those costs.

tougher laws, higher rents, it's circular, a beast that feeds the beast. I've grown to hate being a landlord, soured with the overall process..... and I'm making more in a day of work then I do with a month of rent, it's not all worth it until the mortgage is gone.... and even then, repairs, if you dont do them yourself, you can end up having a loss for the month

Realistically I think regulation is often needed to prevent landlord abuse BUT I think as with so many other areas there's often a tendency for this to be hijacked by Lawyers/Big Business lobbies, making it deliberately difficult for individuals and small businesses to navigate so the market stays with them and indeed often fails to achieve what its sposed to in protecting tenants.

 

[Islam Imamate]

Rent control battle comes to Britain - but do they work?

Scotland and England are divided as two governments seek solutions to spiralling rents. Scottish ministers are embarking on an experiment with bitterly contested regulations - rent controls - an idea rejected by Westminster. Will it help those struggling to keep a roof over their head?

news.sky.com

Fears grow for rent controls as Labour reviews rental sector - Letting Agent Today

A lettings agency chief says there’s growing discussion about rent controls in his area - and he fears this may be a growing national trend under a Labour government.

www.lettingagenttoday.co.uk

There's literally a rent control battle in the UK lol

There are many many sources you can look at.

Measures were rejected... for now. But it's inevitable. Greedy landlords will have to be tackled. There's simply no two ways about it.

This first, then let's talk about immigration. Until then, it's the excuse they wanna use to justify outright greed.

Know much about ground rent in the UK?

Beginning of the end for the 'feudal' leasehold system

The government has published the Commonhold White Paper today.

www.gov.uk

Yeah I would place a limit on how many properties a firm can own and would also have rent control in line with what they paid for the property if they're buying it in cash.

Rent control doesn't work and tends to backfire. At best its a stop gap for short term rent stabilization but on its own it will increase, not decrease, housing prices.

 

[Hellowhosthat]

Rent control doesn't work and tends to backfire. At best its a stop gap for short term rent stabilization but on its own it will increase, not decrease, housing prices.

How would limiting the amount a landlord can rent a property out for cause prices to increase? I'm not saying you're wrong I'm just curious as to how that works economically.

 

[panamaican]

being pedantic its not a tax advantage given to ltd companies, so much as a disadvantage to having the property under your own name personally, but only under certain circumstances/according to tax thresholds

to be clear, its not an incentive for ltd companies but the lack of disincentive, no actual tax break is given where ltd companies pay less tax than an individual whose total income is below certain thresholds.

What little I've read on the subjects says the following:
1) Ltd companies can offset the mortgage interest paid, while individuals cannot. Under Section 24 of the Finance Act 2015, individual landlords who buy rental properties directly can no longer deduct their mortgage expenses from their rental income. Instead, they receive a tax credit of 20% of the mortgage interest payments. However, LTD companies get to deduct the entire mortgage expense.

2) By owning the properties in ltd companies, a high rate tax payer can effectively lower the tax rate on the properties by having taxed as companies separate from the owner. Each company is low income individually but if they were owned in name, the total would be high income.

3) If you own a rental property as an individual, you will be liable to Income Tax and National Insurance contributions (NIC) on the profit you make from rental income. Whereas, if you own property through a company, the profit you make will be subject to 19-25% Corporation Tax instead.

This may not make a great deal of difference if you only pay 20% tax as a basic-rate taxpayer. However, if you are a higher-rate or additional-rate taxpayer, your profits will be subject to Income Tax of up to 40% or 45%, respectively. Your personal tax liability will be even higher if you live in Scotland.

Those are all tax incentives to move companies into ltd companies.

 

[Islam Imamate]

How would limiting the amount a landlord can rent a property out for cause prices to increase? I'm not saying you're wrong I'm just curious as to how that works economically.

Over the long term it reduces investment in housing which means fewer units and it also makes the housing market more inflexible as those who get a rent controlled apartment tend to hold onto those units for as long as possible even in the face of countervailing incentives like a better job located far from that unit.

 

[Hellowhosthat]

Over the long term it reduces investment in housing which means fewer units and it also makes the housing market more inflexible as those who get a rent controlled apartment tend to hold onto those units for as long as possible even in the face of countervailing incentives like a better job located far from that unit.

Makes sense. I think if you could keep the population at the same level and have rent control across the board though then that might be less of an issue.

 

[A Very Serious Cat]

Makes sense. I think if you could keep the population at the same level and have rent control across the board though then that might be less of an issue.

If you could keep the population at a level number you wouldn't need rent control

 

[Islam Imamate]

Makes sense. I think if you could keep the population at the same level and have rent control across the board though then that might be less of an issue.

That would both be very hard and also counter-productive. Imo its easier to just build more housing though in fairness the UK doesn't have quite the same hang ups as the US does when it comes to medium and high density housing so there could be particular factors at play there that I'm missing as I'm more knowledgeable about the housing crisis here in the US.

 

[avenue94]

Makes sense. I think if you could keep the population at the same level and have rent control across the board though then that might be less of an issue.

Won't work unless you plan on keeping the age breakdown exactly the same. Otherwise, you're putting pressure on safety nets as your population grays and the working age population shrinks and has to keep paying more and more.

That's before getting into that such a policy would require the government to predict technological and industry shifts perfectly in order to keep labor aligned at all times with economic needs.