Corbyn’s Right-to-Buy Dream Could Mean Nightmares for Private Landlords

Corbyn’s Right-to-Buy Dream Could Mean Nightmares for Private Landlords

One radical idea floated by Jeremy Corbyn could, if it reaches fruition, lead to massive problems for private landlords.

We are not highlighting this suggestion simply because it is controversial. We are doing so because it appears to be gaining support.

And that support has come from an organisation described as a major centre-right think tank, no less.

The leader of the Labour Party wants the Right to Buy extended to tenants in privately-owned homes.

This is his visionary strategy to help make property more affordable for all.

If you are a private landlord, particularly if you became so as part of the buy-to-let boom, then Corbyn’s dream is your nightmare.

Just imagine the situation you might face if this plan ever becomes reality.

On second thoughts, maybe you feel it is for the best if you just ignore it in the hope it goes away.

After all, Mr Corbyn might not be the Labour leader for much longer. And even if he does prevail, he would still require to win a General Election in order for his assault on private landlords to succeed.

On the face of it the odds would appear to be stacked against him getting his own way on this one.

However, one glance at what has been happening in British politics recently proves that anything can happen.

The question is, what can you do to insure your portfolio against this potentially catastrophic calamity?

We can’t answer that for you but we can reassure you that R&T Property Solutions are interested in buying property, whatever the political climate.

We are interested in acquiring flats, houses and even land in certain circumstances, regardless of who runs the country and we are prepared to move fast in order to clinch a deal.

Typically, we can finalise a purchase within seven days.

And if you are in a real hurry and you want cash we can also accommodate you.

So as a landlord, how would you be affected by this particular aspect of Corbynomics?

The policy was first mooted just over a year ago, in June 2015, before Mr Corbyn became leader of his party.

The website LabourList reported: “Jeremy Corbyn has called for right to buy to be extended to people living in privately rented accommodation.

“Corbyn who is in the running to be Labour’s next leader has said that right to buy, which means council tenants can buy the home they’re living in at a discounted rate, should be extended to people renting from private landlords.  This comes after the government are going ahead with plans to extend right to buy to people living in housing association properties.

“Corbyn has announced that he will be launching a consultation on this policy. It will go on throughout the summer and the results of this process will be reported before voting for the leadership closes.

“The MP for Islington North has said this is just one policy part of a package he will propose to address the housing crisis in the UK.”

Twelve months on and a number of papers including The Observer and The Independent publish details of a report by Civitas, the centre-right think tank, which backs Mr Corbyn’s original proposal.

The report states: “The Right to Buy should be extended to the tenants of private landlords in order to reverse declining levels of home ownership.

“Peter Saunders, professorial research fellow at the think tank, calls for the standard length of tenancies in the private rented sector to be extended to five years, with tenants given the option to buy the property (if it is more than 25 years old) at a discount after three.”

Saunders also urges measures to rein in the demand that has been behind the house price boom which began in the 1990s.

These include requiring the Bank of England to keep the ratio of average house prices to average earnings within a certain range and abolishing all demand-side subsidies from the government.

Saunders’ plan is designed to rectify what he describes as “the generational inequality in access to home ownership” which has opened up as house prices have risen so much faster than earnings over the past two decades.

He goes on to produce a set of figures which would ensure landlords don’t lose on their investment but, at the same, forfeit a chunk of the profit.

So there you have it. When it comes to British politics Simon and Garfunkel got it right in their 1968 classic, Mrs Robinson: “Laugh about it shout about when you got to choose, every way you look at it you lose.”

The Tories took away tax allowances and now Labour want to steal some of the profits.

R&T Property Solutions are here for the long run and we aim to continue to buy and sell property.

From our Glasgow HQ we are searching for homes all over Scotland.

If you think it is time to cash in on your buy-to-let investment, then please contact us right away.

Whether it is a single flat or a large portfolio we would be delighted to hear from you.