They said no.
I won’t keep you hanging on like some sort of fake drama, but I will share that their decision surprised me.
Given they’d rented the property for almost eight years, and been merrily putting their own stamp on the place, I thought it was the perfect time for them to purchase when the Government brought out the 99pc mortgages.
I knew both of them were gainfully employed. I didn’t know if they had a deposit saved, but I did know they were paying around 30pc below market rent and a mortgage to buy the property would be way cheaper than what they’re currently paying, let alone if I hiked it to the market value.
For me, it was a no-brainer to say: “I’m exiting the market, would you like to buy the property you’ve made your home for the last almost-decade?”
For them to say: “No, thanks” confused me. Not only because I’d offered them a substantial discount (10pc off market value), but because other rentals were way more expensive than what they’d been paying.
What had I missed?
Was I as out of touch as Rishi Sunak has been with his latest pledge for landlords to not pay capital gains tax if they sell to a tenant?
It appears: Yes, I am.
What I’ve learned is actually not everybody wants to own a property. The flexibility and convenience of renting is a “nice-to-have”, especially if you haven’t got children and want to use your capital for other things.
The other biggie that stood out is that as a landlord, I currently organise and pay for all repairs and maintenance. The property is in good order, but before now I don’t think I’ve really thought about all the anxiety and cost that may bring a potential new owner.
If the tenants were to own, rather than rent, and something happens – the boiler breaks down, for example – it’s down to them to source a contractor to fix it and find the funds to pay for it. There’s no calling me to solve their problems.
Home ownership is a big responsibility, it’s not always fun and it can be very expensive.
The other point to consider, which Sunak’s policy has clearly missed: people have different standards for what they will rent versus what they will buy.
Now, this is a hard one for me to try and get my head around, especially given I’ve owned this property for the best part of 20 years. But the truth is, I’ve never lived in it. I cannot share the experience of what it’s like to live in that property, and if I was buying as an owner-occupier, would I actually want to live in it?
Being a tenant is not without problems, but in some ways, it comes with opportunities. As a tenant you can decide to move elsewhere with one month’s notice. You’re not beholden to an illiquid asset and the vagaries of the market about what your property is worth.
You’re also not having to deal with estate agents and solicitors and banks about whether you can or cannot afford a mortgage according to the latest trend topping of your toast.
You don’t have to worry about how to pay the latest contractor for the latest thing that’s gone wrong, and you also don’t have to worry about some pressure group breathing down your neck for whatever the latest regulation is they’ve dreamt up you now have to abide by.
As a landlord, the constant regulations and rule changes are one of the reasons why I don’t want to own so many properties any more. The other is the unfair taxation and constant vilification for what I do – which is provide decent homes for a decent price for people to rent.
Those are the reasons I started selling a few years ago. It’s a process I will continue. I call it The Big Sell Off.
In my world, the Conservatives lost touch with me years ago, and their actions destroyed my own, and many people’s dreams of being business owners. I don’t hold out much hope for what will happen next, because quite frankly I’ve lost confidence in anybody in power understanding the importance of having a thriving private rental sector.
But what concerns me most is how government seems intent on putting further pressure on the landlord-tenant relationship, when it’s become obvious that we all have different needs and wants, and that really needs to be respected.
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
