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Thursday, October 16, 2014

Miliband to ban BTL investors buying new builds

The rumour is, Labour will announce new council powers today, that will enable them to ban buy-to-let investors from purchasing in
designated new build developments.

The proposed ban is part of the the Lyons review, part of which is  looking at ways to promote opportunities for first time buyers.

The review proposes handing new powers to councils which would enable them to stop investors from buying new build property in certain areas/developments.

Ed Miliband has been reported by the FT as saying "A significant proportion of homes on those sites cannot be bought by anyone before first-time buyers from the area have been given the chance." 

The proposals are focused on relieving the property shortages in the South East, particular in certain  London boroughs where much of the new build property is being taken by foreign investors.

Alongside the block on BTL investors, the 180 page Lyons review on the future of housing puts forward Labour's aim to build 200,000 new homes by 2020.

“We propose that local authorities apply their powers, funding and incentives to take a proactive approach to land assembly and locally led development models in housing growth areas,” the report says.

Lyons also recommends giving greater planning powers to local authorities who form what are being tagged as 'Homes Corporations' similar to those held by the now defunct Urban Development Corporations.

Well, that all sounds like a bit of vote winner.

Read the full 180 page - Lyons Housing Review

Or read comment from -


Anonymous said...

Well, the councils better start buying them up instead - where will everyone live - especially as the new, stricter mortgage criteria have scuppered a lot of prospective purchasers!!

Gordon Brown said...

Why does Millipede and his cronies have it in for landlords and investors? Once he has driven them all away where is he going to house all the millions in the private rented sector? It's just another ill thought out sound bite that he thinks will win him votes by a man who clearly knows little about what goes on in the real world!

Anonymous said...

Don't understand how anyone can take him seriously another poorly thought out policy.

Al said...

I am disappointed to read yet more knee-jerk hostility from my fellow landlords about any remotely progressive policy regarding property.

This policy merely suggests that wold be owner-occupiers should have the first bite of the cherry for new-builds. If they do not buy, then they can be offered to landlords. This would fit very well with broader policy objectives aimed at helping first time buyers, so I fail to see why people think it obviously such a bad policy.

Of course, some devil may be in the detail, but we haven't seen that yet.

Gordon Brown said...

Al. FTB's and home movers have the same opportunity to buy as landlords. If you cannot see that Labour have it in for us and this is just the start then vote for them. I think you'll find that the majority of landlords will be voting elsewhere!

Anonymous said...

He really is a complete idiot, who finances the rental community? it is the private landlords, governments and councils do not have the money, but there he goes clutching at something he thinks will win votes. He really is pathetic, jealous of everyone else because he doesn't have a brain of his own to think of anything intelligent to say.
Now don't get me started on mad eyed Ed Balls who probably couldn't add 2 and 2 together......

Anonymous said...

Ok let us calm on this new Labour suggestion like most if not all matters political those that sit at the top table have very little idea what goes on in the real world they come out with some really good ideas problem is they never work as taking a broad brush approach can not solve the situation of landlords or individuals buying property after all Mr and Mrs Blair did I think he was something to do with the then Labour government, and was it not Mr B who said we were in great shape and a roaring economy was thanks to the labour party in power at the time and then we had the over heat thanks to Mr B. Sadly politicians have very short memories or none at all. The market will dictate in the end builders will not want to be sitting on hundreds of thousands of pounds of finished housing waiting for possible buyers because the government says that’s what should happen, and then there is of course the cost of policing such an ill thought out idea.

Anonymous said...

Likely, local council and Councillors alike will be thinking creatively of ways to ensure clear profits from such a policy. Lets see, my uncle is a Councillor I will form a company that will help with financing the purchase of these new builds for FTB's by setting up my office close to the site and with intimate detail of the properties being built (because they're off plan including pending planning applications). I then provide deposits for the homes (in fact a bridging loan to the FTB). Once there is default or credit checks do not tick all the boxes, I get first dibs and then let it out or sell it for a profit. No other buyers to compete with I get to purchase assured that there will be no-one able to guzump me because of this wonderful "fair" New Labour policy.

Anonymous said...

Seen it all before with labour. in late sixties, there were a few dodgy landlords, one was Rachmann, where the word Rachmannism comes from, when they describe landlords. Rachmann did a few dodgy things to his tenants, along with a few others. the private market was totally unregulated and functioned pretty well. I as a tenant, could, if I decided, go get a flat, in the afternoon, if I didn't like that, then following day, could go view others and move, provided I wanted to write off money I had deposited, etc. but it wasn't de rigueur to pay a lot in those times.

Once the media, as always the media, decided to publish about Rachmanns dodgy dealings with tenants, the then labour government, knee jerked and brought in rent control, sitting tenancies. the unintended consequences (if you believe that old chestnut, i don't) was, the private sector shut up shop and within couple of years there was virtually no private rented sector. hence government via councils had to tax higher, to gain funding to build houses, flats, and their were many hideous, ugly buildings built as a consequence. Some still exist, next time you exit north side of blackwall tunnel, look to side and see the brutalist monstrosity they built. Park up, go inside and see for yourself the results of government housing supply, it's not a pretty sight. hopefully Milliband, will be a page in history in the very near future, he's an idiot struggling to play to the gallery without an act.