The buy-to-let sector in the United Kingdom is grappling with an array of challenges, ranging from shifts in tax policies to escalating mortgage rates. However, beyond these fiscal concerns, an unexpected adversary has emerged: the media.
Stuart Haire, the CEO of Skipton Building Society, has raised a compelling point about the role of media in shaping public opinion regarding landlords. Haire contends that the media has propagated a demonized portrayal of the private rental sector, characterizing landlords as avaricious exploiters.
In an exclusive interview with The Telegraph, Haire highlighted the multifaceted squeeze that landlords are currently facing, both through tax adjustments and the mounting burden of elevated mortgage rates.
This sentiment is echoed by Nigel Terrington, head of Paragon Bank, who recently refuted the prevailing narrative of landlords as malevolent figures. Terrington conveyed that the negative characterization of landlords is relentless, with every corner they turn echoing accusations of greed and profiteering.
A recent survey, commissioned by Mortgages for Business (MFB), has unveiled an intriguing shift in sentiment among landlords – one that goes beyond financial constraints. The research underscores a growing disillusionment with the term “landlord” itself.
Gavin Richardson, Managing Director of MFB, contends that segments of the media have unfairly maligned the buy-to-let community. He points to governmental interventions like the 3% Stamp Duty surcharge during Theresa May’s administration as exacerbating the adversarial environment for landlords.
Richardson remarks, “The term ‘landlord’ has acquired an unwelcome baggage over time. It’s no surprise that the community is yearning for a rebranding.”
The survey conducted by MFB reveals a noteworthy statistic: 59% of those surveyed from the buy-to-let community express a preference to disassociate themselves from the term “landlord” in the media, citing its outdated and derogatory connotations. This sentiment, though nascent, has already been acknowledged in some quarters of the US media, such as NBC, which responded by abandoning the term “landlord” after complaints from the buy-to-let sector.
In the UK, however, the term remains pervasive and is often entwined with negative narratives.
The survey delved further into potential alternatives that the buy-to-let community would prefer over “landlords.” The most favoured replacement was “Small Housing Providers” (43%), followed by retaining “Landlords” (36%), and exploring other terms like “Rental Accommodation Provider” (7%).
Richardson underscores the prevailing financial burden faced by landlords, with many bearing a hefty 40% tax on their rental income in addition to stamp duty. He suggests that this uphill struggle for landlords has inadvertently hindered first-time buyers, a notion supported by research from Nationwide indicating that prospective first-time homeowners now require an astonishing 113% of their annual salary for a 20% home deposit.
He further posits the pressing question: What would transpire if landlords were excluded from the housing equation? Richardson argues that such an omission would wield significant and predominantly negative repercussions on the property market. Moreover, he points out the lack of substantial governmental investment in social housing or tangible progress in the realm of construction.
The MFB survey divulges another disconcerting finding – nearly three-quarters (73%) of respondents felt unjustly depicted as the financial scapegoats of their generation. Only a mere 8% disagreed with this portrayal, while the remainder conceded some validity to the stereotype.
In light of these revelations, Richardson asserts that the government should be championing landlords for their indispensable contributions to the housing sector. He notes the pivotal role landlords play in stabilizing the housing market, even suggesting that they are inadvertently bailing out the government.
As the buy-to-let community seeks a transformation in its image, it remains to be seen whether a fresh narrative will emerge, one that acknowledges the intricate challenges and vital role landlords play in the UK housing landscape.