Labour has hinted that it will bring in ‘right to buy’ for private tenants – but that it will restrict the policy to larger landlords.
Shadow chancellor John McDonnell was asked by The Times about its controversial policy, saying it had raised concerns that landlords would be forced to sell off their properties at below market rates.
The Times said that McDonnell has now decided that the policy should not apply to those who only own “one or two” rental properties.
He told the paper: “There’s a large number of individuals or families who have bought another property as their asset for the future and we wouldn’t want to endanger that.”
However, critics said that Labour’s amended right to buy policy would still seriously harm the sector.
David Alexander, of property management firm Apropos by DJ Alexander, said: “The shift appears to be aimed at placating individuals and families with smaller property investments and focusing on large scale investors.”
“However, the policy of buying anyone’s property at a price decided by government rather than market value would instantly destabilise the whole housing market.
“Equally it is unclear how the Government could guarantee that any tenant would be able to gain a mortgage on a property whose value has been decided arbitrarily.
“What would the real value of any property be if the Government can intervene and price it on a whim?”
He went on: “The target now is institutional and large-scale investors who will undoubtedly leave the marketplace in their droves if their investments can be undermined so easily.
“The property market requires long-term confidence and certainty and these policies would immediately challenge this.”
McDonnell also told The Times that under Labour, discounted homes would be offered to first-time buyers with mortgage payments kept at no more than one third of average local incomes.
However, Alexander said this would be difficult to apply, due to regional variations. Some areas would have enormous discounts with potential long-term gains, which would not be the case in cheaper places.
He said: “Every time government tries to intervene in markets, there are unintended consequences.”
Comments (11)
“However, the policy of buying anyone’s property at a price decided by government rather than market value would instantly destabilise the whole housing market.” Said David Alexander
Actually this already exists and is in common usage through compulsory purchase and other mechanisms. Everyone in the line of HS2 knows about that – plenty of public examples of businesses being evicted from their property before the Government has paid them the full amount (just Google Russell Taroni in Birmingham). And even more private home owners saying they’re being paid less than market rate for their homes (a view supported by estate agents) when they need to sell to the Government because of HS2. These houses are then going back onto the rental market, some say at lower than market rents.
As the Government now rents a significant stock of houses bought due to HS2 will they be forced to sell these to the tenants if Labour come to power?
Both Tories and Labour have lost the plot completely. The Conservatives want to demonise landlords and take on the mantle of their Labour adverseries and Labour want to extend the mantle of the Conservatives’ Right to Buy mantra. Proof again that our political elite have gone completely cuckoo! Scrap Right to Buy outright and build lots more decent social housing to rent only for those who cannot afford to get onto the housing ladder. I seem to remember from history lessons that something similar happened in the fifties when there was stability.
The clown McDonnell has perhaps realised that landlords are not all of the rich classes and many are ordinary working people pushed to buy alternative investments when labours gordon brown raped the pensions.
He’s realised his mistake and so is trying to ‘buy back’ votes from the million or so people who only rent out one home. Hopefully they will not be bought so easily and see the whole principle of forcing someone to sell something that belongs to them for less than it’s worth is morally wrong. If I went up to someone in the street and forced them to sell me their £100 shoes for £50, this would be recognised as daylight robber. For the state to do it would be incredible – it would legitimise robbery. These extremists also want to steal in other ways – they would forbid people from gifting to their children over a certain amount. What happens then to the giftee’s possessions/assets? This would be another huge robbery by the state. It would effectively mean gangsters in charge. In the meantime they would change electoral law and bribe the youngsters – who are already bombarded with left-wing propaganda in schools and universities – to vote for them, aiming to rule out ever having another genuine opposition. Boris is spot on with his comparisons of this with Stalin’s Russia. It also has some similarities with Putin’s gangster state.
Also, it should be realised that once they established the principle that they could do this, they would later come for the owners with only one or two extra properties, having picked off the portfolio landlords first.
They’re also going that way with their policy to steal 10% of businesses’ shares where there are more than 250 employees to gift to the workers. The theft that they call ‘redistribution.’ That’s a misnomer as well as sophistry. For there to be redistribution there would previously have had to be distribution. Of course, once they established this theft as a principle, they would obviously go for the employers with 100-250 employees, then those with 50 or more and so on. They would also up the percentages – so it would be 10% one year, 10% another. Any business person should be aware of this huge risk of having their businesses stolen from them and obviously vote accordingly.
Couldn’t agree with you more Ros! Attacking larger landlords is just the thin end of the wedge. You are right in everything you say.
Do you know the song by Al Wilson – The Snake? Absolutely sums up what is going on here.
They will take until nothing is left
Except they also plan to borrow £150bn over 5 year to fix the country. so not just taking what their is…..taking £150bn more!!!!
Surely this shower are the biggest danger to our country currently?
They hate anyone who has made any money, bosses of all industries, the UK military, landlords, letting agents, estate agents, the police, the security service , newspapers, media generally, entrepreneurs, homeowners, people with any savings, the list is endless.
Allowing them anywhere near government will only lead to the complete break up of the UK, tax evasion on a monumental scale, corruption, a state run media, all profits to the state whilst those in charge just get richer. Name one country where this ludicrous socio communist style of government has worked for the people rather than the leaders!
Rant over!
All property is theft! Power to the people! One out all out! Up the workers!
Oh, hang on, I’m having a 1970s flashback.
Couldnt agree more. Anybody who votes Labour must be insane the damage they would do to this country is unmeasurable.
They are outright communists nobody would be allowed anything of value in the end all would be taken .
All the years people have worked to make their lives more comfortable would be for nothing.
What would they teach in schools, dont work do nothing, government will tell you what to think, dont dare work hard and aim for the stars.
The country will crumble
Leave it alone.