Landlords should give renters some of their equity gains when they sell up to stop the “giant tenant rip-off”, according to The Big Issue boss John Bird (main picture).
Bird believes it’s not fair that a tena.nt who has paid rent on time for many years ends up with nothing and could also have to find a new home after being served with a Section 21 noticordinarily have been able to participate in this giant rip-off of the tenant,” he writes in the latest issue. “The tax relief that goes with owning property you let out, a tax bonus to encourage investment, adds to this.”
Bird explains that the billions paid out yearly in rents don’t allow renters to participate in the grand improvement that property ownership brings to a landlord’s bottom line.
Shooting fish
While he acknowledges that some landlords defend their position by arguing that if the property market had gone the other way, they would have been taking all the risks, he adds: “For the last 30 years making money out of buy-to-lets has been like shooting fish in barrel.”
It would be better to get more people into owning their own property so they can enjoy the fact that paying out money each month results in an increase in their personal estate, he adds.
“It would only seem fair to me if [the tenants] could get their hands on some of the value that they have created for their landlords.
“Something must be done to end this turning of the basic need for a roof over your head into the biggest bonanza for some to make themselves wealthy. At the expense of the renter.”
