Britain’s Collapsing Rental Market System Destroyed By Socialists

While roaming You Tube, I found this British TV show about evicting tenants.  It was a shocking show to me, I was a landlady much of my life.  In England now, it is nearly impossible to evict anyone so a huge part of the population, rich or poor, don’t pay any rent at all sometimes for several years!  This is destroying the economic systems.  Why?  Well…if people don’t pay rent, landlords must evict and when they do, they have to raise rents much higher to make up for losing so much money for huge lengths of time.  It also eats up any money for repairs.

 

 

The high cost of rent control is very destructive.

 

When a community artificially restrains rents by adopting rent control, it sends the market what may be a false message. It tells builders not to make new investments and it tells current providers to reduce their investments in existing housing. Under such circumstances, rent control has the perverse consequence of reducing, rather than expanding, the supply of housing in time of shortage.

 

Three additional factors must be considered in the economic implications of rent control. First, the longer rent control remains in place, the more substantial the gap between controlled rents and true market rents is likely to be. Second, the costs of rent controls are not confined to the political boundaries of those communities that adopt them, but often impose significant costs throughout regional housing markets. Third, while the distortions induced by rent control depend on their stringency, any application of rent control leads to inequities and inefficiencies in the housing market.

New York City did this for many years.  Rent controls were imposed during WWII and afterwards due to the ‘housing shortage’.  Out West, where I grew up, there was no long ‘housing shortage’ due to everyone eager to build.  In NYC it was nearly impossible to upgrade or build anything for generations.

 

I fought tooth and nail with the city over renovating dying buildings.  The city tried its best to make that impossible not to mention the wild bribery going on: everyone had a hand out for money under the desk!  Corruption flourished, housing didn’t get upgraded or built and the city was literally going bankrupt.

 

It was epic battles to stop all this!  Huge hunks of rent controlled buildings that were perfectly useful went up in flames under the DNC regime of rent controls.  I watched in horror and amazement as entire neighborhoods looked like Dresden after the WWII bombing raids.  Or like Hiroshima.

 

Today, all of Britain is under this sort of misrule.  It is very, very hard to evict tenants.  Everyone knows you can get away with not paying rent for several years so more and more people refuse to pay up.  What is interesting to me is the growing solution to this destructive socialism: there are two court systems.

 

The corrupt one is local and the judges won’t let anyone be turned out of these houses they are living in for free.  But now landlords have won the right to go to the High Court which is national, not local.  There, they can get a writ that gives tenants ONE HOUR to vacate!

 

It is interesting watching the reaction of tenants in this show above, there are many episodes of this nonsense, when they learn they can’t live somewhere for free, forever.  If evictions were quick, landlords would not live in perpetual fear their tenants will cheat on them.  The good tenants who pay regularly will see much lower rents and the freeloaders will have to be more careful.

 

Many of the freeloaders in this show and I watched quite a few episodes to see who is doing this scam, are foreigners.  They come into Britain, demand to be housed and then don’t bother paying rent.  If things get totally out of hand, they move off into another EU country and continue to mooch like this.

 

Thanks to the new law systems set up behind the scenes, evictions are now rising.  Over a quarter of renters are people who haven’t paid rent in at least three months or more (most often,  for years).  But with the new system in place, it moves much faster than even I would expect.

 

The people who are taken to court, if they lose and the landlords can evict them, are given a short time span to find a new place to rip off and if they are still there, are given just one hour to pack some bags and leave, they can return within a week to get the rest of their stuff.

 

But the agencies advising tenants on how to hang on forever to their apartments for free are told by the staff to do nothing to look for alternative housing because if they are ‘homeless’ they get free housing very quickly.  I used to be very poor when I had to leave school, had a baby, lost my home due to it being taken for a parking lot, and we had a major recession with huge inflation.

 

I lived in one room for a while, got a job working for my landlord and then moved onto a better landlord than a better one, got a reputation for being good at this work and ended up a landlady, myself, all in less than six years.  It was hard work!

 

I know everything about bad landlords, bad tenants, bad cities!  This is all very toxic but I must say, whenever cities or states or countries back property owning tactics that reward people for running things properly, everyone profits in the long run.  NYC has public housing run by the city and is very political and is the most horrible place on earth a person who is law abiding and sane can live.

 

That is, these places are pure hell.  Anything nearby struggles to survive while a tsunami of crime, filth and anti-social behavior floods over everything.  You couldn’t pay me to live there.  Or anywhere nearby, for that matter.  Good tenants are punished by bad tenants.  Stopping the bad tenants from exploiting everyone and all systems is required if one wishes to protect the good tenants!

 

A good tenant is a treasure.  A bad one is a nightmare.  Bad ones burn down homes, I watched NYC go up in flames thanks to out of control, raging tenants running riot.  England’s solution to the problems created by a legal system that allows people to steal property via refusing to pay rent for years and years is a destructive system for everyone.  In the end, it can destroy entire cities and entire countries.

 

26 Comments

Filed under .money matters

26 responses to “Britain’s Collapsing Rental Market System Destroyed By Socialists

  1. Ken

    A couple of years ago I had to be out of town for a prolonged period, and rented out my personal home in Florida for two years. Never again.

    When the lease was up the tenants refused to leave and I had no place to live. The courts in Florida made it impossible for me to regain possession of my own home. Two years of litigation resulted before I finally “won” back my own home. To pour salt into the wounds caused by the Florida legal system, even though I “won” the court ordered me to pay the tenants’ legal fees – which amounted to over $75,000!

  2. Moe

    @1 Ken

    Government is your enemy if you are a producer, your friend if a leech.

  3. Tim E.

    If the left is mad about the things President Trump has done it is there own fault. If New York was a civil place he wouldn’t have had to learn to deal with criminals to get things done and build his empire. The crooks in D.C. are just more criminals that have to be dealt with to get thing done the way he wants to.

  4. Zeke

    The Swedish economist Assar Lindbeck, a housing expert, said that “rent control appears to be the most efficient technique presently known to destroy a city – except for bombing”.[23]

    https://en.m.wikipedia.org/wiki/Rent_regulation

    (That doesn’t address the root(s) of the problem but it’s a snappy quote.)

  5. Moe

    I was a landlord for ten years with more than one property. Sold each time into a rising market and was thrilled to make a profit but equally pleased to be leaving the rental market.

    Like Elaine said, good tenants are like gold, bad tenants are like Ebola.

    Unrelated is the earning income provided by property, the origin of the term rentier income. Might make a comment later.

  6. Petruchio

    I think the point of all this Rent control is to push the ‘soiled masses’ out of inner City areas so the Uber wealthy can eventually take ownership of Housing inside the City. THEN you will see “reform”. Of course, not the kind that uses fairness as a guideline.

  7. Liberals hate landlords. What fixes a liberal and turns them into a conservative: become a landlord. Liberals who try hard to be ‘nice’ end up totally reamed out by clever leeches. Liberals used to hire me to get rid of tenants. I learned how to do this by working for a huge NYC landlord, Mr. Cohen.

  8. Zeke

    When Stuy Town was shed by Prudential Ins. Co. owners in 2015, I was hoping that the approximately 20,000 units would be sold to individual end user owner occupants.
    I was naïve. Instead, Mayor Bloomberg decided that the whole complex was to be sold to his cohorts, two huge hedge funds to continue to collect rents. He sided with the mega parasitic rentier class over the working class. https://en.m.wikipedia.org/wiki/Stuyvesant_Town–Peter_Cooper_Village
    Those who rent their abode have shelter but are essentially homeless, lacking shelter security and not knowing where they will live next year irrespective of their rent payment history but solely reliant on the whim of the “Landlord.”

  9. Petruchio

    Another thing that turns a ‘Liberal’ into a Conservative? Finding out your daughter is dating–and having SEX with–an illegal alien who is likely Muslim and NOT white. So-called “liberals” don’t practice what they preach, but it is the Right Thing to Do for people Liberals think are their inferiors.

  10. I know that complex. It should have been privatized to the residents as property sales. Of course, this was not allowed!

  11. Moe

    @8 Zeke

    I’ve never lived in a major city where the rent control board wasn’t pro-renter, and landlords usually had a difficult time extricating the bums. Might be different in the hinterlands, it should be.

    The security of owning fully paid for home is valid, but only for a longer period of time before eviction should one lose their income. Assuming a renter or homeowner has a fair income, another accommodation is usually readily available, and there are always hotels, motels etc. for emergencies.

    I now refuse to take title to real estate since it is a ready target for the tax man.

    Is there any genuine ‘Fee Simple’ jurisdiction anywhere in the US, untrammeled by local zoning laws, building codes and eminent domain?

  12. KHS71

    You can own your home as I do but you are still in debt to the county. Property taxes are due each year and if not payable, they can take your house. I just got through paying ours, $3300 for the year. Cheap compared to the east and west coasts. I personally feel property taxes are unconstitutional. Miss one payment and you can lose your house even though it is paid off. Always in the debt to the government. That’s what they want.

  13. Zeke

    That’s no way to raise a family. Hotels and motels and lack of stability and continuity in children’s education.
    With rising rates of homelessness and shelterlessness and indebtedness and addiction it’s little wonder that family formation and birth rates are in decline.
    In the aftermath of the misnamed “Great Recession” thousands of home buyers lived on without paying mortgage or being evicted – not due to their own wantonness but to courts not being able to unravel who owned the house or the mortgage. The Banksters had sliced and diced and traunched the loan docs. and securitized them into derivatives to make up for FRB’s ZIRP.
    That with their NIJA loans and “NoDoc” mortgages and “robo-signing,” etc.
    Supposedly, much RE in NYC and other world class cities is held by off- shore shell corps. and multi-layer LLCs to disguise their real owners, Chinese billionaires, Russian oligarchs, whoever.
    The states are the sovereigns that issue title to RE buyers. Subdivisions of the states control local ordinances and they can vary widely by county and township, etc.

  14. Crazy real estate games are a serious problem. I haven’t had a mortgage (DEATH GAGE) since around 1985. Total ownership.

    Taxes pay for civilization. You can’t escape this. But I am also funding freeloaders, of course.

  15. AT

    @zeke,

    Absolutely. I would also add that banks are holding much of the foreclosed inventory off the market with the intent of supporting real estate prices. Banks aren’t in the business of being landlords so even more stuff slides and people live for free. At that point it can get hard to tell a deadbeat from a constructive eviction, even if the bank bothers to go to court.

  16. AT

    Then the rest of the snowflakes in the free shit army see that and want it as an entitlement too.

  17. tio

    In my lifetime the relationship between landlords and tenants (Airstrip One) has swung like a gigantic pendulum one way then t’other. From a country once noted, nay famed for finding compromises (where each party was equally unhappy) we typically have chaos. What I think I’m getting at is this, Neoliberalism sucks the big one.

  18. The English system is nastier than the Victorian system. They let the tenants stay and stay and never pay and then BOOM…hammer them relentlessly and swiftly! It is insane and stupid at the same time.

  19. tio

    Pray tell, is there any aspect of life that if not there already, is not heading toward ‘insane and stupid’? Commercially, politically, judicially, spiritually?

    https://en.wikipedia.org/wiki/HyperNormalisation
    The word hypernormalisation was coined by Alexei Yurchak, a professor of anthropology who was born in Leningrad and later went to teach in the United States. He introduced the word in his book Everything Was Forever, Until It Was No More: The Last Soviet Generation (2006), which describes paradoxes of life in the Soviet Union during the 1970s and 1980s.[3][4] He says that everyone in the Soviet Union knew the system was failing, but no one could imagine an alternative to the status quo, and politicians and citizens alike were resigned to maintaining the pretense of a functioning society.[5] Over time, this delusion became a self-fulfilling prophecy and the fakeness was accepted by everyone as real, an effect that Yurchak termed hypernormalisation

  20. That seems like a good book. Why do so many Great Minds come out of Russia? You I’ll mention two more just now: Mendeleev and Kropotkin. If we want to start ranking things, them two are near the top.

    In fact, I’d say Mendeleev is to top and Kropotkin is Mendeleev’s brother, so he is at the top as well. Not all pyramids come to a point.

  21. tio

    Don’t know’em Ken I’ll give them a gander.

  22. Tolstoy. I read War and Peace every ten years, have it nearly memorized now.

  23. lou

    22–wow.

    HAPPY NEW YEAR

  24. I even has the epic Russian 4 hour long movie of War and Peace. An amazing work of art, nearly unknown in the West.

  25. lou

    Yes, we know art is in decline, in the decadent west.

    The richest living artists are both fake, D Hirst and J Koons.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s