Was I as out of touch as Rishi Sunak has been with his latest pledge for landlords to not pay capital gains tax if they sell to a tenant?
It appears: Yes, I am.
What I’ve learned is actually not everybody wants to own a property. The flexibility and convenience of renting is a “nice-to-have”, especially if you haven’t got children and want to use your capital for other things.
The other biggie that stood out is that as a landlord, I currently organise and pay for all repairs and maintenance. The property is in good order, but before now I don’t think I’ve really thought about all the anxiety and cost that may bring a potential new owner.
If the tenants were to own, rather than rent, and something happens – the boiler breaks down, for example – it’s down to them to source a contractor to fix it and find the funds to pay for it. There’s no calling me to solve their problems.
Home ownership is a big responsibility, it’s not always fun and it can be very expensive.
The other point to consider, which Sunak’s policy has clearly missed: people have different standards for what they will rent versus what they will buy.
Now, this is a hard one for me to try and get my head around, especially given I’ve owned this property for the best part of 20 years. But the truth is, I’ve never lived in it. I cannot share the experience of what it’s like to live in that property, and if I was buying as an owner-occupier, would I actually want to live in it?
Being a tenant is not without problems, but in some ways, it comes with opportunities. As a tenant you can decide to move elsewhere with one month’s notice. You’re not beholden to an illiquid asset and the vagaries of the market about what your property is worth.
You’re also not having to deal with estate agents and solicitors and banks about whether you can or cannot afford a mortgage according to the latest trend topping of your toast.