20% of landlords plan on selling up

20% of landlords plan on selling up

11:18 AM, 11th January 2018, About 7 years ago 18

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The National Landlords Association’s (NLA) latest research shows that 20% of its members plan to reduce the number of properties in their portfolio in the next year – the highest level of intended property sales in 10 years.

The NLA believes this is due to recent tax changes, and has created a series of videos to assess and explain the impact of these changes on landlords and tenants.

The four videos contain research, conducted by Capital Economics for the NLA, which shows that landlords and tenants will pay more than their fair share in tax as a result of changes made by the Government to curb buy-to-let activity in the private rented sector (PRS). These include:

  • The withdrawal of mortgage interest relief for higher and additional rate tax payers
  • A three per cent surcharge on purchases of additional property
  • The banning of upfront letting fees for tenants.

The first video, ‘Taxing homes’, provides an overview of how the sector is likely to look as the policies come into effect. The second video, ‘Hitting landlords hardest’, compares the tax bills of four different people all earning £50,000 through various means. It shows that landlords are paying far more tax than those earning only a wage or salary.

‘What does this mean for landlords?’ looks at the PRS market from a landlord’s perspective and how landlords could respond to the changes. The final video, ‘What does this mean for households?’ shows how tenants may end up paying higher rents and have fewer rental properties to choose from.

Richard Lambert, CEO of the National Landlords Association, said:

“The videos were created to explain simply some quite complex policies, for both landlords and their tenants. They, along with our own research, show that the Government needs to look at the impact these policies will have on the PRS.

“More and more people are relying on this sector for a home, so it is vital that landlords not only provide a high standard of accommodation, but are incentivised to do so by the prospects of a reasonable return on investment.

“It is our view that these policies are undermining the viability of many landlords’ businesses and removing the incentives to invest in residential property for business purposes.”

The videos are available to view at taxinghomes.co.uk.

The Economics of the Tenant Tax


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Anne Noon

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10:26 AM, 13th January 2018, About 7 years ago

Reply to the comment left by paul thomason at 12/01/2018 - 20:17
Thanks, I have been thinking of that - especially the one with the 0.75% above base, but charges are massive, so any recommendations for companies that do second charges would be welcome. I have a property I am doing up at the moment, initially to sell on and invest funds in a another project, but with these new rules for Portfolio landlords, I would like to remortgage and keep in the portfolio.

DC

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15:38 PM, 13th January 2018, About 7 years ago

Reply to the comment left by paul thomason at 12/01/2018 - 20:24My partner and I (not married) have gone through our investments a number of times since July 2015 and have had various consultations with our accountant to see how best we could deal with sec 24. Incorporating wasn't appropriate for us so we have taken alternative measures. To keep things manageable we have sorted out the chaff from the wheat in terms of our portfolio, taken early retirement, sold our Cambs home and bought a stunning home in another part of the UK where you get much more for a fraction of the price! But in terms of Selective Licensing fees in Peterborough you can't fight a Council who were charging a discounted fee of £50 per property if you were an accredited landlord but have now decided to charge the full price of £600 to every landlord. Couple that with the rumours that Peterborough City Council will try to bring as much of the City under the S/L banner as soon as they can and it doesn't take much working out to see that some landlords will be hit for massive five-yearly fees, that frankly are a complete and utter rip-off.

paul thomason

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16:14 PM, 13th January 2018, About 7 years ago

Reply to the comment left by Anne Noon at 13/01/2018 - 10:26
it would be good to talk to you , do you have a mobile number

paul thomason

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16:20 PM, 13th January 2018, About 7 years ago

Reply to the comment left by Anne Noon at 13/01/2018 - 10:26
try presise thy have rates at aboat 5percent

NW Landlord

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18:03 PM, 13th January 2018, About 7 years ago

They are with precise now last chance if they kick them out will sell them aswell

Anne Noon

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18:44 PM, 14th January 2018, About 7 years ago

Reply to the comment left by paul thomason at 13/01/2018 - 16:20
Thanks Paul Thomason. Please email me on Ambersgold@aol.com and I will give you my phone number. Regards
Anne

Kathy Evans

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14:43 PM, 15th January 2018, About 7 years ago

Reply to the comment left by Monty Bodkin at 12/01/2018 - 21:26
House prices increased by 15%??? Not here they haven't. Still nowhere near where they were 10 years ago. Might have risen by 5% over the last year, but I doubt it's that much.

Monty Bodkin

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16:19 PM, 15th January 2018, About 7 years ago

Reply to the comment left by Kathy Evans at 15/01/2018 - 14:43Quite right Kathy, apologies, I was going from my properties performance.
Nationwide average was 8.84% over that period.

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