Up to 380,000 landlords looking to let go of property!

It can be incredibly expensive to transfer properties into an LTD company and whilst some accountants will be able to do the transfer without paying stamp duty, at some point, this will catch up with you and it will be payable.

With that in mind, there are some strategies that can be used for reducing liability, including self manage, increasing rental profits, increase tax-deductible costs, decrease finance costs, use your cash strategically elsewhere. If you don’t get this right it will be costly, for higher rate (40%) taxpaying landlord which is why you need to make new purchases in a limited company so that the increased tax burden can be avoided where possible.

Big developers are an issue across the board, but it’s important to know what tenant type they are targeting. So that you aren’t competing, adjust your strategy and marketing which will reduce void periods.

Finally, Brexi, yes, European investment will decline, but investment from further afield and domestic investment isn’t as it’s not changing the impact of the need for a private rental sector in the UK.

What I worry about is that the media will pick up on that FTB matter and the Osborne's tax idiocy will be made a success. IMHO - this is a very dangerous situation we are in. The Government, who want everyone being in mortgage debt, may think that further tax increases will be justifiable. FTBs are likely to vote Tory, the tenants do not really matter, do they? Councils will be left to themselves to handle the homelessness - the Gov does not care.

Glad I offloaded all but one of my properties last year. A relief really. These tax changes are not going away (imo) and I take comfort from the old investment saying, if you are going to Panic - Panic First!

It would be interesting to know how many properties haven't been brought into existence because of this. Landlords were responsible for a large number of new builds.

I haven't built, converted or brought back into use one property since this anti business announcement was made.

Not only is it expensive to transfer to a LTD company I do not trust HMRC to accept the concept of legal and right. When I was at school tax avoidance was legal and tax evasion was illegal - I still have things called books with these exact words. Now both are illegal. Just look at the language a is applied to the 2 terms - almost indistinguishable. Now if the maths does not work in favour of HMRC you are contravening the "spirit" of the legislation - read as empty your pockets.

Those landlords getting out or off loading - all understandable albeit into a tricky market.

The big players are not providing the correct accommodation.
Who wants to share a kitchen with 8 people ?

Back when I was at an age where certain leftie friends were keen to become first time buyers we pointed out to them how a 'do-er upper' in such and such an area was a bargain if they were prepared to be imaginative and sweat. Quick commute to C. London, nice shops opening etc.

"Ew I'd never live there" was the common response.

The concept of lowering one's sights for a stepping stone property was dismissed in the manner of a wise old man correcting a toddler's world view.

These properties, renovated to high standards, are now beyond their reach. They're now bitching about the evil landlords stealing the properties they want while still willfully blind to the properties that they could get but aren't good enough for their standards.

Long story short, when the Landlords sell up, either the FTBers will turn their nose up at the 'low grade stock' or not be able to afford the appreciated stock even with a 10% price drop.

And this Landlords is all our fault :/ I won't be listening when they are stuck renting in a Crapita/G5S version of a '60s high rise sink estate with an algae-infested swimming pool in the basement and a closed down , windswept beach lifestyle chillout hub on the roof.

On another note, Sami, please expand on the incorporation Stamp Duty time bomb.

Reply to the comment left by Daniel Holder at 16/05/2018 - 09:34
"if you are going to Panic"
-Don't panic! Never a good idea to panic, especially in business.
Planned sales, maximising profits and utilising CGT reliefs is the way to go.

I am of the school - if you keep a cool head when others are losing theirs - you were not quite paying attention. My response o GO s announcement was WTF followed by sensitivity analysis to my cash flows . My fellow cool headed friends clueless to the impact I think will be finding out this year through their tax bill. I tried to explain what had just happened but it fell on deaf ears.

Its not a cool head that solves problems, its the adrenaline from a shock .

Absolutely, planning and maximising profits is essential. Thats why I sold off a couple of properties last year. Similar properties in the area are already 12% down in asking prices compared to 2017 and I would expect further falls over the next few years due to various factors.

In a very crowded room the smart investor positions themselves by the exit.

Reply to the comment left by AA at 16/05/2018 - 20:31
"My fellow cool headed friends clueless to the impact I think will be finding out this year through their tax bill."

Your thinking is wrong then AA.
Landlords don't receive a tax bill from HMRC, they complete a self assessment form. This year's form is practically unchanged from previous years, so if they were oblivious to it before, they will be oblivious to it after.