0:01 AM, 16th May 2018, About 7 years ago 15
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A significant number of homes suitable for first time buyers could flood the market in the coming year as new figures show approximately 380,000 landlords 19% intend to offload property.
The figures indicate that 45% of landlords who intend to sell property in the coming year plan to sell individual flats and apartments, with a third 33% looking to sell terraced homes – both of which are typically affordable and attractive options for those taking their first steps on the property ladder.
Significantly, just 7% of landlords who plan to sell say they intend to sell to other landlords, signalling renewed hope for many first time buyers and homeowners looking to progress up the property ladder.
The figures, from the National Landlords Association (NLA), come as separate findings from UK Finance shows signs of buoyant first time buyer activity of late.
Richard Lambert, CEO of the National Landlords Association (NLA), said:
“These findings sound like positive news for potential new homeowners, but the reality is not everyone wants, or is in a position financially, to buy.
“In fact, if all these homes are sold as planned then it will lead to a significant fall in the supply of property available to those who choose to rent, or have no other option but to rent”.
The National Landlords Association (NLA) says it has been looking into the issue recently and has produced a video and discussion paper – the hustle for homes – about the relationship between landlords and first time buyers in the market.
Mr Lambert added:
“Everyone seems to have a gut instinct about the extent to which they feel landlords and first time buyers compete for homes in the UK, but home ownership is a highly emotive issue so the facts are often overlooked.
“There’s certainly no denying that competition exists, but the significant barriers to home ownership are more likely to be the high cost of a deposit or ability to access mortgage finance.
“With our new video and discussion paper we hope to provide more of an accurate picture of these issues, and importantly we want to focus the debate on what can be done to ensure that everyone has a roof over their head – regardless of whether they rent or own”.
Watch the hustle for homes and read a copy of the discussion paper at www.landlords.org.uk/news-campaigns/news/the-hustle-homes
CASE STUDY
Gary (not real name), a landlord in Edinburgh, says he is plans to sell up due to recent tax changes:
“I’m selling six flats right now so I can bring my debt down because we won’t survive these tax changes, it’s just not possible.
“We’re trying our best to charge a reasonable amount of rent, but when we sit down and do the figures, you’re sitting there going ‘this is just crazy’ – it’s broke our spirit an awful lot.
“I always thought as I got old, I would be able to sell my business for somebody else to take on, but with all these tax changes I personally don’t think in 25 years there’ll be buy to let landlords, there will be these new corporations that build houses.
“It’s taken something like 22 years to build up the business but I now realise that now we’re going to lose probably half of it. I think it’s a big, big mistake this tax change. It’s a tenant tax, that’s all it is”.
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AA
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Sign Up9:52 AM, 17th May 2018, About 7 years ago
Reply to the comment left by Monty Bodkin at 17/05/2018 - 09:33
Of course they complete an SA or their elected adviser does it on their behalf. And if you do not complete an SA you would still get a bill from HMRC by way of a demand of payment on account plus penalty for not filing plus interest..... so don't know why you think my thinking is wrong.
Regarding SA - already completed mine and the form is very different with claimable finance box / field requires you to calculate / input 75% of your interest and there is a further field where you input the remainder 25% not claimed.
If you don't enter the latter field you have an obvious clear error that jumps out. Quite clever really,
Monty Bodkin
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Sign Up10:03 AM, 17th May 2018, About 7 years ago
Reply to the comment left by Daniel Holder at 17/05/2018 - 09:09
"Similar properties in the area are already 12% down in asking prices"
House prices are up over 12% nationally since this announcement was made (source, Nationwide).
I sold off a couple of properties last year.
So you only had 3 properties and you panicked?!
I've got a lot more than that but have already planned and adapted so that by 2021, when this fully kicks in, my income will be the same or more.
Not to mention the added bonus of house price increases- 12% up nationally so far.
AA
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Sign Up10:07 AM, 17th May 2018, About 7 years ago
Reply to the comment left by Daniel Holder at 17/05/2018 - 09:09
In a very crowded room the smart investor positions themselves by the exit -
There are no general policies for investment - these are clichés like life is short. Yes it is except some live to the age of 40 and others to a 100. I could counter your statement by saying the smart investor rides out the peaks, troughs and price corrections - especially in this asset class .
Monty Bodkin
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Sign Up10:25 AM, 17th May 2018, About 7 years ago
Reply to the comment left by AA at 17/05/2018 - 09:52I've seen it too AA, the small change in the tax return won't make them aware of this. They will just wrongly claim the same as before. It will take HMRC years to chase it all up.
Dennis Leverett
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Sign Up8:24 AM, 19th May 2018, About 7 years ago
Every local property auction I've been to in the last few months has been dominated by tenanted properties, around 75%. These would be of no use to FTB. Prices obtained have been reasonable for buyers. Most have had protected tenancies but still good value for long term cash investors at prices achieved. Also a few commercial with tenants which seem to achieve good prices for sellers. Properties with plot potential are fetching good prices whereas run down properties appear to not be doing so well. That's just my overview of properties in Suffolk, good for cash buyers not for borrowers.