BTL INVESTOR SCOTLAND

Most renters who suffer financial loss should be getting some financial support from the package of measures announced by Government. So there should be no need to give them a three month rent holiday. They should be in a position to pay something towards the rent each month.... Read More

Very sad news. David put in a lot of effort to campaign against section 24. His knowledge on the matter was second to none.... Read More

Surely common sense will prevail and the Government will do a U turn.... Read More

When Kate Barker speaks on housing people listen and respect her views. This is an important breakthrough.... Read More

Good letter. I wonder how many others will be sending out similar letters this week.... Read More

The future of housing in the UK is a serious issue and the Government needs to take action and encourage investment in all tenures. Earlier this year Property118 called for a ROYAL COMMISSION to be set up to investigate how housing supply could be increased. The time has come for the commission to be put in place.... Read More

This independent report by the London School of Economics on the private rented sector and buy to let supports many of the arguments that Property 118 landlords and others have used to urge the Government to scrap section 24.

http://lselondonhousing.org/wp-content/uploads/2016/05/GRP12392-LSE-report-design-WEB.pdf... Read More

Excellent report. Well done to all those who contributed. I have sent a copy to my MP.... Read More

Here is my latest reply to Shelter:

Thank you for your response.

The Government wishes to increase home ownership. One of the ways it is seeking to achieve this is to discourage buy to let investment through tax changes. The Government is phasing in the restriction of finance cost relief to give landlords time to adjust. Shelter supports the Government’s tax change on finance cost relief.

I currently rent five properties to tenants on benefits. In response to the tax change on finance cost relief, it is likely I will evict these tenants so that I can sell the properties with vacant possession to first time buyers. Other landlords with finance costs are likely to take similar action.

The Government’s political objective to increase home ownership will be achieved but at a cost because families on benefits will be evicted.

Does Shelter think that increasing home ownership in this way is a good idea? Should Shelter not be campaigning for policy measures that achieve Shelter’s objectives but don’t have adverse consequences?... Read More

Shelter's latest response to me is as follows:

Campbell has passed on your email and asked me to reply to your specific queries.

We have not conducted any bespoke research on the impact of the tax changes. Our analysis

http://blog.shelter.org.uk/2016/09/debate-around-buy-to-let-tax-changes-points-to-general-need-for-extra-safeguards-for-tenants/

has made use of existing research, which you can find a summary of here.

https://england.shelter.org.uk/__data/assets/pdf_file/0004/1236820/Landlord_survey_18_Feb_publish.pdf?_ga=1.235700807.718749360.1449657394

Our statement about buy-to-let lending is a response to the Bank of England’s decision to monitor buy-to-let lending for potential risks to financial stability. You can find a copy of Mark Carney’s most recent letter on this here.

http://www.bankofengland.co.uk/financialstability/Documents/fpc/letters/governorletter260516.pdf

We have no current indication that the government plans to reverse the LHA freeze. But we still believe that it is a huge risk for households at risk of homelessness. That’s why we are continuing to campaign for the policy to be changed.

Regards,
John Bibby
Policy Officer... Read More

I have responded to Shelter as follows:

Louisa,

Thank you for your response.

I note that Shelter has carried out research on the impact of section 24.

Can you please confirm if your research has established how many properties are owned by the landlords who will be affected by section 24? This information would help clarify how many tenants are at risk of eviction and/or rent rises.

Shelter give two reasons for supporting section 24:

Firstly, you say that the tax change might dampen the risk of a bubble building up in buy-to-let. This statement is vague. Can you please explain what this statement means and what your specific concerns are so that I can understand Shelter’s position.

Secondly, you say that the money could, if the government chooses, be used to undo the damaging freeze on Local Housing Allowance rates. Does Shelter have any evidence that the Government is considering using the extra tax revenue in this way?

I look forward to hearing from you.... Read More

Response received this morning:

Thank you for your email to Campbell, please see the further detail in our policy blog in answer to your question : http://blog.shelter.org.uk/2016/09/debate-around-buy-to-let-tax-changes-points-to-general-need-for-extra-safeguards-for-tenants/... Read More

Donation made. Please help spread the word about this fund raising.... Read More

This is a clever amendment from SNP. If the Government does not support it, they will demonstrate that they don't care about the availability of affordable housing. The amendment suggests that the SNP get our message that tenants will be affected.... Read More

Would this come into effect immediately following the bill receiving Royal Assent?... Read More

The House of Lords Economic Affairs Committee published its long awaited report on Housing this month.

Here is a summary of some of the key points:

The Government has chosen to promote the expansion of owner occupation. This reflects the aspiration of many people to own their home. However, it must be recognised that home ownership, whilst a wish for many, is not achievable for all.

The Government’s focus on home ownership neglects other tenures; those on the cusp of ownership are helped and those who need secure, low cost rental accommodation are not.
Opportunities to increase investment and funding in the private rental sector are potentially undermined by policies designed to assist owner occupation.

Whilst the number of individual buy-to-let landlords has increased, witnesses questioned whether they were “squeezing out” first time buyers.

Stephen Noakes of Lloyds Bank pointed out that between 2011 and 2015, first-time buyer numbers increased by 60 per cent: “The first-time buyer market has grown quite substantially over that period”.

The Council for Mortgage Lenders predicted that the overall impact of recent tax changes would be “to increase the cost and limit the availability of private rented sector homes”.

The Council of Mortgage Lenders was also concerned that these recent tax changes, in particular the higher rate of stamp duty land tax, could hinder the development of a build to rent sector.

Investors argued a flourishing build to rent sector could ameliorate some of the perceived problems in the private rental sector by supplying high quality homes and providing greater security of tenure.

The Committee was told that an estimated £30 to £50 billion could be available from institutional investors to invest in the private rental sector. However, the British Property Federation stated that if the stamp duty increase was to apply to institutional investors “we may as well forget it” as the “institutional money has lots of places to invest.”

Paul Johnson from the Institute for Fiscal Studies said he would put stamp duty “high on the list of suspects” as regards the reasons for lack of turnover in the secondary housing market.

The Council for Mortgage Lenders said that stamp duty contributed to high transaction costs and so it had “a detrimental impact on activity levels, market liquidity and labour mobility”. They thought this was particularly so amongst people looking to downsize which was “restricting the choice of larger homes for younger families.”

The full report is available at this link:

http://www.publications.parliament.uk/pa/ld201617/ldselect/ldeconaf/20/20.pdf... Read More

This is really helpful information Chris, thanks for posting. There has been good press coverage of the campaign since in summit - lets keep the momentum going.... Read More

Have just increased the rent for another property and have advised the tenant that the reason for the increase is Osborne's tenant tax. First rent increase for this tenant who moved in to the property in 2010.... Read More

interesting debate in the Scottish Parliament about the 3% LBTT levy. Labour said that there could be adverse consequences for the private rented sector and rents could go up.

http://www.theyworkforyou.com/sp/?id=2016-03-08.5.0&s=landlord#g5.17... Read More

The Statement of Facts and Grounds for the Judicial Review has been released today by Steve Bolton and Chris Cooper. Here is a link to the document.

https://crowdjustice.s3-eu-west-1.amazonaws.com/uploads/froala_editor/fies/Clause%2024%20Judicial%20Review%20-%20Statement%20of%20Facts%20and%20Grounds.pdf... Read More