Summer Budget 2015 – Landlords Reactions

Summer Budget 2015 – Landlords Reactions

14:00 PM, 8th July 2015, About 10 years ago 9619

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Budget 2015 - Landlords Reactions

The concern is;

Budget proposals to “restrict finance cost relief to individual landlords”Summer Budget 2015 - Landlords Reactions

To calculate the impact of this policy on your personal finances download this software


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BTL INVESTOR SCOTLAND

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15:52 PM, 25th July 2015, About 10 years ago

Reply to the comment left by "BTL INVESTOR SCOTLAND" at "25/07/2015 - 12:21":

I have also asked my MP to take the matter up with my local council. In my area, there are over 14,000 people on the council house waiting list. I am concerned that many more people in my local area could become homeless as a result of these ill thought out changes proposed by the Government and that the council will not be able to cope with the increased demand for temporary and permanent tenancies. There is a risk that there will be increased use of bed and breakfast emergency accommodation to cope with the increased demand at substantial cost to the public purse

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15:52 PM, 25th July 2015, About 10 years ago

Reply to the comment left by "Trendo " at "25/07/2015 - 15:43":

If LL leave PRS, then where are all these people and others like them live ?

John McKay

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15:56 PM, 25th July 2015, About 10 years ago

Excellent and intelligent points as always. In our own area the annual spend on B&B accommodation is £350k or around £1000 per day. However the budget has just been slashed by 50% so we've already got a problem. Where on earth are all these homeless people plus those evicted after the tax change going to live? On the streets I guess.

Dr Rosalind Beck

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15:57 PM, 25th July 2015, About 10 years ago

Yes, I'm trying to get my head around what would happen, if and when we can't pay the levy/confiscatory tax, and can't pay the HMRC bills either, and can't sell our houses, which then get repossessed. I'm wondering what the process is whereby tenants lose the homes. Has anyone any experience or knowledge of this process, so that we can clearly picture possible scenarios?

Renovate To let

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16:28 PM, 25th July 2015, About 10 years ago

Reply to the comment left by "James Tallis" at "25/07/2015 - 14:46":

James, they perpetuated the incorrect "news headline" that tax relief on interest would be limited to basic rate rather than marginal rate.

Specifically they said today landlords can knock off the cost of finance from their rental income but from 2017 this will gradually reduce until "they can only knock off interest at the basic rate from their rental income" - totally incorrect. Anyone using that "advice" to work out the effect on their business will come out with a rosy and incorrect view of the future.

Listen from 1:40.....

Dr Monty Drawbridge

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16:33 PM, 25th July 2015, About 10 years ago

I have been looking at the effect on tenants and the availability of rental property a bit like this:

I've pretty much ruled out incorporating existing properties due to CGT and SDLT. I have therefore tried to consider how to shore up my position and the only way is to reduce my debt burden.

Of eight properties currently let, I would need to sell four of them to clear CGT and debt. I will obviously want to maximise the value of the properties at sale an will therefore wish to market it vacant, so I will regrettably give notice to tenants (I have never given notice to a tenant).

I requested figures from local agents about who is buying 1 and 2 bedroom flats in my local area. It is split almost entirely between just two groups: 20% investors, 80% FTBs, almost exclusively with help from Mum and Dad. (This is apparently consistent across all stock - new and old).

So - of the four properties I sell - it is likely that *not a single one* of them will return to the rental market (especially as they are at the higher quality end, offering lower yields for investors).

Monty Bodkin

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16:43 PM, 25th July 2015, About 10 years ago

Reply to the comment left by "James Tallis" at "25/07/2015 - 14:46":

I listened to the Radio 4 broadcast as well, thought landlords came out quite favourably.
It clearly came across that renting out properties is a business and this was a tax on business.
Even the Generation Rent guy came over quite positive, talking about landlord professionalism and wanting to see landlording treated as a professional business.

Moffard John

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16:43 PM, 25th July 2015, About 10 years ago

Does anyone remember, when George Osborne visited his local HMRC office in December 2013, staff at HMRC showed him a tax return where it showed, property investor received more than £150k income but he managed to offset, all his income by virtue of, Interest Deduction, Wear and Tear Allowance, Repairs and Professional Fees, end result was no tax payable.

The staff at HMRC covered personal details of that Tax payer and showed him rest of return as a result Osborne was left shell-shocked and everyone expected that, he may attack, Buy TO LET investors in December 2013 budget speech but he did not do so.

Furthermore he did not mention anything in April 2014, December 2014, April 2015 but the minute they got into power again he has changed his tune.

Would you agree that, his action could be construed as fraudulent as his party has obtained votes by deception?

If agreed, thumbs up.

Renovate To let

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16:48 PM, 25th July 2015, About 10 years ago

Reply to the comment left by "Monty Bodkin" at "25/07/2015 - 16:43":

I agree. I was just annoyed that they incorrectly reported the tax proposal and so did nothing to educate the wider 2 million landlords (many of whom don't do online networking) on what is coming.

BTL INVESTOR SCOTLAND

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16:59 PM, 25th July 2015, About 10 years ago

Reply to the comment left by "Ros ." at "25/07/2015 - 15:57":

The process is people report to councils as homeless. The applicant may be placed in a homeless unit until their application is processed. If they are lucky, they will be given a temporary tenancy until a suitable permanent tenancy can be offered. If they are unlucky, they will be placed in bed and breakfast accommodation and they could be there for a long time. Bed and breakfast accommodation is far from ideal for individuals and is very expensive for councils and is not a good use of public money. The main problem is that there is a lack of social housing for people that are not in a position to buy. The private rented sector makes a large contribution to the supply of housing for people who are not in a position to buy, including those on benefits. The Government’s proposal to give tenants of Registered Social Landlord’s the right to buy in England will compound the problem. The Government need a holistic housing policy. At the moment, it appears to be making things up on the hoof and there is no clear strategy.

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