Summer Budget 2015 – Landlords Reactions

Reply to the comment left by "BTL INVESTOR SCOTLAND" at "04/08/2015 - 13:45":

I hate the fact The Scottish Association of Landlords came up with the questionnaire. But man that is FANTASTIC!

What will they do with the information though? Do they have clout?

Are we sharing that with the NLA and prompting them to do the same?

Mark A - can you send us all a survey and can The Scottish Association of Landlords work our date / numbers for us as they obviously have a plan to work theirs?

Great work by The Scottish Association of Landlords and well done BTL Investor Scotland for sharing!

Reply to the comment left by "BTL INVESTOR SCOTLAND" at "04/08/2015 - 13:45":

I hope that the data collected is used properly and presented fairly. I fear that some may draw the conclusion that only a small percentage of landlords will be badly affected and the inference will be drawn that "That's OK then" as not many people are affected. The point is that this change is wrong in principle and even if only one landlord in the country were adversely affected it would still be wrong. Whether or not it will lead to a shortage of houses or to an increase in rents is not IMHO the point. (Suppose for the sake of argument that rents went down. Would that make the tax any fairer to landlords?)

It is also unfair that corporations are not taxed in the same way as individuals. Could one of the accountants on this forum run an example showing how Megacorp PLC would be taxed with a rent roll, interest and expenses exactly one thousand times that of an individual landlord? If the example was one where the individual pays more in tax than his net receipts the comparison between the rules for corporates and for individuals would be even starker.

I am still struggling to understand how a so-called Conservative Chancellor could even think of introducing a tax that can produce a marginal tax rate of over one million percent! (Plug some figures into the spreadsheet and you will see.) And those of us with long memories thought it was bad under Callaghan/Wilson with 98% tax! A policy more harmful to natural Conservative voters and small businessmen it would be hard to imagine. Even if George Osborne reverses this disastrous decision, what an example he has set for a future Labour Government to soak all us landlords. Let it no longer be said the Tories are the party of low taxation. Perhaps Osborne is secretly working for Jeremy Corbyn.

Reply to the comment left by "adam prospect" at "04/08/2015 - 12:17":

"I have been doing this for 15 years, I will not increase rent."

I've been doing it for longer than that and I will certainly be increasing rents, along with an estimated 65% of other landlords.

It isn't a threat as you imply, it is an inevitable consequence.

That along with restructuring, deleveraging, diversifying, changing type of ownership, change of use and a raft of other mitigating measures.

"there will be more changes coming"

Undoubtedly. That is why landlords need to be charging as much as they can as just one of many ways to protect themselves.

"No-one here is listening anyway."

I'm well past that stage, I'm already acting.

"The cash wealthy LLs or corporates who, will be happy to pick up stock from motivated sellers."

And even happier to put up rents for taking on risk where others have failed.

"This was my risk not the tenants. I have families to look after – that was my choice and now its my responsibility."

Very laudable, I'm sure we all feel the same to some degree. If that is your main driver then you should be increasing rents as part of protecting yourself from the further changes you predict. If you go under, the families you have responsibility for will suffer too.
- For the avoidance of any 'holier than thou' doubt, my main driving force is cold hard cash.

Reply to the comment left by "Mark Brown" at "04/08/2015 - 13:48":

I don't think we should attack homeowners. We are ourselves homeowners and know the importance of owning a home. I am sure there are dodgy dealings by landlords, too, which is often publicised and televised, hence the public perception of landlords.

Some areas are extremely expensive to buy; London prices were pushed up by buy to let, as well as population growth, foreign investment and scarcity of houses. I couldn't buy when I wanted to, priced out of the area I grew up in.

I think by all means help those get onto the property ladder, but there also needs to be a good stock of rental properties for those who don't wish to buy, don't want to buy (constant, constant maintenance as my house is) or for job mobility. It is healthy to have a range of housing to suit individuals and situations.

It isn't that homeowners have so many advantages over landlords, either. The tax changes will make things very difficult for some landlords who wouldn't have structured their businesses this way had they known, so rather than have people struggle and be in further debt because of taxation, the government needs to be aware of how much damage this could do to individuals. Just as a change in taxation to any other business. It's not as though the government will be prepared to wipe out everybody's debt. It is therefore irresponsible without consultation and assessing the impact thoroughly. And yes, I know they have a political agenda. That is why it's important we make people understand the impact on the private rental sector and attempt to stop the tax before it starts.

Letting the tenants take the hit is not the answer either, as there will be more strapped individuals in the country trying to make ends meet. Besides, rent capping is likely to be enforced next, with each council setting the private rents for each area. Ominous, I know, so let's fight on while we have the chance to do so.

Reply to the comment left by "Monty Bodkin" at "04/08/2015 - 15:18":

You are a Monty after my own Heart! Good on ya!

I may not have Adam's cash but I have manors and standards and telling others how rich you are is just crude - Yuk!.

Anyway seems we lost his support cos someone mentioned the war "don't mention the war" and Adam hasn't yet called me to pick off my properties as a vulture investor he'd like to be, so maybe his deep pockets are holding him down or he is off helping some poor person.

Top Tip:

If you want to be kept informed of how this issue is progressing in Parliament, you can set up an email alert with this link:

http://www.theyworkforyou.com/alert/

I have sent up alerts for private rented housing, landlord and finance cost relief.

My Slogan

Rent Tax

An attack on the tenants

Reply to the comment left by "BTL INVESTOR SCOTLAND" at "04/08/2015 - 16:58":

Thanks BTL. I've done as you suggest.

Hi all.
Can you go onto this page (you'll probably have to cut and paste it unless Mark sees this and puts in a better link):

http://www.property118.com/contact-mp/77191/

And give me the details of MPs you have written to. The thread states what I need to know, but the main thing is the MP's name. We need to get an idea of who has and who hasn't been contacted. Thanks in advance.

Reply to the comment left by "Ros ." at "04/08/2015 - 17:24":

@Ros
Just provided details.