Summer Budget 2015 – Landlords Reactions

Reply to the comment left by "Lee Gough" at "12/08/2015 - 06:52":

I would expect Paragon to be consulting as they have indicated in their response, as I would other lenders, however as has been highlighted 20% of the landlords probably own circa 80% of let properties, it also means 80% of landlords own circa 20% of the properties. If these landlords feel that they are not affected by the proposals or that they can absorb the costs it means that up to 80% of landlords may be giving the message that the change is acceptable if not liked.

Maybe we need to start asking for sales valuations and mortgage redemption terms (exc MEX) to help highlight the extent of the problem.

GO has been clever in his timing. Announcing the change when interest rates are at their lowest (but knowing that they will rise shortly) means that there will be many landlords thinking that they will be able to absorb the cost and that the returns on BTL are still worthwhile - particularly new landlords who have not experienced the higher interest rates of a few years ago. By the time rates start to rise this change could be law.

Reply to the comment left by "S.E. Landlord" at "12/08/2015 - 09:02":

I spoke to a conservative councillor whom I have known for ten years. He made the same point about interest rates being low and thus it would minimise the impact on landlords for the moment. He then admitted that his interest only buy to let's had somehow been paid off recently.. Obviously there was more to this, but he refused to continue the conversation.
Draw your own conclusions.

It's very disturbing to read articles like this - who are on the side of the landlords, but haven't worked out the sums properly so that being "£2000 worse off each year" is reported and gives the impression that landlords could weather that blow.
Propertywire.com 'warnings over impact of buy to let mortgage tax changes announced in UK Budget'.

I have asked landlord action to distribute the article and petition, and also HMO hub.... An agent which markets HMOs. ... landlord action say they have tweeted it, but I would rather they actually emailed their database... Will try again. Will also be polling some local estate agents once I get back from hols...

BTW. Have had several discussions with close friends and relatives who are not Landlords about this, and the sheer weight of negative opinion and ignorance of the implications of this are staggering. We really are up against it I am afraid...

Reply to the comment left by "Connie Cheuk" at "12/08/2015 - 12:30":

Hi Connie

I think the man quoted in:

http://www.propertywire.com/news/europe/uk-property-market-impacts-2015070810725.html

was referring to the extra cost per property. The £2,000 extra tax would indicate existing annual interest of £10,000, close to that of the man in Megan Shaw’s example.

Considering that the article was written so shortly after the budget announcement I think it was very good. Thanks for the link - I have signed up for their weekly Newsletter.

Reply to the comment left by "Appalled Landlord" at "12/08/2015 - 13:27":

Hi

Just read the propertywire report, I thought it was good .

Is there anywhere in the world that taxes on interest costs on property as the government want to do here?

Human Rights are the basic rights and freedoms to which all human beings are entitled, like civil and political rights, the right to life and liberty, freedom of thought and speech/expression, equality before the law, social, cultural and economic rights, the right to food, the right to work, and the right to education. In short, human rights are freedoms established by custom or international agreement that protect the interests of humans and the conduct of governments in every nation.

Is there anything in the Human rights bill which we could use to say that sole trader landlords are being treated different to companies? Economic rights?

Reply to the comment left by "Paul Shears" at "12/08/2015 - 10:28":

Hi Paul

All three of your comments were posted, I've deleted two duplicates and also your message about trying three times and giving up.
.

Reply to the comment left by "Mark Alexander" at "12/08/2015 - 14:52":

Thanks Mark
All I kept getting was a white screen every time I tried to edit the comment.