Summer Budget 2015 – Landlords Reactions

Reply to the comment left by "Moffard John" at "23/08/2015 - 16:32":

John, there's no need to stir up controversy and cause any ill feelings amongst 118 property members.

I agree that, my comments were regretful and I apologise for any upset caused.

I agree that, nobody can dictate what one should or should not do.

Reply to the comment left by "Saeef Khan" at "23/08/2015 - 16:52":

Saeef, we're all feeling the strain and you're very gallant to apologise.

You're right - With the run-up to the Mayoral elections, this is a good time to ensure that candidates take landlords' feelings against the tax seriously and to debate the proposals openly. I'm not sure who the London landlords are on here. I take it Dom must be.

Reply to the comment left by "Connie Cheuk" at "23/08/2015 - 17:08":

Hi Connie,
This was Zac's reply to my last email.

Dear Dom,
You are asking me to speak for Government, which I cannot do as I am not part of the Government. I will wait to hear back from Ministers and will read their response with interest.
Best wishes,
Zac

Whilst I'm one of his constituents, I'm one of the seemingly rare Landlords who didn't vote Tory in May!
From what I've read about Zac, his only real interests are stopping expansion at Heathrow and other environmental issues.
I doubt very much he has any real view on the PRS. His constituency is hardly a deprived area. In addition he's obviously very wealthy in his own right and being an MP is just a way to further his own environmental agenda.
All that aside, I will continue to lobby him wherever possible.
BTW, great article in the Torygraph - not my normal comic!

Reply to the comment left by "Dom " at "23/08/2015 - 17:31":

I see. It's a shame we may be barking up the wrong tree with him. However, Londoners in the less leafy boroughs will be hot on the topic of housing. Are there radio stations he may be thinking of making an appearance? Perhaps have some questions for him to answer. I need to read up on all the candidates, in fact. Find out who would be more for the people.

No, nor me on the Torygraph. I stupidly voted Tory, though, before the pain of their tax enema!

Reply to the comment left by "Connie Cheuk" at "23/08/2015 - 17:49":

Connie, I think you need to understand that the candidates for 'the people' would be the least likely to support us. As Landlords, we're more despised than all the previous targets such as Bankers, Estate Agents, HMRC staff, etc. I'm afraid backing Landlords would not be a vote winner and they know it.

Reply to the comment left by "Dom " at "23/08/2015 - 17:31":

He has the backing of the Green Party, too, it seems - where this tax may have stemmed from.
Darn!
I'm researching Syed Kamall - He is also a Conservative candidate, but seems to want the ordinary people to 'prosper'.

Reply to the comment left by "Connie Cheuk" at "23/08/2015 - 18:06":

Ironically, if he was standing, Boris would probably have been the only one to support us. Any Landlords in Uxbridge and S, Ruislip on this forum?

Reply to the comment left by "Dom " at "23/08/2015 - 18:02":

Yes, it's difficult, this. I did think of Lindsey Garrett (housing activist), but she is likely to hate the guts of landlords, too.

Reply to the comment left by "Ros ." at "23/08/2015 - 13:25":

Hi Ros
There was a good article in Financial Mail today - in ref. to Co-op Bank increasing its buy-to-let lending from £797 million at the end of last year to £904 million at the end of June.
"The rise came despite warnings from the Bank of England of the threat of buy-to-let loans. Regulators fear the sector could be hit hardest by a rise in interest rates , and that forced selling by Landlords could exacerbate house price falls and lead to big losses for Banks."
The rise in interest rates coupled with the new proposal of effectively taxing financial costs - will surely cause a problem. If this new proposal were to go ahead - then rents would have to rise dramatically in order to pay for it! or there would be large scale eviction of Tenants(the people George Osborne wants to help) and a destabilising effect on the housing market.
Please focus on the impact of the proposal during your submissions.

Just read this

The Intermediary Mortgage Lenders Association has labelled the Chancellor’s cut to buy-to-let tax relief a “populist” measure that will not be a “great levelling of the playing field” for homeowners.
But Imla executive director Peter Williams believes the measure was brought in to appease certain groups – particularly elements of the national press - that have campaigned for the removal of tax relief for landlords.

He adds: “Reducing landlords’ mortgage tax relief is likely to prove a populist measure but the idea that tax benefits have been a big driver for growth in the private rental sector is flawed. Unlike homeowners, private landlords are still subject both to capital gains tax and tax on rental income, subject to allowable deductions for most costs. It also overlooks the fact that two in three properties entering the private rental sector since 2007 have done so without the support of buy-to-let mortgages.

“Anyone expecting this change to result in a great levelling of the playing field in the housing market is destined to be disappointed.”

OneSavings Bank sales and marketing director John Eastgate says: “I think this is more of a response to commentary in the public domain and in the press than something that is [meant to have] a material impact on the market.”

However, as the measure applies to individuals, it has been suggested more landlords could look to hold their properties in limited companies.

Blick Rothernberg Chartered Accountants partner Nimesh Shah says: “What’s interesting is that the restriction applies to individuals owning properties and companies are not affected. With a further reduction in the main rate of corporation tax, companies may become even more popular structures for buy-to-let landlords.”

During the Budget Osborne noted the Bank of England’s concern that buy-to-let, which accounted for 18 per cent of new mortgages in the first quarter, could pose a risk to financial stability.

Osborne said: “So we will act, but we will act in a proportionate and gradual way because I know many working people who save and invest in property depend on the rental income they get.”

Precise Mortgages managing director Alan Cleary say the actual proposals were not as bad as they could be but that it signalled the start of policymaker intervention in the buy-to-let sector. The Government has to regulate so-called ‘consumer landlords’ to comply with the Mortgage Credit Directive.

Further, the Financial Policy Committee has asked for the power to curb buy-to-let lending. The Treasury will consult on this later in the year.

Cleary says: “It could have been worse but buy-to-let is now on the political agenda. You have seen the first move to contain it. This is just the start of more Government and regulatory intervention in the buy-to-let market.”