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

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15:43 PM, 13th July 2015, About 10 years ago

Obfuscated Data

Neil Robb

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15:44 PM, 13th July 2015, About 10 years ago

HI all

It is ok it has all just been a very bad dream and it wont happen. I wish.

Is it a case lets scare the hell out of landlords then we will reduce what we have said and they will be grateful.

I really don't know but there is so many things wrong with all this, I don't know where to start.

It wont be just top rate tax payers who will have extra costs. it will be every landlord that has a mortgage.

If they count what you had to pay out in mortgage interest payment as profit then I would imagine many small landlords will be making a loss and still be expected to pay tax from other income.

I know of many landlords who make very little each month say £80.00 per property. When these changes take place they will have tax to pay on mortgage interest. This will wipe it out completely.

Leaving them to add money from other income to pay the tax man.

So the way I see it a lot of landlords will be in serious trouble and may end up bankrupt of have to hand back keys. Trying to sell will be pointless as everyone will be selling and no one buying. This wont help with supply of properties as most areas where BTL properties are people don't wont to buy or can't.

I can see this causing another property crash mean while the government will be taking tax of landlords for a property they are stuck with.

To my mind you will be paying money into a property to allow a family to live there that costs you each month. I would prepare for a lot of properties to be boarded up and lying vacant as who is going to want to buy something to lose money in.

Mark Alexander - Founder of Property118

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15:54 PM, 13th July 2015, About 10 years ago

Reply to the comment left by "Richard Kiru" at "13/07/2015 - 15:38":

Please see my open letter to my MP - link below.
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Richard Kiru

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15:58 PM, 13th July 2015, About 10 years ago

One step ahead Mark. Well done. Although a petition would show the voice of all BTL landlords? What do you think?

Mark Alexander - Founder of Property118

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16:22 PM, 13th July 2015, About 10 years ago

Reply to the comment left by "Richard Kiru" at "13/07/2015 - 15:58":

Yes I agree, and I fully expect the likes of NLA or RLA to start a petition.

To gain any traction a petition MUST have at least 100,000 signature. Therefore, it is important that there is only one petition and that all landlords sign it.

I don't mind which organisation starts the petition, but hopefully it will be one that has large influence in the sector so that it gets a good start.

My fear is that NLA and RLA will have competing petitions and that will serve no purpose. Worse still would be for every property forum and landlords association to start their own petition!
.
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Appalled Landlord

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17:02 PM, 13th July 2015, About 10 years ago

Reply to the comment left by "Mark Alexander" at "13/07/2015 - 15:54":

Congratulations on your letter! It states the multitude of problems that this hare-brained sop to the Left would cause, and also provides some solutions. Personally I would prefer a quick U-turn though.

I have posted a few comments, including the fact that the landlord in question would have to pay a levy of about £32,000 out of non-existent income

J Nelson

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17:13 PM, 13th July 2015, About 10 years ago

I have 3 properties and I have 4 which is due to exchange imminently, would I be making a bad situation worst by proceed with this purchase?

I have roughly 60% LTV on the 3 properties

35k salary
43.8k rental income

£17.4k Interest payments for 3 properties

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17:26 PM, 13th July 2015, About 10 years ago

...and as property investment companies / pension funds, housing associations etc are all able to claim 100% , (really level playing field you created there George - about as level as tellytubby land) I digress, the FTB and residential purchasers will be up against corporate BTL organisations who can still clain 100% relief, which will be far more aggressive buyers than a sole trader landlord. This wont do what it says on the tin, it certainly is not fair at all, if residential BTL is now an investment not a business, then that needs to be for all forms of ownership or none, not just a small selection of them.

Neil Robb

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17:38 PM, 13th July 2015, About 10 years ago

Reply to the comment left by "James London" at "13/07/2015 - 17:13":

James it is early days and no one really understands what is going on if it is a good deal get it done.

If the government then see sense and don't go forward with their plans then you could have lost out.

I have been following three forums this week and there really is a lot of confusion these changes. But someone wrote there would need to be legislation approval.

Kathleen

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17:40 PM, 13th July 2015, About 10 years ago

Reply to the comment left by "Appalled Landlord" at "13/07/2015 - 17:02":

Hi Appalled Landlord
In Marks "My Suggestions" - would another option be to continue to allow the Interest/Financial costs as allowable expenditure - but to restrict the relief on it to 20%?
In the example he gave - there would be no tax to pay.
However if the rental income was £800,000, allowable costs were £100,000 and mortgage interest/financial costs were £200,000 - then taxable income is £500000 - which makes the person a higher rate taxpayer - which means there was tax relief of 40/45% given on the £200,000.
To restrict this to 20% the 20/25% of £200000 ie £40000/£50000 could be clawed back and added to the tax payable.
This would avoid a U turn - as the tax relief is still restricted to 20%

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