Summer Budget 2015 – Landlords Reactions

Will be responding to my MP (David Gauke) and providing a submission to the Public Bill Committee soon, but need to use some accurate statistics in my wording, so I was just wondering:

My MP, other MPs and even Megan Shaw from HMRC have been copying the same word for word sentence into many of their letters and emails - ‘There are 1 .6 million buy to let mortgages outstanding in the UK overall, out of a total private rented sector of 4.4 million households and total housing stock of 22.6m households in England.’

Does anyone know if there is a particular reason why they are using some stats for ‘UK’ and other stats for ‘England’ in the same key sentence that they seem to keep sending to everyone?

Reply to the comment left by "BTL INVESTOR SCOTLAND" at "17/09/2015 - 13:51":

Hi BTL I S

The end of the answer by David Orr, chief executive of the National Housing Federation, to Q142 was news to me:

“Some housing associations in high-value markets are increasingly building for market sale and market rent, partly because that is a useful product in the market and partly to generate profit so that they can create their own cross-subsidy for affordable and social rent, and for shared ownership.” This was clarified as London, broadly speaking, in the following paragraphs.

Affordable rents are normally set at 80% of market rents. It looks like some housing associations are doing the opposite of what they are supposed to be doing. They have crossed over into the private sector. They are selling, at market prices, dwellings that they have built instead of letting them, and are letting others at PRS rents, instead of at affordable rents to the less well-off.

Reply to the comment left by "Appalled Landlord" at "17/09/2015 - 19:41":

Yes Appalled Landlord, and the next question was Q143:

‘Emily Thornberry Labour, Islington South and Finsbury:
So they are building for private sale in London and building for social rent outside London.
Gary Streeter Conservative, South West Devon:
A very quick answer, please; we are moving on.
David Orr:
Broadly speaking.’

The above and the increasing divergence between sales and rental values also highlights the fact that (1) PRS no longer stacks up for new/recent LLs in London over the last decade, (2) Private LLs in London who are neither incorporated nor unencumbered will be hardest hit by Clause 24 and (3) the political elite, their chums (in this case HA) and the voting public are rarely ‘in it together’ as they like to tell us.

Reply to the comment left by "Ros ." at "17/09/2015 - 09:37":

@Ros

That's some great research. I'll definitively be using this.

The following reply has arrived from Ian Lucas, long-standing Labour MP for Wrexham. He understands the need for the PRS, and that the PRS requires an adequate return on investment, as extracts from his letter show:

“I am currently considering the detail of the current proposal by the Government [to restrict tax relief for Landlords]. I do believe that it is necessary to have an increase in accommodation for residents in Wrexham, and that the Private Sector can provide an important part of that increase. Of course, it will only do so if there are sufficient benefits to precipitate investment from that Sector.”

“I know that proper care of properties does require an appropriate return on investment, and I would be very concerned if such an appropriate return were detrimentally affected by the Chancellor’s proposals.

You can be assured that I will look closely at the proposals when they come back to the House as part of the Finance Bill.”

Nationwide BS don't think the tax change will have a significant impact. I think we need to put then right on that.

http://www.mortgagestrategy.co.uk/2023731.article

6 out of 10 mortgage brokers thing the tax proposal should be scrapped.

http://www.mortgagestrategy.co.uk/news-and-features/sectors/buy-to-let/buy-to-let-news/most-brokers-want-osborne-to-scrap-unfair-btl-tax-relief-cut/2023662.article

Here is a useful article from Paul Smee Director General of the Council of Mortgage Lenders. Hopefully he is someone the Government will listen to.

http://www.mortgagestrategy.co.uk/news-and-features/sectors/buy-to-let/buy-to-let-features/paul-smee-stop-using-b2l-for-target-practice/2022961.article

I wonder if anyone knows how SAL got on at the Treasury. I don't know if they were meeting together with the RLA...

On another subject - just saw on the Press Preview that the Daily Mail front page is about older people being asked to sell their large homes and downsize to help the housing crisis... makes a change for another group to be targeted! (and of course the Budget IHT decision went against this and has encouraged people to stay put)

Reply to the comment left by "Ros ." at "17/09/2015 - 22:57":

Of course now the natural progression will be for HMOs to be encouraged and supported as they make an excellent use of larger homes and get them fully occupied - which is exactly what the country needs. I'm looking forward to this praise that will now be forthcoming for private landlords who utilise houses in this environmentally-friendly way, which also provides very affordable housing for young professionals, enabling them to save and get a foot on the ladder!