Summer Budget 2015 – Landlords Reactions

Reply to the comment left by "Ros ." at "03/10/2015 - 15:11":

Thats good Ros , united we stand.

It worries me that she is supporting it as in all her previous reports to government its about stopping the NIMBYS and building more

Reply to the comment left by "Ed Duncan" at "03/10/2015 - 19:48":

Except all those on benefits cant pay as originally they reduced the rent down from 50% to 30% so 3 in 10 are meant to be affordable by a person on benefits.

They have now frozen benefit til 2020

This puts tenants on benefits into cheaper houses and they are cheaper for a reason the standard is lower.

Reply to the comment left by "Ros ." at "03/10/2015 - 17:05":

I dont think letting FTB/OO get into debt for a 100% is very good either.

They still own the 5% or 20% government is giving them, and if most buy new build, it as a premium ,thats why the LTV is lower by mortgage companies loaning on them.

If market drops possible neg equity, interest rate rises higher outgoings.

UKAR Corporate Services
On 8 October 2013 UKAR Corporate Services Limited (UKARcs), a subsidiary business of UKAR, became responsible for the administration of the Government's Help to Buy Mortgage Guarantee Scheme on behalf of HM Treasury.
The UKARcs website provides information specifically for lenders, including key features of the scheme, details of the lender registration process and a portal for registered members to access key documentation relating to the Scheme. UKARcs does not offer any services directly to borrowers.
Wholly-Owned Investments

UKFI’s activities in relation to the management of the Wholly-Owned Investments are set out in the UKFI Framework Document - Revised October 2014 Version and UKFI Investment Mandate - Revised October 2014 Version.

The ‘Wholly Owned’ investments comprised Northern Rock plc and UK Asset Resolution Ltd (UKAR), until the sale of Northern Rock plc to Virgin Money on 1 January 2012. UKAR was formed during 2010 to integrate the activities of NRAM plc and Bradford & Bingley plc. UKFI managed the Government’s 100% shareholding in Northern Rock plc from its formation on 1 January 2010 until its sale.



Government investments as of 1 April 2014 comprise
£13.6bn of loans in NRAM;
£2.4bn of Working Capital Facility (WCF) in Bradford & Bingley plc with an additional £18.4 billion statutory debt comprising £15.7 billion owed to the Financial Services Compensation Scheme (FSCS) (via a loan from HM Treasury) and £2.7 billion owed directly to HM Treasury, reflecting the value of the retail deposits which were transferred to Abbey National plc.
What we do

UK Financial Investments (UKFI) was created in November 2008 as part of the UK’s response to the financial crisis.
UKFI is responsible for managing the Government’s shareholdings in The Royal Bank of Scotland Group plc and Lloyds Banking Group plc. UKFI is also responsible for managing the Government’s 100% shareholding and loans in UK Asset Resolution Ltd (“UKAR”) and its subsidiaries. UKAR was formed during 2010 to integrate the activities of Northern Rock (Asset Management) plc and Bradford & Bingley plc. UKFI managed the Government’s 100% shareholding in Northern Rock plc from Northern Rock plc’s formation on 1 January 2010 up to its sale to Virgin Money on 1 January 2012.
UKFI’s overarching objective is to manage these shareholdings commercially to create and protect value for the taxpayer as shareholder and to devise and execute a strategy for realising value for the Government’s investments in an orderly and active way over time within the context of protecting and creating value for the taxpayer as shareholder, paying due regard to the maintenance of financial stability and acting in a way that promotes competition.

7. To provide input and expertise where appropriate to support HM Treasury’s wider policy interests
in relation to the banking sector, in particular in relation to financial stability and competition.

UKAR has continued to make progress in its objective of winding down the mortgage books of both
NRAM and Bradford & Bingley. In the year ended 31 March 2015, UKAR reported an underlying profit
of £1.4 bn, and total customer balances were reduced from £61.2bn to £52.7bn. Arrears levels continue
to fall as a result of UKAR’s proactive approach to arrears management coupled with the continued low
interest environment. In October 2014 UKAR closed a sale of £2.7bn of mortgage assets, and in this
financial period has repaid over £4.4bn to the Government. In March, UKAR announced that, following a
strategic review, it would seek expressions of interest in respect of divestments which will include options
around Granite, a securitisation vehicle originally established by Northern Rock in 2001. At the same
time, UKAR also announced its intention to explore potential options for the divestment of its mortgage
servicing activities.
UKAR
At 31 March 2015, UKAR owed the Government £34.6bn, an amount the company expects to repay in
full. Total payments from UKAR to the taxpayer including repayments, interest, fees and corporation tax
totalled £4.4bn in the last year, down from £5.6bn in the period 2013/14 mainly because cash is being
accumulated to repay a £1.0bn covered bond maturity in 2015.
In October 2014, UKAR sold a portfolio of performing residential mortgage loans for a sale price of
£2.7bn. The proceeds included a c.£55m premium over the book value as at end May 2014. UKFI
assessed that the sale represented good value for money for the taxpayer, as well as contributing to the
orderly run-down of the mortgage book.
Following this sale, UKAR and UKFI appointed advisors (Credit Suisse and Moelis & Company
respectively) to undertake a programme of work to assess opportunities for further sales of UKAR assets
and, separately, the potential for divesting its operating platform. In March 2015, UKAR announced it
would seek expressions of interest in respect of divestments, including options around Granite, a
securitisation vehicle originally established by Northern Rock in 20011
. At the same time, UKAR also
announced that it will explore potential options for the divestment of its mortgage servicing activities.
UKFI wrote to the Chancellor at the time of the 2015 Budget setting out the commercial rationale for
the sale and UKFI’s assessment that, subject to market conditions remaining favourable, a significant sale
of UKAR’s mortgage assets is likely to be both achievable and value for money.

UKFI wrote to the Chancellor at the time of the 2015 Budget setting out the commercial rationale for
the sale and UKFI’s assessment that, subject to market conditions remaining favourable, a significant sale
of UKAR’s mortgage assets is likely to be both achievable and value for money.

Kirstin Baker – Non-Executive Director
Kirstin was appointed as HM Treasury’s Finance and Commercial Director in January 2013. In this role
she oversees the Treasury’s finances and Corporate Services and is a member of the Treasury Board.
Kirstin previously worked as a Senior Policy official in HM Treasury, heading the team responsible for
coordinating public spending and managing many of the Treasury’s interventions in individual banks in the
wake of the 2008 crisis. Kirstin’s earlier career was in European Policy and she worked as a Competition
Official in the European Commission and in Policy Advisor roles in the Cabinet Office and the Foreign
and Commonwealth Office. More recently, Kirstin was seconded to the Scottish Government, leading
work on infrastructure investment.
Kirstin is a member of the Chartered Institute of Management Accountants. She was awarded a CBE in
2011 for her work during the financial crisis.

Reply to the comment left by "Steven O'Neill" at "03/10/2015 - 16:10":

My point is that unencumbered landlords do not charge less rent than encumbered ;landlords.

So, their tenants will also be affected by Tenant Tax. I agree the unencumbered landlord will increase rents and benefit from fewer properties to compete with & so yes they will be positively affected. BUT their tenants will not get positively effected and so it is a Tenant Tax that will affect all tenants - some directly and some indirectly but rents will rise universally and so all tenants will end up paying the Tenant Tax but HMRC all only get a part of it..

My message remains "Engage and understand and then dismiss but you must engage as Tenant Tax will affect everyone".

Reply to the comment left by "David Price" at "03/10/2015 - 19:50":

David you said..."They have no idea of any figures or the likely impact, its all guesswork. George Osborne should be dismissed for incompetence."

David I agree. Adam Prospect likes to gloat a little and suggest a higher level of intelligence and a considered political and economic motive by the Government. But I genuinely believe it is just utter incompetence. I am sure the volume landlords affected as claimed and the scale of dismay, it must not be fully thought through. It is clear to was not consulted on and so is just a great big mistake. I think we have probably all made stupid mistakes in our time but the measure is being big enough to admit it when you "FU" and be good enough and humble enough to put it right / stop doing it.

What is worse than the incompetence is the complete inability and unwillingness to to pause, review, rethink and adjust - just crazy crazy stuff. And it is that they don't care... and we give this crowd the ability to commit our military for foreign conflict - How stupid are we?

Reply to the comment left by "KATHY MILLER" at "03/10/2015 - 21:47":

Kathy you said... "I was surprised it was Kate Barker"

Kathy are you a betting girl?
Watch that name! Ms Baker is on the political move.... trying to be a mover and shaker... I wander what job she is wiggling and manipulating and espousing for....

Her comments in that piece were so stupid they have to be political..

Reply to the comment left by "Mark Brown" at "03/10/2015 - 23:46":

Mark I could not have put it better. We on this site must stop trying to rationalise clause 24 for there probably is no motive save the stated "levelling the playing field". We must also stop proposing alternative taxes, we are taxed enough already.
Never attribute to malice that which is adequately explained by stupidity (Hanlons Razor).
I have yet to see anything this government is doing which I consider is to the advantage of the general population or will help the economy recover, I would go so far as to say that political dogma is getting in the way of common sense.
As to fighting in foreign fields . . . heaven help those involved for when it is all over the government will abandon them and make them rely on charity.