Summer Budget 2015 – Landlords Reactions

Reply to the comment left by "Laura Delow" at "14/10/2015 - 17:28":

from my accountant
It is difficult to tell without seeing the amendments which I can't seem to find in full … but my read is they are amending so that not just company's are excluded from this new restriction but also corporate partners (ie limited companies which are partners in a partnership) … hence … charging a company to income tax on so much of those profits as accrue to it …. the original “a property business carried on by a company” would have meant corporate partners would have been caught by new restriction I believe as they are not carrying on a business the partnership is …

Yesterday Labour voted to keep on borrowing forever. Seriously.

The Fiscal Charter commits the government to deal with our debts and run a budget surplus.

By voting against this yesterday Labour confirmed that they want to go on borrowing forever - loading debts onto our children that they can never hope to repay.

You wouldn’t raise a family or run a business in this way, so why should it be any different for our country?

We can’t let Labour wreck our economy. Donate today and let’s make sure that they never get back into power again.

Unlike Labour, we are building a country where we deal with our debts and live with our means. Where hard work is rewarded and you and your family are secure.

And if you want the same for our country, and help us deliver it.

Best wishes,

Where hard work is rewarded unless your a sole trader landlord then they put the boot in and tax you out of existence

Reply to the comment left by "Lisa Stux" at "15/10/2015 - 11:49":

Nice one, Lisa. I believe all these messages are really important and we should all make an effort to highlight this travesty at every opportunity. We need to be as loud as we can be- writing to papers etc. I wonder if anyone fancies writing to some newspaper letters pages today? (I'm out of action this afternoon - and am currently doing some other stuff - so I'm not shirking!)

Reply to the comment left by "KATHY MILLER" at "15/10/2015 - 11:53":

Thought it would be wishful thinking. Thanks though Kathy for finding this out. It's appreciated. Did your Acct say anything about LLP's?

Reply to the comment left by "Lisa Stux" at "15/10/2015 - 11:49":

Well put Lisa. Succinctly put.

Reply to the comment left by "Lisa Stux" at "15/10/2015 - 11:49":

Well done Lisa. Succinctly put.

Will more housing associations move into PRS?
12 August 2015 | By David Ramsdale

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UK fund manager poised to forward fund £160m Manchester PRS scheme
16 September 2015
A lot has been made of the government’s policy to extend Right to Buy to housing association tenants, and the negative impact this could have on the supply of social housing in the future.

David Ramsdale
Under the current Right to Buy scheme, in place since 1980, an estimated 1.88 million council homes have been sold to tenants. The government claims that every housing association home will be replaced one for one, financed by local authorities selling off their most expensive properties.

However, of the 1.88 million council homes sold through Right to Buy, only 345,000 local authority homes have been replaced, resulting in a shortfall of more than 1.5 million homes.

Given the chronic shortfall in housing supply across the UK (annual housing delivery has missed government targets in every year since 1973), the house-building sector cannot afford to see further falls in supply at the lower end of the market.

Furthermore, given the discounts available to tenants both in London and across the UK, selling off housing association properties, coupled with the 1%-per-year reduction in rents over four years from April 2016, could deter investors financing housing associations and the ability of housing associations to obtain finance through traditional means.

Conversely, in order to make up for the financial losses they could suffer as a result of the rent reductions and Right to Buy sales, housing associations may turn their attentions toward the private rented sector (PRS), something we are already seeing.

One option is through the government’s Private Rented Sector Housing Guarantee Scheme that requires developments to be of a minimum value of £10m and to deliver residential developments only. Notting Hill Housing has expressed interest in the scheme and others are expected to follow suit.

Terraced housing
Source: Flickr/Sludge-G
The PRS is in desperate need of more purpose-built stock, one reason being the need to improve the standard of housing. Due to the ageing nature of the housing stock across the UK, the majority of homes in the PRS are Victorian terraces and converted flats in need of modernisation.

Housing associations delivering PRS schemes would not only raise the standard of housing but would also help to alleviate some of the strain on the fastest-growing tenure type in the UK. While build costs will be higher, the significantly higher rents placed on the PRS, particularly in London and in strong rental markets such as Cambridge, Manchester and Leeds, provide an attractive proposition for social housing providers looking at diversifying their business activities.

In 2013-14, the PRS succeeded the social rented sector as the second-largest tenure type in Britain, while a recent report by PwC estimates that the sector will account for 7.2 million households by 2025.

Therefore, the PRS will need to be at the heart of rectifying the housing shortage, surpassing the need for social housing. If the Right to Buy scheme extension to housing associations fails to improve on the replacement record seen over the last 35 years for local authority housing, coupled with the 1% fall in social housing rents from April 2016 for four years, investors in housing associations may decide to move away from the social housing arena, unless a greater focus is placed on the PRS.

Sigma to raise £20m for PRS projects as pre-tax losses double
12 August 2015 | By David Parsley

Sigma Capital has revealed a £20m fundraising to build its own private rented sector assets and posted its half year results.

>Kathy Miller

Is that a new fundraising over and above the £20m placing they announced in August?

Clause 24 amendment 23.

Clause 24(5), section heading for new ITTOIA 2005, s274A, leave out “finance costs” and insert “costs of a dwelling-related loan”

Probably one for the accountants but if you take out a loan on your own house to buy a BTL property for cash maybe it could be argued that loan finance costs are not encumbered on the rental property and thus are not a dwelling-related loan?

What if you change the loans from mortgages to personal loans (I know interest rates would be higher), would this then be allowable?