Summer Budget 2015 – Landlords Reactions

Next on the list: landlords and lawyers
HMRC refused to confirm which industries and areas of the country could be next for fear of jeopardising their investigations – but there are ways to predict where the next "intensive burst" will fall.
The taxman routinely launches campaigns to encourage people to get their tax affairs in order.
A recent "Let Property Campaign" encouraged 10,000 buy-to-let investors to confess to £50m in unpaid taxes, after nudging landlords to disclose any unpaid taxes.
Once the amnesty period is over, during which offenders could pay reduced penalties for late tax, the taskforce will step in – and they will be less sympathetic.
To expose buy-to-let landlords, taskforces are expected to use data collected from the Land Registry, council tax databases and online lettings and sales websites such as Rightmove and Zoopla.
BDO's Mr Hubbard said: "If a landlord owns a four-bedroom property, but only declares rent for two tenants, they won't be able to argue that they could not fill the other rooms if the taskforce can prove the property market is popular with tenants."
A campaign targeting buy-to-let landlords recently raked in £50m but experts say the taskforces will swoop in next
A campaign targeting buy-to-let landlords recently raked in £50m but experts say the taskforces will swoop in next Photo: Christopher Furlong/Getty Images
Solicitors were also told to "bring their tax affairs up to date on the best terms possible", in a campaign that ended in July. This is before taskforces become involved and impose more onerous penalties.
Currently, the taskforce can impose penalties of up to 100pc of the unpaid tax – in other words, require double the sum originally due. This applies to those who fail to disclose their tax, particularly if a campaign has run its course. This increases to 200pc if an evader receives income offshore.
HMRC is increasingly unwilling to tolerate people who miscalculate their own tax liability – and fail to come forward when they make a mistake, according to experts.
"As the net closes on tax evaders, HMRC's public shaming of evaders sends the message that the public has more of a moral duty to pay the right amount of tax," said Mr Hubbard.
HMRC's Ms Granger added: "The message is clear: if you try to cheat, we are going to catch you.
"A small number of people still think they can cheat the tax system; these figures prove we can track them down and take back what they owe."
This year's taskforce: the full list
Construction workers
Taxi drivers
Property buyers and sellers
Shops
'Hidden wealth'
Grocery sector
Bogus income tax repayment claims
Money service bureaus
Restaurants
Hot food sellers
Rag trade
Importers
Tobacco
Partnerships
Hauliers

A UK institutional LL has been spending...

Announced yesterday... (6.7% yield to save you reaching for the calculator)

"GRAINGER ACQUIRES REGIONAL PRS PORTFOLIO FOR £10.4M

Grainger plc ("Grainger", the "Company" or the "Group"), the UK's largest listed residential property owner and manager, today announces it has acquired a residential property portfolio of 112 private rented sector (PRS) units for c.£10.4m.

The portfolio comprises five sites located in Newcastle, Whitley Bay and Leeds, with an estimated rental value of c.£694k per annum.

Today's acquisition is further demonstration of the Company's continued acceleration of growth in its PRS business.

Including today's announcement, Grainger has acquired over 1,000 PRS units with a market value of c.£94m since 1 October 2014, bringing the value of the Company's total UK PRS portfolio to over £925m of assets under management."

http://otp.investis.com/generic/regulatory-story.aspx?cid=505&newsid=586818

Reply to the comment left by "Jon Pipllman" at "29/10/2015 - 11:34":

Historically, their UK focus is regulated tenancies. They buy cheap, hang on and sell up when they eventually become vacant. Are these purchases a dramatically different strategy for them?

Reply to the comment left by "Jon Pipllman" at "29/10/2015 - 11:34":

http://www.graingerplc.co.uk/investors/financial-performance/key-performance-indicators.aspx

...says they have an LTV of 46.5% (2013). Almost identical to mine. Though one of our businesses is going to be financially crippled by GO, whilst simultaneously the other is effectively being given a bonus due to reduction in corporation tax.

Last night in a discussion on 'This Week', Michael Portillo said that the Lords had made a political error - that they should have let the tax credits cuts go through, because soon enough the damage would start to be seen and there would have had to have been a u-turn which would have been more damaging for the Government and not jeopardised the Lords.
I think that is the way we can see our situation - that as the damage starts to become clear, the data on factors like a massive slowdown in BTL mortgages (and halt once the landlords who haven't realised what's happening do realise it), the rent increases, a halt in private landlords building to rent (and the institutional ones not building enough - not least because of skills shortages) and so on, that then we will have our u-turn.
In the meantime we keep up the campaign to raise awareness. My electrician and friend, who understands the whole thing and has signed the petition and who relies heavily on work from landlords (not least the certification etc., which means any switches from rentals to owner-occupation will hit him hard) told me that most landlords he works for are still clueless about it and he has had to explain it to them.
I also understand that there will be an article in the Telegraph tomorrow, so hopefully that will push our cause further.

This might be wishful thinking however, since Chancellor has handed over powers to Bank Of England to Regulate & Control Buy To Let Mortgages..then he may look to reverse forthcoming legislation as he may feel that it will be enough to take heat out of booming market although this may not be his motive but face saving exercise.

As having seen some convincing arguments from Landlords lobbying he might have realised that, this was the only way to save his face.

He might announce " We have listened to Landlords and their concerns and we have drawn a conclusion that, it would be better way to bring a level playing field by handing over powers to Bank Of England to control Buy To let Sector as opposed to Taxing Landlords further"

I know, I am playing devil's advocates but I have a hunch as why would he all of sudden hand over powers to Bank Of England without any consultation despite he previously stated that, he would seek to conduct consultation.

Reply to the comment left by "Saeef Khan" at "30/10/2015 - 10:21":

GO has given the BoE these powers so that when it goes pear shaped he has a nice little scapegoat to blame it on. Unfortunately he can no longer let the LibDems take the flack.

GO won't backtrack as he needs the revenue particualrly now as he'll have to give some concessions on tax credits.

Just receive another letter from David Gauke via my local MP. As expected he didn't answer the questions put to him just trotted out the same old rhetoric. Unfortunately, the adage "there are none so blind than those that will not see" springs to mind here.

Disappointingly, my MP has said I am the only person in his constituency that has approached him about this issue.

I have a meeting with him (at long last) next Friday. Apart from taking two bricks with me, does anyone have any other things they'd like me to put to him?

HM Treasury, Horse Guards Road, London, SW1A 2HQ
Dr Andrew Murrison MP
House of Commons 15 OCT 2015
London SW1A OAA
CT Your ref: AM/JCP/12/180915
Dear Andrew 12 OCT 2015

DAVID GAUKE

Reply to the comment left by "Barry Fitzpatrick" at "30/10/2015 - 11:01":

"Please pass on my thanks to Mr Fitzpatrick for taking the trouble to make us aware of these concerns."

F****** patronising basket.

Barry, I am absolutely flabbergasted with Gauke's attitudes. I think, what will happen is that, a lot of landlords especially mortgaged/highly leverged and fully declared landlords will Exit the market once they feel the brunt of these changes.

Consequently this is likely to have some effect on supply which would place upward pressure on rents- The only concern is 35000 signatures so I am not sure how many landlords are actually affected by these changes.