Summer Budget 2015 – Landlords Reactions

Summer Budget 2015 – Landlords Reactions

14:00 PM, 8th July 2015, About 9 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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BTL INVESTOR SCOTLAND

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9:33 AM, 14th November 2015, About 9 years ago

Saeef Khan

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10:31 AM, 14th November 2015, About 9 years ago

Reply to the comment left by "Mark Alexander" at "13/11/2015 - 13:59":

Mark, you hit the nail on head. LTV has nothing to do with viability of BTL whatsoever. This entirely depends on rate of mortgage interest you are paying coupled with the amount of rent you are bringing in.

You could have LTV @75% on £170000 mortgage with an interest rate of 5.39% and you bring in £750 rent whilst paying £763 in mortgage and that excludes forthcoming taxation!

Alternatively, you could have LTV @ 75% on £170000 mortgage with an interest rate of 2.79% and you bring in £900 rent whilst paying £395 in mortgage interest even with new taxation latter will be affordable.

These news editors are bunch of amateurs , who are only interested in filling lines without making any sense.

BTL INVESTOR SCOTLAND

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10:55 AM, 15th November 2015, About 9 years ago

Congratulations again to The Telegraph for featuring the buy to let tax grab issue. This time it is an article from Alan Ward from the RLA.

http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/11991806/Rented-homes-are-desperately-needed-so-why-are-landlords-demonised.html

Barry Fitzpatrick

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10:58 AM, 15th November 2015, About 9 years ago

Reply to the comment left by "BTL INVESTOR SCOTLAND" at "15/11/2015 - 10:55":

Just emailed this link on to my MP.

Barry Fitzpatrick

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16:49 PM, 15th November 2015, About 9 years ago

Andrew

Can I urge you to lobby the Chancellor and David Gauke to not make this tax change a retrospective measure and only for it to be applied to new property purchases (as I don’t think the Chancellor will do a U-turn on this measure just prior to its receiving Royal Assent) in the forthcoming Autumn Statement. I believe this could be done as a clarification of the measure without any loss of face.

You may be interested in this article published today in The Sunday Telegraph:

Rented homes are desperately needed, so why are landlords demonised?

Comment: the public – and the Government – are wrong to persecute private landlords who provide a vital service, writes Alan Ward

By 2025, one in four households will live in the private rented accommodation, says PwC, as a result of cuts to social house building and private developers being “cautious about expanding too rapidly”.

Why, then, has the Government pulled the rug from under the feet of landlords? Why is it doing everything to deter them from investing in new homes?

Increasing numbers of people are choosing renting as a lifestyle option, and 80pc of tenants are satisfied with their current landlord. Yet landlords are consistently being demonised by politicians, including now by the Treasury.

……….Faced with this and with many landlords, contrary to popular belief, not rolling in money, it is little wonder that 75pc of landlords, according to further RLA [Residential Landlords Association] data, are expecting to increase rents to cover the costs of the Chancellor’s plans……..

…….over 60pc believe that the Chancellor’s decision to restrict mortgage interest relief for residential landlords to the basic rate of income tax will push them up a tax band despite their income not increasing. Why? Because tax will be applied to turnover instead of to profit.

…………..using landlords, many of whom are Tory supporters, as the scapegoats for the continued failure by all parties to get to grips with the housing challenge is no answer.

…………..the evidence is clear that the Chancellor’s assertions are wrong. As Paul Johnson, Director of the Institute for Fiscal Studies has noted, “rental property is taxed more heavily than owner-occupied property”. Unlike homeowners, landlords are taxed on both rental income and capital gain, a point supported by the Conservative’s favourite think tank, Policy Exchange.

………..The Chancellor’s gamble, indeed hope, could well be that the Treasury will offset likely losses in the supply of rental homes by a spike in capital gains tax receipts as landlords look to sell up. He would be wrong to assume this.

….As a start, the Chancellor needs to look again at his mortgage interest changes and, if he is not prepared to hit the pause button, at least make clear that they will not be in any way retrospective. They should apply only to new mortgage lending.”

(my emphasis)

Full article can be read here: http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/11991806/Rented-homes-are-desperately-needed-so-why-are-landlords-demonised.html

Ian Simpson

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19:01 PM, 15th November 2015, About 9 years ago

Reply to the comment left by "Barry Fitzpatrick" at "15/11/2015 - 16:49":

Nice one Barry. I might send a similar version to my "level the playing field" MP. .... Probably all a bit too little too late though .... ☹️

Kathleen

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19:39 PM, 15th November 2015, About 9 years ago

Reply to the comment left by "Barry Fitzpatrick" at "15/11/2015 - 16:49":

An article in Sunday Times states that
Sir John Cunliffe one of the Bank of Englands deputy Governors has expressed concern about the buy to let market turning from boom to bust.
Sir Johns worry is that Landlords 78% of whom have only one property, could take flight. As he put it "It is not in my view at all impossible that sharp movements in prices and a loss of confidence in future capital appreciation , in combination with interest-rate increases , could cause a substantial number of buy to let Landlords to seek to exit the market." This is possible - but the implementation of clause 24 on its own will be enough to cause this to happen. This consequence of clause 24 should be highlighted to Sir John and he needs to be contacted about this.

Ian Simpson

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6:49 AM, 16th November 2015, About 9 years ago

Looks like this may have struck a cord with my MP, Sir Gerald Howarth.... Reply within three hours , and on a Sunday ...! See below!!

Thanks for the further email on this issue. I have looked back at the earlier correspondence we had and I’m not aware of sending you the ‘scripted government reply’ although, as a Conservative voter you will expect me to support the party’s policies as much as possible.

I note you have made a suggestion the impost should not be retrospective, something I can fully support. People are entitled to a degree of certainty and should not be subject to goalpost shifting without clear good reason. Ccordingly, I will arrange to write to the Chancellor tomorrow.

Barry Fitzpatrick

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6:58 AM, 16th November 2015, About 9 years ago

Reply to the comment left by "Ian Simpson" at "15/11/2015 - 19:01":

@Ian

With the Autumn Statement imminent, we might be able to get a "clarification" i.e. non retrospective application of Clause 24.

Especially as this will achieve the Chancellors stated aims (though not necessarily his hidden agenda).

Ian Simpson

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9:58 AM, 16th November 2015, About 9 years ago

Indeed. Fingers crossed for a last minute reprieve...!!

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