Summer Budget 2015 – Landlords Reactions

Reply to the comment left by "NW Landlord" at "12/12/2015 - 11:08":

You have a point, but prior to this political meddling, prior to restrictions on buy-to-let lending and prior dramatic increases to landlord tax liabilities, we were servicing our mortgage debts with little to no difficulty.

The tipping of mortgage debt to the crisis point is being initiated by this government.

More evidence of landlords selling up in the Guardian today.

http://www.theguardian.com/money/2015/dec/12/buy-to-let-landlords-struggling-tax-increases?CMP=share_btn_fb

Reply to the comment left by "Gareth Wilson" at "12/12/2015 - 11:16":

Gareth,

You hit the nail on head. Carney raised concerns in relation to BTL landlords if interest rates were to rise, then this sector becomes extremely vulnerable (more than OO) yet they have taken completely opposite stance by increasing Landlords costs to extortionate level which I am unable to comprehend.

I agree mate my newest purchases would yield at 7% interest rates before the nazis ( that's what I call this government ) got in it was a great business that's why I am so angered at what he has done sabotaged hard working entrapreneurs. The heroes of our country according to Cameron what a joke gang of lying hipocrits

Reply to the comment left by "Saeef Khan" at "12/12/2015 - 11:22":

They bring in policies causing the actual crisis, and then use the existence of this crisis as a pretext to bring in further, supposedly corrective measures, which render the problem even more acute for the many while enriching corporate landlords.

This is destructive spin from a government using the people that voted for it as pawns for their own benefit.

Its been mentioned before, however a landlords union and industrial action is the only way to handle this criminal.

1 - All private landlords give notice to their tenants that a S21 will be issued. Informing them of the reasons why and who to complain to.
2 - Issue tenants on mass with S21 notices which will result in the local authorities being swamped by those who still need to rent.
3 - After a 1 month void the government would have lost enough money in housing people in hotels etc that they will realize that they can't afford to do it again.
Landlords will probably take a hit of 1-2 months void, however in this time properties can be refreshed and made available again at top market rates. After all many of use are guilty of never raising rents. Thanks GO, time to fix the problem.

I see it as a far more cost effective way of curing the government problem if interference than paying through the nose with taxes on turn over or the cost of rolling everything over into a company. Its still a fall back position.

The taxes and what ever else this or subsequent governments are planning to throw at us is going to sink the industry regardless so what is there to be lost.
Emergency measures are to be overcome by putting the properties up for sale potentially. Something that may have to happen regardless.

This government won't listen to the softly softly approach, its been tried and dismissed. I've never agreed with industrial action before, however there is too much at stake to sit by and be pushed around by a greedy, clueless government. Future governments will have to learn the lessen in advance.

This government won't listen full stop

Reply to the comment left by "Gareth Wilson" at "12/12/2015 - 11:38":

Hi Gareth

This article shows how Osborne caused the house price problem: http://www.theguardian.com/business/economics-blog/2015/oct/04/george-osbornes-housing-based-revival-stands-on-flawed-foundations

Reply to the comment left by "Mark Alexander" at "12/12/2015 - 11:07":

Mark, my plan is to buy 1 or 2 of my own properties for cash into my limited company each year for as long as I can afford to. I'm guessing I can get maybe 10 into the company with no debt. I will also have a sizeable directors loan account to draw on rather than dividends. I will then have the option to raise funding within the company to buy some more - maybe another 10 into the company. The remainder which will be around 10 will probably be sold - although I will break even on these at best. In the mean time I will transfer my main residence into my wife's name.

I genuinely fear rent controls being brought in at some point, because I don't see attitudes changing from the standpoint of 'it's all the BTL landlords fault'.

I wrote to Justine Greening, Zac Goldsmith and to the 'Chairman's Office' of the Conservative party - pointing out that we simply need to build more properties to solve the actual 'problem', with everything else just pointless tinkering around the edges. I suggested setting up a public company to build however many properties are necessary to keep house prices rising by no more than 0.5% per year in cash terms, whilst hitting a 3% inflation rate per year in the wider economy. Using these figures, you'd get an almost 25% drop in real house prices in just 10 years in a way that people wouldn't really notice. Zac has a plan to build on unused Public land in London, turning foreign investment into something more positive than buying trophy flats, which is to contribute to a pan London fund for building to rent (with people able to invest here too - a sort of long term, low risk return alternative to stocks and shares). I was fairly encouraged by his response.

The 'Chairman's Office' response wasn't great, and like Justine Greening's letter it borrowed heavily from that stock response that we've all seen before from David Gauke. They did say that they would pass on my suggestions to the relevant department (which I suspect was the waste paper bin).