Summer Budget 2015 – Landlords Reactions

The ever more strident anti PRS rhetoric in the press and Parliament does give me concern.

Thinking back to Cowies reply, Isn't the H2B 5% deposit a greater risk to stability than the PRS?

BTL obviously equates to "second homes", in GO's new fantasy world. See 4. below.

If this scheme works, there will be a dramatic fall in demand for BTL/PRS, so fewer new purchases, so will the 3% SDLT after 4/2016 really raise the expected £3bn?

EXTRACTS:-

Help to Buy Shared Ownership will lift the limits so that anyone who has a household income of less than £80,000 outside London, and £90,000 inside London, can buy a home through shared ownership. Only military personnel will be given be (sic) priority over other groups. The scheme will apply across England.

People can buy a share between 25% and 75% of a home. The rent on the rest of the property won’t be more than 3% of the amount left.

For example, on a house worth £227,000 where the buyer has bought a 40% share, the rent won’t be more than 3% of the remaining 60% - in this case £4,000 a year, or £340 a month.

Currently, if you’re able to pay at least 5% the value of your home as a deposit, the government will lend you up to 20% of the rest of the value of the property, alongside your mortgage of up to 75%.

With London Help to Buy equity loan:

you’ll need to contribute at least 5% of the property price as a deposit
the government will give you a loan for up to 40% of the price
you’ll need a mortgage of up to 55% to cover the rest

3. First-time buyers will be able to get a 20% discount on 200,000 new Starter Homes
Starter Homes are new build homes available at 20% off the market price. They are only open to first-time buyers under 40 and on homes where the discounted price is less than £250,000 outside London and £450,000 in London. You can register to find out about Starter Homes in your area.

£2.3 billion will be spent on building 200,000 Starter Homes over the next five years.

This money will be given to house builders to provide a 20% discount on new homes. House builders can now apply to make their developments Starter Homes.

4. Money raised from tax on people buying their second home will be used to help those struggling to buy their first home
From 1 April 2016 people purchasing additional properties such as buy to let properties and second homes will pay an extra 3% in stamp duty.

https://www.gov.uk/government/news/help-to-buy-new-announcements

Reply to the comment left by "Appalled Landlord" at "14/12/2015 - 23:19":

Words fail me, Appalled. That is quite simply the most brilliant letter I have seen. I think it should also be sent to journalists if possible as it exposes this nonsense for what it is. Could you also paste it onto the other thread, as that is the one I gave Ian Cowie the link to?

Ditto to others who are also sending him letters.

This is the link again:

http://www.property118.com/why-would-the-sunday-times-campaign-against-landlords/82718/

Reply to the comment left by "Ros ." at "15/12/2015 - 09:22":

Thanks Ros. I have now put it on the other thread.

This article stipulates that, BTL would be dead for small amateur investors however it would continue to be sound investment for large investors.

http://www.hamhigh.co.uk/property/will_the_changes_to_buy_to_let_affect_amateur_property_investors_like_me_1_4347573

Reply to the comment left by "Appalled Landlord" at "14/12/2015 - 23:19":

Loved the wallpaper comment

I just did a 3-question poll at spareroom. I don't know if this link will work, but people might want to do it. Basically it's about whether we have put up our rents and/or intend to - and you can choose the reason why - i.e. in my case and for many of us, 'because of Government legislation.' Spareroom focused on campaigning with Shelter to get better tax allowances for renting to lodgers and did bugger all for live-out landlords; and as we know, Shelter's position remains that they support C24....
I'd like to see the moral argument some day comparing the virtues and 'vices' of these two different ways of being a landlord. If having lodgers is okay, then Rigsby would have passed with flying colours...

http://www.spareroom.co.uk/flatshare/pollvote.pl?poll_id=376&urlsession_id=126114748&urlsession_key=145020162628037&utm_campaign=rent_direction_poll&utm_medium=email&utm_source=crm

Reply to the comment left by "Appalled Landlord" at "14/12/2015 - 23:19":

Love it : )

Reply to the comment left by "Chris Byways" at "15/12/2015 - 09:17":

Hi Chris - I like the way that the Government consider that anyone earning less than £80,000 is in need of help. My income (prior to the introduction of Clause 24) is considerably lower than that, and the Treasury want me to contribute financially to those on a far higher income! You couldn't make it up...

Reply to the comment left by "Chris Cooper" at "15/12/2015 - 18:09":

That's must be because we're innately evil and unworthy of means-testing applied to the rest of the population.

Reply to the comment left by "Ros ." at "15/12/2015 - 17:52":

Done, done and done.