Summer Budget 2015 – Landlords Reactions

Scotland eventually followed suit same as Chancellor of Exchequer George Osborne by introducing 3% extra stamp duty on Buy To Let/Second Property.

http://www.dailymail.co.uk/news/article-3363488/Tax-raid-buy-let-homes-Scotland-Government-s-new-3-penalty-rental-properties-holiday-homes.html

Reply to the comment left by "Saeef Khan" at "17/12/2015 - 10:54":

So much for Scottish independence. What is devolution worth if the devolved parliament is a copy cat Westminster?

" George Osbourne has said he will consider tweaking the details of the tax before it is implemented, including making an exemption for corporations and funds owning more than 15 residential properties. This could help encourage institutions to invest in housing developments."

We do not know the details of the 15+ rules, but are large institutions better landlords than those with sub 15 properties?

Werner Toogood with 200 properties, apparently chased a dead students parents, and the traumatised flat mates for outstanding rent.

I for one don't think this is morally conscionable.

http://www.telegraph.co.uk/news/uknews/law-and-order/11937128/Parents-of-students-caught-up-in-tragic-death-taken-to-court-by-landlord.html

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

There is the argument that larger corporate landlords have more ready cash to dive in an fix problems. However I have never known a small landlord not keep enough in reserve to fix problems as they occur.
Also, the smaller landlord is more personally involved where as the larger corporate landlord is delegating to the lower ranks to put things right. I'm not saying corporate landlords wont do a good job, however there are more people involved in the food chain when your talking large corporate entities and someone working on minimum wage doing a job they have little personal investment in isn't going to have the same regard to their clients (Tenants) than someone who's income is totally reliant on getting the job done right.

Our plan in the new year is to incorporate, so perhaps joining the ranks of the corporate landlord, however I don't plan to extend beyond the magic 15 properties as I would be over extended time wise for what I want out of it.

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

Chris,

That's interesting. What source,do I need to refer to in order to read, Osborne is considering tweaking/ exemption for corporates/larger landlords?

http://www.simplybusiness.co.uk/knowledge/articles/2015/11/over-35000-angry-landlords-sign-petition-against-osborne-tax-changes/

Doris today repeated that, but I've read it elsewhere.

Btw Toogood had 200 student lets, not properties, and of course I was not implying all small are good nor all big are bad, but as Darren pointed out there are a number of minimum wage employees, customer facing but with no discretion.

But hang on before incorporating, I doubt that is what GO was wanting, so can easily tweak the rules so 15+ in. Ltd co does not qualify.

Like the 5p bag charge, it is optional, the lowest Capital gain properties are going to be sold, the equity used to pay down the mortgage on the remainder, and put the rents up to survive.

GO also reckoned only 1 in 5 would be affected. Well if so, £3bn is a lot for that 20% of landlords to find!

Do the maths. I sure he hasn't. Before kicking the the tiger in the balls, plan how to deal with it's teeth.

Sweet, see
http://www.theguardian.com/money/2015/nov/27/buy-to-let-stamp-duty-restrict-supply-new-homes

About 14 para.

Reply to the comment left by "David Price" at "17/12/2015 - 13:31":

It gives a whole extra swath of busybodies the opportunity to mess [boss] around and tell other people what to do, while building up a special pension fund at their expense.

Sorry - not really about C24, but it is the season of goodwill and all that.

Be Merry, for tomorrow you pay.

Reply to the comment left by "Chris Byways" at "17/12/2015 - 16:33":

Re the 15 properties test: surely it is discriminatory to allow this only for corporations, who may well be based in the IoM. And waht happens for people like me who own whlo buildings with permissive ocupancies going back to WW1? Do they count as the number of ratepaying flats, or just the individual title?

I just can't wait to vote again, It probably won't be valid, but I will tell them what I think, and having been both a candidate and a scrutineer in the past, I know that everyone in the counting hall will read what I write.

At the moment, I don't think they care. Unfortunately for them, they didn't learn from my old history master: 'remember, boys, governments get voted out, not in'.

I bet there will be a high turnout of Landlords.

Reply to the comment left by "Costas Tzanos" at "17/12/2015 - 17:12":

Isn't it time there was a separation betwen BTL and MTL (Mortgage to Let). As Costas clip shows, the anger is at those MTLers who are highly geared with intertest only mortgages and tahnks to the tax system may well have been running at a loss since day 1, the only tax paid being the VAT they pay working on their properties. There is another strand also, RRTL: Renovate/Refurbish to Let.

the anger is a spillover from the Starbucks/Amazon/Google tax avoidance, but MTL is an easier target than them, and makes good copy for the media hounds.

My sort of BTL and RRTL buy the properties that FTBs can't get a look at, unless they are cash buyers.