Summer Budget 2015 – Landlords Reactions

Reply to the comment left by "NW Landlord" at "07/01/2016 - 14:49":

Hi, Fangs,

Where is the proof of this?

I bought a property advertised at £125k, unsold for 6m, for £113k eventually. Where were all these FTBers when they were needed?

The HPC cretins infesting the Telegraph, are waiting for prices to drop to about 1/4 of their value, before they show their money.

They MIGHT of course, but the economy will be a a right crap state by then, there will be zero house building, at least to sell. But by then we won't need Trident etc as not even N Korea would want to invade us.....

Hey we are at 700 pages - is that a record?

Reply to the comment left by "Gareth Wilson" at "07/01/2016 - 14:51":

Hi Gareth,

Yes, I've written to my MP.

The fact that the Conservatives have proposed this new Tax without any clear understanding of the wider consequences suggest to me that they are too arrogant/ignorant to reverse the decision. As much as it will drastically impact the many lives of our tenants in one way I know that this legislation, if passed, will backfire so badly on the Government when so many young people will be struggling to find a roof over their head, Many landlords will be forced to sell and property prices will fall, the economy will stagnate. Young people on lower salaries will STILL struggle to buy houses. Its going to be very messy and painful. Not to mention the loss of income for all the plumbers, electricians, maintenance guys, gas engineers, cleaners, furniture sellers etc we employ/buy off regularly.

Many of our tenants are in their early twenties, a time when buying a property isn't a priority. They just want a place with an easy commute to work. The government have miscalculated the consequences of this legislation and they will end up paying for it in the long run

Reply to the comment left by "Chris Byways" at "07/01/2016 - 15:12":

They haven't got none I am new to forums and won't be going back to those ones as the people on then despise landlords as much as terrorists I am shocked

I'll stick to this one with like kinder people

Reply to the comment left by "r d" at "07/01/2016 - 14:29":

r d

Do you have an option (this is blue sky thinking, may be non starter) to give notice, but re-offer them holiday lets, on similar terms, so that it is a no brainer for them, and reduce your obscene double taxation costs? (you pay 2020 turnover tax, AND lender pays tax on the interest they receive as well)

Lou wrote, in another place:-
"The ‘holiday let’ industry is growing exponentially, especially since the pension changes, and is hugely more damaging in large areas of the Country than BTL i.e. in rural areas, where employment is predominantly agricultural and relatively low paid, and private rented and low(er) cost family homes are essential. However, rural properties are being snapped up for holiday lets and farms are converting outbuildings and ‘tied’ cottages, and therefore removing them from the market. These properties remain unoccupied for many months each year, yet the Government sees no problem with the owners claiming tax relief on their mortgage interest payments."

Thats an option

However:

1) I am certain that the government will close this potential loop hole and will require proof that houses in London Zone 2 are indeed "holiday accommodation"
2) In the short to medium term whilst this legislation sinks in to the wider groups that it effects (tenants) they will refuse to sign Holiday tenancies over AST's as their rights may be effected.

Reply to the comment left by "r d" at "07/01/2016 - 15:33":

This will play out. If we don't get a legal viable way to make a fair profit, then the tenants would eventually potentially be dislodged through selling with vacant possession, or if the tenants are lucky, to another LL but esp if a corporate, at a much higher rent, or evicted when repossessed. Or GO does a u-turn, or they feel holiday lets, with same LL is the least worst option. When they have been there for 6m+ they will know they are long term let. But if this is seen as avoidance and the law is changed, then Result: you are forced to genuine short term holiday lets, if the demand is there in that area, zone 2 seems possible?

Reply to the comment left by "Chris Byways" at "07/01/2016 - 15:53":

Well, surely "holiday let" just means a short-term alternative to hotel or B&B, for people needing to stay for business reasons as well as for "holidays".

Yes, so? Is there a legal definition of the maximum duration? If so, its a non starter, but if Lou's partner has a viable model, and he doesn't, can we learn anything? It's not without problems, rearranging mortgage, being only one.

http://www.cumberland.co.uk/mortgages/holiday-let?gclid=Cj0KEQiAtri0BRDLoaCF95e7o_sBEiQA_pgRQ5XcdDdfFuRoXVYA1OXx3-9YuAAUuTk9Mm-qGdb_ApwaAhG28P8HAQ

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/323821/hs253.pdf
Page 3, para 3 indicates maximum of 155 days in any tax year.
So that may not work for r d's existing tenants.

It may be an alternative for some properties.

Reply to the comment left by "Chris Byways" at "07/01/2016 - 16:48":

And max 31 days on the trot for each occupant.