Summer Budget 2015 – Landlords Reactions

And yet it is exactly these international funds which the new regime seems to favour.

Just got this email from Paragon, as just completing an application with them, some good simple advice that may be same with other applications.

Stamp duty changes for buy-to-let purchases
In his Autumn Statement, the Chancellor announced that higher rates of stamp duty will be charged on property purchased for buy-to-let purposes (above £40,000).

This change will come into effect on purchases that complete from midnight on 31 March 2016. The higher rate of stampduty for buy-to-let purposes will be 3 percentage points above the current stamp duty rates and will represent a significant additional cost for buyers.

What you can do to get ready
Whether you are purchasing a property or raising funds to facilitate a purchase of another property, it is important that you understand how this change could affect you and that you work closely with your mortgage introducer and solicitor to ensure that you provide us with all the information we need to process your mortgage application as early as possible.

Allow sufficient time
Please remember that even after we receive all your information from your mortgage introducer, we need time to carry out some essential checks, including the assessment of the subject property, before we can approve your mortgage. In addition, we could see a higher volume of
applications over the next three months which could impact our turnaround times. Once we receive the information from your mortgage introducer and solicitor, we will do everything we can to help facilitate your transaction before the end of March. However, we can’t guarantee
that we will be able to help you meet the deadline and you should be aware that it will be your responsibility to cover the additional stamp duty charges if the transaction completes after the deadline.

Getting support
If you require further information about how this change could affect you, it is essential you seek the advice of a qualified financial advisor and tax specialist. To obtain an update on the progress of your mortgage application, please contact your mortgage introducer.

Reply to the comment left by "Gareth Wilson" at "12/01/2016 - 23:51":

Thanks Gareth

Here is a link to the Reuters article that accompanied the video:

http://uk.reuters.com/article/uk-britain-housing-buytolet-idUKKCN0UQ1Q820160113

Dan Gandesha called letting in the UK a “cottage industry” because there is a large number of landlords who have a small number of properties. In fact the same applies in the USA, Australia and all the high-income countries in Europe. In all these countries residential letting is in the competitive hands of a very large number of people.

Would those who sneer at us in this way prefer to rent from large rental companies that will operate in local oligopolies? Unlike the supermarket oligopoly, rental companies will not be competing with each other to reduce prices, given the acute housing shortage.

Reply to the comment left by "Appalled Landlord" at "13/01/2016 - 14:42":

In Germany too (which is so often held up as the Holy Grail). Something like 61% of PRS is made up of landlords with 14 units or less.

Reply to the comment left by "Dr Monty Drawbridge " at "13/01/2016 - 14:52":

Yes, and the anti-landlord brigade go on about rents being cheaper there. Well my sister used to rent a house there and it was extortionate. She also had to provide and install her own kitchen when she moved in and then take it away when she left. It is similar in France as well - with bugger all being provided - you get an empty shell to rent out.
Taken together with the fact that these foreign landlords face far lower taxes, the ones who hail Germany as ideal don't know what they're talking about.

Reply to the comment left by "Martin Gardner" at "13/01/2016 - 12:26":

I have just had a meeting with my accountant and asked the question from him, can we deduct the extra stamp duty paid on purchase from the CGT when we do eventually sell. His answer was yes. So assuming he is correct I don't see the additional stamp duty as a major problem if you're in it for the long haul with the exception of the additional interest having to be paid on the extra funds, add that to the rent.

Has anyone here had any advise to the contrary?

I would check again Darren as my understanding is you will only be able to deduct the SDLT as with your other purchase and selling costs before calculating the CGT due .So in effect you would only be getting back 18% or 28% of the SDLT according to whether you are a standard or higher rate tax payer

Reply to the comment left by "ray selley" at "13/01/2016 - 16:15":

Would you deduct other acquisition costs such as legal fees after calculating the gain? I certainly wouldn't. What is the basis for your consideration that you woud do so with SDLT?

Reply to the comment left by "money manager" at "13/01/2016 - 16:31":

Yes i would deduct all buying and selling costs including legal fees and SDLT and Estate agents commission..I would also deduct any money spent on improvements [not repairs] .After the annual CGT exemption has also been deducted together with the original purchase price i would then pay CGT at the appropriate rate of 18% or 28% on the balance

"Totally Unaffected"

Not exactly news perhaps but certainly wide spread predictions in evidence.

One agent has just confirmed a strong demand from overseas purchasers in the Manchester rental market sight unseen and for cash.

Has Osbourne even begun to consider the extent to which both CGT and any income tax will be lost completely to the exchequer and exacerbated by his ill considered changes?