Summer Budget 2015 – Landlords Reactions

The answer to the housing problem in the twilight zone is clear - refuse to buy a property at what you consider is too high a price, even if you can afford to, instead rent and then buy a boat and live on a canal - rational debate ? yep - on some level that i cant get my head quite far enough up my arse too see tho !

"There is always a rational debate in every argument on both sides to a degree, but this bloke has just about airbrushed every perversion in the BTL industry that is out there, and there is a lot.

The "just put up the rent" bit. Well here is what I am doing, I earn good money and have decided to rent in comfort until now. In the new future I have a chance to share with a good friend of mine in Rutland in palace of a home until hopefully this housing crisis is sorted out, But that is a irrelevant. Had I stayed where I am I would not have put up with higher rents or the threat of higher rents. I would be buying a high spec narrow boat or maybe a wide beam until this insanity is sorted out.

As far as I am concerned the high rent UK fiasco ends for Grumpysod in 2016, and if I outstay my welcome in Rutland the boat option will still be on, and it will cost peanuts to live with a few little problems and loads of benefits."

Reply to the comment left by "Trendo " at "21/01/2016 - 19:35":

Houseboats - from what I remember there are some nice moorings on the Grand Union in the Midlands.

Reply to the comment left by "Kathy Evans" at "21/01/2016 - 22:34":

Mortgages would need a Floating Charge, and the owners might need a Sinking Fund.

?
"a liability to a creditor which relates to the company's assets as a whole"

"A sinking fund is a long-term savings account that homeowners contribute to every month through service charges. This builds up every year and should pay for any major works that are required over a period of time - such as the painting of communal areas or replacement of a roof or keel"

http://news.sky.com/story/1627402/rents-rise-at-fastest-pace-since-2011-report

Reply to the comment left by "Ahmad Jibril" at "22/01/2016 - 07:48":

Well, nobody saw that coming...

So raise the cost of running a rental business by removing the ability to offset the largest cost of running that business. Hmm, I wonder what would happen Mr Osbourne.

More rogue tenant story's on bbc news yet again all based around London and beds in sheds etc

What about following the vast majority good landlords offering quality accommodation does my head I'm

Reply to the comment left by "Darren Bell" at "22/01/2016 - 08:08":

Truly amazing consequence.

But manure still travelling towards the fan.........

All the surge in property purchases now, but after SDLT rises, the shrewd LL will surely ask does 3% higher rent stack up or not? Thus new TAs after then are likely to be higher, or just not provided for.

"The index had previously suggested rents, occasionally, rising at a faster pace than house prices for the first time since 2013 during 2015 - with landlords able to cash in on the lack of available homes on the market."

DOES NOT COMPREHEND THE RAFT OF REGULATORY ACTIONS, SDLT AND C24 IS THE ROOT CAUSE!!!!!!!!!!

It has responded to what it sees as an "ownership crisis" by cracking down on buy-to-let landlords, despite warnings it could backfire with landlords passing on extra costs.

GEORGE, LISTEN TO THOSE AT THE SHARP END, LESS POLITICING SOUNDBITES, you have two ears, one mouth, use accordingly!

It was in the Summer Budget that the Chancellor announced plans to cut their mortgage tax relief from 2017 and later confirmed they would also face a stamp duty surcharge, which is due to come into force in April.

Ministers want more new homes for families to own, with support if they need it, but the move against landlords has sparked a surge in investors rushing to complete property purchases ahead of the stamp duty changes taking effect, according to surveyors.

Rents rose at their quickest pace in the East of England, the report said, with a 7.8% jump on average per month to £1,251 while average monthly rents in Yorkshire and the Humber and the West Midlands hit all-time highs.

THEY SAID IT WOULDNT - COULDNT HAPPEN. It has. But don't blame the messenger, look in your mirror Alice. Our tenants will be told who has caused their rent increases!!!!!!!!!!!

There is no possibility rents will rise to cater for the effects of C24 directly, it is not the fault of some tenants their LL is highly geared, but the overall effect is :-

A) Unknown largely, but
B) rent incremental only
C) affecting different sectors or renting differently, and regions differently. The SE effect is likely to ripple out.
D) As social housing can't (or not allowed) to compete, housing agencies will be in dire straights.
E) if "53% of tenants feel that method of tenure is right for them", and the other 47% either want to buy (or to have free housing), and arrears rising, even if they did buy, a very significant proportion are at risk of losing their home, deposit, savings when any house price correction occurs, or base rate increases.
F) more displaced tenants due to non-viable positions making some properties sold or converted, by 'force majeure'.

https://www.landlordtoday.co.uk/breaking-news/2016/1/almost-one-in-five-landlords-may-quit-sector-because-of-tax-changes

Rather supports this view. Esp B, D and F

On additional SDLT, since commercial property is not included and this includes a shop with a flat over it, how about buying shops with flats and converting into two flats? In my area, shops are still closing down and it looks as though we are heading for another/the rest of the current recession.

....and todays phone call comes from local council

"desperately trying to resolve their immediate & present housing crisis, we will pay the bond in cash and rent upfront and direct payment to landlord, we desperately need private Lanlords to take on some of our clients."

Unfortunately due to government changes in legislation i'm afraid your offer creates a financially unviable scenario looking forwards, on base rent being too low and the risk of non payment of top ups for starters.

Properties gone up in a puff of smoke ?.... again NO... but for HB & asylum seekers and anyone on low income they might as well have.

George, you need to wake up and smell the coffee before it is too late.