Summer Budget 2015 – Landlords Reactions

I see howls of rage from Tory MPs being mentioned against the proposal to cut tax relief on pension contributions, which in many ways mirrors what Dear George is doing to people who save for their retirement through our mechanism of choice. An interesting contrast, isn't it? A strategy worthy of Gordon Brown now I think of it!

http://www.telegraph.co.uk/news/politics/georgeosborne/12154770/retirement-crisis-pensions-tax-raid.html

Next up... Lawyer Tax, Estate Agent Tax and Gypsy Tax.

Let's tax everyone with a bad rep in the media to gain votes!

That-woman-who-had-a-boob-job-on-the-NHS Tax

On the wider economy I believe it is valid to assume the wider economy will be affected

I bought several run down houses some tinned up and refurbed them last year.

Throughout the year I gave regular work to mortgage brokers , surveyors , labourers , kitchen fitters , decorators , plumbers , electricians , structural engineers , damp professionals , plasterers , roofers , landscape gardeners , cleaners , pest control , carpet laminte fitters the list goes on and on .

Since clause 24 I have stopped investing and decided to wait and see thus removing my work opportunities for all these trades. This was a total u turn as I was going to step up my purchasing until that fateful day in July

I now get regular phone calls asking if I have work as many are quiet, I know that many other of my associates / partners are doing the same.

To my point the wider economy will be affected as these trades people have less work due to investors like myself pulling out thus meaning they have less money to spend in the local economy due to lack of work.

Two of my friends are plasterers and have been so quiet since xmas as most if ther work came from landlords so much so that they don't even come for a pint on a Friday which they always did due to lack of money

Does the govenment think that large corporates and ftb are going to pick up the slack left by this ridiculous tax I really think not. I hazard a guess this is and will happen all across the country as more investors / landlords pick the bones out of what is happening , absolute Madness if it ain't broke done fix it all the landorrds I know run professional and streamlined Lettings businesses. I am insulted that some accuse our industry of being unprofessional and we are a gang of chancers taking advantage of poor vulnerable people it is laughable I get Christmas cards from tenants and have never ever raised a rent during tenancy. Unfortunately this will have to change due to clause 24.

Reply to the comment left by "NW Landlord" at "13/02/2016 - 11:18":

Hi NW Landlord and everyone. Completely agree. I actually pulled out of a B-t-L deal at the last minute following the Summer budget - I have never done anything like this before and let a chain of people down including a couple wanting to move to sheltered accommodation and yes I feel like sh...t - I could not take the risk based on clause 24. Like you I have always had several properties under refurbishment or bought, renovated and put back into use and like you have always had a team of professionals around me. That has all stopped. Osborne will have an affect on the wider economy no question about that and to suggest otherwise is living in cloud cuckoo land.

Douglas.

Good article

http://www.spectator.co.uk/2016/02/buy-to-let-investing-just-became-a-very-very-bad-idea/

Reply to the comment left by "NW Landlord" at "13/02/2016 - 12:19":

I particularly like the comment in the penultimate paragraph "there is no sign that central bankers [and politicians] have a hope in hell of saving the global economy from another meltdown" which echoes my opinion.

[My addition in brackets]

Reply to the comment left by " " at "13/02/2016 - 08:41":

As others have asked: how is C24 fair? Why is the handing of advantages to corporates over individuals equitable? What will it *really* be achieving?

I don't care for the hyperbole on either side of the argument either. That said, my properties are largely let to young professionals from home and abroad (less than 25% of my current tenants are from UK, 35% are Australian, 12% are US and the rest are from Spain, Italy and Ireland). Several already own properties in their home countries. Turnover is on average about 2 years. The vast majority end their leases to move to rented accommodation in another area, city or country. The truth is that there is nothing proposed to help them should my portfolio be replaced with owner occupier.

So C24 will achieve one of three things in respect of my portfolio:

1) The properties will be transferred to another investor in a corporate structure - achieving nothing other than a transfer of wealth to a corporate (I've had no shortage of offers). Or,

2) The properties will be transferred to young professionals lucky enough to have been given money by their parents (this is the norm in zone 2 London) displacing a group of professionals who mostly cannot afford or or are not yet in a position to buy,

3) I raise rents.

Just to put my, now seemingly a bit random, post above into context - I was responding to a now apparently deleted post.

Reply to the comment left by "Dr Monty Drawbridge " at "13/02/2016 - 13:28":

The post you were responding to was indeed deleted, as were replies to it.

The person whose account has been banned, deleted and has had posts removed was identified as an anti-landlord activist via IP address, hence the radical action.
.

Reply to the comment left by "Jerry Jones" at "13/02/2016 - 11:01":

Got call is as it is... if you want rage!

TENANT TAX.

Unless of course you'd rather beware the Jubjub bird and shun the frumious bandersnatch than fix the issue!

You see, people understand what a pension is and so they give a damn. Tell tenants they will pay tenant tax because they are suckers that rent and maybe just maybe we will get some rage.

Sharpen that vorpal blade and go snicker-snak OR call it Tenant Tax and put it in a full page advertisement in all the newspapers and see which works best for you.