Summer Budget 2015 – Landlords Reactions

Again the 42,700 figures does not take into account the Great Divide.

And again Robb has conveniently ignored the Tensnt Tax effect.

https://www.landlordtoday.co.uk/breaking-news/2016/2/countrywide-rents-at-highest-on-record

These figures in LL Today indicate how rents are not above inflation - apart from the London bubble.

If 20 Million people want to live where there are homes for say 5 Million people the results are obvious - prices go up, (also called social cleansing), or there is gross over crowding. Or businesses that don't have to be in London move 1 or 200 miles out relieving pressure.

I have only two tenants I thought would like to buy.
One came back in Jan after a year and could not raise a mortgage. He is £8k behind in rent.

The other, excellent tenants, I increased rent in Jan after 2 years, well below inflation, I was achieving 2.7%. I was asked to sign their housing benefit form last week. So not got a single tenant wanting or able to buy, and if I sold up, which I have no intention of doing as the homes are needed - by the tenants, they would all be in a difficult place.

Keep rearranging YOUR tax affairs to your benefit, "I'm all right, Gidiot."

Government interference in buy-to-let market means rents will rise, say landlords:

http://m.bristolpost.co.uk/Government-interference-buy-let-market-means/story-28736628-detail/story.html

Tenants ideally would like to buy however in this far from long term work contract environment ie short term year to year (in my view brought about by the same kind of folks who approve clause 24) so they wont be in a position to buy

I really dont understand how anyone who realised the implications of Clause 24 could agree with it. Including GO who is either thick, stubborn or just plain eveil!!

... so the effects are immediate and obvious to those at ground level , we should not overlook the fact that probably more than 50% of LL are still blissfully unaware of what is coming down the track at them.

The lunatics have taken over the asylum. This is going to get messy.

I've been under the radar recently & no doubt I've missed many an interesting dialogue thread, and if the following repeats what someone has already raised/posted, please accept my apologies, but has anyone seen the Inside Housing January 2016 Newsletter in which it is reported that:-
L&G Capital & PGGM (Dutch Fund Manager) have launched a Joint Venture to invest an initial £600m in build to rent. Their first site is in Bristol bought from property developer Square Bay for £4.8m. This is their first major build to rent scheme. The site has planning permission for 168 new homes for private rent plus commercial space with completion expected Autumn 2018. This first step follows L&G Capital's earlier pledge to "DISRUPT THE STATUS QUO OF THE COTTAGE INDUSTRY NATURE OF THE UK PRIVATE RENTED MARKET"
This is the first of many I'm sure. Frightening!

Reply to the comment left by "Rhys Jones" at "15/02/2016 - 15:57":

I really dont understand how anyone who realised the implications of Clause 24 could agree with it. Including GO who is either thick, stubborn or just plain evil!!

Looking at it dispassionately, if intentional, it is sheer Machiavellian genius!

A stealth tax on the poor, cheerleaded by Shelter, the Left and even renters themselves.

These developments in my opinion will only scratch the surface of what is needed and will be in select locations

They will probably go to families on council waiting lists etc I don't think they will have massive impacts on the demand for rental accommodation a lot of my properties are in areas where generations live and want to stay living there. Do they think people are going to up route because that have a Starbucks and a subway on site me thinks not.

We all seem to be under attack from perceived rising property prices reported in our local press .
Unfortunately the information published is based on the average UK statistics and government policy formed accordingly.
I have just received an e-mail from a local letting agency informing me that that in my town i was fortunate to have made a capital gain on an average property in the whole of 2015 of half of one percent.
Am i just very unlucky or are there other landlords out there with the same stories.

Reply to the comment left by "Gareth Wilson" at "15/02/2016 - 11:22":

I sat and worried and then worried some more. Met with all sorts of experts and worried even more. Played out all options on the monopoly board and watched endless back episodes of places in the sun and worried more still. And then... I bit the bullet and raised rents by 15%. Tenants took it and the market followed my and probably others increases - yes.. unencumbered landlords raised rents too!

Jeremy Hunt looked across the Sainsbury's cafe table when I met him & he smirked at me and said "The market doesn't work like that you can't raise rents and if you could then you would have already done so - we are not worried about rising rents"

I am not at all proud or pleased about the 15% rise but for my family and to keep rented rooms available to tenants I will have to do it again next year.

However don't anyone doubt rents will rise. This is now past tense. The fact is, they have RISEN and will continue to rise as a direct result of the Tenant Tax.

I will reduce the rents back to 2015 levels and pay back any increased rent paid / collected if the tenant Tax is repealed.