Summer Budget 2015 – Landlords Reactions

Reply to the comment left by "Trendo " at "15/02/2016 - 16:06":

Trendo is right - there is still a huge lack of awareness and understanding and that is why I believe we should crowdfund national press adverts and we should shout Tenant Tax.

Sam and Rhys, I have not met a single person who, when they understand it, are still for it. Few support it in fact but all do nothing about it. It is a notional emotional topical landlord bashing tool and snippet topic for many at the water-cooler or lunchroom.

However, even my antagonistic buddies, the drunkard city elite, successful business owner and the less well heeled in the pub, all of whom have 1st PHD's in being argumentative for 3 hours a night every night say - "WTF" when Tenant Tax is explained. They can not argue for it as much as they like to....They realise their mum's pension has just gone to hell in a hand cart or their inheritance is going to down or will disappear or their staff will need a pay increase too pay their rent or they will actualy be forking out more to their own children to keep them liquid at university or whereever or worse still .. Their children will not leave home as they can't afford to buy and NOW they can't afford to rent either. The penny drops when it is personal!

The issue is awareness and understanding. We can do something about that! We are unlikely to change George Osborne's mind he is an arrogant over privileged pillock who has his own tax worries at the moment it would seem.

"Osborne ally hints at tax raid on Middle Britain's pensions as Chancellor considers plans to scrap relief in next month's Budget"

"Matthew Hancock says George Osborne isn't bound by May's manifesto"

http://www.dailymail.co.uk/news/article-3447278/Osborne-ally-hints-tax-raid-Middle-Britain-s-pensions-Chancellor-considers-plans-scrap-relief-month-s-Budget.html

Reply to the comment left by "Gareth Wilson" at "15/02/2016 - 19:03":

On the Politics Show yesterday they introduced some kind of mapping of the Manifesto - they are going to monitor which manifesto promises are achieved and which aren't. Of course, they are missing a big trick - which is that they are not looking at policies brought in that were not in the Manifesto. That's the point for us and will be the case for other policies too. We need to write in to the producers to point out this gaping hole in what they are doing.

Reply to the comment left by "Laura Delow" at "15/02/2016 - 16:32":

Oh er ...168 build to rent homes and not one available to any FTB , there will be uproar @ hpc that is a further 168 families excluded & denied the chance of owning their own homes, no doubt the corporate higher rents producing higher profits will all be going off shore tax free as well, not to mention 168 that are extremely unlikely to be on the open market for many many years ...how is this beng allowed - tell us part 2 of the Plan george ?

Reply to the comment left by "Monty Bodkin" at "15/02/2016 - 16:45":

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

Brilliant!

Reply to the comment left by "Markb " at "15/02/2016 - 18:21":

Regardless of outcome, i wont be dropping my rents unless market forces drives them down (highly unlikely!) I have taken the advice from HPC: you need to run it as a business not as a blind fool, max props out, max profit out and reduce, if not remove borrowings - then you will be an non leveraged LL and everyone will love you, especially those at HPC - thay have made a big point of leverage being the whole problem !!!!!

well.... unless you are ltd and then, as a business being leveraged is fine and to be applauded !!! (you cant make this stuff up!)
Do they not understand that to grow a business that businees borrows against its assets to grow ...erm pretty normal biz behavior is it not? ...further if you disallowed int payments on most businesses i think far more than 20% would be taken out ? the fact that it is "possibly upto 20% " in the PRS actually demonstrates how strong and lower risk a sector it actually is. the only thing that has precipitated the "risk" is c24.

I dont really understand their logic but they seem to be very clever so i am following their advice!!! - get rid of the leverage - working on it guys , my rent is up already and going up again next year, Paying off the borrowings wasnt part of the original plan, but as my cheese has been moved i have had to adapt, the good news i will be providing even more quaility accomodation. I spent a lot of time explaining where "rent" money is apportioned and get a warm feeling from the outraged reactions as people understand first the spin, then misleading way the government have implemented this and the absolute anger when they realise that they the tenant will bear this cost in order for me to be able to provide their housing.

LL without borrowings not following market rents rates ??? get serious , as much as a few people think LL are not business people, i think time will show that LL very much are just that ...we wait ...we see.

All rents are headed in one direction only. I will be stock piling the extra cash to reduce borrowings.

Reply to the comment left by "Rachel Hodge" at "15/02/2016 - 19:28":

It is far worse ... the "poor" will be taxed into being homeless

Right to buy should never have happened and certainly shouldnt be repeated in any shape or form, UK will ALWAYS need social housing stock. They just need to recruit people who know how to run and manage a protfolio efficiently, not bin it off cheaply. Now where would you find people who could do that i wonder ?

http://money.aol.co.uk/2016/02/15/private-landlords-scooping-up-council-house-stock/

Reply to the comment left by "Trendo " at "15/02/2016 - 19:48":

From a business perspective you are absolutely right. I wonder if the HPC mob will copy/paste and critique your post, and this one?

I have an old couple living in one of my properties. It's a three bed ex Council House. They've been there for 16 years and are still pay me the same £340 pcm they've been paying since they moved in nearly 16 years ago. They have their kids and grandchildren over most weekends and have friends in the area.

The going rate for the property is now £650 a month. If I convert the dining room into a 4th bedroom I could rent it to Polish workers for £300 a room pcm, £1,200 a month.

Based on the HPC strategy I should increase the rent to £650 and hope they can't afford it. I could then let it as a house share and use the extra cashflow to pay off the mortgage within about six years.

I must be softie, I've recently agreed for them to have a grant funded disabled bathroom to be installed and decided not to increase their rent or to sell their home until they no longer have a use for it. Realistically that will be when they go into long term care or pass away. When that happens I will probably just refurb and sell in order to cash in on the capital gains.

Meanwhile, I can live with my decision, regardless of whether a few HPC morons disagree with my morals or ethics.

Having been a landlord for 26 years I have decided to wind my portfolio down slowly. As soon as properties become vacant I will be selling them. That makes sense for me because I will not be paying tax on capital gains made prior to 2015 because I will be living in Malta. I appreciate that emigrating isn't right for everybody but it is right for my wife and I.
.

Reply to the comment left by "Mark Alexander" at "15/02/2016 - 21:50":

Depriving an elderly couple from being destitute and homeless in their dotage, forcing them to have spare rooms and live near their friends. I hope you can sleep at night.