Summer Budget 2015 – Landlords Reactions

3% SDLT will definitely hurt more and adjust the thinking.

But an extra 5K over a 25 year investment period is only 55p per day.
Its an up front cost which will yes dampen aspirations.
But I don`t believe it will drown the BTL market

Positive cash flowing properties and capital growth doubling maybe even tripling in 25 years can sustain an extra 55p per day cost I believe.

Jonathon, you may be in the CGT area of the U.K., but vast swathes of the country have seen prices stagnate for 10 years, and no certainty of above inflation rises in the next 25 years, and I for one will be pushing up daisies long before then.

It would have to be a sub £40k property, or good returns to make me purchase, my modest plans are most definitely on hold until Osborne sees the damage he is inflicting.

"The loss of a tenancy remained the biggest cause of homelessness in 2015, including 17,000 households given emergency accommodation by their council after being evicted from a privately rented home.

Shelter said the 56,600 people accepted as homeless by councils in 2015 was 33% higher than in 2010." http://www.theguardian.com/society/2016/mar/23/rise-in-homelessness-in-england-triggers-calls-to-follow-welsh-strategy

That's odd, I thought it was more down to a shortage of affordable housing. Well the rent hikes will make a difference. For the worse.

S'funny, they don't say WHY there were so many evictions, won't or can't pay rent perhaps?

Reply to the comment left by "Chris Byways" at "24/03/2016 - 14:08":

That's right. You'd expect a 'quality' paper like The Cardigan to do enough decent research to establish WHY the evictions happened at all. Then maybe they could see their way clear to speculating on how much worse this might get if the govt keeps kicking us. They might even publish something relevant and helpful on clause 24. We can but hope.

Reply to the comment left by "James Fraser" at "24/03/2016 - 09:49":

We did a refurb in the SE on which we just broke even. It's prolonged empty status was picked up by the Council's private sector housing manager. In conversation today I expressed my concern as to the disincentive for such activity, a Council objective (the local council extends interestfree loans linked to an affordable rent scheme whilst County will fund for sale or letting), for resale or letting imposed by both interest and SDLT measures. Apparently a recent landlord's forum had brought similar issues forth, quelle surprise. It would appear that the policy of central and local government are contradictory in the desirability of the presence of small landlords/developers.

Reply to the comment left by "Chris Byways" at "24/03/2016 - 14:08":

If prices have been stagnant for 10 years then surely there is pent up growth in some of those areas waiting to happen. Natural market forces will see to that. Select wisely

I would wager if you bought a 100K property today in some of those areas it would be worth 200K in 25 years time. Buy 10 and you have a healthy million pound pension pot.

Sub 40K areas are good to avoid SDLT.
In 2041 a 40K property has got to be worth 80K surely
Buy 25 of them to get your 1 mil pension
.

http://parliamentlive.tv/event/index/420e7352-7d95-47c8-b8ed-1c8e2b09ac85?in=10:53:12&out=11:00:07

At about 10:58:50 when Andrew Tyrie asks ‘So, if the bubble bursts you’ll reverse the measures presumably’, Osbo replies:

“Well um I don’t think that will be necessary. I think the er measures are sensible measures to level the playing field ‘cause I think whatever happens in that market, you still have this situation whereby a person buying their own home has to put together the mortgage and the person with the cash purchase doesn’t. So I just want to make it a more even playing field.”

Whilst I can accept there is an element of logic in the above comment regarding the SDLT hike, which on the face of it is neither discriminatory nor retrospective (although bulk / commercial purchasers are not affected anyway as he earlier pointed out), both the questioner and the responder refer to measureS (plural). Once again this highlights the fact that the discriminatory and retrospective C24 in the Summer Budget 2015 was anything but fair or logical.

CLAUSE 24 - JUDICIAL REVIEW - IMPORTANT EASTER UPDATE

We have spoken with our lawyers who have drafted an initial reply to the acknowledgment of service received from HMRC and HMT. This will be sent to the courts next week.

We then await the courts ruling, which we hope will give us the chance to fight our case fully and have our day in court.

In the meantime we are working on our next Crowd Funding campaign, which we expect to go live in early April (see link below for a reminder of our first campaign). We will need to raise more funds to take this all the way to court, which is the only chance we have of winning the battle and getting this law abolished.

In the meantime, please block out Friday 10th June in your diary...

We are planning a very big and very important event on that date in London. We believe that it is time for large numbers of landlords to come together and stage a fight back, which includes but is not limited to the Judicial Review.

A venue for up to 800 people has been reserved, some key speakers have been booked and our aim is to help educate, inform, inspire and collaborate in a manner that our sector has never seen before.

We would love to have your support, attendance and ideas, to create positive and lasting action before, during and after the event itself.

All ideas welcomed - pls comment below.

Happy Easter to one and all,

Steve Bolton and Chris Cooper

https://www.crowdjustice.co.uk/blog/entirelybonkers/?utm_content=28178805&utm_medium=social&utm_source=facebook

Reply to the comment left by "Steve Bolton" at "24/03/2016 - 20:17":

Excellent work on all of it, Steve. I want to be involved with the event in any way I can so please get in touch for any kind of help. I'll be available for whichever role you deem required.

Reply to the comment left by "Steve Bolton" at "24/03/2016 - 20:17":

10/6 booked.See you there!

Reply to the comment left by "Steve Bolton" at "24/03/2016 - 20:17":

Yes, great stuff, Steve and Chris. Bring it on!