Summer Budget 2015 – Landlords Reactions

I agree with much of your post (2 above this at time of writing). However the 'corporate argument' that you refer to is repeatedly and mysteriously completely ignored on the 'LL hate' forum. Any thoughts as to why that is?

Reply to the comment left by "Mark Shine" at "20/06/2016 - 23:27":

None...not defending the other forum.

Also I see that if the purpose of all this is to cut lending then limited companies appears to be a rather large and obvious loophole.

If lending and purchases shift across to limited companies then, like the government, I guess the other forum will get to them in time.

C24 could be forgiven as seen by some as having 'unintended' consequences but stamp duty was a clear sign of intent.

I will stay being a LL but I now have less. My intent will be to cash up as places fall empty. Might do the odd development or refurb to sell, but only if I can make the same return as I would pre stamp duty change. If I can't someone else can buy it for a higher price and take the risk for a lesser margin.

Reply to the comment left by "adam prospect" at "20/06/2016 - 22:34":

"Let you know at the end of the week re inflow."

Even if we exit, net migration will still be in the hundreds of thousands, not to mention the large increase in home grown population.

"the rental market should stay static or at least fall back"

Really? With a growing population and dwindling supply rents are going to stay static?

"The threat of a 30% house price drop is no longer perceived as a negative thing by many."

The 'many' being the same bitter few saying the same thing, year in year out. It is not what the majority want.

"It has made things ackward for me"

Why has it? If you are leveraged at less than 20% as you claim, why is this awkward?

The threat of a 30% house price drop is no longer perceived as a negative thing by many.”

Well, perhaps not by the youngsters who don't remember the negative equity problems of the 80s. Only the very rich could afford to move so there were no properties available at the bottom end for FTBs. FTBs had to wait for someone in a small house to die or go into a home, or get repossessed (and I hate the idea of trading on someone else's misfortune). And it's a lot harder now to get a mortgage than it was then - relatively lower wages, zero hours contracts, rising self employment etc.

Huge price drops mean a stagnant market (apart from those who are old enough to have paid off their mortgages, but can still get another one). Most small LLs aren't going to be able to sell at a thumping loss - but I'm glad that Mr Prospect can afford to lose his money: I can't.

Prices here still haven't reached the levels they were at 10 years ago - we've already had a price drop; some people are never satisfied.

As reported all over the media, David Cameron today urged voters to "listen to the experts" about the risks to the UK of quitting the European Union.

Perhaps it would have been wise to have given the same advice to his Chancellor and the Treasury regarding C24?

Reply to the comment left by "Kathy Evans" at "22/06/2016 - 16:41":

Hi Kathy
If you have bought in an area which is below the prices you paid 10 years ago...then I agree the drops will not be near 30%. The drops I talk about are proportionate to the increases we have seen. Some will see large falls, others little or no falls.
If a LL has seen no increase in prices it does mean decisions made can be reversed without CGT - those who have seen increases and have taken that equity out are most at risk.
Those buying with yields below 5 or 6% are also at risk - paying too much over the past few years without protection against a decent return will be a problem for them.
You are right re the market - rather than see real drops often it stagnates because sellers choose not to take losses. Buying at current prices with yields as low as 2% will present some real challenges for those LLs. Plenty out there who will benefit from others misfortune....not a moral judgement either way...just is what happens.

Monty
Awkward...yes. I have sold some already and still have some debt. My return on that debt after the taxation changes is not good enough - so I want to sell and have no debt at all. Wasn't my plan so it is awkward.

The supply in rents will fall to where it was a few years ago. The demand is the demand and another issue - addressed by another solution. Removing owner occupied homes to give to BTL landlords to let to tenants is not an answer to supply.

The 'bitter few' and the 'majority who do not want falls' is where we disagree over which is the larger proportion.......the momentum has been swinging for sometime in the areas where prices have run away from reality.

Reply to the comment left by "adam prospect" at "22/06/2016 - 21:40":

"The supply in rents will fall to where it was a few years ago. The demand is the demand and another issue"

So for your 'theory' of rents staying static or falling, we have to ignore the key fundamental of supply and demand. Nice one.

"The ‘bitter few’ and the ‘majority who do not want falls’ is where we disagree over which is the larger proportion…….the momentum has been swinging for sometime in the areas where prices have run away from reality."

Reality? What reality? The fantasy world reality of the bitter few?
The majority of people (non-landlords) do not want a 30% crash nor wish the pain of it on to their neighbours.
We disagree indeed.

http://www.telegraph.co.uk/business/2016/06/20/punishing-landlords-will-not-fix-our-housing-crisis/

"Punishing landlords will not fix our housing crisis"

Why can't politicians see

http://www.thetimes.co.uk/article/rents-reach-record-high-as-the-buy-to-let-tax-bites-mqrcqkpn7

Osborne goes to ground as his credibility is destroyed:

http://www.dailymail.co.uk/news/article-3659224/Osborne-goes-ground-credibility-destroyed-Chancellor-seen-Tory-MPs-say-political-career-finished.html