Summer Budget 2015 – Landlords Reactions

Another downside to this I have not seen mentioned is education bursaries and university student loans. Higher income on paper will lead to fewer landlords children qualifying.

Reply to the comment left by "Monty Bodkin" at "19/07/2015 - 13:16":

Thank you Monty.
This forum seems to accommodate a wide divergence of opinions, which is so healthy.

Now - I'm off to prep for and check in a new tenant.

Enjoy your weekend, and kin regards, Vero

Hi Simon.
I think some people here are trying to side-track us. The issue is very clear. The idea that we can be taxed on gross income and not be allowed to put in our main costs - when all other business sectors and/or all other self-employed people can, is bizarre, outrageous, unjust, incredible, farcical, discriminatory, criminal - we could probably think of another hundred words to describe it as it is such an extreme and unexpected move by the Government. I can only assume they just didn't think of the ramifications. Other business people should be very worried, as someone just mentioned above, which group will be next? Because once this precedent is set, it will strengthen the Government's hand in further extending this criminal measure - theft of the worst kind. It really smacks of fascism to me, and I don't use the word lightly.
What is worrying to me is that I am hearing nothing in the press in support of us, nothing from the RLA or NLA or any other landlord body. We really need to get organised to fight this. And I would say that once the structure is in place for us to lobby on this, we could then be stronger as a group in the future, to combat the other ways in which we are singled out as some kind of bête noire.
I am hoping the DPS will get back to me soon and agree to circulate an e-petition against it. I have also contacted the relevant Government department asking how we can begin the petition as, as luck would have it, the facility to start e-petitions is temporarily unavailable...

I believe that entrepreneurship will also be affected by these proposals, how many people have managed to rent their own home out or invested an inheritance in a rental property and a few years later have used that platform to launch them into a full time business safe in the knowledge that the small property income would cover start up costs/running costs. How does the small man get going now! As far as I'm concerned now you would need to put down 50%deposits for the property to pay for itself with safety.

I used to pride myself on being under market value on rents it might only be £10 or £15 a month but it ensures that my voids are virtually nil.

That has just changed and my tenants have had letters and Section 13 Notices explaining that increased regulation plus tax changes mean that rents are now going up to market value. The Chancellors statement and email address is on it. Helping hard working families...yeah right....

Reply to the comment left by "Ros ." at "17/07/2015 - 13:33":

Hi Ros,

Although I doubt my emails are as well put together as those of yours and others, I emailed my MP (con), David Cameron, George Osborne and Nick Boles on Friday morning.

I held off for a few days re-working the emails but came to the conclusion the important thing was not the perfection of the emails but the act of sending them as much of the impact derived will be from the (hopefully) large numbers which are sent.

I look forward to signing whatever petitions etc that come my way and I will try to book a slot at this coming weeks surgery with my MP Julian Smith as I think putting a face to an issue may make it more memorable and meaningful for MPs in parliamentary discussions on the subject.

Keep up the good work!

Reply to the comment left by "Jim S" at "19/07/2015 - 13:33":

I believe that entrepreneurship will also be affected by these proposals, how many people have managed to rent their own home out

There is a flip side to this Jim.
I have a few properties on middle class estates. Professional occupiers all around the cusp of the 40% tax bracket.
The yield is about half of my other stuff as I have to compete with accidental or amateur landlords content with it 'wiping its face'- It won't now with a four grand tax bill.
They can either get out of the game, suck it up or increase rents.
Gen Rent claim tenants can't afford any more rent. Balderdash! Tenants in this income bracket certainly can. Coincidentally, core Conservative voters. New BMW on the drive, 2nd car in the garage, 2 holidays a year and a semi-private education for the kids.
Mid to high end rentals have been a real bargain for years, I've seriously considered it myself. Compare rental yields in, say, Norfolk of £350 pcm properties to £1500 pcm properties.
I'm predicting 10-15% rent increases for this income bracket.

Reply to the comment left by "Anne Nixon" at "19/07/2015 - 14:35":

Thanks so much Anne. I agree completely that it is more important to get the emails out asap than to ensure they are perfect. I have also just sent a second letter via email to my Labour MP, Wayne David, who has previously assured me he supports landlords. I have asked him to try and table a question at Prime Minister's Question Time. I don't know how feasible that is, as I am not au fait with parliamentary procedures.
Can you give me the email address for David Cameron as I just couldn't seem to find it yesterday, and I want to send all my letters to him, too?
Well done for getting on with it and it would be great if you could let us know how you get on at your MP's surgery. I am better with the written word than face-to-face; we all have our strengths and weaknesses; the important thing is that the more people who lobby on this, the more chance we have of reason prevailing.
You keep up the good work too!
PS you may want to copy and send your emails to Sajid Javid and Anna Soubry as well, as they have 'business' in their titles. The link (for anyone else who wants it, to find the email addresses is: https://www.gov.uk/government/ministers

Reply to the comment left by "Gary Nock" at "19/07/2015 - 14:28":

Gary....serving section13 already???

The new tax doesn't kick in until 2017....with full implementation 2021.

Reply to the comment left by "Ros ." at "19/07/2015 - 15:01":

Ros, why just an email to your local MP, DC and GO?
A specific one to your local MP certainly but why not a generic one to them all?
This will have a big knock on effect to all constituencies.