Summer Budget 2015 – Landlords Reactions

http://www.telegraph.co.uk/investing/buy-to-let/irelands-scrapping-of-buy-to-let-tax-is-warning-to-britain/

"Ireland's scrapping of buy to let tax is warning to Britain"

And adding even more petrol to the fire .. the skills shortage in the UK construction industry

http://www.telegraph.co.uk/business/2016/10/16/the-man-on-a-mission-to-fix-the-skills-shortage-that-could-decim/

"This looming disaster among British construction workers comes as the Government accelerates its house building plans, in order to reach their target of completing 200,000 homes per year. Without any change to the industry, this is “physically impossible” says Farmer, adding that the number of homes built could fall to just 100,000 per year from an already anaemic 140,000."

Reply to the comment left by "Simon Hall" at "17/10/2016 - 10:23":

This is the article Dr Ros recommended as to be sent (the actual cutout) to your own MP.
The paper is at home, ready for the cutout to be sent. Anyone can suggest a few lines to go with that - in a form of old fashioned paper letter?
I had already corresponded with her in the Spring and more or less she had given up on the issue, forwarding to me some 'pearls of wisdom' produced by Gauke...
Thanks!

Reply to the comment left by "Whiteskifreak Surrey" at "17/10/2016 - 13:39":

You could adapt this:

'Similar, yet far milder, policies were introduced in Ireland twice in the last 20 years and both times there were adverse consequences, including sharp rises in homelessness. The UK Government has made no reference to this. In fact, Section 24 is far more extreme as it applies to properties already owned; in Ireland it only initially applied to new purchases. It is the fact that Section 24 is retroactive legislation that is so damaging and that will lead to the bankrupting of currently successful businesses. The Irish Government has now made the dramatic announcement that their measure against private landlords is to be repealed, because of how it has exacerbated Ireland’s housing crisis. The UK Government needs to learn from the lessons of others which are clear to behold.'

Reply to the comment left by "Dr Rosalind Beck" at "17/10/2016 - 13:45":

Thank you Dr Ros - much appreciated!

Perfect. Copy on its way to my MP this afternoon. All I've had from him so far is the usual misinformed rubbish from Gauke & Co so we shall see what his comments are regarding some REAL facts. In the meantime rents hurtling north here as landlords start waking up to Osborne's train crash he's left behind.

Reply to the comment left by "Simon Hall" at "17/10/2016 - 10:23":

The Telegraph article fails to mention that the law in Ireland has already been changed, with effect from 1 January 2016, because of the shortage of accommodation there for tenants in receipt of certain social housing supports. Home providers who will take such tenants are now able to deduct 100% of their interest cost.

This is a clear admission of the impact that the tax change of 2009 has had on the poorest members of society in Ireland.

Reply to the comment left by "Dr Rosalind Beck" at "17/10/2016 - 13:45":

Yes, the Irish experiences were milder. The 1998 change only applied to new purchases. It did not bankrupt landlords, it just deterred them from increasing the supply. S 24 has had a similar effect in the UK in the 15 months since it was announced. Some landlords have stopped financing new builds, rehabilitating run-down properties and converting large residential or commercial buildings into flats or houses in multiple occupation (HMOs).

The 2009 change, disallowing 25% of finance costs, was also milder than S 24 will be. When S 24 is fully in force in 2020/21, its effect will be twice as bad.

Disallowing 25% would make a landlord in the 40% band pay extra tax equal to 10% (40% x 25%) of the finance costs. Under S 24 the extra tax will be equal to 20% (40% - 20%) of the finance costs, i.e. double.

For someone in the 45% band, the extra tax will be equal to 25% of the finance costs under S 24, compared to 11.25%.

The effect on homelessness of retroactively disallowing the deduction of interest has been demonstrated in Ireland. In the UK, Section 24 has already caused home providers to increase rents and evict tenants on housing benefit who cannot afford the increases, and it is not even in force yet.

How much damage will Osborne’s lunatic tax be allowed to cause before it is repealed?

Just looking at today's, widely published in all newspapers, article:
http://www.bbc.com/news/uk-37655908
And what does the government think abolishing Wear & Tear Allowance - that the standard is going to improve rapidly?
NB I have been to a number owner occupied homes which were very very cold, as they simply did not put the heating on. If the tenants want a 'warm' home, they have to us the heating on a regular basis... maybe it sounds a bit cruel?
This is not to say that a number of tenanted properties could benefit with some insulation being done...

Ireland isn't the UK of course, so comparisons can only be made in broad terms.

However, looking at how S24 is being phased in, there is nothing to stop Gov't from deciding that s 25% / 50% / 75% restriction on deductibility of finance costs is sufficient and pause / halt the scale in at some point.

And nothing that says that the legislation can't be reversed / removed sometime after implementation, as has happened in Ireland.