Summer Budget 2015 – Landlords Reactions

Reply to the comment left by "Rachel Hodge" at "09/02/2017 - 07:34":

Yes, Rachel, the RICS report is also covered in the Guardian. If anyone sees it covered anywhere else perhaps they can put the link here and we'll know what kind of coverage it's getting.

https://www.theguardian.com/business/2017/feb/09/uk-rents-rise-faster-house-prices-next-five-years-rics-survey

Reply to the comment left by "Dr Rosalind Beck" at "09/02/2017 - 09:03":

In case you did not read the comments (and some of them are written by pure idiots without any knowledge of economy), there was one perhaps quite significant for us - it is not about a small private LL, but a Housing Association Genesis:
"We're low income housing association tenants. Our landlords, Genesis, have just applied to put up our rent by almost 50% a week. Our incomes have been fixed and will remain fixed. We are all [three] in work but poorly paid. We will be unable to pay such an increase."
No comments really

Reply to the comment left by "Dr Rosalind Beck" at "09/02/2017 - 09:03":

Hi Ros and Rachel,
Property Wire also reports that:
http://www.propertywire.com/news/uk/rents-prices-set-keep-rising-across-uk-according-chartered-surveyors/

Ad BBC have reported that too
http://www.bbc.co.uk/news/business-38907864

I am no doubt being a total moron but having headed over to the S24 tax calculator on property118 when I play with the calculator I am confused by the following:

Rental Income: 10,000
Earnings: 100,000
Mortgage Interest: 0
Profit before tax: 10,000
Taxable Profit: 10,000
Tax Chargeable: 6,000
Net Profit: 4,000

The calculator is showing tax chargeable as 6k and net profit 4k which represents 60% tax rate.....should it not be the other way around?

The Telegraph:
http://www.telegraph.co.uk/property/house-prices/buy-to-let-onslaught-pushing-landlords-sell/

And the government is not listening

Reply to the comment left by "gary dave" at "09/02/2017 - 18:55":

Hi Gary

It is because your example has a total income in excess of £100,000. A taxpayer loses the personal allowance (nil rate band) at the rate of £1 for every £2 of income above £100,000.

https://www.gov.uk/income-tax-rates/income-over-100000

The result is that amounts of total income between £100,001 and £122,000 are taxed at 60%. This rule applies to all taxpayers, it has nothing to do with rental income. The effect of this is shown in the spreadsheet on the line “Loss of personal allowance”.

The rental profit of £10,000 is taxed at 40%, making £4,000.

£5,000 (half of the excess of total income over £100,000) is taxed at 40%, increasing the liability by £2,000. This would happen even if there was no rental income at all and the other income was £110,000.

If you make the other income £90,000 or less you will see that the tax on £10,000 rental profit is £4,000, or 40%.

Reply to the comment left by "Appalled Landlord" at "09/02/2017 - 22:31":

Thanks Appalled Landlord!

I had not realised that there was a loss of personal allowance over 100k and was just looking at the standard bandings! Totally clear now, thanks!

Something off of the current topic that I wanted to say...

Developers don't "land bank", my company does not "fabric bank", high street retailers do not "store bank" for any other reason than the following... There is insufficient demand among the people for what we have to sell at a given moment in time.

Demand for new build housing is falling, demand for owned homes is falling relative to that for rental housing. Demand for rental accommodation is rising.

The market is trying to meet areas of demand with supply, but the government is wrecking its ability to do so with utterly overkill tax grabs. Now the landlords that funded new developments to supply increasing demand for rental accommodation are being knee-capped by the tax system.

Of course most people aspire to own their own home... But increasing numbers do not wish to right now. Long term aspiration is not actual demand: and the demand for new houses was coming largely from the rental providers that this government has attacked, because they in their turn were supplying a growing market.

There is nobody else capable of filling the gap in demand for new build housing, and the builders are restricting supply to match that situation.

If there was a market the builders would supply it.

Today in City am:
http://www.cityam.com/258773/governments-assault-buy-let-landlords-hurting-tenants

Good article, if only the Government listened