Buy to let stamp duty surcharge and other related news

[Martin@AS Financial]

London's top 20 buy-to-let areas to invest in (Taken from Homes & Property - research from Rightmove)


http://www.homesandproperty.co.uk/pr...es-a99011.html

[Martin@AS Financial]

Stamp duty surcharge will hit renters, says FHL

The cost of the Government’s incoming 3 per cent surcharge on stamp duty will be passed on to renters, according to Foundation Home Loans.

FHL commercial director Simon Bayley says the charge, designed to slow down buy-to-let activity will have unintended consequences after it comes in on 1 April 2016.

Bayley says: “The extra levy being introduced on stamp duty will in fact just become an unwelcome extra burden for tenants in many cases.

“At a time when more people are finding it difficult to become property owners, there is a sizeable number of people who rely on private rental to have flexibility on location for work opportunities, those with past credit problems or simply because they do not fit the boxes required for social housing. It is they who will be paying as the cost will ultimately filter down to tenants.

“The Chancellor’s move might have seemed like a way of curbing the market as well as adding to the tax take, but bringing in a levy, will really be felt by those who can least afford it. The BTL market remains a valuable contributor of private rental housing and using the levers of taxation in this way is ultimately counter-productive.”

[vetran]

Indeed too few properties to rent and an extra coast = higher rents.

It's hardly rocket science.

As I have said before there is only one way to fix it
Build more houses and have fewer people wanting them.

[DimPrawn]

Indeed too few properties to rent and an extra coast = higher rents.

It's hardly rocket science.

As I have said before there is only one way to fix it
Build more houses and have fewer people wanting them.

Net migration hits new record high of 336k - as it happened - Telegraph

The lefties want us to believe that none of these arrivals compete for housing, health care, education or commit crime.

[Martin@AS Financial]

Govt rules out stamp duty exemption for larger B2L investors

Taken from Mortgage Strategy

The Government has ruled out a stamp duty exemption for corporate investors.

The Government first announced a consultation on the exemption in the 2015 Autumn Statement, after it announced a 3 percentage point surcharge on second homes and buy-to-let properties.

The mooted exemption would have applied to investors with 15 or more residential properties, although the Government has now decided against any exemptions.

The new stamp duty rates come into effect on 1 April.

Today’s Government consultation response says: “On balance, following an assessment of the evidence provided in response to the consultation, the government’s view is that the evidence suggesting that in the absence of an exemption there would be an adverse and material effect on housing supply is not compelling.

“Whilst the higher rates may have some effect on off-plan purchases, the government’s view is that the overall effect on housing supply is not material and housing developments will remain attractive for corporate investors as well as potential home owners.”

It adds: “The government has decided to apply the higher rates equally to all purchasers without an exemption for significant investors.”

[DimPrawn]

IMHO it would have been totally wrong that big super wealthy BTL individuals and companies would have been exempt from the surcharge. What next, no VAT on super yachts, Bugatti Veyrons have negative road tax and private jets get free fuel subsidised from NHS cuts?

[d000hg]

Net migration hits new record high of 336k - as it happened - Telegraph

The lefties want us to believe that none of these arrivals compete for housing, health care, education or commit crime.

No they don't. Only the imaginary ones you like to argue with They DO think that it's worth these pressures, which is a whole other argument!

Thanks Martin, interesting.

We own a very low-value (£60k) 2nd house which we bought as penny-pinching newly weds, and ended up renting when we couldn't cope with the rough area and nobody wanted to buy it. Seems this will be a pretty expensive stone around our necks next time (and every time) we move house. Or did we decide that if we move residentially while owning a BTL property, it's not so bad? Because if we bought a house for £500k and had to pay the extra £15k, that's a quarter of the value of our other house! And 3-4 years worth of rental income - we would seem to reach the position it's better to sell the place at a big (relative) loss just to avoid the stamp duty surcharge!

[AtW]

IMHO it would have been totally wrong that big super wealthy BTL individuals and companies would have been exempt from the surcharge. What next, no VAT on super yachts, Bugatti Veyrons have negative road tax and private jets get free fuel subsidised from NHS cuts?

What's really super duper wrong is to charge that 3% extra TRANSACTION TAX on top of already very high TRANSACTION TAX by Tory Scum who opposes TRANSACTION TAXES for their super duper rich mates in the City.

[vetran]

No they don't. Only the imaginary ones you like to argue with They DO think that it's worth these pressures, which is a whole other argument!

Thanks Martin, interesting.

We own a very low-value (£60k) 2nd house which we bought as penny-pinching newly weds, and ended up renting when we couldn't cope with the rough area and nobody wanted to buy it. Seems this will be a pretty expensive stone around our necks next time (and every time) we move house. Or did we decide that if we move residentially while owning a BTL property, it's not so bad? Because if we bought a house for £500k and had to pay the extra £15k, that's a quarter of the value of our other house! And 3-4 years worth of rental income - we would seem to reach the position it's better to sell the place at a big (relative) loss just to avoid the stamp duty surcharge!

Sell it you BTL scum where is MM going to live?

[barrydidit]

No they don't. Only the imaginary ones you like to argue with They DO think that it's worth these pressures, which is a whole other argument!

Thanks Martin, interesting.

We own a very low-value (£60k) 2nd house which we bought as penny-pinching newly weds, and ended up renting when we couldn't cope with the rough area and nobody wanted to buy it. Seems this will be a pretty expensive stone around our necks next time (and every time) we move house. Or did we decide that if we move residentially while owning a BTL property, it's not so bad? Because if we bought a house for £500k and had to pay the extra £15k, that's a quarter of the value of our other house! And 3-4 years worth of rental income - we would seem to reach the position it's better to sell the place at a big (relative) loss just to avoid the stamp duty surcharge!

Doesn't apply if you're selling your main residence.

Unless you sell it after you make your next purchase. Then you have to pay the tax and reclaim it again somehow.