Buy to let stamp duty surcharge and other related news

[vetran]

Why don't all you scummy renters and socialists eat cake?

and I was going to agree with your previous post.

[vetran]

If we had parity between FTB and landlords we would not need landlords in the first place , right to buy houses are in the hands of landlords now. Not what they were intended for !
We Need to go back to the old fashioned system social housing no right to buy either

It was the obvious consequence, sorry to say very few people in council houses have great financial organisation.

Council housing acts as a lottery with those winning it being subsidised throughout their life a la Bob Crowe. You sell it off and sooner or later they want to get at the money or are conned out of it.

I would make council housing emergency only and it would be intended that residents would be moved to housing association or private stock as soon as possible. Some old granny complaining she shouldn't be moved out off 'her family home' should be a thing of the past financial incentives should ease them out and homes should be available for emergencies.

It should be expensive to rent council houses and discounted accordingly if your income goes up so does the rent so that sooner or later it would be cheaper to rent privately. If its later found that there is fraud then they have a case to go back and take the lot.


I would also have single sex dorm for the single mums and male ex soldiers (I assume sooner or later we will see a serious female ex soldier homeless contingent).

Those who can't get deposit etc could be given a hand by government schemes.

[sasguru]

Why don't you eat cyanide you

That's the problem with socialists. Its too easy to bypass the virtue signalling and get down to the real nastiness

[unemployed]

Why don't all you scummy renters and socialists eat cake?

And there you have it guys and gals , the mind of a landlord .

Deluded entitlement whilst brainwashing oneself that they are providing much needed housing to people less fortunate.

hopefully clause 24 is just the start

how long before spv`s will be on the radar

[Martin@AS Financial]

Landlords step up legal challenge over buy-to-let tax

Taken from Mortgage Strategy:



Buy-to-let investors are looking to raise a further £250,000 in their bid to fight the cuts to mortgage interest relief set to be phased in from next year.

The Telegraph reports campaigners plan a summit in central London to add to the £50,000 already raised as part of plans to launch a judicial review against the incoming restrictions to mortgage interest relief.

In the July Budget Chancellor George Osborne announced the higher rate of relief would be gradually withdrawn over four years from April 2017.

The judicial review challenging the move is being led by Cherie Blair, and has been brought by landlords Steve Bolton and Chris Cooper.

Platinum Property Partners chairman Steve Bolton told the newspaper: “The days where ‘nobody loves a landlord’ must come to an end. We need to unite to show that we will not accept the victimisation of landlords and tenants by the out of touch political elite.

“They are deluded if they believe that they will go unchallenged when trying to reclassify ‘mortgage interest’ as anything other than a ‘normal business expense’.”

[DimPrawn]

Who wants to chip in to the support loverly landlords tax break fund?

Anyone?

[PurpleGorilla]

Who wants to chip in to the support loverly landlords tax break fund?

Anyone?

Ooh ooh where do I sign.

Greedy greedy greedy greedy bastards.

Love, PG

[AtW]

Buy-to-let investors are looking to raise a further £250,000 in their bid to fight the cuts to mortgage interest relief set to be phased in from next year.

The Telegraph reports campaigners plan a summit in central London to add to the £50,000 already raised as part of plans to launch a judicial review against the incoming restrictions to mortgage interest relief.

So, Cherie barely started working on the case and they already need to raise a FURTHER £250k?

I guess the Bliars will have extra funds to pay 3% stamp duty when buying more properties for their BTL Empire, no mortgages needed...

[Martin@AS Financial]

Interest in buy-to-let drops by over a quarter as tax changes begin

Taken from Rightmove:

Key Points

Interest in new purchases from buy-to-let investors dropped 27% in March compared to the same month last year as April 1st tax change starts to bite

The fall reverses the upward trend between December and February which saw a 24% year-on-year increase in buy-to-let enquiries, indicating a potential slowdown in new investor purchases at least in the short-term

Demand from home-hunters is at an all-time high with a record number of Q1 enquiries, so the pause from investors could give some first-time buyers more of an opportunity to make a move

Investors looking for the best yields could look to counties like Durham and Merseyside: Peterlee offers the best rental yield over the next year (9.1%) followed by Bootle (8.6%)

Full Report:

Some buy-to-let investors took a break from looking for new properties in March as the new tax changes deadline loomed, new data from Rightmove reveals.

Whilst Rightmove recorded its busiest ever Q1 for enquiries to estate agents, the intentions of buyers shifted in March, with the number of people saying they were planning to buy a property to rent out dropping by 27% compared to the same month last year. This contrasts with the increase in interest seen from investors between December and February (+24% year-on-year) as they tried to make last minute purchases before April’s additional 3% tax deadline.

Sam Mitchell, Rightmove’s Head of Lettings, comments:
“This waning of interest definitely seems to predict a slowdown in the buy-to-let market, but what’s not yet clear is if this will only turn out to be a short-term pause. It could be that some investors are waiting until the tax changes have some time to bed in before they review their business and continue to make purchases. If this removes some of the competition for smaller properties then it could spell good news for many first-time buyers with a deposit ready as they may find now is the ideal time to make a move.”

Buy-to-let investors not deterred by the tax changes and looking for the best yields could consider buying in areas in the north such as Durham and Merseyside. The top four locations for best yields are all in these counties, with Peterlee in Durham highest at 9.1%, followed by Bootle in Merseyside at 8.6%. In third place is the neighbouring town of Birkenhead offering a yield of 7.8% and fourth is Stanley in Durham at 7.7%.

Mitchell observes:
“These areas where you can buy a two bed property for around £60-70k seem to offer a sound investment as long as the demand is there from tenants, so it’s worth speaking to local agents about what the rental market is like. Whilst the highest demand for rental properties is often in the South and the East of England, this quarter’s data shows demand is growing in Manchester in places like Ashton-Under-Lyne and Stalybridge so they’re worth considering this year as well.”

Greater London (+1.3%) and the North West (+1.1%) were the strongest performing regions this quarter for rental increases, with the South East and East of England both falling by 0.1%, though the East of England’s annual increase of 5.9% still sees it outstrip all other regions.

Agent’s View

Andrew Nunn, owner of Andrew Nunn & Associates in Chiswick says:
“We have witnessed a general decline in enquiries from investors since the beginning of 2016 and those that have enquired have already made their purchases in-line with the incremental stamp duty deadline of 31st March 2016. As investors, domestic and overseas have been prolific in acquiring property over the last four years – their sudden absence in the current market almost certainly will lead to a softening of prices, particularly in the highly competitive flat market where we have also seen a dramatic increase in supply levels. This will then give first time buyers a greater opportunity to enter the market and purchase their first homes in a less competitive arena. We have already seen the majority of recent sales of flats in Chiswick being agreed to first time buyers, rather than investors. Generally, first time buyers are buying property in period buildings rather than new build apartments and it is also the condition and location that have been key factors influencing their buying decision.”

[Martin@AS Financial]

Tax increases will drive much-needed landlords from sector, says LSE

Taken from Property Industry Eye:

Tax increases for private landlords will drive some out of the sector, while others will pass the costs on to their tenants, stretching household budgets and putting home ownership further out of reach.

The warning comes from a new report by the London School of Economics, Taking Stock.

It analyses the private rental sector and its importance to the UK housing mix.

Despite the Government’s clear championship of the institutional build-to-rent sector, the report says that small private landlords will continue to be the backbone of the private rented sector.

The report says that demand for private rented accommodation is set to grow, and that to meet this, there needs to be investment in the sector.

However, it points out that the UK already treats private landlords for tax purposes less favourably than many other countries, ahead of further clampdowns.

These include a surcharge on Stamp Duty Land Tax for landlords, removing the wear and tear allowance, and reducing the amount of mortgage interest eligible for tax relief.

Authors Kath Scanlon, Christine Whitehead and Peter Williams find the sector has more than doubled in size in the past 15 years and now accounts for almost one-fifth of all dwellings.

Despite government initiatives to encourage institutional investment, the bulk of properties are owned by individual landlords with only one or two buy-to-let properties.

The report concludes: “Even if institutional investors enthusiastically enter the market, individual landlords will remain dominant – as they are across Europe.

“Shrinking the sector therefore does not seem a sensible way forward, given what we know about unmet demand and need.”

The Government has recently changed the tax treatment of private landlords in several ways, including imposing a surcharge on Stamp Duty Land Tax for landlords, removing the wear and tear allowance, and reducing the amount of mortgage interest eligible for tax relief. These changes will hit small landlords particularly hard, argues the report.

Irrespective of any regulatory changes, the authors suggest that demand for private renting will continue to rise, with individual landlords remaining the dominant providers. They highlight concerns over whether there will be sufficient landlords to meet continuing growth in tenant demand.

The report finds:
•The growth of buy-to-let is in part a product of the low returns available to investors elsewhere in the market, and that driver is likely to continue.
•High house prices and the need for large deposits make it unlikely that younger households will enter owner-occupation to the extent they did in the last four decades, increasing their reliance on the private rental sector.
•The new tax treatments will damage landlords’ returns and create disincentives to invest in the sector.
•The Government’s goals for the private rental sector are multiple and sometimes inconsistent.
•Improved data is urgently needed to inform policy.

Kath Scanlon said: “There have been a number of recent changes in the tax treatment of small landlords, and more generally in the tone of policy discussion about the private rented sector.

“These decisions seem to reflect anecdotal rather than hard evidence, as there is a striking lack of data about landlords and their business models.

“The current government favours institutional landlords, but even if that part of the sector were to grow rapidly, small landlords would still be the backbone of the industry.

“We need a private rented sector that works for the long term with policies that reflect the housing challenges the UK faces.”