Summer Budget 2015 – Landlords Reactions

Reply to the comment left by “BTL INVESTOR SCOTLAND” at “03/08/2015 – 23:27“:

I envy your position but I cannot give my tenants such assurances. If this Budget proposal gets Royal Assent in the Finance Bill I will have no choice but to start increases my rents by 5% per annum compound with effect from January 2016.

Most of my tenants have never had their rents increased so I am confident they will not vacate due to being able to find a better home or an equivalent home at a lower price.

Mine are all private tenants but I really don’t want to have to do this to them. I suspect there will be many landlords in my position.

I appreciate that many more landlords will not be able to do what I must do and it is those I feel for most, and their tenants because they too will be affected if their landlords get their properties repossessed due to their businesses no longer being viable.
.

Reply to the comment left by “Mark Alexander” at “03/08/2015 – 23:44“:

Mark – the tax change will impact on me as it will many other landlords. I did not want to alarm my tenant. Perhaps I should have explained that in my post.

Reply to the comment left by “Jim S” at “03/08/2015 – 23:35“:

No requirement for minimum EPC rating of F or G from 2018
Has the stamp duty exemption for first time buyers finished now? Can’t remember.

Reply to the comment left by “Jim S” at “03/08/2015 – 23:35“:

And in Wales, the owner-occupier doesn’t have to be a licensed person to run their own home, even if they have lodgers.
This requirement for an individual to be licensed even if they, for example, show one person a house to rent – coming in in the autumn in Wales is one of my bêtes noires. Peut-être (whoops, going into French and I’m not even that good at it) because we are being deemed to not run a business and yet we are required by law to go on a stack of training courses to run our non-business!

Petition Update.

There are 336 open petitions on the e petitions UK parliament site. 321 of those petitions have fewer signatures than our petition.

We have moved up one further place (which shows we have momentum) and now have 7076 signatures.

Mark, re you comment 3/8 23:44, if you can increase rent – 5% compound, from Jan 2016 – and you are confident the tenants won’t move then really this isn’t your problem it is theirs. So the reason for your concern is purely to protect your tenants.

Whilst I could do the same I won’t. I have a responsibility to my tenants and myself to accept this. Happy to fight it – but I am not threatening families who are in their homes. This is a duty if care I took on – and it is not one I ever expected to be reciprocated by the government.

This change has highlighted to me what tight margins some landlords are on – this change is a stress test and the model isn’t holding up well. I am increasingly realising that their will be some opportunities when rates are at 5% and what the BoE was saying.

I would suggest this change will be the least of some LLs worries. The review taking place will certainly look at interest only mortgages and the leveraging. Expect it and plan for it now.

My Slogans for Today

Make Your Voice Heard – Reject Budget Tax Plans
https://petition.parliament.uk/petitions/104880

Tax Plan will Starve the Market of Rented Homes – Rents will Rise
https://petition.parliament.uk/petitions/104880

Lack of supply is the Problem – Not Landords making a profit
https://petition.parliament.uk/petitions/104880

Reply to the comment left by “adam prospect” at “04/08/2015 – 06:39“:

I think you are missing the point.

I planned for 5% base rates and more and factored those into my numbers. Base rate was 5% when I last remortgaged most of my properties. What I didn’t factor in is this tax change.

I do not intend to become any less prudent or any less profitable just because the Government want to tax me more.

Therefore, I will maintain my current levels of prudence through stress testing and sadly, any stress caused by higher taxation will have to be relocated.
.

Regarding a previous post about contacting universities, has anyone contacted the National Union of Students?

http://www.nus.org.uk/

I am aware of a number of students that have signed the petition because they are concerned about rents rising in the private rented sector. People who are currently students are likely to be in the private rented sector for a number of years during and after attending university/college.

Reply to the comment left by “BTL INVESTOR SCOTLAND” at “04/08/2015 – 07:09“:

Slogans for today have been Tweeted and added to this page >> https://www.property118.com/tax-levy-campaign-tweets/

NOTE FOR ROS AND OTHERS ON TWITTER – what is your Twitter name please? We should all be following and re-tweeting each other
.