Summer Budget 2015 – Landlords Reactions

Reply to the comment left by “Ros .” at “06/08/2015 – 22:41“:

Yes, ironic as they want to encourage business – just not ours.

Article I found earlier downplayed it totally, though some experts spoke against the tax. Worth a read and for quotes.

More campaigning tomorrow. Good night

Reply to the comment left by “BTL INVESTOR SCOTLAND” at “06/08/2015 – 22:04“:

Jim: I imagine many landlord businesses are wondering the same thing (sole trader vs ltd). Then again presumably those who went ltd will not want the treasury pushed on that. I remember speaking in some detail with my accountant about 15 years ago whether to go sole trader or not. I was advised to go sole trader, but there was not much in it either way.

BTL IS: I see your reply from BOE indicated that you may have suggested considering alternative measures. May I ask did you put forward any proposals for them to consider? I did not mention in my letters to my MP, but recently I was also wondering whether non incorporated landlords should consider putting alternative proposals to the treasury. For example:

– Spreading and diluting this landlord tax levy amongst all landlords (residential, retail, leisure, industrial etc) whether incorporated or not.

– Restricting mortgage interest relief to 70/75% ie levels similar to other countries such as Germany, France or Spain.

– All new BTL mortgage or remortgage loans for sole traders or ltd to be repayment only, whilst phasing in transition of existing interest only loans to repayment over say 5 years.

Thoughts?

Reply to the comment left by “Ros .” at “06/08/2015 – 22:41“:

Don’t’ push this line too much. 40 or 45 % subsidy on gearing to drive up land/house prices when companies only get 20% going on 18%..

Reply to the comment left by “Mark Shine” at “06/08/2015 – 23:14“:

Mark Shine – I did not suggest any specific measures but they must be able to come up with something which is less harmful than the current proposal.

The Government has asked the Bank of England to look at buy to let yet has brought forward specific proposals in advance of recommendations from the Bank of England. That does not seem to be the correct way to go about making policy.

Reply to the comment left by “Mark Shine” at “06/08/2015 – 23:14“:

and of course office space landlords, as with rents the level they are for office space in city & west end and landlord borrowing costs (as well as nationally) sure he could generate a good chunk of cash..

Reply to the comment left by “Mark Alexander” at “06/08/2015 – 22:38“:

Mark I agree. If the Government wants to control BTL they should focus on slowing the growth of the sector, not destroying what already exists as this will cause great harm for many existing landlords and tenants.

Slogan for Friday is:

Halt premature budget tax proposal and await Bank of England report on buy to let.

Reply to the comment left by “BTL INVESTOR SCOTLAND” at “06/08/2015 – 23:22“:

Thanks BTL IS, my internet v slow at mo so didn’t see your reply until after sent my last. I agree the policy announced in the budget is like my south african buddy used to say: hit first, then ask questions later

Reply to the comment left by “Mark Alexander” at “06/08/2015 – 22:38“:

Mark A: I don’t like the ‘without substantial amendment’! You can guess the word I want to use! The whole thing is wrong. I wouldn’t be looking at any compromise.

Mark S: No 75% etc. either. Why should we be the only business in the whole of the United Kingdom that cannot offset its costs? Other countries are other countries. We haven’t been referencing them for anything else, so why this?

I think the reply from the BoE to BTL is telling us something very important: that the Bank does not agree with what the Chancellor did. And that is obvious; because the ‘solution’ is actually likely to cause the exact awful scenario the Bank was worried about in the first place. I suspect the BoE shares the same opinion as our learned economists. Anyone with a brain would.
So it would be good if we could expose the schism between the BoE and the Treasury. We could really do with finding a journalist who could snoop around a bit on this one.

Reply to the comment left by “Ros .” at “07/08/2015 – 00:07“:

Surely, BOE needs to be presented with more examples of how the numbers just don’t add up, especially taxing at a loss, which an accountant I spoke to thought it was absurd.

Finance restriction at source could slow down BTL effectively enough without crippling current landlords.

Just got email today ref

Breaking News

Corbyn would introduce right-to-buy in private sector

In a section on Right-To-Buy, the document says:

“We should also look at how to help private renters, since they are often paying much higher rents with less security and a less responsive landlord than housing association tenants.

“We could re-direct some of the £14 billion of tax reliefs received by private landlords to help struggling private tenants; this would of course include building new council homes and helping private tenants to overcome the deposit problem.

“We could also investigate whether some of this money could be used to fund a form of right-to-buy shared equity scheme to private tenants in cases when they are renting from large-scale landlords.”

Other points highlighted in the document include:

Scrapping of the bedroom tax and the benefit cap.
Lower regulated rents and better housing conditions in the private sector.
Private rents linked to local average earnings levels.
Tenants should have the right to longer tenancies.
Licensing and regulation of private landlords to ensure decent housing conditions.