Summer Budget 2015 – Landlords Reactions

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To help users to easily locate all Budget 2015 Campaign articles I have created a single link which displays a summary page of them all.

See >>> https://www.property118.com/category/budget-2015-campaign/

I have also made a note of this link in the body text all articles to date.

If you think I’ve overlooked any articles please post a link to them in the comments below and I will link them. The articles must be on Property118, I cannot use the link to include article on other websites.
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Hi

This came via email today

Talk of an affordability crisis appears overblown as homes are now more affordable than in 1997, new research suggests.

A combination of falling inflation, low interest rates and rising wages means that homes in most areas of England and Wales are now more affordable than 18 years ago.

The Ability to Buy index from estate agency Hamptons International showed affordability increasing from 133.2 points in 1997 to 135.5 points in the first three months of this year.

This suggests that more people are finding it easier to purchase their first home or move up the ladder, and have more money left over after their mortgage repayments.

So we are not responsible for stopping first time buyers getting on the property market .

I believe its due to people expecting a better quality of life now and they do not want to give up going out, sky , gym etc to save. Also they dont get the grants as before for studying so start off with debt.

Reply to the comment left by “shakeel ahmad” at “07/08/2015 – 21:54“:

Thank you. I missed this.

When they change CGT tax rate on us , they make it retrospective. Yet non-residents get no retrospection for gains 2015!

I have sent the following email to an old friend of mine, who is now Deputy Agent (South East and East Anglia) of the Bank of England. One thing we have in common is that we are both married to Russian ladies.

SUBJECT: PRS and Economic Issues

Dear Tim

Long time no speak, I trust you and your wife are keeping well (Как дела?)

I am deeply concerned about the unintended consequences of the Chancellors announcements in the Summer Budget relating to the proposed restrictions on finance cost relief for individual landlords, and the associated unintended economic consequences which The Treasury seems to have failed to think through properly.

It seems to me that George Osborne’s proposals could be the catalyst of the boom and bust scenarios the BoE is so fearful of.

I agree in principle with the BoE’s risk assessments of an overheating property market and also many of its proposals to deal with the PRS related issues via further FCA and PRA regulation of gearing and interest cover. These ideas are well thought through and whilst they could have some disruptive effects on the economy, in my humble opinion they do not pose anywhere near the same level of risks as the Chancellors proposals.

The Treasury needs to be made to see sense and whilst I have been invited to consult with The Treasury on the proposed clause 24 of The Finance Bill  (link to correspondence) I feel they may be playing lip service to the issues being raised by many campaign organisations and also independent advisers such as the IFS and the BoE..

I would be grateful if you would consider this email and the linked articles for escalation within the BoE.

LINKS

Restricting finance cost relief for individual landlords – PETITION

How the budget will affect private landlords – EXAMPLE

What is Aunt Sally going to do now?

Yours sincerely
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Reply to the comment left by “Mark Shine” at “07/08/2015 – 21:28“:

No, in effect. Someone who has a million in gains by April 15 can still go abroad and avoid the tax.

Anyway, 90% of the gains have already occurred and the mortgage interest tax changes will make that more likely ..

Horse bolted.

Reply to the comment left by “Mark Alexander” at “08/08/2015 – 10:37“:

Hi Mark

I don’t see:

https://www.property118.com/open-letter-george-freeman-mp-conservative/76353/

https://www.property118.com/only-1-btl-and-hmrc-tax-me-out-of-business/77297/#comment-61496

Hi Darren

Totally agree prices of materials were still increasing even in 2009.
It would be good for a builder to quote the difference in cost of materials for building a house in 2004 and now. Carbon zero was meant to be in 2016 but I think that’s been put back
Another area is the amount of monies the developers have to pay to the councils
This developer wished to build 30 houses this was what they wanted from him

Education 8 primary places 12713
highways public transport inprovements 9000
Leisure indoor leisure facilities 15242
public open space contribution 20859
Plus out of 30 houses he had to give up 12 for affordable units

It it obvious that the developer would need to put these costs onto the price of the selling houses

Reply to the comment left by “KATHY MILLER” at “08/08/2015 – 11:13“:

Absolutely. Section 106 and CIL have killed more than one project due the costs eroding the financial viability schemes.

Hi G Cox

So if I decide to live elsewhere for 5 years then sell my portfolio they would base the tax due on 2015 prices.
But if I was forced to sell in 2020 and remained in the UK they could take capital gains from 1998 on some of my properties .
My long term plan was to move aboard for five years then sell
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Reply to the comment left by “KATHY MILLER” at “08/08/2015 – 11:29“:

Good for you but bad for the country I believe that is the case. If King Saud or whoever gets it, why not you!

I suppose it might depend where you move. Some countries have tougher tax systems as Boris knows.