Summer Budget 2015 – Landlords Reactions

Who would have thought it?

http://www.telegraph.co.uk/finance/economics/11857890/UK-construction-sector-shrinks-as-housebuilding-stalls.html

Construction output fell in July

http://www.rla.org.uk/landlord/lobbying/tax/mortgage-interest-relief-briefing.shtml

Between 1986 and 2012 private rented housing accounted for 57% of all new dwellings created.

Any landlords thinking of creating any more new dwellings?

Reply to the comment left by “Monty Bodkin” at “13/09/2015 – 08:18“:

Hi Monty.
Yes, I spotted the same thing yesterday and said it would be really helpful if we could somehow see and expose the link between the two. That would be a brilliant argument in our armoury. It would make a good headline and in fact a great article for Richard Dyson. Maybe Mark can suggest this angle for one of the next few articles?
He could do case studies of landlords who have halted all investment in housing because of this. And show the absurdity of some of Ministers’ recent announcements – Brandon Lewis was one – who are still talking about ‘supporting landlords’ to develop in the PRS – there was even something stupid like that in the Government response to the petition. It would be a good expose of the hypocrisy, amateurism and idiocy.

Reply to the comment left by “Seething Landlord” at “13/09/2015 – 08:08“:

Seething Landlord – you may be seething about this – we all are, but it’s not nice to tell someone they’re living in ‘cloud cuckoo landlord.’ Roger is also trying to come up with constructive ideas which I think is great. Rather than tell him his idea isn’t good, you might have an alternative, even better one? Get those grey cells working.

Email just received from a landlord who prefers not not post comments but asked me to share an email that he’s sending to all of his tenants ….

Subject: Please Petition – RENT INCREASES AHEAD

Please petition for common sense!

The July budget will cause rent rises for thousands of householders. It is being debated by MPs now …

The budget proposal sets taxation for thousands of housing providers that will become (by 2020) higher them their income. This is clearly ridiculous and some providers will go bankrupt … However your sympathy should lie with millions of tenants whose landlords have little alternative but to push their rents up as high as they possibly can in order to pay this brand new “BTL turnover” tax.

If you do not own your own home you are “in for it” as 2020 approaches. WAKE UP !

There are plenty of articles to read on the subject. Many focus on the landlords that will have to close down and sack staff etc. Everyone needs to consider the adverse effect on millions of tenants.

Here is the petition: https://petition.parliament.uk/petitions/104880

Here is some background reading:

http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/11816720/

Death-of-buy-to-let-landlords-wake-up-to-Osbornes-150pc-tax.html
.

Hi Landlord:.
I just clicked on the link

http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/11816720/

And it came up with ‘Sorry – can’t find the link’ Not sure if it’s just me.

Also,. this link seems to work better than the ‘death of buy-to-let one above:

http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/11816720/Death-of-buy-to-let-landlords-wake-up-to-Osbornes-150pc-tax.html

Also to let the landlord know there’s a typo in this sentence:

The budget proposal sets taxation for thousands of housing providers that will become (by 2020) higher them their income [should be ‘than’ of course]

I think the ‘tenants’ story’ hasn’t even been touched upon and I mentioned this in several emails I sent to journalists yesterday. Most of the journalists are sleeping as well as landlords and tenants.

Reply to the comment left by “Mark Alexander” at “13/09/2015 – 08:51“:

I quite like the word ‘provider’….it’s less provocative to some than ‘landlord’…given we are so hated….

Reply to the comment left by “Monty Bodkin” at “13/09/2015 – 08:18“:

Hi Monty

The figures for England, for a period starting more recently, are even more striking.

The English Housing Survey on a government website:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/453668/Bulletin_12Aug2015_FINAL.pdf

credits the private rented sector with 83% of the increase in the number of dwellings between 1996 and 2013.

I have a funny feeling that Roger Rabbit and Adam Prospect are same individuals operating under different screen names but a same person.

As if you notice they seem to sing from same hymn sheet and seem to support each other’s comments accordingly at the same time making a reference to one other.

He thinks people are daft to fall for his BS.

Reply to the comment left by “Appalled Landlord” at “11/09/2015 – 12:50“:

Hello Appalled,
Re: the NLA briefing paper
http://www.landlords.org.uk/sites/default/files/Finance%20Bill%202015-16%20-%20Briefing%20-%20August%202015_0.pdf
I was also confused by the new term “Consumer Landlord” I even googled it, I think this is a new concept and phrase which needs to be added to our landlord dictionary. My understanding of the phrase is that it refers to a landlord who is not really a landlord, ie someone who has obtained a BTL mortgage for the purpose of living in the property themselves. Although not much publicized this is apparently happening quite a lot because first time buyers can not get a mortgage based on their salary but can obtain a BTL mortgage which does not look at their income. I think the NLA were trying to use this concept of the consumer landlord to offer “AN OUT” to the government so that they could then say that “this is the landlord that we meant all along to restrict finance relief to”
Maybe these fraudsters are paying rent for themselves and so were then able to claim the interest as an expense. (Don’t quote me on this one as it’s just my interpretation which is probably wrong)
Does anyone know what a consumer landlord is?

Reply to the comment left by “Jim S” at “13/09/2015 – 13:41“:

Jim consumer landlord is someone who orginally bought a property on a residential terms and then subsequently so-called change in circumstance ended up letting property (accidental landlord) with lender’s consent. These landlords would enjoy same protection as residentail mortgage holders under FCA regime.

That’s despite property is rented out to tenants they are still protected as residential mortgage customers.