Summer Budget 2015 – Landlords Reactions

Reply to the comment left by “Saeef Khan” at “30/10/2015 – 15:44“:

David Gauke seems to sign off all his letters to “electors” with the same line. This is the 3rd time I’ve had this. Grrrrrrrr!

I spoke to yet another LL today who wasn’t aware of the changes, let alone the impact on his business – he does now!!! +1 signature to the petition.

Reply to the comment left by “Barry Fitzpatrick” at “30/10/2015 – 11:01“:

He still doesn’t seem to “understand/admit” that sole traders/individual landlords pay tax at 40-45% and companies pay tax at 20%, so “fairness” would mean deducting costs from income at the same percentage as the tax rate. Perhaps he failed GCSE Maths.

Reply to the comment left by “Kathy Evans” at “30/10/2015 – 17:16“:

Kathy,

This is one of several key points I will be trying to put over to my MP next week in my generous 20 minute slot that’s been allocated.

Just got out of a meeting with Rosie cooper MP she talked straight no spiel like David caulke she said it’s now with the lords and it will be a Miracle if it is amended and that the government knows there are going be casualties ie portfolio landlords she talked straight understood it is wrong but basically it’s tough Osborne has made his mind up end of

Reply to the comment left by “Barry Fitzpatrick” at “30/10/2015 – 11:01“:

Yes Barry

Where does he think the government is intending putting all the low wages/ benefit tenants once they are evicted. Either via landlords selling or because they will not be able to meet the new rental prices

How does he think the council will cope, they have cut the Discretionary housing payment and most have now gone to the social tenants who have been hit with the bedroom tax.

It use to be that you could claim for Discretionary housing payments 12 months now its 3 months

How long is the council waiting list and what is his views on the section 21 evictions and the courts being overloaded.

WIll he be keeping the chippenham court as its on the closure list , is he fighting to keep it. (Joke)

We know its a cost grabbing exercise but it will bankrupt landlords but not gain that much money. How much more will it cost to house the people in B&B. More on the dole trades as well as landlords

Why was no mention of it given in the manifesto when they were asked directly from the NLA what there views were on the PRS

Nimbys are the biggest problem they all cry out about people not being able to get on the ladder. But try building anything near them and they do everything in their power to block it.

Supported by all the councillors and the MP who wont go against them because of their votes.

Reply to the comment left by “Maria O’Neill” at “30/10/2015 – 17:38“:

MPs’ expenses: Rosie Cooper’s £915 for abandoned flat deal as claims taken to wire
The Labour MP Rosie Cooper claimed £915 for solicitors’ fees and survey costs on a property she did not buy.

Rosie Cooper; MPs’ expenses: Rosie Cooper’s £915 for abandoned flat deal
The former councillor from Liverpool was elected to Parliament at her fifth attempt
By Holly Watt8:30AM BST 27 May 2009
She had planned to buy a flat in Lambeth, south east London, before opting for one in Pimlico.
She claimed £11,324 in stamp duty for the Pimlico property and spent £5,000 on furnishings before embarking on a £16,000 renovation of the flat.
The expenditure of the MP for West Lancashire, who was elected in 2005, rose dramatically in the last days of each financial year, bringing her close to the maximum annual allowance.
Miss Cooper said the work would benefit the public purse. “I have previously stated that any profit realised when the flat is eventually sold will be given to Parliament on behalf of taxpayers,” she said.
Her claims will raise concerns that some MPs spend large sums of taxpayers’ money on relatively modest properties in an apparent attempt to “use up” their maximum entitlements.
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On March 31, 2006, Miss Cooper paid £11,324 in stamp duty and legal fees on her flat in Pimlico. Land registry records state that she paid £330,000 for the flat in July 2006.
Other purchases claimed on the last day of that financial year were a steam cleaner, curtains and picture frames.
On March 26, she bought a bed for £1,314 and a three-piece suite for £2,098. The fees office paid out £1,114 and £2,000, respectively.
At the end of the next financial year, Miss Cooper made several claims. She paid a £5,000 deposit to a builder on March 30, 2007, for work on a new kitchen and new bathroom. The quote for work on the kitchen and the bathroom came to £16,903.
Miss Cooper said that only the first £5,000 was covered by the second home allowance and that she had paid £12,654 towards the work. She added that the flat had an old kitchen and was “in poor condition” when she bought it.
The day after she had paid the deposit to the builder, Miss Cooper bought a television from John Lewis for £899 – the figure was reduced by the fees office to £750 – and claimed an extra £35 for its delivery. The sale was completed at 6.50pm.
She also claimed for a fridge (£199) and an AEG washing machine (£349) from John Lewis on the same day. Delivery and disposal charges were an extra £50.
In total, Miss Cooper, the ministerial aide to Ben Bradshaw, the health minister, claimed £65,465 in three years.
She said she claimed the second home allowance for “one off costs for fixed or big ticket items which are easily identifiable and which can be returned to Parliament or a local charity should Parliament not want them.”
The former councillor from Liverpool was elected to Parliament at her fifth attempt. She had previously stood as a Liberal Democrat candidate.
She attracted controversy in 2006 after writing to Downing Street to seek “an assurance” that Baroness Thatcher would not be considered for a state funeral.
Miss Cooper said that she would pay capital gains tax on any profit from her flat and added: “The original flat purchase fell through and those costs were only incurred because, as a newly elected MP from the North West, I needed accommodation in London to do my work representing the people of west Lancashire.”
Rosie Cooper
Job: Labour MP for West Lancashire
Salary: £64,766
Total second home claims
2005-06: £20,382
2006-07: £22,000
2007-08: £23,083

How Rosie Cooper voted on Welfare and Benefits #

Consistently voted against reducing housing benefit for social tenants deemed to have excess bedrooms (which Labour describe as the “bedroom tax”) Show votes
Consistently voted for raising welfare benefits at least in line with prices Show votes
Almost always voted for paying higher benefits over longer periods for those unable to work due to illness or disability Show votes
Consistently voted against making local councils responsible for helping those in financial need afford their council tax and reducing the amount spent on such support Show votes
Almost always voted against a reduction in spending on welfare benefits

Until very recently I thought that with concerted action there may indeed be a chance Osborne would back down on at least some of the changes e.g. apply them to new BTL properties only.

However, events over the last few weeks now mean it is virtually certain that Osborne will be forced into an humiliating u-turn on Tax Credits, and one that will put a massive dent in his plans to eliminate the deficit.

The chances of him now doing the same in respect of the announced measures to reduce tax relief on BTL are therefore, in my view, now non-existant.

As Maria O’Neill says, I think its very much now a case of ‘end of’….

In today’s Daily Telegraph by Richard Dyson & Nicole Blackmore

“A senior director at a building society and major buy-to-let lender told Telegraph Money: “It is a matter of market forces. Where a new tax or cost lands on the providers of a service which is already in desperately short supply, there is only ever one result: the cost is passed on to the customers, in this case the tenant.”

Full article: http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/11965438/Buy-to-let-tax-will-cut-our-income-by-25pc.-How-much-will-YOU-lose.html

http://www.theguardian.com/housing-network/2015/oct/30/tax-credit-cuts-conservatives-housing-benefit