Summer Budget 2015 – Landlords Reactions

Reply to the comment left by “Chris Byways” at “18/12/2015 – 07:50“:

Yes I don`t deny MK is a little oasis still. It attracts overseas investors as well as locals who spot its increasing potential . Started from a very low base and is just getting going. Room to grow. All the core fundamentals are there, geographic location being a massive advantage which will never change. When Amazon moved their HQ here along with dozens of others major companies it sealed its fate as a major growth area for a generation to come.

With regards to HB tenants. I understand why some see them a risk but I don`t see them as such for a multitude of valid reasons. The landscape is less favorable for them now yes because of the LHA freeze but if you can get 2 bed rates for a studio because the demand is so great then the yields still stack up nicely. Its a niche market though and I accept not everyone`s cup of tea.
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http://www.theguardian.com/society/2015/dec/17/bedroom-tax-three-quarters-cut-back-food-dwp-research?utm_source=esp&utm_medium=Email&utm_campaign=GU+Today+main+NEW+H&utm_term=144576&subid=17449943&CMP=EMCNEWEML6619I2

http://www.theguardian.com/commentisfree/2015/dec/17/george-osborne-tax-evasion-avoidance-cheats-big-companies?utm_source=esp&utm_medium=Email&utm_campaign=GU+Today+main+NEW+H&utm_term=144576&subid=17449943&CMP=EMCNEWEML6619I2

Major property firm LSL this morning called for the Treasury to lay off private landlords and instead look for solutions to the housing crisis.

http://www.propertyindustryeye.com/lay-off-private-landlords-lsl-firms-tell-chancellor/

Reply to the comment left by “Jonathan Clarke” at “18/12/2015 – 08:45“:

Do you not get the council on your back for over crowding ?

Where I am you would be stopped renting a studio or 1 bed to a family with a 2 bed need, even if it meant they were homeless.

I had one room 0.5 metre to small and they came in all guns blazing.
I ended up moving a stair case to comply.

Madness when some landlords who are known have bare electrics hanging out of walls and nothing gets done.

Reply to the comment left by “Jonathan Clarke” at “18/12/2015 – 01:39“:

It’s encouraging to see that rental yield/purchase price ratios like that still exist. It nice to see that there are areas which are still viable, as at those prices you will not be affected by stamp duty changes. I wonder if the stamp duty tax will actually be good for investors outside of London, as it may attract BTL’r to areas where it’s still possible to buy below the stamp duty threshold.

There is the other side, where people are saying the rewards are too great, but as with the rural figures I posted above at 07.50 would not result in a 40% profit, but a substantial loss, even for a landlord with total earnings and rental income of under £35k pa, ( this is to be to subsidise FTBs earning up to £80k pa.

Something else you couldn’t make up, 3 polarised views from Kathy’s link, re spare room tax:-

Cruel to who?

The payers.?

Who despite having to pay for own house and kids , also have to pay an eyewatering amount for takers as well.

The system has to be fair to payers, not just the army of takers of a mind boggling and growing amount of handouts.

The system is cruel to payers.

And It is not a tax. They don’t pay any . Benefits exceed any tax they pay.

Yellow_Paul marketingexpert 11m ago

Agreed, it isn’t a tax by any definition of the word tax. I am surprised that El Guardianistas feel it’s ok – when there is a massive housing shortage – for people to ‘block’ properties which are presumably too big for their needs. (And I always thought the mantra was ‘From each according to his ability, to each according to his needs’)

Reply Report

bernardcrofton marketingexpert 20s ago

The “takers” being the private landlords, taking subsidies to buy houses.Taking up the investment that could be used to build more houses, not just push up the price for people needing a home. And then taking the housing benefit.
There is no correlation between the quality of the property and the amount of rent received by landlords through housing benefit. There is a very strong negative correlation between the failure to invest in more houses and the amount paid in housing benefit.
The number of homeless children in a so-called “bed and breakfast” this Christmas is the highest for 22 years. That should give you a warm glow, as you fill out your tax avoidance forms.

The trouble was the housing associations didnt have many smaller units ie 1 or 2 beds so were unable to move tenants.
In Liverpool they have been making 3 beds into 2 beds to be able to let them. So maybe they are unable to give a 2 bed need a 3 bed house now.
This pushed many tenants into the PRS who required the 1beds but due to all the changes many landlords dont let to HB.

I think the housing associations were encouraged to build the family homes.

It always seems to be that policies are introduced without any insight or thought of the knock on effects or given any time to adjust.

Another thing is that the welfare bill highest cost is for Pensioners tax credits who are in rented accommodation. I think its 74BN

You never see this mentioned in the papers just big families with many kids to get tax payer on side. There are many genuine cases out there but they will never be heard.

The pensioners are the voters so they will keep them sweet as they will OO.

They want people to own their homes so they can pay for their own health costs in later life. The state will not be able to afford it as I think pensioners will grow by another 30% 2050.

I believe by 2050 we will not have social or council housing

New article just published – see link below .
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