Summer Budget 2015 – Landlords Reactions

Think it’s best to plan but sit tight see the outcome of judicial review report this definitely has legs

I looked into changing mine over to holiday (genuine short term) lets as there is quite a lot of demand around here. Problem is, biggest obstacle for me is that holiday lets accrue VAT if your turnover is over the 85K threshold.

Did anyone hear the wretched Osborne on Radio 4’s Today programme proudly mentioning the changes he had made to Buy to Let mortgages? Predictably the interviewer (maybe Humphries) failed to enquire further about his rationale…

Reply to the comment left by “Gareth Wilson” at “07/01/2016 – 14:51“:

I emailed my MP, Grant Shapps, this morning.

Looking forward to receiving his reply …

Landlords need to act as a united front much like Doctors that are going on strike due to the government enforcing them to work a 7 day week.

We need to ALL commit to raising rents by a given and significant percentage (20% 25% 30%) after a set date (when the legislation passes) and when individual tenancys expire/allow you to do so. The Government needs to take note that we are deadly serious about LARGE and COORDINATED rent increases, which in effect would be our own version of a Strike.

Leadership, teamwork, loyalty and commitment in coordinating such a proposal in needed.

Thoughts?

It’s going to be really hard for me to raise rents by that percent in the market I operate I am going to do so by small rises starting early this year I am in the process of drafting a template letter, in fact two, one for rent increases and one for the ones I am selling explaining the reasons why ( this farcical government ) and also urging them to contact their MPs to explain what’s happening

Special Report – Entire property industry attacks George Osborne’s tax hikes on BTL

http://be-homegroup.co.uk/property-news/special-report-entire-property-industry-attacks-george-osbornes-tax-hikes-on-btl/

Reply to the comment left by “r d” at “07/01/2016 – 21:53“:

I dont think this is a good idea, Raising rents by that amount arbitrarily is wrong, could promote rent controls or further punitive action and press pillorying. Decide what is fair, AFTER all legitimate costs, time, risks, capital employed, then set at a commercial rate, explaining the above inflation increase is the incomprehensible political actions of an egocentric chancellor.

If 20+% is justified, and affordable, by tenant and landlord, then do it.

If not affordable, but not profitable not to, to you either, that is Mr Micawber’s recipe for disaster. Find a Plan B, Hol Lets, LHA emergency Accomodation, commercial, incorporate, sell, redevelop, etc etc

An interesting question is would/should those that do not have a maximum LTV negative profit, increase their rents in sympathy or not? Free market economics suggests they should/would. You don’t set the rent by the level of Mortgage on each property do you?

btw VAT is only determined by the Holiday Lets turnover, if you have residential (or commercial not subject to VAT) that turnover would not count towards VAT registration limit. AIUI (I have one commercial that is VATable, but another not.)

In the telegraph

Os kids cash jibe
Chancellor GO was mocked in the Commons for admitting that he claims child benefit for his two kids.
Labour MP Jess Phillips speaking in a debate on planned changes to UC said most MPS had claimed child benefit due to them
even Osborne who has got a bob or two

She added ” WHAT A SCROUNGER”

Reply to the comment left by “r d” at “07/01/2016 – 21:53“:

Completely agree with this line of action. If we act as one then the likes of Osborne will have to sit up and take notice. My only concern is that we are hurting the people who often cannot afford to pay more – I am a landlord with a conscious but firstly have to look after myself and family – I will stand to loose about £35k a year. There will without question be a lot of extra homeless people and those who want to buy a house will never be able to save enough for deposit. I seriously believe that Osborne is very foolish not to have looked further into this badly conceived piece of legislation. To just have accepted it at face value (from an ill advised bureaucrat who probably has a hidden agenda to bring the government down) beggars belief. It is just so wrong on all levels, incredible!!