Summer Budget 2015 – Landlords Reactions

Reply to the comment left by “money manager” at “19/01/2016 – 06:58“:

Hi. I am new to this forum, new to doing business and also to buy to let industry, with my first purchase’s convincing going on as we speak. Can you please give more information on VAT:

I understand we do not collect VAT on rent. But can we register for and claim VAT back if we are not limited company on our outgoings, for example, our purchases on doing work in the house, purchasing appliances, cleaning services etc.? The mortgage will be in my wife and my name.

Well, there you go, as if we really needed it, definitive proof that the majority (two thirds) of PRS tenants do not see annual rent increases and of those that do (one third), their rent increases lag behind the market rent (1.3% versus 3.1% market rent increase).

https://www.landlordtoday.co.uk/breaking-news/2016/1/countrywide-rents-up-3-1-in-2015

Just a few years with zero rent increase and the average tenant will find that they are paying 20% or more below market rent. This is the Government’s own definition of ‘affordable rent’ and the same model they are forcing Housing Associations to confirm to just to keep their state funding.

So, despite supporters of Clause 24 sneering that landlords “can’t just raise rents because the market won’t tolerate it” we can now all see that there is actually plenty of spare capacity for landlords (businesses) to increase their rents to market levels and redistribute the tax burden onto tenants (customers).

Way to go Tories! Yet another tax on private tenants, just like licensing, right-to-rent and dozens of other ‘well meaning’ pieces of legislation that affects tenants’ standard of living!

Reply to the comment left by “Alex Caravello” at “19/01/2016 – 11:16“:

Some light reading:-

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/461439/EHS_Households_2013-14.pdf

Twice as many in work social housing tenants receive HB as in PRS – bottom of p8

53% agree renting best for them p17 of 130 under ‘satisfaction’. July, Revised sept 2015
Up from 52% on p8 of https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/335751/EHS_Households_Report_2012-13.pdf

And 84% of PRS, compared to 81% of social renting were fairly or very satisfied, bin para 2.44. There are so many useful nuggets of info in these reports!

Another similar:-
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/469213/English_Housing_Survey_Headline_Report_2013-14.pdf

One of these show how little PRS rents have increased for OLDER tenants – as in those there for a longer time, compared to Social renting.

This makes a powerful case for a vibrant healthy PRIVATE rental market.

Another interesting but aged paper, and see Corbyn’s intentions and the NLA response following, etc etc.

http://researchbriefings.files.parliament.uk/documents/SN06760/SN06760.pdf

Reply to the comment left by “Mr Barua” at “19/01/2016 – 10:30“:

Generally no, if a landlord has a business that ONLY makes VAT exempt supplies you cannot register for VAT at all. If the same landlord/s has/have a second business activity which is potentially subject to VAT then registration may either be compulsory (if non exempt turnover is above the threshold) or voluntary if below.

The process of correct calculation to ensure you stay within the de minimis limit can be extremely complicated and you may need professional assistance.

Yes, lots of good reading there!

Social rents increased by 32% between 2008 and 2014, whereas private rents only increased by 15% and inflation was 24%.

With such an abundance of easily accessible facts out there, it still surprises me that so many people will just accept at face value the tripe that gets spouted about the PRS.

Reply to the comment left by “money manager” at “19/01/2016 – 12:09“:

Thank you. It is very helpful!

New petition calls for fair tax treatment for landlords – please sign and share news of the petition

https://petition.parliament.uk/petitions/118920

https://www.landlordtoday.co.uk/breaking-news/2016/1/rla-accuses-government-of-discriminating-against-uk-investment-in-housing

Bracing ourselves for the march budget ? what else can Alice come up with ? a mass repossession of your portfolio if you don’t have blonde hair and blue eyes ?

Reply to the comment left by “NW Landlord” at “20/01/2016 – 09:44“:

Don’t give him ideas 🙂

The idiot continues to pedal his sophistry:

Oral Answers to Questions – Treasury: Long-term Economic Plan (19 Jan 2016)
http://www.theyworkforyou.com/debates/?id=2016-01-19a.1249.3&s=landlords#g1250.3
George Osborne: …it will help to promote home ownership, because it
will mean that there is a more level playing field between an
owner-occupier who wants to buy a house, a first-time buying family and
a buy-to-let *landlord*. There is nothing wrong with people investing in
property, but there should be a level playing field so that we reverse
the decline in home ownership in our country.

We are also not just rogues now, but ‘abusive’ just like the perpetrators of domestic violence:

[Mr Adrian Bailey in the Chair] – Access to Justice: Vulnerable People (19 Jan 2016)
http://www.theyworkforyou.com/whall/?id=2016-01-19a.485.0&s=landlords#g485.3
Stephen Kinnock: …, and that has had a huge impact on people across
England and Wales: parents unable to see their children; employees
unfairly dismissed or discriminated against; tenants mistreated by
abusive *landlords*; and women unable to leave abusive partners. Those
are exactly the kind of people the Government claim to stand up for, but
the reality is different. Consider family proceedings, for…

The prejudice, discrimination and gross generalisations being made about landlords in Parliament are pathetic.