Summer Budget 2015 – Landlords Reactions

Reply to the comment left by “Trendo ” at “04/02/2016 – 00:39“:

Going out next week to scout around. Far better tax treatment by the government and real potential to add value to land by development as opposed to the UK where most infills site are ridiculously expensive and beyond the reach of mere mortals let alone having any equity left in the pot to satisfy lenders requirements.
The cost to build residential property in Australia is nearly half that of the UK.

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Reply to the comment left by “Simon Griffith” at “04/02/2016 – 08:02“:

Hi Simon. Just email Mark and he will put you in touch with his contacts.

Here is an interesting link to a tax specialists analysis of the effect the tax changes will have. Even after six months I’m not sure I really understand the underlying maths and this page was an interesting perspective.

https://comanandco.co.uk/taxation-of-interest-on-rental-property

Suppose freehold flats were converted to leasehold, the lease made VERY short, and retained. The flats value on the open market is very much lower. Thus the CGT liability is lower. The Ltd co can then buy that or it can be traded. Is this viable?

However outside the SE bubble, there are not so many with any CGT liability, at least over the annual allowance I suspect.

Like most i havent raised rents for tenants in situ for many years on some props, the highest rent increase i have made to date is 35% …which was met with agreement to sign a new 12 mth ast. I am full and getting emails like this everyday

” I am looking to rent with my partner as we have recently been told we have to move out of our current property due to the landlord selling the house.”

Also calls from council trying to build bridges with LLs, as well as Brent council calling right accross the uk offering cash incentives (bungs) of several thousand pounds to LL to rehouse families half way accross the country.

Also calls from Asylum accom providers desperately seeking prop at completely unrealistic rents.

The twilight zone brigade keep insisting “these properties wont go up in a puff of smoke” it will all balance out ……..rental demand is growing, availability is shrinking, this equation is not going to work.

Ftao George: You need to wake up and smell the coffee, WHERE are all these peole going to live ?

Reply to the comment left by “Trendo ” at “04/02/2016 – 13:50“:

Yes this echoes my experiences. My prospective tenant folder grows daily. About 100 plus at any one time. It gathers dust. I`m full at the inn. No one can move. Its gridlock out there.

I also have calls from councils housing associations social services hostels and B&B`s. Whole hotels are taking up I hear in some places with the homeless. Its tent cities next.

The council shower me with money up front before I have even acquired a property such is their desperation to keep me sweet. Four weeks before exchange it lands in my account. They cross their fingers and hope for the best because they dread another family turning up in their foyer saying they are homeless. Their due diligence goes out the window

I have my own tenants on an ever increasing long waiting list with me wanting to upgrade or down grade as they have babies or their relationships split up.

George will take more of a pounding every day. The pressure will increase I`m sure on him. It will not be us though that tips the balance I`m sure. Our cards are well and truly marked.

No Its when all the caring statutory and voluntary agencies start to really wade in saying they cant cope. . I struggle to find anyone ( when they understand the true full effects of C24 ) who agrees with his polices from whatever political persuasion or organisation they represent

But we need this storm before the calm it seems

George`s best bet is to quietly do a U turn before the Judicial Review kicks in .
Then we can carry on doing what we do best. Housing the nation
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Reply to the comment left by “Jonathan Clarke” at “04/02/2016 – 14:32“:

I am in the same position. Even my DWP tenants are beginning to realise that not paying their top up is a sure way to sleeping in a doorway. The council whilst not yet being overtly helpful will now speak with me in civil manner. Being helpful will come soon.

Reply to the comment left by “Jonathan Clarke” at “04/02/2016 – 14:32“:

A U turn is too late for me Jonathan, the die has been cast.

Since even before the start of this thread, I’ve been busy selling off the worst performers and increasing rents, some by 20% plus, with more to come. And I’ve never had such low arrears levels (currently zero, that doesn’t happen often!).

By the time I’ve done, I’ll be making the same amount of post tax profit for 2/3rds of the work.

I’m expecting even more rent increases as this starts to bite.

Reply to the comment left by “Stewart Jackson” at “04/02/2016 – 11:16“:

Hi Stewart, I hope your meeting went well and thank you for the heads up. Mark contacted me in fact before I had the chance to email him. I received a wealth of advice which was extremely useful and much appreciated. I am now in the middle of digesting it all and working out the best way forward. Thank you again Property118.com.