Summer Budget 2015 – Landlords Reactions

Reply to the comment left by “Jack Craven” at “29/02/2016 – 17:44“:

Because it will be a lot easier if it’s done in small increments starting now.

Exactly small gradual increases phased in along side the dreaded clause 24

Reply to the comment left by “Markb ” at “29/02/2016 – 17:20“:

What’s all the nonsense that the NLA claim about it being difficult to incorporate. It’s easy. The problem is its expensive. Equally it is easy to run a property company, certainly no more difficult than an individual portfolio.

BUT tax paid on incorporation is tax paid in advance of an eventual sale, money on account. Tax paid as a result of Clause 24 is money lost, completely wasted

I really believe that if c24 does come in lenders will adapt their products and make it easier for us to incorporate. I have already had a letter from one lender saying exactly that they will be very aware of what’s coming and want to protect there loan books and grow their businesses as but to let is extremely profitable and low risk

For those of us who saw yesterday’s BBC BTL …ahem… ‘report’, which came across as more of joint venture party political broadcast on behalf of HMT and advertorial on behalf of Property Partner, I see that Property Partner (and one of their investors, landlord Jaye Cook) is back in the news again today, peddling their wares:

http://www.propertyreporter.co.uk/landlords/rate-rise-could-force-landlords-into-debt-by-2020.html (Property Partner mentioned 11 times in this report/advert)

http://www.mortgageintroducer.com/buy-to-let-could-be-unprofitable-by-2020/#.VtSGLo_XJPZ (Only 3 mentions this time)

It seems that landlords in the south are going to be hit worse due to higher prices and lower yield

More than half of letting agents think buy-to-let reforms will push up rents:

http://www.themovechannel.com/news/stories/more-than-half-of-letting-agents-think-buy-to-let-reforms-will-push-up-rents-453/

Reply to the comment left by “Jack Craven” at “29/02/2016 – 17:44“:

Jack

The increase I have calculated for my portfolio is 35%. Just so my family get the same amount of income in 2020 as they do now. No inflation nothing extra!

I have increased rents by 15% now to test the theory that I can do so and to part compensate for the loss of 10% W&T In 2016-17.

I shall use the increased rent receipts for increased maintenance in 216-17 and so will pay no more tax in 2016-17. However I will have a better product offering going forward and a higher rent base to build on. I will enter 2017-18 with a further 8.5% rent increase and the same again in 2018-19 so that by 2020 a compound 35% increase in rents would have be effected and i will have built the necessary capital to offset the additional 3% Land Tax for future purchases. I will be ready in a measured way with rents that reflect the full Tenant Tax I will have collect for the Government.

Does that help you understand?

I believe that is there prudent approach to our government’s Tenant Tax and Stamp duty rises. Whilst I shall fight for repealing the laws as i think they harm the UK greatly, I have made a decision to be a landlord and will stay a landlord. I am lucky enough to have great houses in a very high demand area so my rents will continue to rise as people rent for many reasons. The PRS will always exist even if massively reduced & I intend to remain to be part of it.

When this all washes out I shall still be there as a landlord but rents will be ridiculous! High rents will cripple parents and other benefactors that will have to pay it. Student loans will be unpayable and our national debt to china et al unfathomable & will be 90+% of GDP. = trickle up economics… This is what you get when you place a history graduate in charge of the worlds 6th largest economy.

High rents are inevitable and they will push up wage demands and make it impossible for essential workers to live near their work. The inevitable is fabricated unnecessary inflation which will reduce general wealth of all. And the sad bit…. people will be homeless just so our government can try to fulfil the first time buyers wish to own a home they can’t really afford and will under-occupy. All the while fixing the supposed capitalistic needs of society but doing nothing to fix the basic need for homes for all.

“will” push up rents ??? …erm.. they already have and they will continue to do so.

Why is this a surprise to anyone at all ?

Hi Markb. My comments and view completely. I am here for the long term and am certainly not going to let GO and this government stop me. I have worked long and hard to obtain my properties and this idiot is not going to stop me! Unfortunately the country and my tenants will be much poorer for GO’s meddling.

Douglas.