Summer Budget 2015 – Landlords Reactions

Reply to the comment left by “Simon Hall” at “24/11/2016 – 18:09“:

Simon, why would they even consider removing the ‘retrospective’ short term tax grab element of s24?

Even the threat of S24 alone has virtually guaranteed that moving forward HMRC’s receipts from the PRS will massively reduce longer term as vast majority of LLs will purchase, renovate (or even build) within lower taxed entities.

BTW on another note, having never charged tenants a penny for ‘fees’ such as referencing, deposit protection, printing out a contract, admin etc as can not agree with it from a moral POV, part of me is relieved that these fees are going to be outlawed. Sorry if that offends anyone.

No offence to me mark I am the same and pick up loads of tenants fed up with fees I advertise the fact and am always full

Reply to the comment left by “Mark Shine” at “24/11/2016 – 18:58“:

Sorry mate don’t get it. Are you saying in your opinion they won’t remove retrospective part? and then you say that, this will reduce their Tax receipts. Not sure if you’ve been sarcastic….

Reply to the comment left by “Simon Hall” at “24/11/2016 – 20:06“:

Short term (say next 1-5 years): potentially massive increase in tax receipts from the PRS?

Long term (say after 5 years onwards): they’ve virtually guaranteed massive decreases in tax receipts from the PRS as it becomes more ‘tax efficient’?

If the political elite were hoping to (a) take a short term tax grab and (b) political point scoring by being ‘seen’ to be addressing the housing crisis regardless of the consequences and (c) make it easier for their ‘tax efficient’ institutional LL (BTL & BTR) buddies by guaranteeing them ‘customers’ by driving out even 1 in 5 of the competition… why would they willingly remove (a) the retrospective element now?

Ladies & gents… have you seen this?
https://www.property118.com/92625-2/92625/#comment-84306

The comments section has triggered some interesting parallels to be realised…

John Kingman => Group Chairman of Legal and General plc & Former Treasury Civil Servant => L & G is an Institutional Investor in the PRS => L & G is sponsor of the Intergenerational Foundation

Kingman? Now where have we heard that name before? Oh yes!

David Kingman => Works for the Intergenerational Foundation => Left university with a degree in Geography => Wrote a report calling for the end of landlord “tax breaks” => Credits himself for changes introduced via the Finance Act 2015.

Here’s Why The UK Property Market Could BOOM For Another Ten Years
A reasoned viewpoint , Harry wont be happy to hear this !

http://pro.moneyweekresearch.com/CTC-1116-property/ECTCSBD8

Reply to the comment left by “Trendo ” at “01/12/2016 – 00:40“:

Very interesting, Trendo. If you or anyone else reads the work of the financial geniuses on the site which apparently studies the goings-on over here with intense interest, perhaps you can let us know what their considered opinion of the analysis is?

NEED FOR RENTAL PROPERTY..immigration figs…and diminishing supply.via clause 24..leverage on same>>>>>>>>>>>>>>>>>>>>
O.N.S. latest as of five hours ago BBC..335000 immigrants to uk per annum. and we know there will be a lot fewer private rented homes under Cl 24..thats its aim…over three years.
maybe 100,000 private landlord homes less under Cl 24 NB.. per annum.

SO…divide imm fig by 2.4 for homes needed..(families)….so.134000…add 100000 fewer rentals..p/annum (..as govs aim WAS and IS to drive us down and out over three years.)..Government needs to create 234000 new rental homes every year JUST to cope with JUST these two factors. Avg house price (bbc) today 204k. Now do the maths 204 k multiplied by…234000..many many billions>>>477,360,000,000 pounds worth of new houses per annum… yes folks close to 500 billion pounds worth of new rental homes every year JUST to keep pace with these two factors.Add in other factors rarely accounted such as VERY few new private rentals coming into the market compared to normal historical entry fig.situation.AND of course.add in normal pop. growth etc. Conclusion the government has created a perfect storm of supply demand imbalance and will have to u turn in some way shape or form over the next few years.
We should keep telling them of these figures and … Ireland…and keep saying better to act now or look even more stupid later..They have to repeal Cl 24.
Heres another snappy one..total pop about 65 million…divide the big fig above by the existing population….and each man woman and child already here would have to contribute 7,344 pounds per annum by some mechanism or other to pay for these NEW rental homes.This can not and will not happen.The government is stuffed..hoisted by its own petard…its not maybe..its only when this works through to its essential outcome.

The £204K figure is the value of the house, I believe, not the cost to build. A safe assumption would be around £130K build cost av. based on the supposed av. value.

Could go on for hours as to whether land, infrastructure, fees, planning etc. were included in the figures. But even if you half the build costs, going by your figures, it’s still £250bn required per year.

One other thought that I had about your figures was that conversion of properties from rental to sale would not mean all properties were lost from the market, but convert to OO (for all the immigrants and FTBs to buy of course, since they can all get mortgages).

Not sure whether the 2.4 persons per household is accurate for the immigrant demographic?

Generally though, I completely agree with your points. It’s a time-bomb. I’m also wondering if there will be a market crash, which will mean the exact scenario the BoE was trying to avoid (market instability), they will manage to spectacularly, and catastrophically bring about! And we have the implications on pensions to look forward to in the future ….

Michael – like these figures. I’ve been looking for a headline to send something different and easy to understand (lol) to my MP. I can send this today with a gloat about the Tory / Ex Tory failure in Richmond – couldn’t even beat the lib dems !! The political elite are not going to deliver Brexit and the housing storm is coming on strong – big troubles ahead.