Conservative Manifesto 2017 for the PRS

by Property118.com News Team

12:32 PM, 18th May 2017
About 4 years ago

Conservative Manifesto 2017 for the PRS

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Conservative Manifesto 2017 for the PRS

The Conservative Manifesto 2017 says they will act in specific markets including the PRS and housing market, but they are very light on detail and content.

They confirmed that they will continue with the ban on letting agent fee and said the following under the heading ‘Cutting the Cost of Living’.

  • We will also improve protections for those who rent, including by looking at how we increase security for good tenants and encouraging landlords to offer longer tenancies as standard.
  • A Conservative government will reform and modernise the home-buying process so it is more efficient and less costly.
  • We will crack down on unfair practices in leasehold, such as escalating ground rents.

Under ‘Homes for All’ they said:

“We have not built enough homes in this country for generations, and buying or renting a home has become increasingly unaffordable. If we do not put this right, we will be unable to extend the promise of a decent home, let alone home ownership, to the millions who deserve it.

We will fix the dysfunctional housing market so that housing is more affordable and people have the security they need to plan for the future. The key to this is to build enough homes to meet demand. That will slow the rise in housing costs so more ordinary, working families can afford to buy a home and bring the cost of renting down. And it will ensure that more private capital is invested in more productive investment, helping the economy to grow faster and more securely in future years.”

Click Here to read the full Manifesto

 

Comments

Monty Bodkin

8:11 AM, 19th May 2017
About 4 years ago

Reply to the comment left by "Appalled Landlord" at "19/05/2017 - 00:45":

This is not a new policy, it is something easily achievable that is already well on track.
The higher rate tax bracket increased 2K this year alone.

So despite the untrustworthiness of politicians, it is highly likely the personal allowance will be £12500 and the higher rate £50000 by April 2020.

My question is, did the section 24 calculators that came out in 2015 take this into account?
Because if they didn't, a couple can earn around another 15K before being affected.

(If no one knows I'll work it out and post.)

Monty Bodkin

8:26 AM, 19th May 2017
About 4 years ago

Reply to the comment left by "Monty Bodkin" at "19/05/2017 - 08:11":

Thinking back to 2015, I worked out my personal situation based on the allowances as they were then.
When the section 24 calculators came out, the results were the same so didn't take into account any increases in the allowances.

Hamish McBloggs

11:02 AM, 19th May 2017
About 4 years ago

Hi,
I am sure that there will be wide ranging opinion, views and blood will bubble at various temperatures for various reasons. So play nice.

If I haven't spent my money on luxury holidays or misspent my youth on the lash in some Mediterranean resort but instead led a sensible, frugal and prudent lifestyle; investing for my children's future.

Should I be a bit annoyed with the healthcare 'floor' published yesterday?

There is no insurance against this.

It quickly follows that small landlords who have taken risks must now look upon their investment properties as healthcare costs and forget any notion that there would be something left for the kids.

One work around if feeling a bit crook is to get a single to Switzerland. If you are declared unfit to fly then one may have to settle for Beachy Head. Either way travel insurance would not be necessary.

I will hazard a guess that beneath the surface of this manifesto pledge will be a new layer of complicated legislation that changes the time before a 'gift' (however tax-inefficient) is no longer considered part of an estate.

Trusts may also gain some attention, particularly Self Invested Pensions used by the self employed and small company owners.
I will further speculate that incorporations will be dimly viewed.

Bearing in mind that the family home is almost certainly over the 100k 'floor' and we know nothing of any detail yet; the question is simple:

New rules, what's the work-around that doesn't give your executors a hard time?

Lets speculate!

Hamish

Appalled Landlord

21:43 PM, 19th May 2017
About 4 years ago

Reply to the comment left by "Monty Bodkin" at "19/05/2017 - 08:11":

Hi Monty

The tax bands for 2020/21 were not known in 2015. Both of the calculators made available by Property118 allow the user to enter the applicable ceilings when they are announced.

Unexpectedly, Hammond failed to announce the bands for 2018/19 in this year’s Spring Budget. However he did “reiterate his commitment” to applying the figures you quote by 2020/21.

The tax director at Deloitte thought the omission noteworthy: “Chancellor commits to raising personal allowances to £12,500 by 2020/21, but does not give 2018/19 details”.
http://www.ukbudget.com/newsroom-springbudget-2017/chancellor-commits-to-raising-personal-allowances-to-£12-500-by-2020-21--but-does-not-give-2018-19-details.aspx

The ceilings of £12,500 and £50,000 were promised in their 2015 Manifesto, on page 27.
http://ucrel.lancs.ac.uk/wmatrix/ukmanifestos2015/localpdf/Conservatives.pdf

The increases would have translated into higher net pay on voters’ payslips just before the general election due in 2020. So Hammond was only reiterating a commitment to a voter bribe to help keep the Conservatives in power. But by failing to make the usual announcement for 2018/19 he has allowed himself to keep the current bands until 2019/20.

However, because of the surprise election this year, there will be no need for a voter bribe in 2020. It seems paradoxical therefore that the 2017 Manifesto repeats a 2015 promise which would apparently reduce the income tax take by 2020, considering that the current government felt constrained by the 2015 promise not to increase income tax and NIC.

The solution to this paradox may be that the latter promise has been dropped. This year’s Manifesto only promises not to increase the level of VAT (page 14).
https://s3.eu-west-2.amazonaws.com/manifesto2017/Manifesto2017.pdf

Unlike the 2015 version (page 27), it does not promise not to increase the rates of income tax and NIC. So, once elected, the Tories can increase the rates and the tax take, even if they increase the tax bands.

Anyway, once Theresa May has made her victory speech, the Manifesto will be put away and forgotten. And in 2019, if some upstart mentions the promise to increase the tax bands, whoever is Chancellor at the time can wring his hands and deplore the fact that, due to unforeseen economic circumstances, he could not implement the repeated promise.

Lesson from history: Conservative Manifesto promises are not to be taken seriously.

Appalled Landlord

22:42 PM, 19th May 2017
About 4 years ago

Reply to the comment left by "Appalled Landlord" at "19/05/2017 - 21:43":

In short, while giving the impression that income tax will go down by promising increases in the tax bands, the Conservatives have quietly deleted their promise not to increase income tax rates.

terry sullivan

9:16 AM, 20th May 2017
About 4 years ago

Reply to the comment left by "Paul Green" at "18/05/2017 - 14:27":

the current faux-tories are left wing social democrats with a bit of libdim thrown in

terry sullivan

9:17 AM, 20th May 2017
About 4 years ago

the current faux-tories are left wing social democrats with a bit of libdim thrown in

terry sullivan

9:26 AM, 20th May 2017
About 4 years ago

Reply to the comment left by "Appalled Landlord" at "19/05/2017 - 22:42":

total tax take has increased significantly under tories and more rises were promised in the manifesto--i am voting UKIP

Monty Bodkin

9:36 AM, 20th May 2017
About 4 years ago

Reply to the comment left by "Appalled Landlord" at "19/05/2017 - 22:42":

A valid point that they have left it off their manifesto (presumably to leave options open) but it is not a stated aim and would be quite unlikely.
Compared with the alternative...

Monty Bodkin

9:47 AM, 20th May 2017
About 4 years ago

Reply to the comment left by "terry sullivan" at "20/05/2017 - 09:26":

What are UKIP's policies (other than immigration)?
Do they have a manifesto?

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