Councils of Britain are you ready for Osborne’s Housing Crisis?

Councils of Britain are you ready for Osborne’s Housing Crisis?

10:37 AM, 20th November 2015, About 7 years ago 35

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Councils are going to be on the front line of this complete disaster and we should all make this clear to them. I don’t just mean detailing our own financial predicament and explaining the mathematics behind it. I mean making clear what we are going to do (be forced to increase rents and/or sell-up) because of George Osborne’s Tax on Mortgage Interest and the emergency that every council will face in consequence.crisis

They need to know that they have just 5 years to dramatically increase their own housing provision, because their worst nightmare is coming: their housing waiting lists are going to be utterly overwhelmed by 1) people pushed out of the private rental sector by our withdrawal from the market, 2) housing benefit tenants that we can no longer afford to house. Their current predicament is going to look like a picnic in comparison to what is heading their way.

We have all had those phone calls I am sure, when our council wishes to inquire if we’ve spare capacity for some of their potential tenants: When you tell them no, tell not for any longer after the passing of clause 24 and that you’ll probably have to sell up as a result. Sorry but it’s out of my hands, take it up with George.

I believe we could cause a real stir with a concerted, collective effort in this area. Council’s are going to absolutely hate trying and failing to clean up this mess left to them by the Chancellor.

We each need to direct our e-mails to our local council’s housing departments and key figures in the organisation. I also think that we should share these e-mail addresses on this forum. In addition to contacting my own council I am planning on sending a massive one bearing the title of the forum, so I may need help gathering as many addresses as possible for that.


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Robert M

14:09 PM, 20th November 2015, About 7 years ago

What happens if all private landlords convert to a Limited company and then pay themselves a salary as the company's Manager, and a dividend equivalent to their net profits (after deducting the finance costs etc in full)? I know there is a bit more paperwork to do, e.g. annual accounts for Companies House, but the process of setting up a limited company is quick and easy enough.

Gareth Wilson

14:23 PM, 20th November 2015, About 7 years ago

Reply to the comment left by "Gareth Wilson" at "20/11/2015 - 14:04":

You know what, I am thinking way too small here. It would need to be some kind of Supra-campaign group above property 118 and the other property website memberships.

From reading their articles Mark and Rosalind have contacts with other landlord groups outside of property118. So the idea would be that they decide upon the name of a single campaign group with their equivalents on the front line, those of the NLA, Landlord zone etc etc. Then they would all distribute a single declaration format to all of their members/users via their own respective channels/websites/mailing lists.

So each letter and argument of our main protagonists would represent one huge voice.

Luke P

14:23 PM, 20th November 2015, About 7 years ago

Reply to the comment left by "Robert Mellors" at "20/11/2015 - 14:09":

Are you talking about selling the properties to a limited company (essentially selling to themselves)? If so, there will be CGT to consider.

dom glynn

14:29 PM, 20th November 2015, About 7 years ago

Reply to the comment left by "Gareth Wilson" at "20/11/2015 - 14:23":

Hi Garth,
This was suggested 4 months ago and for various reasons was not possible. Great idea though!

NW Landlord

15:22 PM, 20th November 2015, About 7 years ago

Hi I am here 100% I am in complete shock at is what is happening it is hatchet job complete sabotage of ordinary viable businesses my email is any help I'm here

I've now read that large items that go towards running a property business are also scraped eg car costs they now expect you to get around on a push iron to run your business he wants rid of portfolio landlords so his cronies in London can move in as they have seen there is a profitable market and they want control and profits jobs over I'm afraid

Robert M

15:26 PM, 20th November 2015, About 7 years ago

Reply to the comment left by "Luke P" at "20/11/2015 - 14:23":

Hi Luke

I'm not sure of the format this could take, it's just a thought at the moment, however, I own some properties myself (in my own name), and I also have a limited company that leases properties from other landlords on a rent to rent basis. I also lease my own properties to my limited company on the same basis.

As the owner of the properties, and the director of the company leasing the properties, I am free to set my own rents, and lease terms, so can reduce my personal profits and increase my limited company profits if I wish to vary the leases in this way.

I don't know much about selling your own properties to a limited company, or the tax implications of this, but it may be worth considering this possibility. -
For example, I guess if I had a property portfolio worth £1m, and had mortgages of £700k, I would pay far less Capital Gains Tax by selling to the limited company (and only pay it once), rather than paying tax each and every year on the total rental income from that same portfolio??? -
It's just a thought, and perhaps someone with a much greater understanding around the tax rules would be able to calculate the actual Capital Gains Tax payable compared to the tax payable if the properties are not sold to the limited company?

Gareth Wilson

15:31 PM, 20th November 2015, About 7 years ago

Reply to the comment left by "Worried by Budget " at "20/11/2015 - 14:29":

Can you remember why? We're further up the creak than we were 4 months ago.

dom glynn

17:15 PM, 20th November 2015, About 7 years ago

Reply to the comment left by "NW Landlord" at "20/11/2015 - 15:22":

Are you saying that travel costs to rental properties for periodic inspections, maintenance, etc is no longer deductible?
One of mine is a 150 mile round trip!

dom glynn

17:19 PM, 20th November 2015, About 7 years ago

Reply to the comment left by "Gareth Wilson" at "20/11/2015 - 15:31":

Gareth, it was a long time ago in terms of this thread. I seem to recall that Mark A or someone else, thought that the RLA and NLA were highly unlikely to cooperate due to professional rivalries. I imagine the same would apply to other groups.

Carol Thomas

21:31 PM, 20th November 2015, About 7 years ago

Let's face it - we've been stuffed good and proper. I still haven't seen any real ways for small landlords, like myself and many others, to help ourselves through this catastrophe. As far as I'm concerned, the local councils will still practice head burying tactics. They have always been self-serving - why should they change now! And they certainly aren't going to bite the hand that feeds them either. I see a horrifying vision of queues of homeless Englishmen, followed closely by even bigger queues of homeless immigrants and desperate people resort to desperate measures.....
I was horrified to see a large organised sales pitch for new-build buy to let properties splashed across our local property paper! This will be the next big mis-selling scandal with hundreds of new landlords losing their shirts! My few properties are/were my pension as I have been unable to work since I turned 55, so no nice company pension for me. I am sickened by the actions of this government- it's a very sad country we live in now, and it's getting worse by the day........

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