Iain Duncan Smith Has Spoken Out For Landlords

Iain Duncan Smith Has Spoken Out For Landlords

22:06 PM, 21st June 2017, About 4 years ago 163

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On Sunday 18th June 2017, Iain Duncan Smith was quoted by the Sunday Telegraph as saying ….

“Finally, it is time to look again at the way we treat private landlords who buy houses to rent. George Osborne’s decisions to impose a stamp duty levy on the purchase of homes to rent, to restrict mortgage interest relief to the basic rate of income tax and to tax a landlord’s turnover rather than profits have led to landlords scaling back or even leaving the sector altogether.
They are a significant provider of the additional housing we need. We should be encouraging them with devices such as VAT relief on conversions or even capital allowances, not punishing them. It’s no wonder buy-to-let purchases have fallen dramatically. If the purpose was to stop foreign owners buying up property and leaving it empty

…………………………………………………. We are in danger of throwing the baby out with the bath water.”



Comments

by Monty Bodkin

7:59 AM, 25th June 2017, About 4 years ago

Reply to the comment left by “Property Wannabee” at “24/06/2017 – 19:54“:

"Once a new tax is implemented it is never repealed."

Of course they are.

From the window tax and poll tax right up to the recent scrapping of the 50% tax bracket.

Bad taxes are repealed/altered all the time, as s24 will be once the consequences filter through.

by Old Mrs Landlord

8:12 AM, 25th June 2017, About 4 years ago

Reply to the comment left by "Darlington Landlord" at "24/06/2017 - 23:39":

Agree, DL, spot on. This was a forward-looking scheme implemented in a general government culture of short-termism and cost cutting.

by David Price

8:48 AM, 25th June 2017, About 4 years ago

Reply to the comment left by "Darlington Landlord" at "24/06/2017 - 23:39":

"Yes it was a big project but America sent a man to the moon years ago with the sort of computing power we now have in a smart phone."
Actually it was much, much, much less than the power of a smart phone. Most smart phones now have at least 1000 times more computing power both in terms of speed and memory. In my professional life I was a Rocket Scientist.
Having been involved in specifying systems for large computer projects, of similar complexity to Universal Credit, I can attest to the fact that getting the specification right is paramount and extremely time consuming. A project with moving goal posts at the time of specification, as described by Old Mrs Landlord, is a project which will surely fail.

by David Price

9:01 AM, 25th June 2017, About 4 years ago

Reply to the comment left by "Old Mrs Landlord" at "24/06/2017 - 19:56":

You have managed to succinctly summarise my unspoken thoughts about Universal credit in a concise and eloquent manner. To repeat your words "Good theory – shame about its execution."

by Mike D

11:56 AM, 25th June 2017, About 4 years ago

The problems politically is we as a country spend far more than we earn. When Labour exited in 2010, we were as a Nation £1.3 trillion (Now 1.7 as real cuts didn't start soon enough to cut the overspend) in debt and our annual out goings was 20% more than we earnt. That left us with an annual spend of £158Bn more than was collected in tax. With Austerity as you would at home cut back on what you spend, that after 7 years is now £56Bn overspend.
We have managed to cut costs by 2/3. BUT we are still spending more than we earn.
The cut back in waste was clearly necessary, but i don't believe that can go any further. Austerity or 'Sticking to a Budget' has been taken as far as you can, so that leaves only Tax, 2 options grow the economy to gather more Tax(Income) or just tax from people. Historically a Tory government is a low tax philosophy so traditionally doesn't like to tax people. But under a new global existence and the deterioration of the western world as Asia rises in wealth and influence, IF we want a bigger state, and continue our privileged life styles, then we will need to pay more tax, the question from where......
Dabbling in what appears to be somewhere you can in populous opinion collect tax seems obvious, but what are the outcomes? In S24 this was never really considered and the desperate need for more money was greater than the vision of cause and effect, so the people they were trying to save, won't be, and indeed the lack of accommodation for renting will also decrease.
IF everyone is so concerned about the basics of Hospitals, Schools, Police etc, then it is time in my view, if you use it you pay for it and you put 1p on basic rate of tax to pay for it. That relieves austerity, relieves the debt mountain and stops terrible knee jerk taxes that cause more trouble than they actually save.
Fortunately, we didn't get Corbyn which would have taken straight back to 2010 with his £100Bn of share buying votes for all those that like to spend but don't like to save and earn and work hard.

by Mick Roberts

15:15 PM, 25th June 2017, About 4 years ago

UC never gonna' work with vulnerable tenants.

Paying tenants monthly THE WHOLE LOT in one go don't work with those that ain't great at budgeting.

by Monty Bodkin

15:59 PM, 25th June 2017, About 4 years ago

Reply to the comment left by "Mick Roberts" at "25/06/2017 - 15:15":

What does that tell you Mick?

Time to get out of Dodge.

by Darlington Landlord

21:06 PM, 25th June 2017, About 4 years ago

Reply to the comment left by "Mick Roberts" at "25/06/2017 - 15:15":

You're right, some people will never be able to manage their money, but the monthly payment always seemed a bit of ideology (6+ weeks delay means the benefits finances look a little better) plus lets face it what possible private sector comparable could be used to justify not paying anything for the first 7 days of a claim.
Even today not everyone working is monthly salaried, I have several tenants still being paid weekly, 2 of them through personal requests to their employers due to money management issues. UC could have easily been similarly flexible for those with poor money management skills and could have also pointed them at training to help develop skills and allowed payment to landlords from day 1 for such tenants rather than a one size fits all "give the tenant all the money" and expect them to miraculessly develop budgeting skills overnight after having no money for a month and a half or more.
What I thought good about the UC concept was bringing all benefits into one, the flexibility to allow people to take temporary/part time jobs without immediately losing all their benefits - then having to reapply causing hb and other payments stops and buildup of debts. It was always supposed to be geared to make any work pay better than not working so it eliminated benefits traps and encoraged people to take on more and more work leading many out of benefits entirely.
Then the treasury led by George Osborne sentenced it to the death of 1000 cuts
As David said
“Good theory – shame about its execution.”

by Mick Roberts

7:03 AM, 26th June 2017, About 4 years ago

That's exactly it, it's shun't be a one size fits all, everyone is different, u learn that so much more when dealing with HB tenants.
Problem is, the idiot Conservatives think we/they all should be great at managing money & if they get paid once a month, this will help-Yeah right.....

Yes, developing budgeting skills overnight. If u save money when u 7, u save when u 37. You aren't going to train people to be good with money 'cause u paying 'em once a month. Morons.

by David Price

7:29 AM, 26th June 2017, About 4 years ago

Reply to the comment left by "Darlington Landlord" at "25/06/2017 - 21:06":

“Good theory – shame about its execution.” should be attributed to Old Mrs Landlord, I was merely quoting.


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