Most portfolio landlords aren’t worried about the next government

Reply to the comment left by havens havens at 19/06/2024 – 18:07
For the most part , I had been feeling relatively unbothered about everything the tories have come with over the last few years. Most of my stock is held within a company so Section 24 didn’t affect us, section 21 withdrawal never concerned me as I’ll just use Section 8. Enormous demand and rising rents have far outweighed the changes they have bought. But ! I read today that Starmer has some plans of his own that haven’t officially been released in that Labour plan to charge national insurance on unearned income ( rents) , a raid on agricultural land relief for inheritance tax purposes, council tax reforms whereby bills can potentially double or even treble. Raising capital gains yet again. There was also talk of wealth taxes being brought in. Got to say I’m feeling a bit more nervous about things now.

Reply to the comment left by Trapped Landlord at 19/06/2024 – 19:48
If the incoming government proves to be as hostile to landlords as expected, then those left in the game will simply prioritise protecting themselves and their business – first and foremost, by putting up rents and restricting their clients to those who are deemed to be safe enough and reliable enough to be trusted to look after their property. A well-paid full time job, guarantors, rent in advance, and who you know, will become ever more crucial in securing a place to live.
God help the tenants, who will be the real collateral damage in all of this!

There’s hell of a lot to worry about. The major one for me is lack of court reforms meaning you’ll be waiting five years or more to get a possession order from the courts.
Another one is BTL lenders withdrawing from the market because of this. And definitely withdrawing if selling a rental property is no longer a reason for eviction. Bye bye interest only mortgages with sale of property as repayment vehicle.

Reply to the comment left by Peter Merrick at 19/06/2024 – 23:03Aren’t most of us already doing a lot of the things you list? However rent in advance is not something we ourselves have yet felt necessary to ask, since the choice of eager tenants has been so wide. .

I am not really worried about any changes to legislation, I have good long term tenants so am not looking to evict people.Having said that I am now looking to downsize and any changes to capital gains tax will have a major effect. I suspect that gains will end up being tested as income by Labour which will make a massive difference. As the article says the conservatives haven’t exactly been the friend of the landlord!

Well I think its important to look at what the future effects will be, beyond the renters who will become homeless unless they have the money to pay the inevitable higher rents, and the Landlords who will simply stop paying their B2L mortgages, and let the banks evict the problem tenants. The banks have superior rights and powers of eviction and that will become the route Landlords will get forced to take. That will have a knock on effect on banks not offering B2L mortgages because they will become too risky an investment. Finally the PRS will disappear and renters will have to rent from the council, or a housing association, where they will be buying up all the small rental companies that have proliferated due to the introduction of section 24. Hopefully someone in power will stop all this madness before it gets this far, but dont hold your breath.

Reply to the comment left by Peter Merrick at 19/06/2024 – 23:03
So true….

Who writes this rubbish?

I have 14 units and I’m REALLY worried, as are all my fellow landlords