Quest report BTL survey instructions down by 40% on February

Quest report BTL survey instructions down by 40% on February

9:36 AM, 13th May 2016, About 5 years ago 39

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The Quest Survey and Valuation reporting systems are the most widely used by surveying firms across the UK reporting back to lenders and customers. They are therefore in one of the best positions to report on activity in the Buy to Let market as a valuation survey is only instructed once a mortgage has been agreed and is likely to

The figures have to be considered in the background of the rush to complete Buy to Let properties before the 3% Stamp Duty surcharge on second properties deadline started 1st April. There was a large increase of survey instructions peaking in February to give a chance for property purchases to complete before the 1st April.

Then by March, when it starts to become difficult to complete before the deadline, survey instructions drop by 30.6% against the February peak and in April, post Stamp Duty surcharge, survey instruction fell by 40%.

Quest is predicting Buy to Let instructions to remain low during May and is monitoring the market for potential threats to manipulating purchase prices and values. These threats can occur when demand falls in a market to try and buck the consequent downward pressure on prices. In this case the fall in demand is being caused by planned decreases in mortgage interest tax relief and the above mentioned stamp duty surcharge on second properties.

MD of Quest, Peter Stimson, said “with any significant changes like we have seen with the Stamp Duty rules, we do typically see a change in behaviour.

“Currently, we are seeing a sharp rise in the number of new build developments either offering Stamp Duty paid deals or appearing in property clubs offered at discounted rates.

“Particularly worrying is that rather than just one or two properties at the end of a development phase, in some instances we are now seeing entire developments appearing for sale under value.

“Lenders and surveyors really need to do their due diligence and be fully aware of such incentives and schemes to manage and control the risks associated with these.”


by NW Landlord

15:32 PM, 15th May 2016, About 5 years ago

To incorporate my business has been expensive and stressful and for what to continue to operate the same way ? How is that fair ? All the hastle and cost to pander to some idiot down south who thinks it's fair to give u tax bills which are higher than the profit you make its nothing short of a scandal and I prey this judicial review works and highlights how devious and corrupt these people are at the top

by Sunny K

15:42 PM, 15th May 2016, About 5 years ago

Reply to the comment left by "NW Landlord" at "15/05/2016 - 15:32":

Very True. The irony is Mr Osborne is pushing for more PFI schemes in NHS, transportation, education etc on the premise that renting is better than owning for public service. This again is an eyewash to sell public assets. The Etonian school of cronyism is fulfilling its destiny. Shame Zac couldn't make it

by Richard Mann

18:58 PM, 15th May 2016, About 5 years ago

From property investing .net

London Badly Affected: Most buy to let landlords are in the 40-50% income tax belt because they need significant income to risk mitigate against bad tenants and the risks of being a landlord. These are the people that will be affected by the new tax grab – namely only being about to offset 20% of the tax against mortgage interest payment – rather than the 45%. This means paying tax on losses for most buy to let landlords which renters the business sub-economic and forces them to sell. This will reduce the amount of rental properties on the market, lead to a tightening of the rental market and rents will then skyrocket. There is already a massive shortage or rental properties in London and SE England – these the landlords that will be hit hardest because property prices are the highest requiring the highest mortgage payment that will then not be offset against income tax at 45% (rather 20% from 2020 onwards). If and when interest rates rise, this will make the situation even worse for landlords and there will be many forced sales. In fact this new tax could lead to a property price collapse – it would certainly put very big pressure on the property market if interest rates rose, just when other people are also feeling the pressure of higher mortgage payments.

by mark andrews

23:34 PM, 15th May 2016, About 5 years ago

I really hope that you didn't waste too much money on incorporating NW, because I'm not sure even that will keep you safe for very long:

by Richard Mann

7:23 AM, 16th May 2016, About 5 years ago

Reply to the comment left by "NW Landlord" at "15/05/2016 - 15:17":

You have absolutely nailed it NW Landlord.
By understanding the bigger picture or at least interpreting it you can protect your position.
Besides, all the decisions that have been made by people with lettings business's were made using the prevailing landscape at that time.
To completely turn the tables on thousands affecting possibly millions is the equivalent of a rabid dog attack on its owner.
Incorporating is one way of limiting damage, my slight concern is that a very specific group are then gathered neatly together, could this lead to further assault at a later stage?

Lets just hope the 300,000 per year showing up on our shores and their larger extended families can find somewhere to live and a decent job and enjoy the benefits of living here.

by NW Landlord

8:23 AM, 16th May 2016, About 5 years ago

You have to cross every bridge as it comes if they decide to do the same for companies it's going to be unworkable. I really don't see where they are coming from with the whole thing. It could become a new poll tax if you can't afford this bills what will they do as it won't just be few it wil be hundreds of thousands of landlords / property companies saying we simply haven't got the money then they will realise how ludicrous the whole thing is

by Richard Mann

8:56 AM, 16th May 2016, About 5 years ago

...I know this sounds a bit weird but its as if the mad people have taken over the Asylum.
I sort of feel like I have walked into my home and someone has brushed passed me on the way out with my TV set, another 2 people are carrying my sofa out, other people are rushing past me carrying my belongings...
I am being robbed and looted, all the rules have suddenly been turned upside down. All logic and reason has been cast out.

I recall watching news footage of lootings and fires in various parts of the world, even here, parts of the country have been through this nightmare scenario. I remember a man carrying a flat screen TV down a street it was night time and there were burning buildings in the back ground. TBH I kind of feel the same way now except it is my whole way of life being ransacked.

The "business" that many of us have spent years of our lives building, ablaze, thousands of people possibly having nowhere to live as a result of this action by government. Poor and working classes singled out as targets for every economic inadequacy this government has perpetrated. No where to run and nowhere to hide and no policy for remedy. No incentive created to better the lives of ordinary hard working people as they just objects of income.
Tax em when they work tax em when they die tax em when they cannot work any longer work.
CGT IHT IT And now Section 24

by Sunny K

9:20 AM, 16th May 2016, About 5 years ago

Reply to the comment left by "Richard Mann" at "16/05/2016 - 08:56":

These taxes makes most business nonviable. These will have repercussions for banks, private investors, economy in general. It is pure madness as you put it.

by NW Landlord

9:28 AM, 16th May 2016, About 5 years ago

It will have to be reversed at some point the numbers just don't add up I thought it was a joke when I went through it with my accountant. The more finance you have the worse it is so for large corporates it will be even worse. It can't be sustained long even medium term which makes me think it is a short term tax grab and a way of freeing up stock for all these FTB queuing up to buy our properties ?? any sane person knows u cannot run a business where your tax bills are larger than your profits

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