Shadow Chancellor John McDonnell anti Buy to Let but said very little

Shadow Chancellor John McDonnell anti Buy to Let but said very little

10:38 AM, 29th September 2015, About 9 years ago 44

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During his first speech as Shadow Chancellor John McDonnell hinted at his views on introducing rent controls and stopping tax breaks for Buy to Let landlords without actually giving much away in detail.John Mcdonnell

The Labour party have estimated that tax breaks to Buy to Let investors are worth £13billion per annum and it is understood that if they were to get into power they would be looking for the ability of landlords to offset costs against taxable income to be abolished. Thus sending many property investments into a negative cash flow position.

From the transcript of the speech McDonnell said: “There will be cuts to the billion pound tax breaks given to buy to let landlords for repairing their properties, whether they undertake the repairs or not.”

“And cuts to the housing benefit bill when we build the homes we need and control exorbitant rents.”

What exactly this means for his plans on the taxation of Landlords and the instigation of rent controls in the Private Rented Sector has been left wide open.

Mr McDonnell also criticised the Bank of England for missing the inflationary target of 2%. He indicated that although  the Bank of England would be kept independent from politically lead decisions he would be looking for a much wider economic objectives than just inflation.

McDonnell said: “I will also be setting up a review of the Bank of England.

Let me be clear that we will guarantee the independence of the Bank of England.

It is time though to open a debate on the Bank’s mandate that was set by Parliament 18 years ago.

The mandate focuses on inflation, and even there the Bank regularly fails to meet its target.

We will launch a debate on expanding that mandate to include new objectives for its Monetary Policy Committee including growth, employment and earnings.”


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Comments

Neil Patterson

19:01 PM, 29th September 2015, About 9 years ago

Hi Laura,

There is a huge amount of work going into this both online and off regarding the new tax rules.

It may take some time (lots), but please see >> http://www.property118.com/budget-2015-landlords-reactions/76164/

Edward Steele

22:33 PM, 29th September 2015, About 9 years ago

I am constantly amazed that anyone believes in socialism.

If you are a layabout, unwilling to defer gratification, unwilling to discipline yourself, unwilling to work hard, then the Labour party will reward you.

If you work hard you will be taxed up to your eyeballs and be told by the Labour elite, your wasting your time, we are going to take your wealth so you might as well not bother.

Its like the Labour elite want to establish a glass ceiling and if anyone gets ideas above their station, ie, they want an above average income or an above average sized house, Labour will be there, ready to take a sledgehammer to your dreams.

It's strictly average incomes and average houses for all under labour. How dare you be interested in making money. Don't bother showing initiative or working hard as the nanny state Labour elite will take the fruits of your labour and distribute it to some layabout.

It is a total smothering of initiative.

People will become like dependant children, forced to have the state do everything for them.

Equals People

0:06 AM, 30th September 2015, About 9 years ago

Reply to the comment left by "Edward Steele" at "29/09/2015 - 22:33":

Lol

David Lawrenson

8:12 AM, 30th September 2015, About 9 years ago

Reply to the comment left by "Laura Delow" at "29/09/2015 - 18:01":

Yes, it is the same apathy that meant only 8% or so of landlords effected by West Brom's (in our view illegal) rate hike bothered to join Mark's well fought for action here.

David Lawrenson

8:18 AM, 30th September 2015, About 9 years ago

Reply to the comment left by "Ian Narbeth" at "29/09/2015 - 16:56":

It is a fair point Ian.

The Conservatives under Osborne have recently not exactly shown themselves to be friends of private landlords.

However, they are still very keen on the big house building firms (allowing land banking, showering taxpayers cash on first time buyers) and also the big institutional investors who they would just love to do more of the letting business in the UK.

They seem to far prefer them to the pesky small scale Mom and Pop landlords.

Laura Delow

9:11 AM, 30th September 2015, About 9 years ago

Reply to the comment left by "Neil Patterson" at "29/09/2015 - 19:01":

Hi Neil. My husband & I have already signed up to the e-petition & got many of my friends & contacts to do the same. I have now just signed up to committing 15 mins a day towards helping the Campaign & await email guidance. I urge everyone to do the same. and write to their local MP. We wrote to our local MP; Eleanor Laing who replied as follows on 28th Aug:-
Dear Mr and Mrs Delow,
Thank you for your email of 31st July regarding changes announced to restrict relief for finance costs on residential properties owned by individual landlords. I understand the points you raise and as a result have written to the Chancellor of the Exchequer.
I will reply substantively once I receive a response from the Chancellor.
Very best wishes,
Eleanor Laing MP

Edward Steele

9:42 AM, 30th September 2015, About 9 years ago

Reply to the comment left by "Equals People" at "30/09/2015 - 00:06":

Refute it then. If you can't, the kindergarten with plenty of nannies is that way -> Exit.

Neil Patterson

9:55 AM, 30th September 2015, About 9 years ago

Reply to the comment left by "Laura Delow" at "30/09/2015 - 09:11":

Brilliant thank you Laura 🙂

money manager

13:22 PM, 30th September 2015, About 9 years ago

Reply to the comment left by "David Lawrenson" at "30/09/2015 - 08:18":

And it is, to some degree at least, the same with ground rent management comoanies that can make the sun shine during a thunderstorm. With Sam Cam's step dad being the head of Homeground I can't see much changing on that front.

James dengel

13:55 PM, 30th September 2015, About 9 years ago

Reply to the comment left by "Laura Delow" at "29/09/2015 - 14:17":

Laura,

There are many here that have singed the petition.

Sadly politicians will always look to the biggest source of votes to get into power.

Case in point -> pensioners nearly always vote and so they are the most protected section of voters.

It's unfortunately a matter of numbers Tenants outnumber Landlords in terms of votes.
Average Landlord has 4-5 properties so I assume a 5 to 1 relationship.
So all parties will look to get the tenant vote rather than the landlord vote.

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