Straw Poll to combat further government attacks – Please help

Straw Poll to combat further government attacks – Please help

9:14 AM, 9th October 2018, About 6 years ago 84

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There is now the possibility of the Government extending its fiscal attack on the PRS, Click Here, by scrapping lettings relief of up to £40,000 and reducing the PPR period from 18 months to 6 months. The supposed quid pro quo being landlord exemptions from paying 50% of their CGT that would otherwise be payable, if they sell to ‘sitting’ [sic] tenants of 3 years’ standing who would also receive the equivalent of 50% of the CGT due as a deposit contribution.

The ‘think tank’ Onward, In its latest report, has proposed this new fiscal attack ‘include’ the two ‘tax relief’ policies, implying this could be extended to include further tax assaults on the sector. The group has previously suggested the complete disallowing of finance costs and even disallowing costs such as that of furnishings in rented houses.  I have previously written about this for an article on Conservativehome titled “The Government’s attack on private landlords is misguided“.

This latest suggestion, which it is rumoured may be announced in the forthcoming Budget, is based on the idea that there are annually 88,000 tenants who would thereby purchase the rented home in which they live. The authors of the report have provided no evidence that this would transpire, other than quoting a survey finding that 9 out of 10 renters would like to own. They then make some dodgy extrapolations.

With the lack of any hard data on this, I am therefore conducting a straw poll and I would be grateful if as many landlords can answer as possible.

When answering, include all properties, even HMOs (however ridiculous this may seem). Please can you answer the 4 points in the comments section below numbering them from 1 to 4 and then give your views on this policy if you have any? We need landlords’ expertise on this as otherwise our voices will not be heard.

  1. What percentage of your current tenants have lived in your property for more than 3 years?

  2. What number of tenant households does this equate to?

  3. What percentage of all of your current tenants (counting a household as one) do you believe would take up this offer to buy the landlord’s property, including meeting mortgage requirements (if a deposit was gifted to them) and wanting to buy the property they rent from you (rather than a different property elsewhere for example)?

  4. What number (of households) does this equate to?

Additionally if you believe your tenant is not able to afford to buy, can you explain why you believe that to be the case?

Please leave your answers below in comments.

Thank you very much for your assistance

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Anne Nixon

9:52 AM, 9th October 2018, About 6 years ago

I have only one single let left, having sold the others due to S24. My other tenancies are for studio flats & HMO rooms which are a transient demographic.
Trying to help though, so:-
1. 3%
2. 1
3. 3%
4. 1
Sorry, this might not be very representative of the country as a whole (didn't want to ignore you Ros).

Whiteskifreak Surrey

10:36 AM, 9th October 2018, About 6 years ago

Out of 5 properties we have:
1. 40%
2. 2 households
3. 20%
4. 1 household
The first household where the tenant will definitely not buy - post doc student from Asia. May not be able to get even a permanent residence here. May not want to.
The 2nd household is a partnership if immigrants, not very professional jobs., so may not be able to qualify for a mortgage. Not sure if they want to stay here longer because of Brexit. But they might. We have not asked


10:56 AM, 9th October 2018, About 6 years ago

1. 13%
2. 13%
3. 0%
4. 0%
All my property is small and occupied by a single person. None of my tenants is in a position to buy and most would not even be interested if the entire property was gifted to them.


10:58 AM, 9th October 2018, About 6 years ago

1. 0%
2. 0
3. 0%
4. 0

Old Mrs Landlord

11:27 AM, 9th October 2018, About 6 years ago

1. 50%
2. 3
3. 0%
4. 0
Only one household might be in a financial position to purchase. They have rented from us for eight years, having previously been homeowners. However they suffered repossession when in negative equity in 1990s and say they will never buy again.


14:43 PM, 9th October 2018, About 6 years ago

1. 20%
2. 1
3. 100%
4. 5

You maybe don't want to use my figures, and i'll explain why;
my tenants are all international students and most have parents who could provide cash to buy a property in the UK.
if they were offered the chance to buy their (my) rented property, with a lump sum 'reward' they would be very likely to buy it if they stayed for 3 years, but they would sell it immediately or at the end of their course, recouping their initial outlay and the gifted deposit would be a big profit.

Currently none of my tenants would be interested in buying a property of their own but not for financial reasons. They are happy to send me message when they need a lightbulb changing or the broadband router needs resetting, as well as the more complicated things like assistance (re:delegate to me) with communicating with council tax office, or dealing with energy companies etc.
If they bought the property there wouldn't be anybody on call to do these things for them.

I think this scheme would be used a cheap method of buying discounted assets with many people renting for 3 years to claim the discount, then the new owner takes out a btl mortgage and rents another property for 3 years.
A situation which generates a new set of amateur landlords entering the market with heavily discounted properties offered every 3 years.

Could I rent and live in my friends btl, and he rent and live in mine for 3 years and we can then swap properties with no CGT?

Appalled Landlord

15:06 PM, 9th October 2018, About 6 years ago

1 7%
2 2
3 0%
4 0

One is a foreign executive, who does not wish to settle in the UK.
The other is a pensioner; I assume that if she could have bought something she would have done so by now.

Luke P

16:06 PM, 9th October 2018, About 6 years ago

1). ~25%
2). 88
3). 0%
4). 0

Dr Rosalind Beck

16:14 PM, 9th October 2018, About 6 years ago

Thanks to everyone so far. Keep the answers coming. If you don't want to give the figures, you can just give your opinions. It is all helping to give a picture of the real world and the complexity of this subject.

Helen Morley

17:42 PM, 9th October 2018, About 6 years ago

1. 33%
2. One
3. 66% possibly could, or possibly might want to.
4. Two

One property is let to a post grad doctor from Saudi, who is unlikely to wish to buy that specific flat, should he have any wish to buy at all/ qualify re visa. Just moved in.

Next is an EU citizen, an IT professional, been with us a bit over two years, with wife and child. Would expect him to have financial capacity, not sure re visa/ Brexit situation.

Finally a lady from Hong Kong, in shipping, on her own, with us for several years. Again, would expect her to have financial capacity.

NONE of them has ever expressed any interest in buying.

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