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 5 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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Comments

Darlington Landlord

18:30 PM, 9th October 2018, About 5 years ago

1) 40%
2) 10
3) 4% (up to 20% might be able to afford it but don't want the hassle of maintenance etc. or would want to buy a house and almost 90% of my properties are flats)
4) 1 (who I have actually discussed it with as part of my downsizing strategy )

Most of my long term tenants are in their 40's and 50's plus a couple of pensioners (who just want someone else to look after the property) so they could have problems getting a mortgage.
My younger tenants in their 20's and 30's have less secure jobs, move around more often and typically only look to buy a house when they are wanting to start a family.

LANDLORD 35

19:12 PM, 9th October 2018, About 5 years ago

Just by coincidence two of my tenants (not related) recently inherited enough money from relatives to buy a property. One had enough money to buy a flat outright and the other had the equivalent of a 50% deposit. Neither of them wanted to buy because they "didn't want the responsibility".
Others cannot buy due to poor credit history, some are retired,
some of the males have been cleaned out financially due to divorce. Those on low pay and contract work would probably not qualify for a mortgage.

Gromit

19:17 PM, 9th October 2018, About 5 years ago

... and those on zero hours contracts.

MoodyMolls

19:38 PM, 9th October 2018, About 5 years ago

1 50%
2 20
3 0
4 0

THALIA K

8:42 AM, 10th October 2018, About 5 years ago

1. 25%
2. two
3. 0%
4. 0
All of my tenants are foreign professionals who live in the UK on a work permit and have never expressed interest in buying any of my flats. In the last 30 years or so, only one tenant bought my flat, and he was the only Briton, professional in media, ever to have rented from me.

Ian Holmes

8:56 AM, 10th October 2018, About 5 years ago

Out of 6 properties:
1. 67%
2. 4 households
3. 0%
4. 0 (although 2 households would be interested be could not afford the interest + capital payments)

I tend to have only long standing tenants as I do not apply rent increases.

Some other obstacles which will deter potential tenant purchases are as follows:
Tied location
Job security
Maintenance costs

Rennie

8:58 AM, 10th October 2018, About 5 years ago

1. 0%
2. 2
3. 50%
4. 1
One of them might be able to afford it and might want to buy. The other one has bad credit and only a part-time job

Annie Landlord

9:32 AM, 10th October 2018, About 5 years ago

1. 100%. All tenants been renting from me for 6+ years.
2. Three households. Already sold two due to S24 etc
3. Sure all three would like to buy (they say they love their house and will never move!) However, two are in receipt of long term disability benefits and one is in a low paid job. None would have the wherewithal to meet mortgage criteria

Old Mrs Landlord

9:51 AM, 10th October 2018, About 5 years ago

Ros, I have been following this thread and it's becoming clear that people are interpreting question 2 in different ways. I understood it as referring back to question 1, so my answer is the actual number of current tenancies which have lasted for more than three years, but from reading the comments it appears some respondents have answered as total number of properties in portfolio, which is rarely the same thing. Perhaps you would be good enough to clear up this confusion. I apologise if I've got the wrong end of the stick.

Tricia Hughes

9:55 AM, 10th October 2018, About 5 years ago

Having sold 6 properties because of Government interference, I have 2 left
1st house - family there for 7 years. Neither parents nor children can afford a mortgage separately and are too many to get a mortgage together. All on minimum wage. Would probably like to buy the house
2nd house. Divorced friend 65 yrs old has lived there for 9 years. Has only just got sufficient funds to buy a house after death of his mother. Plans to buy a house with his new lady. They will move to neutral territory.
Have not increased the rents on either house for 7 years!

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