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

Lisa S

10:26 AM, 11th October 2018, About 5 years ago

1. 40%
2. 2
3. 0
4.0

2 tenants....1 is over 50 , running his own business and living in a shared house....if he hasn’t already been able to afford / want a home of his own he won’t do in the future.
The other, living in the same house, is from NZealand and will return at some point.

Tim Rogers

15:43 PM, 11th October 2018, About 5 years ago

1. 100% longer than 3 years
2. 4 properties
3. 0% would be able to buy, although all would like to own the property.
4. 0 properties
All my tenants are on benefits or benefit assisted.

Steve Masters

19:24 PM, 11th October 2018, About 5 years ago

I have 3 HMO's with 22 rooms and 6 flats in the London suburbs.
22+6=28

1.) 10%+100%=28%
2.) 2+6=8
3.) 0%
4.) 0

Whenever my tenants leave because they have bought it is always further out of London where they can afford to buy a larger flat to start a family in. 50%(3) of my tenants in flats want to buy and are saving up to buy but they too will buy outside London. As far as I know none of my current HMO tenants want to buy and none can afford to buy, anywhere. I can only think of 2 of my past HMO tenants who have left to buy. Over the years I have had quite a few eastern European tenants who already own property in their own country and a few have left just recently to return home. My tenants like the convenience of living close to work, they rent because they see it as temporary or because it is all they can afford.

Steve Masters

21:57 PM, 11th October 2018, About 5 years ago

I just completed the survey and by coincidence one from uPad too.

Whilst Landlords, agents and property organisations understand the detrimental effect government policy is having on the rental market, it is tenants who have the government's ear.

We need to involve our tenants. We need to educate them, motivate them and survey them. Then we have statistics that will be listened too.

I shall test the water with my own tenants and get back to you.
And I will be looking for someone who can take this idea and run with it.

I'm a one man band full time landlord and I am overrun by the ever increasing bureaucracy but I can't afford to sit back and let my industry be ruined.

Bill

7:35 AM, 13th October 2018, About 5 years ago

I would not wish to sell to a tenant on this basis as like Mark I have moved overseas to reduce my CGT bill and would gain no benefit especially if I have to hand over 50% of the relief to the tenant as a deposit.

David Clark

9:10 AM, 13th October 2018, About 5 years ago

I have sold my two BTL properties (to owner occupers) in the last 12 months to beat a potential rush to exit the sector.

But to answer the questions based on the previous occupation:

1. 0%
2. 2
3. 0 - one claiming benefits the other looking for something cheaper to renovate.
4. 2. Explained in 3

Laura Delow

9:24 AM, 13th October 2018, About 5 years ago

1). 65%
2). 9
3). Want to is one thing. Afford is another as to get a mortgage for the balance required will prove difficult for many tenants, especially as properties in London & the 50% of CGT as a deposit would work out at at best to only a deposit of 5%. Therefore I have to say a big fat ZERO.
4). ZERO
The Government would do better if they considered buying the property outright from the landlord at X% below market value, in this example equivalent to the 50% CGT saving, and they then allow the tenant to buy from them piecemeal akin to shared ownership. The upside to the landlord is i) they don't have to sell and can continue renting out their property but of course continue to face the deluge of legislation/taxation thrown at them ii) they can still sell privately on the open market to get the full price but of course will have to pay the full CGT on the calculated gain, or iii) they can sell to the Government below market value equivalent to half the CGT liability aslong as the landlord has no CGT to pay on the balance of capital gain and the sale value arrived at is equitable & fair & carried out by independent approved valuers. The downside to the Government is a drop in revenue stream as the landlord / renters market shrinks and they meanwhile take on the management of the property / tenant until the tenant has totally bought the property, BUT this shrinking revenue stream & the pain of being a landlord (which we PRS landlords face daily) is the price they have to pay for their desire to increase home ownership and to get rid of PRS landlords.

Grant Harris

9:31 AM, 13th October 2018, About 5 years ago

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

Anne Noon

9:47 AM, 13th October 2018, About 5 years ago

I have 6 properties with 12 households.
1) 25%
2) 6 ,12
3) none
4) South African family, just don't want to commit , I guess; second family, have another property elsewhere which they let out. So i guess they don't count any way.
I don't know why my long standing tenant in my hmo does not want to buy. I have never even met him, but he pays his rent on time. He has had the opportunity to save up.a hefty deposit in the time he has been there!!.

Surely, we Landlords have rights too, this is akin to a cpo.

Over the 40 years I have let my rooms and properties to hundreds of people, from all over the world, providing them with homes. I realised then the only way I would have a decent retirement was to provide for myself, and have done so. Now the govt, having not provided enough housing -even though it was apparent 40 years ago there would be a need for more housing ( and population has increased by 12 million since then)- wants to raid our pension pots. Can't wait to extract myself from this now I am at retirement age.

Smithy

9:53 AM, 13th October 2018, About 5 years ago

1. 50%
2. 4 of 8
3. 0
4. 0
My longest tenancy is a lady of 75 who has been with me since 1994. She used to work p/t as a cleaner and has always been on HB. She came to me with two young grandchildren (cousins) who she brought up with no help from their parents. She is now a p/t carer for three great grandchildren. (I could write a book about that family.)
Out of 8 tenancies, 7 get HB - variously not working or working part time. The one remaining tenancy with both working (with a child and one on the way) - she is in regular work but he is in and out of work. I think they might like to buy but do not have any savings and would probably not be able to get or afford a mortgage.

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