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

andyetc

8:57 AM, 14th October 2018, About 5 years ago

1. 25%
2.2
3.0
4.0
The 2 families that would be eligible can’t afford to pay the mortgage and would want more choice of properties if they were genuine buyers.Norfolk.

Mike D

10:56 AM, 14th October 2018, About 5 years ago

I have only 1 tenants from 13 that are there over 3 yrs, so 7%
Only 1 tenant I think would potentially take this up, so 7% again
As for the rest on the tenants, they all seem to be living hand to mouth, with £50 sky bills, and many wasteful practises that I have observed over the years.
Frankly it isn't as surprise to me they rent, money spent like water enjoying themselves instead of saving money.....I call it the Costa effect, walk into any Costa see the amount of under 30s having £7-8 coffee n cakes.......that's exactly what you don't do when saving for a home!

Nitzan

16:06 PM, 14th October 2018, About 5 years ago

1. 0%
2. 0
3. 20%
4. 1

I don't know my tenants and their circumstances personally so it's hard for me to estimate. One of my properties is let to a housing charity. The other one has a history of tenants that did move out into properties that they bought but they didn't live in the property for longer than 2 years.
And the other 3 properties are traditionally let to EU citizens, only one couple lived in the property for the last 2 years. They may be the only household which will consider this.

Grumpy Doug

16:26 PM, 14th October 2018, About 5 years ago

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

lori

18:07 PM, 14th October 2018, About 5 years ago

1. 40%
2. 1
3. 30%
4. 1
The 1 household who has lived in my propertyfor more than 3 years would love to stay and probably would work hard to accomplish a buy out with the bonus.

Lynxe

19:52 PM, 14th October 2018, About 5 years ago

1. 66.6%
2. 4
3. 0
4. 2
One household is Polish and are building a home in Poland that they intend to return to when the children leave school.
The other family are too close to retirement to consider getting a mortgage.

Loraine Knights

20:14 PM, 14th October 2018, About 5 years ago

25%
1
None
1

Tenant on UC so would not meet criteria to obtain a mortgage.
Have sold two properties over last two years due to Section 24
and will probably sell the others as and when they become vacant. All are good tenants who are happy renting.

Andy Bowman

9:07 AM, 15th October 2018, About 5 years ago

1: 0%
2: 6
3: 0%
4: 0

students, they come they go...

HilsGE

18:09 PM, 15th October 2018, About 5 years ago

10 properties. 1 currently void, but new tenants moving in shortly. So am including that one in figures. Total of 29 tenants, 4 of whom have been in over three years, 14% Total of 10 tenant households (10 ASTs), 2 of which have renewed regularly for more than three years, 20% I have no idea if they would like to buy, or are in a position to buy. They've never asked and neither have I - properties are managed by a local agent. 50% of my properties are student lets, 70% of my tenants are students, with no desire to stay longer than one year, and certainly no means to purchase.
As an aside, I have 4 adult working millennial children. Three of them have recently expressed a preference for the flexibility of renting, compared with friends who are faced with 'hassles' of owning, who are stuck should they wish to move areas for work or lifestyle. Committing to 1 year AST is apparently fairly onerous, so 3 years would be unacceptable.

Marie

17:07 PM, 16th October 2018, About 5 years ago

1. 6%
2. 1
3. 0
4. 0

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