Will Higher CGT Rates Crush Property Investment?
2 years ago | 8 comments
Tenants’ Right to Buy at a Discount: Is It Fair to Landlords?
9:14 AM, 3rd September 2024, 2 years ago
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In this episode of Property Breaking News, Ranjan Bhattacharya and Andrew Roberts examine the contentious proposal of tenants’ right to buy at a discounted rate, a policy once championed by Jeremy Corbyn in his manifesto.
While selling directly to tenants can be a convenient option for landlords, concerns arise when the sale is forced below market value. Who determines what is ‘reasonable,’ and how does it compare to the open market value (OMV)? We explore the implications for landlords, tenants, and the property market as a whole.
Tags:
discounted rate, Jeremy Corbyn manifesto, landlords concerns, Property Breaking News, property market implications, ranjan bhattacharya, tenants right to buy
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Member Since August 2015 - Comments: 46
10:31 AM, 3rd September 2024, About 2 years ago
scaremongering again ! Right to buy does not apply to private sector landlords, it only applies to public sector landlords and council tenants.
Member Since August 2013 - Comments: 33
11:04 AM, 3rd September 2024, About 2 years ago
At the moment!
Member Since May 2017 - Comments: 766
11:13 AM, 3rd September 2024, About 2 years ago
Who is proposing this?
Member Since September 2019 - Comments: 251
12:29 PM, 3rd September 2024, About 2 years ago
From what I can see, there was no actual proposal of this.
I went and checked the 2017 and 2019 manifestos and neither mention a private tenant being given to purchase the property from the landlord. They actually pledge to remove the right to buy for council tenants.
The closest thing I can find along these lines is in the 2019 manifesto where it states that councils would be given funding to be able to purchase houses from private landlords. The entirety of the text is “we will give councils the powers and funding to buy back homes from private landlords.”
Looking back, it was something suggested by John McDonnell in an interview with the Financial Times but it never went anywhere past that.
EDIT: Looking back further still, it was mentioned by Jeremy Corbyn as part of his leadership bid in 2015.
Though there is mention of “discounted rates” as there was never an official policy, its difficult to say what landlords would have received.
Member Since September 2023 - Comments: 92
5:06 PM, 3rd September 2024, About 2 years ago
Would be a good idea if it was equitable. Discount to tenant of 50% of the CG liability if sold on the open market and removal of the remainder of the liability for the LL selling at the discount. Everyone wins apart from HMRC.
Member Since October 2023 - Comments: 26
9:58 AM, 5th September 2024, About 2 years ago
Can we please have some credible information to confirm this is being considered?
Member Since October 2020 - Comments: 1177
5:06 PM, 5th September 2024, About 2 years ago
Reply to the comment left by Retired GasMan at 05/09/2024 – 09:58
There is none, because its not!
Member Since September 2023 - Comments: 92
10:45 AM, 6th September 2024, About 2 years ago
Reply to the comment left by DPT at 05/09/2024 – 17:06
Perhaps there should be though? Not in the way the article reads but perhaps in the way I have outlined. There would be ways and means of giving tax benefits that could be shared which would make the vendor better off and perhaps leave some potential equity in the property post sale which would make it a less risky proposition for a mortgage lender and give better rates. Its more of a right of first refusal at a given sale price before open market rather than a right to buy proposal. Vendor discounts at 50% of CG liability to remove liability for themselves which means purchaser has x thousands which could be considered as part of the deposit making it easier for them to find the remainder. If the tenant then has a good solid record of meeting rent over time this then works towards suitability for lending. There are some potential unintended consequences that would need to be detailed obviously
Member Since October 2020 - Comments: 1177
1:34 PM, 6th September 2024, About 2 years ago
Reply to the comment left by Paddy O’Dawes at 06/09/2024 – 10:45
Similar schemes have been talked about for years, but no Government has ever got close to implementing them. I wouldn’t hold my breath with the current Government.
Member Since September 2023 - Comments: 92
6:47 PM, 6th September 2024, About 2 years ago
Reply to the comment left by DPT at 06/09/2024 – 13:34
No I don’t, because it’s easier just to haul in the tax take and defer the blame elsewhere rather than make a real social policy.