To think people who own more than 3 properties should have a special tax applied to them?

[Calltheguards]

I'm just thinking with the housing crisis, should people really own more than 3 properties? I would assume it's a property portfolio and used to exploit renters. AIBU to think there should be a special tax applied to property owners who own more than 3 properties? Maybe tax them at a really high rate to discourage people from hoarding property.

Apologies if this has already been said, I can't be arsed to read thru' all 21 pages here.

Second stamp duty is pretty penal as it is, and a lot of tax breaks have been reduced and even eliminated for landlords. CGT is charged on disposal and income tax is charged on the rental income. Essentially, by doing this the government is gently disincentivising residential property investment by private landlords. For what it's worth I wholeheartedly agree with this.

Harsh to penalise investors retrospectively when in the past BTLs have been encouraged by the government, but in this day and age with the property market being so overheated and difficult to get in to for first time buyers, new investments should be discouraged to help owner-occupiers.

I'm not sure an arbitrary 3 property tax is the way to go, i mean what if someone lets 2 mansions for £10k each per month, compared to 3 bedsits for £200 each. If I was the boss i'd levy top rate tax (45%) on all residential property income, with no reliefs. Some of this money would be used towards affordable housing initiatives and schemes to help the homeless. This wouldn't stop BTLs all together but would push investors away and into more productive schemes such as EISs and VCTs where fledgling industries can benefit

I don't want to slate private landlords, most are reputable and decent folk just trying to invest for the future, but overall the practice needs some strong disincentivising.

How can it possibly be in contention that when someone BTL they deprive a FTB?

There is a house...its either bought to let or bought by a FTB....if one wasn't allowed or even more heftily dissuaded than currently then the other one could buy...probably at a lower price.

This is not the complex part.

@RomanyQueen1

It will fall on deaf ears. I believe it’s a combination of luck, good fortune AND hard work.

There is opportunity for SOME to reduce their spending. . I’m sure for others it’s tough shit.

But nobody will acknowledge that on this forum.

Of course it's not working harder than others, it's just different work and working for yourself other than an employer.
You made your choices, others made other choices, maybe because they didn't want your lifestyle, you do sound stressed and unhinged tbh.
I don't think I'm a relative of yours so don't know what that was about.
Have a and chill, ffs.

*There is a house...its either bought to let or bought by a FTB....if one wasn't allowed or even more heftily dissuaded than currently then the other one could buy...probably at a lower price.

This is not the complex part.*

If the house is popular it will be with more FTBs etc. BTL landlords won't pay over the top as they won't get the lending they want. The value, the anticipated rental income all play a part!

@Bluebluered This is exactly why I hate landlords. Being constantly told we don’t work hard, even by family members like you. Just fuck off.

Hate landlords? All of them? Pretty great generalisation that, surely at least one of them is decent?

There is a house...its either bought to let or bought by a FTB...

The problem with this view is that it assumes that the number of houses for sale is static. It's not. Higher prices encourage more people to sell and move and builders to build. The problem is restrictions on new supply. And there's no reason why multi unit housing can't be built specifically to supply rentals to those who want them.

I rent and will most likely never be in a position to buy, my landlords own several properties and although i pay £800 a month that is in fact cheap for my area they also are great at investing in the property, repairs are done quickly and we are left to live in our home as we please which means decorating as we want on condition it is returned to neutral colours if we move. I certainly wouldnt call them parasites, they have the resources to own property and make money from it but are respectful in how they do it so imo you are being very unreasonable.

Do you believe that rent as a % of income has remained static and not been affected by property magnates? £800 may seem cheap but it's all relative.

For those who cant read: Work hard is different to work harder. The former was what was actually said, however certain bitter posters seemed to have misread is as the later. HTH

Landlords are not necessarily exploiting tenants - what a silly shallow thing to say!
It’s a business - like any other business, some better than others. It’s up to individuals how they spend their money. Should people who take more that two holidays be taxed? People who have more than 3 dogs? How about a tax for those with more than 3 children.
YABU and a bit daft.

As a “parasite” myself, I can tell you that you are being totally unreasonable. When costs go up, they’re passed on to the tenants. It’s a business.

No as it would just push the costs onto those renting. No all landlords are bad or charging extortionate rents, mine doesn't he specialises in renting to families and providing good quality homes at reasonable prices he has 6 family homes and some flats in a city centre.

Costs can only go up by as much as they are not regulated for. If a situation like this occured then rent controls such as exist in Germany could be implemented in tandem. There will still be rentals available by individuals who restrict the number of properties held and pay the tax.

I don't think I'm the first person ever to use the term parasite when discussing property magnates but I am not the person you are thinking of. If there was an issue, my IP address would already indicate that.

If there were no landlords, where would those who don't own properties or have family/friends to stay with, live?

Social housing. But no one is saying that there will ever be no landlords.

Why do you assume a 'property portfolio' is necessarily a tool to abuse renters? Are you against a private rental market? Why?

Not read the whole thread but read enough. OP, we live in a free country and it should stay that way. We certainly don’t want the government dictating to us on investments and pricing, that is not a healthy economic society. I realise life doesn’t seem fair but if people have got themselves in a good financial position or developed a business in the rental market then good for them. As a poster stated earlier they rent their private properties to those on housing benefits. Not all rental properties will be suitable for those claiming benefits as they will be expensive, luxury properties, which frankly, I don’t think should be given to those on benefits and landlords need to recoup their money back too. Many people renting would not get a mortgage and renting is their only option. Therefore landlords do provide a services to those that are in need or can’t get a mortgage or for those that choose not to buy. Unfortunately this is life. The government needs to resolve the housing crisis but charging more tax on landlords isn’t the answer.

They already pay extra tax on the income.

Apart from that, they have to put right the problems left by the tenants. We do some work for a LA, people go around ripping out cabling just because they can, and that is the least of some of the problems people leave.

The deposit often does not cover it.

Had a friend who rented out their property, their tenant blew up a 5 year old boiler, they were heard discussing how they had blocked some inlet or other, and other things they had done, then denied it. Friend had to pay for the boiler. They then wrecked a 3 year old oven. Took a long while to get them out.

OP, you may not appreciate the service people do others by renting out houses, but a lot of them do not appreciate the mess left by tenants.

Perhaps all the renters should be thrown onto the streets so that they can then buy their own house. As landlords are considered to be parasites then the renters would willingly jump in and pay the market price or would they expect a massive discount?

Landlords pay tax, council tax, buildings insurance etc as well as whatever living expenses they and their families have, so I don't think they should be taxed further just because they own a few properties. Admittedly I would like to be rich enough to own one house (or a few houses) and to be able to rent them and make a little cash, but just because I can't do it doesn't mean hammering those who can and do. A lot of landlords are responsible, take care of the properties they own and provide tenants with a decent place to live at a competitively priced local rent. There will always be a few bad apples, greedy sods, people renting crapholes etc but not all landlords are like that. Maybe you think cash-struck councils should buy every available house to rent out but remember many councils sold off a lot of their housing stock!