rents will soon be rising and the poor will suffer

[bil66]

There is a new tax coming out called section 24 which the Government does not want you to know about.

The tax will put up the cost of renting properties dramatically and this in turn means that landlords will not be able to rent to people on low income.

Finding a property for people on low income is already very difficult but its about to get much worse.

Action needs to be taken to stop this tax and complaints should be made to your local council and MP.

[StormTreader]

Yes there is, but that is always going to be the case with anything you buy. If a new phone comes out next week, the current shiny one will suddenly drop in price - there's always a risk that "prices may drop as well as rise".
Not doing anything to try and address a rising bubble because it means some people will be negatively affected is how the bubbles get so huge and painful when they eventually do go. That's why buying a house right at the upper limit of your ability to pay the mortgage on it has never been a good idea, and yet people still do.

[BELLAARA]

As a slight aside (the discussion seems to have tailed off now), what does strike me is the potential for all the homeowners who have bought recently, at inflated prices due to the market, to be plunged into negative equity should S24's full operating capability cause a flood of affordable properties onto the market, as some PPs think (hope?) will happen.

Fine if life doesn't throw a curveball that dictates they need to sell.

So potential for non LLs and tenants to be affected too?

[blaaake]

Bloody hell just let the thread die.

[bil66]

petition.parliament.uk/petitions/219279

[StormTreader]

Who said you did? You can say whatever you like, as can I.

[bil66]

I don't need your permission to post here

[StormTreader]

Oh bil66 you poor blinkered dear.

[GETTINGLIKEMYMOTHER]

I'd have thought it might have dawned on you by now, bil, that the vast majority here are emphatically not in favour of landlord subsidies courtesy of the taxpayer, and think it's high time they were phased out.
You're flogging a dead horse here, but you can tell your friends at Property 118 that you tried.

[bil66]

Perhaps you would like to sign this petition once you realise what i am saying is true

petition.parliament.uk/petitions...atures/new

[bil66]

If what you are saying is true the homelessness rate would not keep going up now would it ?

[bil66]

www.crisis.org.uk/about-us/latest-news/crisis-responds-to-unacceptable-rise-in-number-of-people-in-temporary-accommodation/

[StormTreader]

I love that you're keeping on trying to defend your terrible position here.

Available properties to rent are dropping - what do you think is happening with those? The people worst-placed to be landlords are selling them is whats happening. They'll be picked up by the more professional landlords above who can afford to properly maintain and run them, and first-time buyers is what. Good.

[bil66]

looks like my predictions are coming true already.

[bil66]

www.propertytribes.com/agents-report-significant-decline-in-stock-t-127634518.html

[bil66]

www.huffingtonpost.co.uk/entry/b...k-homepage

[oatbakeUK]

I have made a petition to get the remaining buy to let tax relief removed so that there is a level playing field for first-time buyers. Please consider sharing and signing:

petition.parliament.uk/petitions/219416

Thank you.

[DoctorTwo]

The investment fails because of the policy of the government and not for any other reason.

You're so right @bil66, it's never been the fault of the banks selling fraudulently or their other crookery.

[Shinesweetfreedom]

Bil I like your example of the economics teacher.
I think we have pretty much reached that in our country now.
And if things don't change it will get worse.
I do think there is change in the air.
Property prices are beginning to fall.
Benefits are being pulled back.
It couldn't all go on for ever

[howabout]

Yes in the case of the "relatively poor ones" referred to in your earlier post bil. AFAIK this change mainly affects highly paid city types with a hobby btl on the side mainly in the overinflated priced areas of the country.

[bil66]

So the small landlord is immune from s.24 according to your figures and there is no need for them to sell up

[howabout]

Average FT UK salaries are around £30k. This means you would need £15k rental income after allowable expenses before s24 has an effect. Outside of London that is unlikely on a single investment property rented out to a low paid renter. Even in London it is a stretch.

[bil66]

Basic rate tax payers are being dragged into the higher bracket because the mortgage costs now count as taxable income.This will prevent people being entitled to child benefit etc.

[howabout]

bil s24 by definition only affects people who will be taken into higher rate tax by the change. They are not "relatively" poor.

[dazedandconfused18]

I wouldn't cry a river either, but I would have some sympathy, I don't knock those that inherit a secure future (lucky buggers!) but I know what it's like to try and create one for myself.

Bil I'd give up, looking for sympathy here is like looking for Quorn in a butchers. And not without reason, there's an article on bbc website about the rise of tenants to private LL's - particularly families with kids. However good a PLL is we can't guarantee the same longevity of tenure as council/HA and I know I would hate to have to move my kids from their school/friends. For this any other reasons there is a lot of bad feeling, few things are more emotive than your home.

I'm not blaming private LL's, that would be like blaming a toddler for having a diet of sweets. It's been driven by govt policy.

The reality is unless you want to have any spare cash earning bugger all in an interest account and going backwards in real terms, you have to invest in something. But any adult knows, policies changes, tax levels change, interest rates change, house prices go up and down, the stock market rises and falls - you have to take a long hard look at the best and worst case scenarios and decide if you wish to take an educated gamble. If the gamble doesn't pay off, you have to take that on the chin.

[bil66]

The investment fails because of the policy of the government and not for any other reason.

For those that invested 10 years ago, s.24 should not apply to them. If you must apply s.24 it should only apply to future purchases so people know where they stand.

To me this is a tax on relatively poor people trying to secure their future.

There has been people on this thread that have just one property and will now need to sell.