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.

David Heard, who has a portfolio of some 40 properties, has so far evicted six families and sold four of his properties plus a building plot where he had planned to develop a rental property – saying that this is purely down to Section 24. Other properties are awaiting sale.

He has also increased his rents, by 6% last year and a further 5% this year.

He said: “I have informed my tenants, with information packs that explain the policy, that these rent rises will be ongoing unless the policy is reversed. If I go bankrupt, we all lose.”

Heard told EYE that he had always intended holding on to his portfolio for life, and that he had previously been confident in assuring his tenants of a secure home.

However, he said that once Section 24 is fully implemented, he will be paying tax on around £80,000 of costs that he has paid out.

He said: “I have had to put measures in place in an endeavour to secure my financial future.”

Heard said that he has tried to get his MP, Penny Mordaunt, interested but said she had ignored his request for a meeting.

His solution has been to put up a billboard where she – and others – can see it.

It is in Stamshaw Road, Portsmouth – a main road location close to the ferry port and motorway.

It has so far cost him around £300, and he is paying a further £140 a month for a Facebook campaign. He plans to keep the billboard in place for up to a year.

Heard is certain that he is not the only landlord having to dispose of properties because of Section 24.

However, he warns that if there is a rush to sell buy-to-let properties, prices could drop: “If that happens some landlords will be stuck in a position without sufficient equity to sell, and making a loss on the rental income.”

Section 24 (so called because if it Section 24 of

George Osborne’s Finance Act 2015) started to be phased in last year and will be fully in place by 2020 when 100% of finance interest costs will be restricted to the basic 20% tax relief.

It has been called the biggest threat landlords have ever faced, with estimates that it could push about half into a higher rate of tax because of the way the calculation has been changed. Section 24 is often referred to by landlords as a ‘tenant tax’ because they argue it is tenants who ultimately pay the price.

Yesterday, there was talk of crowd-funding to help landlords put up similar billboards elsewhere.

Mr heard like the OP is under the illusion that the general public who have been forced to rent when they would rather buy will shed a tear when prices drop and landlords are forced to sell at a loss they
any tears as pointed out will be tears of laughter

No one cares about you landlords you've been 'aving it large for too long at everyone else's expense
Most of us want prices to drop so that we can have a chance or our children can have a chance of property ownership

No one is an 'accidental landlord'

Rubbish.

We were posted abroad for 2 years and couldn’t afford to leave our house empty for that time and would need it on our return.

We did not buy with the intention to rent it out and we were not landlords by choice. That is the definition of ‘accidental landlord’.

no, it is ' forced landlord '. you didnt bumble into the risky and complex business by accident, it was the least worst choice.

david heards campaign,like all campaigns, is a waste of time.he is evicting and selling which is the desired effect of the measures.

You made a choice to be a landlord because it seemed like your best option it wasn't an accident it was deliberate decision,
Imagine that the laws surrounding tenancy were different ....say you could only be a landlord if you granted a lease of at least three years, had that been the case you may not have decided to become landlord

People give themselves the label accidental landlords in an effort to avoid the ire which is currently directed at 'deliberate landlords'

specialsubject the Treasury has a definition of accidental landlord:

The Treasury has defined an accidental landlord as any borrower who has entered a buy-to-let contract which the borrower has not “wholly or predominantly” been for business purposes.

We didn’t have to change to a BTL mortgage, just needed permission from the mortgage company.

Yeah but come on that's a misnomer innit
I mean it weren't no accident were it🙊

Like I said, anyone who considers themselves an accidental landlord is deluded.

Not deluded at all jenny, I amwell aware of the difference between intentionally buying properties with the intention of making an income and renting out my primary residence as a short term measure.

However the Treasury might define it, 'accidental landlord' is most usually used to describe someone who suddenly woke up one morning having miraculously acquired overnight a second home that had equally miraculously been rented out.
Aka someone who made a conscious decision not to sell no.1 when they moved into no. 2, but to keep it and rent it out.

It's rather different, but I wouldn't describe anyone who rents out their home while working overseas as an accidental LL, either. We made a conscious decision while working abroad to rent ours out rather than leave it empty. There was nothing 'accidental' about it.

You are trying to justify your own decision to rent your property, no accident about it im afraid. If it is no accident, then dont call yourself an accidental landlord.

The Conscious decision is made to keep a house rather than sell a house
that decision is made in the expectation that the house is an appreciating asset and the tax laws surrounding being a landlord are very favourable
if you have spare money you put it in property because doing so is lucrative
you are just being rational

But all this has help to pump up the housing crisis
the housing crisis has a severely detrimental effect on society as a whole
therefore landlord should expect that measures will be brought in to change things and stop bleating now that the party is over for them.

If They are good business people they will have their finger on the Pulse and will exit the market early

Well, actually I would continue to call myself an accidental landlord as my husbands parents both died extremely unexpectedly 12 years ago leaving behind their huge portfolio of rental homes. So, maybe we could've sold them all off, but I made the decision to keep them all so that I could give up my job and look after my children as they grew up. I am a full time landlord now, but this wasn't the way I started out and if we hadn't inherited the homes I wouldn't be a landlord at all.

So you made a conscious deliberate decision to be a landlord following an unexpected event
How does that mean that you accidentally became a landlord?

accident
ˈaksɪd(ə)nt/
noun
1.
an unfortunate incident that happens unexpectedly and unintentionally, typically resulting in damage or injury.
"he had an accident at the factory"
synonyms: mishap, misfortune, misadventure, mischance, unfortunate incident, injury, disaster, tragedy, catastrophe, contretemps, calamity, blow, trouble, problem, difficulty; technicalcasualty
"he was involved in an accident at work"
2.
an event that happens by chance or that is without apparent or deliberate cause.

Accidental has a different definition to accident:

1. happening by chance, unintentionally, or unexpectedly.
antonyms: intentional, planned

2. incidental; subsidiary.
antonyms: essential, central

In that case why not call yourself an incidental landlord?
I'll tell you why
using accidental gives the impression that it wasn't your fault you didn't mean to be a landlord the truth is you did decide to be a landlord because it was the most lucrative option

using the term accidental is an attempt to paint yourself as a good guy
to separate yourself from those evil people farming breed of landlords

Most people who are accidental LLs are on a 2-3 year contract abroad. This was me with my principal residence. When I decided to stay (met DH here) I sold to my sister at a discounted price so she could afford it. She took an international contract 5 years ago and will probably return to the UK in the next two years unless they post her somewhere else (probably china for 2 years). She rents her home to a fellow employee who is living in the UK due to a 3 year contract. She and her DH purchased their current home because it was an absolute bargain. They have a 15 year mortgage and it gives them access to an excellent school district they wouldn't have access to otherwise. When they move they will sell it as they have no intention to return. Vast majority of accidental LLs don't buy a 2nd home.

My issue with these rules are that now we are going to have a bunch of foreign LLs who have zero investment in building a community in the areas they own properties. The majority of British LLs are fair and the new HMO rules are going to weed out crappy British and foreign LLs anyway. I do think the tax rules go too far and are going to create more problems than it solves IMO.

Anyway, as a Brit, try buying a home in Denmark. You can't without jumping through so many hoops it's only the very determined who are able to succeed. They have affordable housing. Instead of the stupid tax rules they should have introduced the same legislation to the Uk. If you have zero ties to the Uk why the heck is an individual allowed to buy a property that isn't your principal residence which you then rent out?

You’re trying very hard to justify why “accidental landlord” is a misnomer. It’s not. It was not a lucrative option - least costly option would be a better description. It was a hassle trying to deal with agents from 7000 miles and several time zones away, we made no money on the rental, but it was better than paying agents fees to sell and stamp duty to buy an identical property in the same location 18 months later (even if that had been an option in a stagnant market).

I’m sure there are shit accidental landlords too, in the same way that there are good deliberate landlords.

You're very invested aren't you @ohfortuna ? As I said, I accidentally became a landlord 12 years ago to over 60 tenanted properties. I didn't initially purchase the houses or make the decision to let them out. Yes, after I made the decision to keep them we purchased more as a life decision, but this wouldn't have even occurred to us had we not inherited. But, I don't have to justify myself to you, or anybody else. Focus your anger on the cowboy buy to let cunts rather than a professional landlord.

Language Timothy 😲

You're doing quite a lot of justifying
considering you don't have to justify yourself😅😆

ODFOD

I wonder why the Irish equivalent of section 24 was reversed??

@blaaake,
It's usually people like you who make excellent landlords... running numerous properties like a business instead of the BTL/ accidental LL types who often have no idea, evidenced by the shocking amount of ignorance in the MSE Forums...responsible tenants who want a long term let would do well to go for your type of properties. :-)

Please may I ask: how do you manage rent increases, etc., or do you increase rent if the properties are not mortgaged?