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.

storm The best way to get to market rates is to remove housing benefit. That alone has inflated the prices at the lower end of the market more than any factor. Of course the impact of doing that would be awful in the short run but long term it would greatly deflate the lower end of the housing market making housing affordable for lower income earners.

Rents should control themselves by having to stay below the level of "if we have to pay that then we may as well buy since the mortgage payments are the same". Its the extreme shortage of cheap properties on the market because the BTL people can leverage their existing equity and tax breaks and outbid first-time buyers that's preventing that.
The more level we can get that playing field, the more people will swap from renting to buying, and the "market rate rent" level will have to slow down if landlords want to keep renting their properties.

Housing benefit is tied to a percentage of local market rates, the lack of the upper bound on those is whats pushing the housing benefit up to match it.

it is only a few years since I had tenants for whom renting was cheaper than a mortgage would have been. It will happen again one day.

and of course the low interest rates are part of a reason for the increase in BTL. Osborne couldn't work that out and nor can his successors.

@dazedandconfused18 you're not making sense love. I was very clearly talking about landlords with BTL mortgages, who this thread is generally concerning. Are you ok?

I can incorporate if I want to so my tax breaks will continental my dear.

If I sell my holiday let's I pay cgt at just 10 per cent.

Every cloud has a silver lining.

Thanks OP for illustrating what people who claim to be struggling landlords providing a necessary service really are - wealthy parasites with the money and inclination to go and live in luxury halfway across the world if the government only indulges most of their whims and not every last one. It really winds me up when landlords lie about their circumstances online, but it's hard to prove they're lying because it's normally anonymous and the lie is all you have to go on. So thank you for stating the lie and the truth in the same thread so everyone can see what landlords really are, and that this is a great move they should be pleased about!

The Government forced me to take stock of my life.

Time is not an endless commodity.

You all want me to sell so perhaps I will.

If you move to south east Asia you don't have to be rich.You can live like a king for 750 pcm and that covers everything.

Very few people have the balls to do it.

So you mean Cambodia, Vietnam?
I'm sure you'll do very well there feeling like a king with that massive set of balls that you've got

@bil66 do you support labour?

No I don't support labour your Lordship.

I'm not political

I don't think Jeremy will last even if he got in.Like most politicians he will make promises that he cannot keep.

I hate to admit it but I like Donald Trump's straight talking but of course he has also been a landlord which makes him a scum bag on here

This thread still going

Er..... I don't think Trump is a scumbag because of that. It's everything else he's done that demonstrates he's an arsehole!

If you like Trump that says a lot.

Blaake I ignored your early comment about BTL landlords but you are indeed a BTL landlord. The fact that you didn't buy with a mortgage just means you are more privileged than many LLs, not morally better. The fact you inherited sixty properties and then were able to buy 40 more without a mortgage shows the absurdity of this policy- it will only affect small landlords while leaving wealthy people untouched. Like I said before, this policy is a crowd pleaser which targets smaller landlords.

Where we do agree is that some small buy to let landlords are in over their heads, greedy and neglect their properties and tenants. I would still like tougher laws to protect both tenants and landlords. But don't talk about hating BTL landlords when that's what you are. You bought houses to let them; you are a buy to let landlord, albeit a rather wealthy one!

We became landlords after letting our pre-marital homes. Everything else after was commercially financed. I may sell my former home because it's not very profitable but I've held on to it for years with an elderly tenant in it who moved to be close to family. Rent has never gone up. But I am not a charity and when it begins to cost me rather than breaking even then I either sell or put the rent up. My tenant will never be able to buy as she's a pensioner. I might give her family first refusal. But what will they do as soon as she is gone? Let it for profit.

only the sheep like fools say that landlords provide a necessary service - although like it or not the governments you vote for rely on it.

it is a business to make profit,same as selling food.go whine about that.

Housing is a necessity and until the government are willing to own and maintain the housing for those who can't afford to buy, LLs are needed.

The current situation has gotten out of hand but the policies implemented don't solve the problem. If anything they have created a bigger problem. LLs who are huge delegate the work out and the quality tends to be lower. As a smaller LL I'm very involved and monitor everything myself. When you have 50+ units you need a management team.

Actually if Jeremy Corbyn gets in the entire business community will be under attack.

Perhaps another good reason for leaving the country

Small (or large) buy to let landlords are the problem!!

And by that I mean those with mortgages due to the restrictions these impose forcing them to be greedy and raise rents unjustly, not to mention the limited tenancies they can offer

insurers also limit the length of tenancies. insurance doesnt benefit tenants unless the place becomes uninhabitable, so I suppose it could be outlawed.

anyone screaming about landlord greed will of course be working for expenses only, otherwise they would be foolish hypocrites.

Hi I wonder how you managed to inherit 60 properties without paying inheritance tax abd then acquired 40 more without mortgages?,

It was over 20 years ago and we both had careers in the city ?

Bil66, you are contradicting yourself which is quite hilarious!

It looks as if you were trying to convince tenants on this forum to support you under threat of evicting everyone. The trouble is that you have more than one problem on your back. Tenants do not really support your claim for higher rents cause there is no magic money tree to shake from. The tides are turning and landlords along with agents are the clear and easy targets. This government has finally understood that they cannot bet on boomers votes forever as they are slowly dying out and generation x and millennials are there to replace them. But by the look of it, it is now quite apparent that it's not going to happen and younger generations are turning to commerade Corbyn and his fairer socialist ideas. There is a growing problem of millennials, the group that slowly approaches the age of 40 and less than 30% of them are home owners living under 'accidental' or deliberate parasistic agreements. Many delay having kids due to insecurity of renting.

New tenancy act proposal which has just been introduced to the parliament is going to upset your cohort even further. With a ban on estate agent fees for tenants, they are going to be less compliant with your idea of landlordism. There will be far less tolerance to accept inhabitable conditions, substandard service and rents increases not in line with inflation and wages. Only big property management companies, with their own maintenance teams, looking after the properties and abiding the rules, increasing rents slowly whilst avoiding voids will continue their service. Small landlords will eventually sell up because of higher tax liabilities, longer and more painful voids, higher estate agent fees, mandatory licencing, brexit, pound devaluation and overall economic disaster which will drive out EU citizens back to where they came from. If somehow Corbyn becomes PM, the socialistic ideas will be introduced driving out private rented sector to the verge of existence.

You are soon going to learn the lesson about incorporating which as for now is your only option which you glorify as so damn easy. Incorporating will not mean that you pay no tax. Quite the opposite. First you will have to sell up to ltd and the first tax liability kicks in. You will have to pay CGT and appoint yourself as a director of ltd paying tax on your own self assessment. Most likely a good accountant will be a necessity. You will be paying various insurances just to be able to operate. Every expense on the property will have to be documented, no tear and wear relief based on predictions. Relief left to ltd is a great way to finally licence the cowboys like you. Once S24 is fully introduced, government will have to act on ltd property managenent because these so far managed to attract foreign parasites, money laundering and the issue with empty properties. There will be further witch hunt, mind my words.

Just for your information, there is a real exodus of EE to their home countries this year. It is a fact.

I have 2 options.

(1)Incorporate. I will not have to pay cgt because I work about 50 hours per week in my business and as long as I do more than 20 hours per week incorporation relief is available.
(2) Stamp duty can be avoided by forming a partnership before incorporation.

I can do all this for about £10k.

Option 2

Turn BTL into holiday lets then sell 12 months later and pay cgt at just 10% by claiming entrepreneurs relief.

Sell half my properties and pay down the debt on the other half.

I then have a mortgage free portfolio.

The second option is attractive because I dont want to manage lots of properties.I cant see the point when life is short.

I will then live in thailand atleast during the winter and I dont need much money to live there any way .I am not going to spend my life chasing money because I recognise that I have enough.

It would not surprise me if Corbyn gets in power but that will all end in tears.You have to be willing to work and fight for what you want.
Corbyns policies will not work. Here is why

An economics teacher at a local school made a statement that he had never failed a single student before, but had recently failed an entire class. That class had insisted that, if socialism was fully adopted, no one would be poor and no one would be rich, and all would be equal.

The teacher then said, "OK, we will have an experiment in this class". All grades will be averaged and everyone will receive the same grade so no one will fail and no one will receive an A.... (substituting grades for pounds - something closer to home and more readily understood by all).

After the first test, the grades were averaged and everyone got a B. The students who studied hard were upset and the students who studied little were happy. As the second test rolled around, the students who studied little had studied even less and the ones who studied hard decided they wanted a free ride too so they studied little.

The second test average was a D! No one was happy.

When the 3rd test rolled around, the average was an F.

As the tests proceeded, the scores never increased as bickering, blame and name-calling all resulted in hard feelings and no one would study for the benefit of anyone else.

To their great surprise, ALL FAILED and the teacher told them that socialism would also ultimately fail because when the reward is great, the effort to succeed is great, but when government takes all the reward away, and gives to those who do nothing, no-one will try or want to succeed.

It could NOT be any simpler than that.

Remember, there will be a test in the future - The next election.

These are possibly the 5 best sentences you'll ever read and all applicable to this experiment:

1. You can not legislate the poor into prosperity by legislating the wealthy out of prosperity.

1. What one person receives without working for, another person must work for without receiving.

1. The government cannot give to anybody anything that the government does not first take from somebody else.

1. You cannot multiply wealth by dividing it!

1. When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that is the beginning of the end of any nation.

There are other options:

Become resident in say Malta and then have my entire portfolio rebased to 2015 prices which means I have to pay cgt on just 3 years worth of gains.

Its amazing what you can do when you have knowledge

I live in the South, but I travel around a fair bit, there are loads of houses being built everywhere.

The problem in the U.K. is the millions of people being allowed into the U.K. have reduced wages/job security - and no they are not all working for the NHS

Hand car washes, pizza delivery drivers, Uber etc. These people pay little tax or no NI, and as we know there is a huge black economy. If immigration had been controlled to educated people needed by the economy we would not be where we are. Let’s not forget these immigrants get child benefit, HB, etc. It is not true they are all single - having a child - to get the benefits costs the U.K. a lot of money.

Hence Brexit which MNetters consider so evil.

There will always be buy to let - companies are not covered by these rules and whilst other investments are risky and provided low returns companies will buy up property and may not even be U.K. companies.

Meanwhile huge areas of the U.K. are concreted over to support a growing population.