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.

[scaryteacher]

We also rent out our house whilst abroad. We have managed over the years to make a loss on paper, so if we are affected, it will take a while for our losses, which are carried forward each year, to be used up before we make a profit. When it gets to that point, we will leave the house empty for our return, as I am not selling it. We need somewhere to live when we return.

[sausagedogsmakechipolatas]

it’s typical for here, I assure you (also in the SW.)

And again, most of the profit in property is only realised when the property is sold. With the mortgage having been paid by tenants for however many years and the market generally having risen.

[Undercoverbanana]

Not RTFT but never miss an opportunity to express my belief that the housing system in this country is beyond shite and has created a massively divided society which will only get worse without some real innovative thinking/action.

[GETTINGLIKEMYMOTHER]

Bil66, you sound like one of the landlords on LL forums, bleating about how unfair it is that their tax bills are going up when they're so nobly providing homes for the less fortunate out of the goodness of their hearts. How dreadful it is they they will be 'forced' to put rents up - as if so many LLs don't whack rents up at every opportunity anyway.

It was always grossly unfair that there was tax relief on BTL mortgages, when owner occupiers enjoyed no such relief. It has meant that so many first time buyers have been outbid by landlords - this went on for many years.

If landlords cannot make their properties pay, let them stop whining and sell to someone who can - or to owner occupiers.
Please note, I say all this as a LL myself.

[bil66]

I have already said that I expect nobody to have any sympathy for me.

I will look at the situation and adjust.

I also understand why people are angry.

However the poor will be very seriously adversely affected by these changes.
Just watch the market over the next few years.

[bil66]

The message that I receive is that it is deemed a criminal act to make a living from providing homes for people on benefit.

That is what I did for 20 years.

OK I will change direction and go into holiday let's or commercial property where I will no longer be deemed a parasite if that is more socially acceptable. I actually think it will be much easier and less draining

[GandalfsWrinklyHat]

Oh so you’re not the tenant that faces higher rents? You’re the landlord not wanting to eat into your profits! Limited sympathy tbh.

[bil66]

No I'm a landlord.

My profits will be zero but not after I've adjusted my business away from housing the poor.

[GandalfsWrinklyHat]

Can you not see that you are part of the problem? Btl landlords have crazily drove up entry housing as that is exactly their market. They have CREATED their industry. Your ‘business’ is the roof over a family’s head. A basic right. Why should the taxpayer fund your tax breaks. Man up and pay your taxes like everybody else.

[bil66]

I don't mind paying taxes but not when it goes up 5 fold.My reaction is simple.I will go into another market.

Housing the poor is no longer my market.

[NeverTwerkNaked]

I do think it is, at best, a morally dubious way to make money bil (with the odd rare exception who genuinely treats their tenants well - but judging by the amount of times I have helped friends with situations where their landlord is totally taking the piss I would say that most resi landlords behave badly. I don’t see anywhere near as much bad behaviour from landlords in my professional life advising on commercial lettings)

[CakeOfThePan]

Our landlord put our rent up by 40% with one months notice as the area shot up within months. Not because of this, but just because the area had gone up.

Ive no doubt the cost will be passed onto the tenant and like us you will just have to find the money and cut back further. Or move out the area, but theres huge costs involved in moving, each of our moves has cost us around £5000. our area has had a bit of a boom lately and sadly we would have to go a good hour and a half away to even make a dent in the cost of renting or buying. Kids settled in schools, self employed business it makes it hard to do.

The housing market is fucked and something needs to give, we are renters that have a deposit, we can pay the mortgage. We just can't get the mortgage to wage ratio to buy somewhere. Theres millions of us that just can't get there, so are renting where we should be buying. Our kids deserve somewhere to call home.

The universal credit bill is going to be massive when we all "retire".

[stressed3000]

Of course some people become accidental landlords & you can’t tar all of them with the same brush. However I hate the attitude of the kindhearted “career” landlord who is working so hard to provide homes for the poor, etc. Give me a break!
I say this as a homeowner.

[CakeOfThePan]

Housing the poor is no longer my market.

I don't even know where to begin with this comment

[bil66]

Well stressed 300 I provided good quality accommodation at low prices for people on low income.Because of the tax changes I will stop.There you are I hope you are all happy now.I am already switching to commercial and much prefer it.I dont have to bother with universal credit people slagging me off because I rent residential property to people that will never qualify for a mortgage.

[bil66]

Perhaps you could start by saying I don't have the right to capital.

Then you can slagg off anyone that starts a business

[AllyMcBeagle]

There you are I hope you are all happy now.

Yep. Hopefully a first time buyer will buy the property you were renting. Even if your current renters can't afford a mortgage there will be one less renter competing for tenancies.

[CakeOfThePan]

You are not doing the world a favour, landlords are part of the problem as well as part of the short term solution. The lack of council houses has pushed people into private renting its wrong, it shouldn't be the way it is. 'Poor' people shouldn't be a market, housing benefit should not be going into private landlords pockets.
Admittedly the government should have thought about building some council houses in conjunction with this so as the landlords pull out the people who should be able to buy are buying the houses and the council are housing the ones who can't. Instead of landlords pulling out and fewer houses being on the rental market which will push rents up. My last move had four people haggling over so we had to pay over the advertised monthly cost to secure it. So whilst i get what your saying, don't kid yourself your doing some sort of saint doing the world a favour. The minute your bottom line is in trouble and your bailing.

[WomanWithAltitude]

Property letting isn't a 'business'. HMRC don't class it as trading income, do they?

And the claim that you'll get zero profits is insulting to the intelligence. Your mortgage is paid while your asset appreciates. That is a tangible gain, even if you choose not to sell up right now.

Any action the Government takes to reduce the appeal of BTL has my full approval. Most residential landlords are just parasites, and the pandering to them that has gone on has fuelled the housing crisis.

[CakeOfThePan]

Perhaps you could start by saying I don't have the right to capital.

Then you can slagg off anyone that starts a business

That business is someones home, someones life, someones sanctuary. Its where their kids come home from school to, its where they have their play dates, its where they play in the garden, its where they took their first steps. The place they came home from the hospital to. Where families are trying to be part of a community, and plan for a future.

They shouldn't be a bloody business

[WomanWithAltitude]

Instead of landlords pulling out and fewer houses being on the rental market which will push rents up.

Will it? For every BTL house sold, someone will buy it. And many of those will currently be renters. Because a glut of homes coming onto the market will lead to lower prices, so renters who are currently priced out may be able to afford to buy.

I think the number of landlords choosing to leave homes entirely empty wI'll be small. Why would you pay the bills, essential maintenance etc for a property while getting no income at all? Leaving it empty isn't a cost free option.

[CakeOfThePan]

anyway the government have planned this for a long time and done it slowly in percentages, so everyone was aware and could adjust accordingly. I would suggest your business model and advice was floored

[WomanWithAltitude]

The idea that people like you see themselves as 'in business', 'business people' etc is fucking hilarious. Or at least it would be if it wasn't so insulting.

And I'm a homeowner. I can only imagine how renters view you.

[Colbu24]

I'm amazed how much tax landlords pay these days.
Soon House's for rent will be very expensive and slim on the ground.
People will always need to rent. Not everyone can, wants or it's able to buy a house.
We rented houses all over the world and thank goodness there were landlords willing to rent to us. We couldn't and didn't want to buy.
If they keep taxing landlords the housing crisis will get worse. Much worse.

[CakeOfThePan]

woman as long as people are able to get the mortgages, we've got the deposit, we've got the monthly payments we just don't earn enough to get the loan to wage value. My area was heavily land banked and its been sad to see, its now being hugely regenerated and thats pushed prices up to almost doubling their sale value in 5 years. So you've gone from needing to earn £50,000 a year to buy £100,000. I mean, what normal person earns that to buy an average home its not a naice area!

It should be a multi pronged approach.
So get more buy to let houses on the market,
More mortgages available, id guess potentially shared ownership to protect the prices crashing too much for existing owners?
More councils building houses to house the poor
Some sort of incentive to stop people leaving homes empty.