More Tory tax breaks for landlords

[Band]

5 hours ago, Bear Hug said:

My initial feeling was that it's another gift for landlords but on reflection I see that overall this could be a positive thing for tenants.

+ may encourage landlords to keep tenants for longer to enable such sale, instead of shopping around for higher rents or allowing estate agents to keep tenants  flowing to maximize agents' fees

So instead of bringing in 3 year tenancies or longer they do this. So you only get a long tenancy is youre lucky, not by law as they can quite easily do.

+ will encourage keeping larger houses as they are, instead of splitting them into HMO hell holes

No it wont as HMOs make vastly more money, if you can do with the hassle.

+ will add some power for tenants to get a better service from landlords.  Of course this should be as given but we all know landlords treat tenants like shit normally, not as paying customers who expect to receive a service in return  

No it wont, it may give them a small chance of a discount if theyre lucky.

+ will help reasonably well off tenants (who have higher potential of buying a house) to find accommodation as landlords will prefer them to professional benefits recipients who have little chance of buying a house.

Picking winners, but now only if you're lucky, what about genuine benefit recipients, half of working people in London now claim benefits.

- will make it harder for people on benefits (and who genuinely deserve to be on benefits) to find private accommodation  

By private accommodation you mean rented accommodation, a policy to make rented accommodation more difficult for renters.

 

 

[Band]

Thereis a more in depth version in the Guardian.

https://www.theguardian.com/money/2018/oct/08/treasury-weighs-up-tax-break-for-landlords-who-sell-to-generation-rent

The renter could use the windfall as part of a deposit. Thus they can now leverage upon money theyve never even saved... fuck me this govt are desperate for money creation.

Will Tanner writes for what was the Independent, a former adviser to Treason May and looks to be mid 20s, hardly what id call right wing. A right wing policy would involve raising interest rates, reversing QE and deregulating planning laws.

https://www.linkedin.com/in/will-tanner-07196a25/?originalSubdomain=uk

Looks as if his longest job was that of school governor, apart from writing in the Independent he's never had a job in the private sector. Another clueless twat that May surrounds herself with as he's been her adviser in the Home Office, where she was also an epic failure.

 

[MrXxx]

The problem is all of this assumes that the BTL brigade think in a logical manner...a few do, but the majority are clueless otherwise they would have invested elsewhere...

As for encouraging a LL to keep a tenant longer as he/she may be a potential buyer...maybe if you look/talk the part, but the inverse would be that if you don't you are out after 6 months so LL can get a better option...or maybe not even getting 6 months in first place!

[Band]

Just saw this nonsense on the So-Called BBC news, seems the Tory party have got their neoliberal propaganda machine to butter the plebs up on this one.

The usual housing shortage was trotted out with everyone in agreement.

 

[This Time]

How many renters want to actually buy the flat they live in? I'd want way more than a 22% discount to buy this shit hole.

[MrXxx]

1 hour ago, This Time said:

How many renters want to actually buy the flat they live in? I'd want way more than a 22% discount to buy this shit hole.

I think you make a good point...the assumption is that renters if they can want to buy, rather than perhaps what they want is security of tenure.

[Green Devil]

Landlord says to tenant

LL "Im thinking of selling my property, would you like to buy it"

T "What are you thinking"

LL "Was thinking 425K"

T "OK, you know next door sold 3 years ago for 250k, this place is in poor condition as you never do any of the work i call you about"

LL "Yes but havent prices risen a lot. I can get three agents round to value and put it on the open market if you like?"

2 weeks laters landlord calls "Agent says its worth 450K, but ill still let you have it for 425K as i save 425-250 *20% on CGT and im a good LL"

T "No thanks"

4 weeks later tenant moves out. LL put house on market for 450K, tenant moves out and house is empty Tenant is homeless and LL is still dreaming of his 450K.

[Bear Hug]

@Banned Overall, this is still positive for renters.  Even without looking at details, this can be concluded from the BTL reaction on the announcement:

https://www.property118.com/potential-budget-cgt-relief-profit-split-selling-long-term-tenants/

I particularly like the last bullet point in the quote below.

 

Quote

Onward’s  3 proposals:

• Existing buy-to-let properties would be eligible for 100% capital gains tax relief if the property is sold to a sitting tenant who has lived there for 3 years or more.
• The gain from this tax relief would be split evenly between the landlord and the tenant, giving the landlord a windfall when they sell and the tenant thousands of pounds towards their mortgage deposit.
• Onward proposes that the Treasury should pay for this policy by tightening other tax reliefs for buy-to-let investors, including reducing the Private Residence Relief period from 18 months to 6 months and abolishing Lettings Relief of up to £40,000.

 

[Odin]

On 07/10/2018 at 16:23, Majorpain said:

Its a pretty good policy for encouraging the transfer of housing stock as fast as possible from landlords to renters IMO.  I think HMRC might also be aware that the majority of landlords have already spent the CGT liability anyway and there is not much chance of extracting enough cash from the rest of their estate to cover it.

Erm.... they can extract it from the BTLer main residence.