How does Buy to Let END!

[spygirl]

The benefits system discourages landlords from taking on tenants who rely on housing benefit, Ahmad says. He is among landlords who prefer not to rent to benefit claimants. “The rent is paid in arrears and if there’s a problem with the benefit the DWP [Department for Work and Pensions] will never speak to you.”

That woukd suggest he has been slumlording but has run into problems

I'm sure he'd prefer to rent to Elon Musk. However Elon does not live in Grimsby...

[spygirl]

Ahmad started as a landlord aged 18 and he recalls how they used to be able to get their properties back “no questions asked”. Now, he says, “lurking in the corridors of the courts is Shelter”, the housing charity that advises tenants how to defend themselves from evictions and, says Ahmad, “scupper the rights of the landlord”.

Bullshit.

Lurking in every court is legal process.

 

[spygirl]

Oldest LtdCo 2010

https://find-and-update.company-information.service.gov.uk/officers/j8xPeXlqE56RfaasA12ax9mMchs/appointments

 

[spygirl]

On 06/05/2023 at 19:25, spygirl said:

Gow many back bench Con MPs have BTL?

Most MPs 2nd homes are Lonfon flats.

Labour n lefties in general tend to buy mire property.

https://www.theguardian.com/uk/2001/jan/20/politics.labour

https://www.theguardian.com/money/2016/mar/14/tony-cherie-blair-property-empire-worth-estimated-27m-pounds

 

‘I’m a 38-year-old train driver earning £90,000 – I want to be a landlord next’

Money Makeover: our reader wants to know if buy-to-let will provide later-life income

https://www.telegraph.co.uk/money/property/buy-to-let/money-makeover-38-train-driver-earning-90000-landlord/

[spygirl]

 

[sancho panza]

https://uk.finance.yahoo.com/news/landlords-face-1-700-shortfall-174452457.html

Landlords face £1,700-a-year shortfall on new lets to social tenants

Landlords face a £1,700 annual shortfall on new lets to social tenants despite Jeremy Hunt’s bid to boost benefits in his Autumn Statement.

The increase in housing benefits payments announced last week will only cover a third of the increase in market rents from over the last four years, economists have warned.

This means that landlords letting to tenants on housing benefits will either receive rent below market rates or have tenants at risk of arrears.

 

The Chancellor announced last Wednesday that local housing allowance (LHA) rates, which determine the amount of housing benefit claimants receive, will be raised in April 2024 to cover rent on the cheapest 30pc of homes in each area.

LHA rates have been frozen since the pandemic began but record levels of rent growth since 2020 have meant that they are now out of kilter with what is available on the market.

Right now, instead of covering the cheapest 30pc of homes, housing allowances only cover rent on the cheapest 5pc of newly listed properties, according to property website Zoopla.

Mr Hunt’s latest decision means LHA rates will be raised to cover the cheapest 30pc of properties based on current rents.

[Wight Flight]

7 hours ago, sancho panza said:

https://uk.finance.yahoo.com/news/landlords-face-1-700-shortfall-174452457.html

Landlords face £1,700-a-year shortfall on new lets to social tenants

Landlords face a £1,700 annual shortfall on new lets to social tenants despite Jeremy Hunt’s bid to boost benefits in his Autumn Statement.

The increase in housing benefits payments announced last week will only cover a third of the increase in market rents from over the last four years, economists have warned.

This means that landlords letting to tenants on housing benefits will either receive rent below market rates or have tenants at risk of arrears.

 

The Chancellor announced last Wednesday that local housing allowance (LHA) rates, which determine the amount of housing benefit claimants receive, will be raised in April 2024 to cover rent on the cheapest 30pc of homes in each area.

LHA rates have been frozen since the pandemic began but record levels of rent growth since 2020 have meant that they are now out of kilter with what is available on the market.

Right now, instead of covering the cheapest 30pc of homes, housing allowances only cover rent on the cheapest 5pc of newly listed properties, according to property website Zoopla.

Mr Hunt’s latest decision means LHA rates will be raised to cover the cheapest 30pc of properties based on current rents.

Oh dear.

They really don't understand how landlords think.

[Castlevania]

6 hours ago, Wight Flight said:

Oh dear.

They really don't understand how landlords think.

I think they know. It’ll lead to higher rents (and imputed rents) that will go straight into the GDP stats. Growth! Please lend us more money Mr Bond Market.

[spygirl]

37 minutes ago, Castlevania said:

I think they know. It’ll lead to higher rents (and imputed rents) that will go straight into the GDP stats. Growth! Please lend us more money Mr Bond Market.

Nah LHA always used to be set at the bottom 30%.

The freeze was to claw back some money cos labour kept increasing LHA until it was higher than the private sector.

The increase is just a delayed reindexing.

 

[Castlevania]

32 minutes ago, spygirl said:

Nah LHA always used to be set at the bottom 30%.

The freeze was to claw back some money cos labour kept increasing LHA until it was higher than the private sector.

The increase is just a delayed reindexing.

 

They banged it up at the start of the pandemic for GDP purposes. This is just more of the same.

Edit: LHA was only rolled out a year or two before the end of the last Labour administration (think it was 2008). Housing Benefit it’s predecessor worked better. LHA was supposed to save money in administration costs. It’s been a disaster.

Edited November 27, 2023 by Castlevania

[Wight Flight]

3 hours ago, spygirl said:

Nah LHA always used to be set at the bottom 30%.

The freeze was to claw back some money cos labour kept increasing LHA until it was higher than the private sector.

The increase is just a delayed reindexing.

 

Pretty sure it was bottom 50% at some point.

meaning the benefit bunnies got all the average places, leaving the dregs to the working.

[spygirl]

12 minutes ago, Wight Flight said:

Pretty sure it was bottom 50% at some point.

meaning the benefit bunnies got all the average places, leaving the dregs to the working.

Yep,

Labour ,the innumerate cretins pushed up LHA to the average rate, without releasing that they were pushing up rentals.
Gidiot reduced LHA back toe lowest 30%.

 

[eek]

For anyone who rushed into Property 118's dodgy schemes HMRC are doing their usual wait to the last second and start chasing the money approach

https://www.taxpolicy.org.uk/2023/11/28/what_happened/

[spygirl]

On 26/11/2023 at 21:13, spygirl said:

 

https://www.bbc.co.uk/news/business-67543835

Thousands more families are renting smaller homes than they were three years ago, according to data seen by the BBC.

Renters aged over 30 are more likely to move to cheaper areas as the cost of renting has soared and availability squeezed, Dataloft figures also show.

The consultancy said trade-offs were needed so people could stay in budget.

The National Housing Federation suggested more older people faced insecure, expensive tenancies.

The body, which represents housing associations, said older people's health and wellbeing were suffering, and called for an increase in social housing.

 

The National Housing Federation (NHF) said the number of people aged over 55 who were renting privately in England had soared.

Its survey of about 2,000 of these older tenants suggested that 42% of those asked regularly struggled to cover their basic living costs such as buying food and clothes or heating their homes.

Rona Topaz, a 58-year-old singing teacher, said she was trying to support herself by taking on more work to cover a rising rent bill. Having suffered a number of strokes, she told the BBC she was finding it difficult to cover the rent at her bedsit.

Get a proper fucking job.

"I've had to go cap in hand to friends, which is really degrading, but you have no choice," she said.

60h/w at Aldi is a choice.

Greg Tsuman, president of ARLA Propertymark which represents letting agents, said landlords needed more incentives to stay in the sector and raise the number of private rental properties, such as changing the tax system.

"Fundamentally, the problem is that landlords are exiting the market when demand for rental properties continues to rise. Landlords are making a loss when rents are rising, and we need to address the root causes if we're to solve this," he said.

Fuck off.

Whterh a IO BTL LL stays in our out ofthe sector does not change the housig stock.

 

[wherebee]

43 minutes ago, spygirl said:

https://www.bbc.co.uk/news/business-67543835

Thousands more families are renting smaller homes than they were three years ago, according to data seen by the BBC.

Renters aged over 30 are more likely to move to cheaper areas as the cost of renting has soared and availability squeezed, Dataloft figures also show.

The consultancy said trade-offs were needed so people could stay in budget.

The National Housing Federation suggested more older people faced insecure, expensive tenancies.

The body, which represents housing associations, said older people's health and wellbeing were suffering, and called for an increase in social housing.

 

The National Housing Federation (NHF) said the number of people aged over 55 who were renting privately in England had soared.

Its survey of about 2,000 of these older tenants suggested that 42% of those asked regularly struggled to cover their basic living costs such as buying food and clothes or heating their homes.

Rona Topaz, a 58-year-old singing teacher, said she was trying to support herself by taking on more work to cover a rising rent bill. Having suffered a number of strokes, she told the BBC she was finding it difficult to cover the rent at her bedsit.

Get a proper fucking job.

"I've had to go cap in hand to friends, which is really degrading, but you have no choice," she said.

60h/w at Aldi is a choice.

Greg Tsuman, president of ARLA Propertymark which represents letting agents, said landlords needed more incentives to stay in the sector and raise the number of private rental properties, such as changing the tax system.

"Fundamentally, the problem is that landlords are exiting the market when demand for rental properties continues to rise. Landlords are making a loss when rents are rising, and we need to address the root causes if we're to solve this," he said.

Fuck off.

Whterh a IO BTL LL stays in our out ofthe sector does not change the housig stock.

 

I need a 'would' meme which is just someone with a flamethrower.

[Wight Flight]

1 hour ago, spygirl said:

Whterh a IO BTL LL stays in our out ofthe sector does not change the housig stock.

I used to think that, but it is no longer true.

A three bed OO house might have three occupants. In a landlord's hands it can house 6.

 

[BoSon]

Just seen the video below, from 3 months ago so may already have been posted, but offers a good summary of the situation and what changes the government made over the last 10 years to get to where many BTLers are now or will be when their fixed rate interest only mortgages come up for renewal now interest rates are closer to long term norms.

He even covers how landlords can't just 'bang up the rent'.

Though his lack of knowledge in the sector means he isn't able to cover what may happen if landlords are forced to sell, such as who would buy the property, renters or corporate landlords looking to squeeze out the individuals much like how consultancies got the government to try to force out individual IT contractors. Basically the top % wanting more of the pie causing a new problem. In the end the government work for themselves and their backers rather than the voters so it's very slow progress to affect that through protests or complaining to their MP.

As an IFA perhaps he should have recommended not putting all eggs in the BTL basket 'it's my pension' as anyone with sense knows to spread the risk.

Edited November 29, 2023 by BoSon

[spygirl]

Petards comes to mind.

2 hours ago07:53

Revision to role of rental prices in UK data points to higher inflation, ONS says

Sam Fleming in London

An improved methodology for incorporating rental prices into UK statistics points to a slightly higher consumer price growth between 2016 and 2023, according to the Office for National Statistics.

The overhaul, which will be used in the official inflation statistics from March, doubles the number of rental prices used to produce the statistics to around 500,000 per year.

Average annual growth in rental prices between January 2016 and October 2023 is estimated at 2.8 per cent under the new system, up from 2.1 per cent under the old method. That would have lifted the average annual growth in the overall consumer prices index from 3.4 per cent to 3.5 per cent over the same period.

 

[spygirl]

Comments - 

@stephengreen2626

2 days ago

Christmas quiz.

I have £450,000 invested in £880,000 pounds of buy to lets.

So reasonable loan to value. 8 properties.

My profit is

A) £88,000

B) £44,000

C) £22,000

D) £10,000

E) (£14,000)

When you understand that the answer is E then you will understand why I have to sell up. Delaying another year in selling up could cost me £88,000 pounds at 10% drop. I can help a lot of people with that money which will bring joy instead of stress.

Show less2

Reply

·

2 replies

@MovingHomewithCharlie

2 days ago

Good luck!

1

Reply

@exploringsuffolk

1 day ago

Even if you get £300k out your better off

Reply

 

[spygirl]

Poster is basically nuts leverage IO BTL - S24 only affects the v leveraged, post ~2004ish. He might be of the 2015 vintagem, where Gidiot suckered loads of idiots to 'invest' in property. I say that, as hes got a low LTV.

Now 880k/8 = 110k mortgages on 220k property.

He must be an idiot who bought a load of crappy Northern terraces for that.

These places are unsellable - which is whys hes still got them.

The only choice hes got is to take a hefty cash loss on each n everyone of them.

 

 

 

 

[sleepwello'nights]

On 29/11/2023 at 10:01, BoSon said:

 

Though his lack of knowledge in the sector means he isn't able to cover what may happen if landlords are forced to sell, such as who would buy the property, renters or corporate landlords looking to squeeze out the individuals much like how consultancies got the government to try to force out individual IT contractors. Basically the top % wanting more of the pie causing a new problem. In the end the government work for themselves and their backers rather than the voters so it's very slow progress to affect that through protests or complaining to their MP.

As an IFA perhaps he should have recommended not putting all eggs in the BTL basket 'it's my pension' as anyone with sense knows to spread the risk.

That's the key, those who are supposed to represent us put their own self interest first.

As regards your last comment he did say that if you invest in property you should be aware of the risk. I haven't watched any other of his presentations so you may be unfairly criticising him unless you can say that he never advised anyone to diversify to spread risk. 

[sancho panza]

https://www.telegraph.co.uk/money/property/buy-to-let/avalanche-landlords-sell-tax-breaks-cut-half/

‘Avalanche of landlords’ to sell before tax breaks cut in half

Higher mortgage rates and punitive property levys wipe out potential profits

Landlords are rushing to sell their properties before tax breaks on investment profits are cut in half. 

The annual capital gains tax allowance is falling to £3,000 at the start of the new tax year, down from £6,000 this year. Last year, the allowance stood at £12,300. 

Lewis Shaw, of brokerage Riverside Mortgages, said there would be “an avalanche of landlords selling” at the start of next year due to a triple whammy of higher mortgage rates, and “punitive property taxes wiping out any potential profits”.

He added: “All this at a time when property prices are falling and set to fall further, any landlords under the cosh would be well advised to offload their properties, and the faster, the better to try and preserve the capital accumulation they’ve enjoyed over the past decade.”

Property investors in the higher-rate tax bracket pay 28pc on any capital gains they make outside of the allowance when they sell a home.

[One percent]

3 minutes ago, sancho panza said:

https://www.telegraph.co.uk/money/property/buy-to-let/avalanche-landlords-sell-tax-breaks-cut-half/

‘Avalanche of landlords’ to sell before tax breaks cut in half

Higher mortgage rates and punitive property levys wipe out potential profits

Landlords are rushing to sell their properties before tax breaks on investment profits are cut in half. 

The annual capital gains tax allowance is falling to £3,000 at the start of the new tax year, down from £6,000 this year. Last year, the allowance stood at £12,300. 

Lewis Shaw, of brokerage Riverside Mortgages, said there would be “an avalanche of landlords selling” at the start of next year due to a triple whammy of higher mortgage rates, and “punitive property taxes wiping out any potential profits”.

He added: “All this at a time when property prices are falling and set to fall further, any landlords under the cosh would be well advised to offload their properties, and the faster, the better to try and preserve the capital accumulation they’ve enjoyed over the past decade.”

Property investors in the higher-rate tax bracket pay 28pc on any capital gains they make outside of the allowance when they sell a home.

What exactly is a ‘punitive property levy’?  

[spygirl]

12 hours ago, sancho panza said:

https://www.telegraph.co.uk/money/property/buy-to-let/avalanche-landlords-sell-tax-breaks-cut-half/

‘Avalanche of landlords’ to sell before tax breaks cut in half

Higher mortgage rates and punitive property levys wipe out potential profits

Landlords are rushing to sell their properties before tax breaks on investment profits are cut in half. 

The annual capital gains tax allowance is falling to £3,000 at the start of the new tax year, down from £6,000 this year. Last year, the allowance stood at £12,300. 

Lewis Shaw, of brokerage Riverside Mortgages, said there would be “an avalanche of landlords selling” at the start of next year due to a triple whammy of higher mortgage rates, and “punitive property taxes wiping out any potential profits”.

He added: “All this at a time when property prices are falling and set to fall further, any landlords under the cosh would be well advised to offload their properties, and the faster, the better to try and preserve the capital accumulation they’ve enjoyed over the past decade.”

Property investors in the higher-rate tax bracket pay 28pc on any capital gains they make outside of the allowance when they sell a home.

What capital gain?

Northern terrace IO BTL are taking ~30k hits per property.

 

 

[spygirl]

https://www.bbc.co.uk/news/uk-england-tees-67567891

A firefighter has been fined £15,000 and described as a "rogue landlord", in part due to inadequate fire safety measures in some of the flats he owned.

Mark Neary, 49, pleaded guilty to six charges related to three flats on Eston High Street in Middlesbrough.

Tenants were at risk of dying in a fire, facing electric shock or being hurt in a fall, prosecutors told Teesside Magistrates Court.

Neary is currently on sick leave from Cleveland Fire Brigade.

The court heard partition walls in the properties did not offer adequate fire barriers, wires were exposed and general refuse was left in communal areas.

"Magistrates will have heard of rogue landlords in the media," said prosecutor Christopher Machin. "Mr Neary is one of those rogue landlords."