Saturday, Jun 30, 2007
Fionnuala, if the demand / supply is strong, what do we have to fear?
Property: Caution urged on buy-to-let taxation
“If Gordon Brown were to do something radical in this area... A large withdrawal from the sector, either as a result of reduced ability to pay or because changes made yields much less favourable compared with other investments, could rapidly change the dynamic of the housing market. ...destabilise the market for all borrowers rather than just make it a more affordable prospect for new entrants.”
Posted by confused76 @ 10:35 AM (38 views) Add Comment
7 Comments
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1. Ticktock said...
Ref- A large withdrawal from the sector, either as a result of reduced ability to pay or because changes made yields much less favourable compared with other investments, could rapidly change the dynamic of the housing market.
....but I remember your claim that buy to let wasn't a major factor in the rise in prices? Or was that a bare faced stinking lie? If so why should anyone listen to what you have to say?
Ref - An ill-thought out measure which flooded the market with property could do more to destabilise the market for all borrowers rather than just make it a more affordable prospect for new entrants.”
....Which is exactly what is needed to restore affordability isn't it? They might has well have just written, 'please don't spoil the speculators fun by favouring the young and poor over our profits, please please please Gordon. If you do we'll scweem and scweem and scweem and be forced to sell our portfollios to....urm....to....somebody...urm...someone will buy it off us won't they...I mean otherwise we'll...urm. Oh please save us Gordon.'
2. sovietuk said...
Well well well. The predicability of human nature. We find out what is in the soul of a person and an institution when they are exposed to extreme pressure. You only find out what is underneath the bonnet of car when you push it to its limit. Ho Ho Ho.
3. enuii said...
You can just smell the negative equity potential of this coupled with all the other hidden factors that are yet to come crawling out of the rotten skirting boards.
Just remember that the average £250K house has the potential to be only worth a realistic £180K within 2 years, add in the rising interest rates and the future doesn't smell very rosy for your average young couple mortgaged up to their dual eyeballs.
This will not only hurt BTL landlords in the pocket it will also damage many first and second time buyers, the economy, government tax revenue and general employment, and will not be a laughing matter anymore!
4. wiltshire said...
Trouble is the government and VIs have now got themselves between a very big rock and a very hard place. Do something and potentially pull the rug from under the housing market, do nothing and face the increasing anger of millions who are being disadvantaged by the current situation. If only they had allowed the market to cool a couple of years ago.........
5. Scott said...
Usually, life in the UK is fine, if not boring, when it comes to politics, which is why voting is not done by the masses and only the 2 largest parties stand a chance. However, this housing issue is getting hotter and is an opportunity for any of the minor league teams to swing victory; the communists, the BNP, the green party, god forbid even the Lib Dems.
I would not want the communists to win. The major communist experiments have failed. 40 million died under Stalin and 60 million have died under Chairman Mao. Nazism didn't do too good either, at least for the lefties anyway. So where does this leave us? Who will answer your prayers without screwing up the world in some other way? Maybe Gordon is our only chance.
6. Crash Bandicoot said...
I can't wait to see what Fionnuala's press releases look like once this dead horse flogging is finished. She will have to return to building up Nationwide's performance compared to other lenders. Expect lots of "despite recent downturns" and "difficult market conditions".
7. doomwatch said...
Brown has to now realise that a large amount of intelligent voters are p1ssed off with the government for allowing the BTL scam to
escalate and impinge on a large part of society. His choice to me is clear:
Enforce taxation on landlords ASAP, or start losing votes to parties who have spotted this hot potato
and are willing to either lie or bend their policies to capture this growing number of angry people.