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https://www.theguardian.com/money/2018/oct/16/taxes-buy-to-let-landlords-rents-generation-rent-buyers Warnings by landlords that taxes on buy-to-letwould cripple the property market, driving down supply and pushing up rents, have turned out to be entirely hollow, according to research by campaign group Generation Rent. It found that since the “bombshell” introduction of taxes on buy-to-let landlords in George Osborne’s 2015 budget, rents have fallen in real terms.
On the BTL scum regrouping thread I often see phrases such as this "If s24 goes through we will be forced to raise our rents by 10%." The obvious thing wrong with this is "forced". They will "choose" to put up rents rather than "choose" to absorb the cost or "choose" to sell their property There's another thing wrong though and that is the missing word "attempt". They will choose to attempt to raise rents by 10% They are forgetting of course that the tenants can always say "no". Last year there was an attempt to put up our rent by £50. My partner asked whether this was coming from the LL or the agent. The agent said it was based on their analysis of the market. My partner said no and the rent stayed the same. A few years back I was living on my own and there was an attempt to put the rent up by £50. I didn't accept and they then came back with £15, which I accepted as rents had gone up in the area. We are currently waiting to hear back about renewing at the moment. Our opening stance will be no to any rent rise. We will quote the Countrywide survey and the fact that another property in our block is empty and has just had to cut the rent asked by £25 pcm. We might at a push accept a £25 rise (2%) as we don't want to move but certainly not 10% The LLs are blithely assuming the tenants will pony up but what about if they can't or won't pay? Are they really willing to serve a section 21 notice? The LLs are forgetting a few things: 1) Voids - a 1 month void = 8% of annual rental income, which pretty much wipes out that 10% rise 2) Fees - New tenants means inventory and other fees to the agents 3) Maintenance - Most LLs do the bare minimum of maintenance when they have sitting tenants. When was the last time the carpets, the curtains or the shower were replaced? Answer - never. When was the last time any redecorating was done? Answer - also never. This might not be able to be put off any longer... (see point 1) And for the portfolio landlord these 3 points could add up to a big hit on short term cash flow across multiple properties. So Mr/Mrs/"Dr" Landlord are you really going to evict your existing tenants who pay the rent on time and keep the place tidy to gamble that you might be able to get 10% more from someone else with no void in between and that these new tenants won't turn out to be the sort of people you see on Nightmare Tenants Slum Landlords? Do you feel lucky?
Found this over on PT, have not had chance to research into the details yet but claim is that Ireland are repealing their version of S24 for landlords. http://www.propertytribes.com/ireland-axes-the-tenant-tax-in-2017-budget-t-127626759.html#pid267451
https://www.gov.uk/government/publications/budget-representations-guidance/guidance-for-submitting-your-budget-or-autumn-statement-representation Is it worth submitting something? If so does it make sense to submit similar proposals?