Jump to content
House Price Crash Forum
Sign in to follow this  
Bruce Banner

Tax Incentives For Buy To Let Landlords

Recommended Posts

Miles Shipside of Rightmove was just interviewed on BBC News regarding unaffordable rents. He said supply was the problem an that tax incentives for buy to let landlords may be the answer.

Well, there's a surprise :rolleyes:.

Share this post


Link to post
Share on other sites

Miles Shipside of Rightmove was just interviewed on BBC News regarding unaffordable rents. He said supply was the problem an that tax incentives for buy to let landlords may be the answer.

Well, there's a surprise :rolleyes:.

So mortgage interest relief at highest marginal rate does'nt entice enough of them out of their rats' nests Miles?

I smell a sort of 'tax credit' system for landlords.

Or why not just harvest body parts from the rest of us and have done with it?

Share this post


Link to post
Share on other sites

Miles Shipside of Rightmove was just interviewed on BBC News regarding unaffordable rents. He said supply was the problem an that tax incentives for buy to let landlords may be the answer.

Well, there's a surprise :rolleyes:.

WTF!! Surely if anyone needs a tax incentive it should go straight to the renters.

Very easy. Make the whole amount of your yearly rent tax deductible at whatever rate of tax you pay. For once in this country supporting working people who pay rent. :angry:

Share this post


Link to post
Share on other sites

WTF!! Surely if anyone needs a tax incentive it should go straight to the renters.

Very easy. Make the whole amount of your yearly rent tax deductible at whatever rate of tax you pay. For once in this country supporting working people who pay rent. :angry:

Does that lower rents?

Share this post


Link to post
Share on other sites

Does that lower rents?

course not, it just fracks up the free market like everything else a government with deep pockets can frack up.

Share this post


Link to post
Share on other sites

course not, it just fracks up the free market like everything else a government with deep pockets can frack up.

Strangely enough my landlord doesn't ask how much money I have left each month for discretionary spending then put up my rent by that amount.

Share this post


Link to post
Share on other sites

Miles Shipside of Rightmove was just interviewed on BBC News regarding unaffordable rents. He said supply was the problem an that tax incentives for buy to let landlords may be the answer.

Well, there's a surprise :rolleyes:.

Another politcal party broadcast on behalf of the BTL Party by the BBC.

R4 featured the dearth of social housing in London at about 8am today, and gave a plug for more building by the private rental sector. The tear jerking case study this AM was a distraught woman with kids in London who's (private) LL had informed her that her rent was going up from £900pcm to £1200. She couldn't afford £1200 and couldn't afford to move (no deposit, and presumably no savings either).

R4 seems to specialise in hand wringing features about govt cuts, illuminated with such case studies.

Share this post


Link to post
Share on other sites

BTL already get one big leg up above FTBs with tax relief on mortgage payments.

And another £20bn in HB subsidy

And rates about 1/10th of what they should be

And grants to bring assets up to 'habitable standard'

Sooner or later our entire economy will be geared towards those gods who walk among us known only as 'landlords'

Share this post


Link to post
Share on other sites

Another politcal party broadcast on behalf of the BTL Party by the BBC.

R4 featured the dearth of social housing in London at about 8am today, and gave a plug for more building by the private rental sector. The tear jerking case study this AM was a distraught woman with kids in London who's (private) LL had informed her that her rent was going up from £900pcm to £1200. She couldn't afford £1200 and couldn't afford to move (no deposit, and presumably no savings either).

R4 seems to specialise in hand wringing features about govt cuts, illuminated with such case studies.

Did she work?

Share this post


Link to post
Share on other sites

Strangely enough my landlord doesn't ask how much money I have left each month for discretionary spending then put up my rent by that amount.

He doesnt have to...he asks the agent what rent the property could achieve if he moved you on.

Lets suppose its £450 pcm. If there was a tax break on the rent, they would add that on and charge extra.

Share this post


Link to post
Share on other sites

He doesnt have to...he asks the agent what rent the property could achieve if he moved you on.

Lets suppose its £450 pcm. If there was a tax break on the rent, they would add that on and charge extra.

I dont agree. He doesn't want to move me on as I am a reliable tennant. I will move out ASAP if he ups the rent by 20%.

Ultimately its about supply and demand. Depends on the market. The fact that I was able to knock £50 off the monthly rent when I moved in 6 months ago would suggest that its not as much a landlords market as they would have you believe. London too. Up north they'd have no chance and for housing benefit recipients they could forget it.

Dont know if you've noticed but it seems to be doing the rounds that rents are unaffordable. That would imply that some kind of rebalancing is required.

Share this post


Link to post
Share on other sites

Strangely enough my landlord doesn't ask how much money I have left each month for discretionary spending then put up my rent by that amount.

Evidently a rank amateur :P

Share this post


Link to post
Share on other sites

So glad I'm out of BTL nightmare land and in social housing. Lovely views over rolling Yorkshire countryside! £59 pw :rolleyes:

Of course were it in London it would be a Somali hell hole.

Edited by John Steed

Share this post


Link to post
Share on other sites

It means you effectively pay less rent.

No it wont.

It will mean that the LL can charge you more rent, because you can afford to pay it.

And people who can't get TR at 40% will just have to suffer higher rents

tim

Share this post


Link to post
Share on other sites

I dont agree. He doesn't want to move me on as I am a reliable tennant. I will move out ASAP if he ups the rent by 20%.

It doesn't happen like that individually.

It happens in the generality.

sooner or later you will move.

Then he will jack up the rent 30% - and someone will pay it

tim

Share this post


Link to post
Share on other sites

I can't understand why landlords need more subsidies from taxpayers when they are already supported with subsidies more than any other business in UK. The tax relief on mortgage interest. The rock bottom interest rate. The nationalisation of BTL mortgage finance. The subsidy via LHA. All these subsidies have distorted the market in favour of landlords, have kept prices and rents high, and aggravated the shortage of affordable housing. Of course, that's exactly what Mr Shipside wants.

Share this post


Link to post
Share on other sites

I can't understand why landlords need more subsidies from taxpayers when they are already supported with subsidies more than any other business in UK. The tax relief on mortgage interest. The rock bottom interest rate. The nationalisation of BTL mortgage finance. The subsidy via LHA. All these subsidies have distorted the market in favour of landlords, have kept prices and rents high, and aggravated the shortage of affordable housing. Of course, that's exactly what Mr Shipside wants.

Tax relief on mortgage interest is simply what is available to any business activity that has its gross income taxed....not a hand out. Hrmc see btl as a business.

Just because you don't like btl you wrongly see it as a subsidy.

Btl interest rates have always been more than residential. Both owner occupiers and btl'ers have ended up with very low interest rates but then some people fixed for five years at the wrong time. Paying 2.39% on one of my btl's , been like that for three years and no sign of rising , just lucky was with the right bank that went down.

Btl finance is harder, no good deals unless you have 30% equity

Would not touch lha with a barge pole , rather leave my flats empty , social problems are not worth the hassle. I suspect lha does provide a floor generally for rents but that's not btl'ers fault , the government can go out and build 400k council houses per year tomorrow but it's not.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.