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Labour Plans To Ban Btl Investors Buying New Homes

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A start?

http://www.mortgagesolutions.co.uk/mortgage-solutions/news/2375995/labour-plans-to-block-buy-to-let-investors#.VD-jkuH7Gw4.twitter

Miliband will say in a speech today that councils would be allowed to designate new "housing growth areas" with powers to assemble land and ensure that building takes place.

In these zones, authorities would be able to give priority access for more than 50% of the homes to first-time buyers for the first two months after the homes are completed.

They would also be able to restrict the sale of homes in those areas to stop buy-to-let investors from purchasing them.

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The good thing is that the politicians are realising that most voters dont like BTL. When they realise they can get some tax revenue off it, maybe there will be some action.

They're taking the time, perhaps it'll hurt the MPs the most

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As someone said on another thread, it would make more sense to only allow BTL on new homes.

This would be my view also, but only allow BTL finance to build new properties, not buy them. Then the BTL brigade would actually be supplying housing like they continuously brag about.

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Not much detail. "Labour Party is expected to announce plans on Thursday that will ban buy-to-let investors from purchasing new flats in London and other parts of Britain, the Financial Times reported."

http://uk.reuters.com/article/2014/10/16/uk-labourparty-housing-idUKKCN0I500R20141016

Does this include (direct) foreign invest(ment/ors)?

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At least milliband is willing to stick two fingers up to the older BTL brigade of voters.

This may not really be a very helpful policy, but it is at least acknowledging the under 50's existence.

As other posters have said he should have banned them from buying OLD builds and forced them into into new build investment, or ended the favourable tax and mortgage conditions that benefit the BTL'ers, but this is a start. Hopefully he is showing some leg and when in power may be a bit more bolder in restricting these rentier scum.

Anything too drastic before the election and most of the newspapers will be pushing the "red ed" meme to middle England again.

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Does this include (direct) foreign invest(ment/ors)?

Haven't seen any mention of foreign investors, either way. Might put the caboosh up the plans (fantasy dreams) of Fergus selling if there is. Hopefully this is just the beginning of the political backlash against BTL as there is an awful lot more needed. I'm quite pleased like hans kammler, that any political party has recognised and voiced that there is a problem with BTL and acknowledged that some action is needed.

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Haven't seen any mention of foreign investors, either way. Might put the caboosh up the plans (fantasy dreams) of Fergus selling if there is. Hopefully this is just the beginning of the political backlash against BTL as there is an awful lot more needed. I'm quite pleased like hans kammler, that any political party has recognised and voiced that there is a problem with BTL and acknowledged that some action is needed.

The Tories have captured the foreign BTLers via stamp duty/ATED/CGT changes if they buy through a Ltd company.

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At least milliband is willing to stick two fingers up to the older BTL brigade of voters.

This may not really be a very helpful policy, but it is at least acknowledging the under 50's existence.

As other posters have said he should have banned them from buying OLD builds and forced them into into new build investment, or ended the favourable tax and mortgage conditions that benefit the BTL'ers, but this is a start. Hopefully he is showing some leg and when in power may be a bit more bolder in restricting these rentier scum.

Anything too drastic before the election and most of the newspapers will be pushing the "red ed" meme to middle England again.

Agree, although in practice that's sort of what happened with all the inside track type new build 2 bed execu flats last time around, which is where most of the supply and 'bust' took place.

Personally I wouldn't like to see the end of BTL completely, since I would like to pick and choose from well managed rentals as an alternative to OO. The problem is supply overall, not just the balance between OO and private lets (imo).

If Miliband is trying to herd FTBs into new build then that's not a good idea either.

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Why not just make BTL less attractive financially by levelling the playing field ie.

(1) making loan interest non-deductible if over 50% of the property value funded with debt. Similar "thin capitalisation rules" are applied to leveraged companies in the UK.

(2) Increasing the CGT rate on property gains - BTL's can't argue that they've taken any risk as "property always goes up"!

(3) Getting HMRC sorted with the land registry so that they can identify and collect tax due. A number of BTL landlords I've spoken to just don't bother submitting returns and never seem to get chased up by the revenue.

Interfering in the market and trying to say who can buy what house will be practically difficult to enforce and also smacks of yet more government interference (they very thing that got us to this point in the first place).

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Why not just make BTL less attractive financially by levelling the playing field ie.

(1) making loan interest non-deductible if over 50% of the property value funded with debt. Similar "thin capitalisation rules" are applied to leveraged companies in the UK.

(2) Increasing the CGT rate on property gains - BTL's can't argue that they've taken any risk as "property always goes up"!

(3) Getting HMRC sorted with the land registry so that they can identify and collect tax due. A number of BTL landlords I've spoken to just don't bother submitting returns and never seem to get chased up by the revenue.

Interfering in the market and trying to say who can buy what house will be practically difficult to enforce and also smacks of yet more government interference (they very thing that got us to this point in the first place).

Agreed,

Edited by robo1968

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Labours housing policy vs UKIP housing policy. Compare and contrast.

One has a proven track record of encouraging house price inflation, the other doesn't.

Also, and I digress, remember Labour's 1997 election promise.... "Watch my lips, no tax increases"....... so they immediately increased National Insurance.

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As someone said on another thread, it would make more sense to only allow BTL on new homes.

why,

that removes thousands of potential first rung buyers, who cant move to second rung.

BTL dont sell up and buy better.

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Labours housing policy vs UKIP housing policy. Compare and contrast.

UKIP will stop foreigners buying up new builds and will not support the banks with endless amounts of money so they can keep the bubble inflated.

Labour will let in many more millions of people who need housing benefit, and will effectively keep the status quo.

Your beloved LIBLABS are Corporatist/Globalists desperate to maintain the status quo, just a pity the simpletons who vote for them havent figured this out.

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Labours housing policy vs UKIP housing policy. Compare and contrast.

A mixture of both would be best for HPC. Labour's mansion tax/rent controls/landlord register/BTL controls along with UKIP's immigration cap. That would surely be a HPC bingo.

Labour/UKIP coalition :P?

Edited by fru-gal

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Labour would offer to blow everyone if it meant they could hang on to power. They lied in 1997, 2001 and 2005 to get power. Why would anyone who's not been lobotomised take any notice of what they're saying between now and May? It will all be lies, guaranteed.

IMO the next GE should be solely about people who've not yet been tainted by being in government before, all the others are already proven liars.

You do have a point...

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Interesting idea, but Labour happily allowed property to inflate post 1997. Too late. Can you legally stop an investor buying a property? Not sure how that works in a free market economoy.

Clearly there needs to be measures making BTL less attractive. You can tinker with tax rules, but the smart investor will find the loop holes. Increasing the supply seems obvious, but they won't build enough houses quickly enough to make a difference.

Ideas on a post card.

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