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pipllman

Savills Take On 'btl Tax Relief'

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Worth a read imo

http://www.savills.co.uk/research_articles/141280/192753-0

In Conclusion

■ Overall, levels of gearing in the private rented sector are low, limiting the risk of large numbers of investment properties being sold.
■ A combination of increasing interest rates and a capping of the tax relief on interest payments will cause some highly geared investors to rationalise their portfolios and limit the ability of a larger number of others to expand.
■ Some investors will look to lower value higher yielding markets to achieve sufficient cash returns, though caps on welfare payments will reduce the appeal for property in areas where a high proportion of private sector tenants rely on housing benefit.
■ Despite the government scheme to promote homeownership, we believe demand for private rented sector accommodation will continue to grow, given the high deposit requirements on first time buyers and a general lack of access to social housing.
■ The ability to meet this demand is likely to be further restricted by the budget changes. In turn, this is likely to maintain upward pressure on rents. This reinforces the need to encourage institutional investment into the private rented sector to provide tenants with a greater choice of good-quality rental accommodation.

Edited by pipllman

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there are several of course, the ones referred to in this report are Help to Buy and the Starter Homes Initiative

The HTB has made sure less and less FTBs can afford a home - the very people it was supposed to "help". Except that we all know it was not designed to help them in the first place.

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Why do you think profit making institutions make their economic forecasts public? It seems primarily a public good, so I'm not sure I understand the incentive.

I'm not even sure why an estate agent makes forecasts at all. They are brokers - they help sellers and whatever the economic conditions this doesn't change.

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So surprising that saville and paragon are publishing up beat articles on tax changes to BTL. Even more surprising that a Landlord is presenting them on a HPC forum(all in the interests of reasoned debate of course)

Umbrella salesman says it's going to rain for the next six months.

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Are they liquid?

.....would be interesting to see who with a spare say £100k would put the money into a buy to let?......I wouldn't touch it with a bargepole....

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So surprising that saville and paragon are publishing up beat articles on tax changes to BTL. Even more surprising that a Landlord is presenting them on a HPC forum(all in the interests of reasoned debate of course)

Umbrella salesman says it's going to rain for the next six months.

Does an umbrella manufacturer fund a weather forecasting department?

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