Robodoc Posted November 25, 2015 Share Posted November 25, 2015 http://www.bbc.co.uk/news/business-34922738 RIP Shame it only affects new entrants though. Quote Link to comment Share on other sites More sharing options...
SarahBell Posted November 25, 2015 Share Posted November 25, 2015 (edited) https://www.landlordtoday.co.uk/breaking-news/2015/11/anger-from-landlords-at-osbornes-move-to-impose-extra-3-buy-to-let-stamp-duty Anger from landlords at Osborne’s move to impose extra 3% buy to let stamp duty The chief executive of the National Landlords Association, Richard Lambert, says: “The Chancellor’s political intention is crystal clear; he wants to choke off future investment in private properties to rent. If it’s the Chancellor’s intention to completely eradicate buy to let in the UK then it’s a mystery to us why he doesn’t just come out and say so”. As a result of Osborne's July Budget, buy to let landlords are already due to get a lower rate of tax relief on mortgage payments, and a less generous interpretation of the annual wear and tear allowance. “The buy to let investor should not be blamed for house price rises, rather, this is down to the chronic shortage of housebuilding in this country which is compounded by population growth. We would therefore advise caution against penalising this group of investors when actually other policy areas hold the key to unlock the solution” says Stuart Law, chief executive of Assetz for Investors, a pro-buy to let organisation. Edited November 25, 2015 by SarahBell Quote Link to comment Share on other sites More sharing options...
2buyornot2buy Posted November 25, 2015 Share Posted November 25, 2015 Ah you're right - disadvantaged Areas Relief will be abolished for transactions with an effective date on or after 6 April 2013. But currently 0 under £125k - will this now be 3%? I really hope so. Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted November 25, 2015 Share Posted November 25, 2015 You hope all you want. Whether or not rates rise next month is immaterial. They'll come straight back down (if they ever rise) and frates will be low for as long as you can imagine. Well, we will see soon enough probably. Best bet for a debt re-set and rates up is the break-up of the Eurozone, back to it`s original sovereign states. I think that is a realistic possibility actually. Quote Link to comment Share on other sites More sharing options...
goldbug9999 Posted November 25, 2015 Share Posted November 25, 2015 Haven't had time to read the thread but just saw a headline on Sky News that he is increasing stamp duty for BLTs by 3% above residential? As someone mentioned it seems hard to police - buy a property, live in it for a while, switch to BTL mortgage then rent it out. Still ,not complaining about the sentiment. I guess BTLers can expect a regular drubbing at every budget now. Quote Link to comment Share on other sites More sharing options...
mattyboy1973 Posted November 25, 2015 Share Posted November 25, 2015 I think the 3% stamp duty rise is quite significant, because the effect will be leveraged. If we assume (almost certainly correctly) that empire-building LLs use all of their available capital as a deposit when buying more properties, then the extra 3% of the purchase price that they need to put aside for SD will translate to 12% of the property price, assuming 75% LTV (i.e. x 4). That's a fair whack and will reduce both the amount they can pay and the speed at which they can expand (if indeed any are stupid enough to still be doing so). We saw exactly the same thing, in reverse, in Australia with the first home buyers grants - these were immediately leveraged up and translated almost perfectly into price increases of approximately 10x the loan amount (the rentier won, of course). Quote Link to comment Share on other sites More sharing options...
hackney Posted November 25, 2015 Share Posted November 25, 2015 Asking prices maybe, but overall sales volumes will just flatline? Only thing that can get the market moving is a price crash. In my area of London most properties are going under offer very quickly still (especially strange for winter) and prices rising steadily. These properties are 800-2m. The ones at close to £2m are sticking for longer. I spoke to a friend who knows an agent who sells a lot of £2m+ houses in London however and apparently "business is slow - no one wants to pay the high stamp duty on £2m+ houses". Volumes are dropping though as you say. East London was always behind the rest of the market, hence the reason it's "still going" here IMO. Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted November 25, 2015 Share Posted November 25, 2015 https://www.landlordtoday.co.uk/breaking-news/2015/11/anger-from-landlords-at-osbornes-move-to-impose-extra-3-buy-to-let-stamp-duty Anger from landlords at Osborne’s move to impose extra 3% buy to let stamp duty The chief executive of the National Landlords Association, Richard Lambert, says: “The Chancellor’s political intention is crystal clear; he wants to choke off future investment in private properties to rent. If it’s the Chancellor’s intention to completely eradicate buy to let in the UK then it’s a mystery to us why he doesn’t just come out and say so”. As a result of Osborne's July Budget, buy to let landlords are already due to get a lower rate of tax relief on mortgage payments, and a less generous interpretation of the annual wear and tear allowance. “The buy to let investor should not be blamed for house price rises, rather, this is down to the chronic shortage of housebuilding in this country which is compounded by population growth. We would therefore advise caution against penalising this group of investors when actually other policy areas hold the key to unlock the solution” says Stuart Law, chief executive of Assetz for Investors, a pro-buy to let organisation. Still banging on with the "shortage" mantra, it was a credit fuelled bubble, nothing more nothing less. Quote Link to comment Share on other sites More sharing options...
mattyboy1973 Posted November 25, 2015 Share Posted November 25, 2015 “The Chancellor’s political intention is crystal clear; he wants to choke off future investment in private properties to rent. If it’s the Chancellor’s intention to completely eradicate buy to let in the UK then it’s a mystery to us why he doesn’t just come out and say so”. I think he has, more or less. Quote Link to comment Share on other sites More sharing options...
hackney Posted November 25, 2015 Share Posted November 25, 2015 Can anyone confirm if my calculations are correct (note I am crap at Maths!); At present, stamp duty on a £500k home would be £15k. With the new changes, a BTLer/second home owner would pay £30k. Is that right, assuming the 3% gets added on to all bands, including the current nil rate band? That sounds correct. Quote Link to comment Share on other sites More sharing options...
SarahBell Posted November 25, 2015 Share Posted November 25, 2015 Devolution2.140 The UK government is committed to implement the Smith Commission Agreement infull. As part of the ongoing implementation of the Scotland Act 2012 Stamp Duty Land Tax andLandfill Tax were devolved in Scotland from April 2015. The Scottish Rate of Income Tax is due tobe commenced in April 2016.2.141 The Wales Act 2014 devolves Stamp Duty Land Tax and Landfill Tax to the WelshAssembly, and creates new Welsh Rates of Income Tax. The government will legislate to removethe requirement for the Welsh Assembly to hold a referendum in order to implement the WelshRates of Income Tax to reflect the change in the debate in Wales. So Wales and Scotland can change theirs? Quote Link to comment Share on other sites More sharing options...
mattyboy1973 Posted November 25, 2015 Share Posted November 25, 2015 Can anyone confirm if my calculations are correct (note I am crap at Maths!); At present, stamp duty on a £500k home would be £15k. With the new changes, a BTLer/second home owner would pay £30k. Is that right, assuming the 3% gets added on to all bands, including the current nil rate band? That is my understanding. Quote Link to comment Share on other sites More sharing options...
SarahBell Posted November 25, 2015 Share Posted November 25, 2015 3.70 Stamp duty land tax: additional properties – Higher rates of SDLT will be charged on purchases of additional residential properties (above £40,000), such as buy to let properties and second homes, from 1 April 2016. The higher rates will be 3 percentage points above the current SDLT rates. The higher rates will not apply to purchases of caravans, mobile homes or houseboats, or to corporates or funds making significant investments in residential property given the role of this investment in supporting the government’s housing agenda. The government will consult on the policy detail, including on whether an exemption for corporates and funds owning more than 15 residential properties is appropriate. The government will use some of the additional tax collected to provide £60 million for communities in England where the impact of second homes is particularly acute. (5) 3.71 Stamp Duty Land Tax: application to certain authorised property funds – The government will introduce a seeding relief for Property Authorised Investment Funds (PAIFs) and Co-ownership Authorised Contractual Schemes (CoACSs) and make changes to the SDLT treatment of CoACSs investing in property so that SDLT does not arise on the transactions in units. There will be a defined seeding period of 18 months, a 3 year clawback mechanism and a portfolio test of 100 residential properties and £100 million value or 10 non-residential properties and £100 million value. These changes will take effect from the date Finance Bill 2016 receives Royal Assent. (Finance Bill 2016) Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted November 25, 2015 Share Posted November 25, 2015 (edited) did I just read that right. the free market tories will guarantee 40% losses in London, with help to banks scheme this is criminal. Edited November 25, 2015 by TheCountOfNowhere Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted November 25, 2015 Share Posted November 25, 2015 (edited) Wonder how the 'accidental landlords' fares under this new SDLT regime. Hopefully they are also snared and incentivised to get rid rather than hoard houses. Dunno why there is a 40k lower limit though, a slumlord's exemption clause? Edited November 25, 2015 by Cry and Regret Quote Link to comment Share on other sites More sharing options...
geezer466 Posted November 25, 2015 Share Posted November 25, 2015 I foresee one of Jezza's questions at PMQ's next week. Nicola from Edinborough wants to know where all the North Sea oil has gone. Quote Link to comment Share on other sites More sharing options...
Fully Detached Posted November 25, 2015 Share Posted November 25, 2015 “The buy to let investor should not be blamed for house price rises, rather, this is down to the chronic shortage of housebuilding in this country which is compounded by population growth. We would therefore advise caution against penalising this group of investors when actually other policy areas hold the key to unlock the solution” says Stuart Law, chief executive of Assetz for Investors, a pro-buy to let organisation. Stuart Law = Upsetz Quote Link to comment Share on other sites More sharing options...
Venger Posted November 25, 2015 Share Posted November 25, 2015 Overall I think it's more HPI negative than positive. Equity loans is just new builds obviously to bribe builders to build. They will still be MMR constrained so its not adding to demand its bringing it forward. BTL stamp duty is a big negative for London. New builds supply in London is what 20k pa? Nothing in a city of 8 million people. Any gain these chumps get from the internet free loan they will lose when they sell the new build slave boxes. Overall it looks okay to me also, if it's just newbuilds. I caught some of the after-talk in the car; seemed to be opposition was needling Osborne that loads of HTB2 budget (debt) not been taken up yet. You can't drag the HTB buyers into the bank, although you can certainly get hpcers making up excuses for those who decide to race into it, pay lunatic prices and outbid others; 'They just wanted a home'. BTL and second home stamp duty hike seems pretty impressive, although I've not had time to examine any detail. Quote Link to comment Share on other sites More sharing options...
eric pebble Posted November 25, 2015 Share Posted November 25, 2015 (edited) https://www.landlordtoday.co.uk/breaking-news/2015/11/anger-from-landlords-at-osbornes-move-to-impose-extra-3-buy-to-let-stamp-duty Anger from landlords at Osborne’s move to impose extra 3% buy to let stamp duty The chief executive of the National Landlords Association, Richard Lambert,...... IS A C N T* [* A Councillor for the Charity for a Nation of Tenants......] Edited November 25, 2015 by eric pebble Quote Link to comment Share on other sites More sharing options...
billybong Posted November 25, 2015 Share Posted November 25, 2015 It's criminally insane. I imagine he's reserved the policies for rebalancing the UK economy until the next budget. Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted November 25, 2015 Share Posted November 25, 2015 did I just read that right. the free market tories will guarantee 40% losses in London, with help to banks scheme this is criminal. Only on as yet unsold new builds? But yes, even the notion to do this is criminal. Quote Link to comment Share on other sites More sharing options...
CunningPlan Posted November 25, 2015 Share Posted November 25, 2015 That is my understanding. That's going to make quite a dent in the flippers profits. Shame. Quote Link to comment Share on other sites More sharing options...
winkie Posted November 25, 2015 Share Posted November 25, 2015 I've just tweeted: @George_Osborne goes further #Marxist w/ #HTBLondon. State to lend 40%. No doubt within 10 yrs it will be national and 100% Quote Link to comment Share on other sites More sharing options...
The Knimbies who say No Posted November 25, 2015 Share Posted November 25, 2015 Overall it looks okay to me also, if it's just newbuilds. I caught some of the after-talk in the car; seemed to be opposition was needling Osborne that loads of HTB2 budget (debt) not been taken up yet. You can't drag the HTB buyers into the bank, although you can certainly get hpcers making up excuses for those who decide to race into it, pay lunatic prices and outbid others; 'They just wanted a home'. BTL and second home stamp duty hike seems pretty impressive, although I've not had time to examine any detail. The practice that you have seen time and again in your searches, whereby 250k houses are sold then appear 'to let' shortly after, could be pretty much instantly torpedoed in April if the detail of the SDLT changes is understood. Looks like the purchaser of a 250k house will face a 10k stamp duty bill, if the rules are applied as suggested. Quote Link to comment Share on other sites More sharing options...
Greg Bowman Posted November 25, 2015 Share Posted November 25, 2015 Contractors already hit by the withdrawal of unlimited dividend relief last time which also hits your pension so be careful what you wish for..... Quote Link to comment Share on other sites More sharing options...
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