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Letters To The Chancellor

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Lots of LOLs in here:

Letters: Osborne’s lurch to the Left puzzles those who elected the Conservatives

http://www.telegraph.co.uk/comment/letters/12019381/Letters-Osbornes-lurch-to-the-Left-puzzles-those-who-elected-the-Conservatives.html

SIR – While the package of measures the Chancellor announced in his Autumn Statement to address housing affordability are welcome, he has missed the mark in one crucial area.
He has forgotten about the value of buy-to-let investments for the millions of Britons who need homes to rent and for whom rental prices are soaring as demand outstrips supply.

Stop being so leftwing and erm... subsidise the rent-seekers. :rolleyes:

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SIR – As an estate agent with 46 years’ experience, I am amazed to hear that the Chancellor is delaying the implementation of the rise in stamp duty on buy-to-lets and second homes until April.

This will lead to a rush from investors wanting to complete before the deadline and, as there is a shortage of suitable properties, prices will inevitably rise. Then, after April, there is an extreme risk that values will collapse as buyers refuse to pay the increase in tax.

I think he is spot-on here. This mirrors exactly what happened when MIRAS rules changed to restrict tax relief on mortgage interest to one-per-property instead of one-per-couple. There was a rush to get in before the door closed then buying fell off a cliff followed shortly afterward by prices.

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I think he is spot-on here. This mirrors exactly what happened when MIRAS rules changed to restrict tax relief on mortgage interest to one-per-property instead of one-per-couple. There was a rush to get in before the door closed then buying fell off a cliff followed shortly afterward by prices.

I don;t. The interval is too short - 4 months + Xmas.

There is not a lot of mortgage availability.

And any cash buyer would have bought by now - and people just do not have cash in hand.

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I don;t. The interval is too short - 4 months + Xmas.

There is not a lot of mortgage availability.

And any cash buyer would have bought by now - and people just do not have cash in hand.

Its like black Friday without any tills. :lol:

Edited by GinAndPlatonic

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I think he is spot-on here. This mirrors exactly what happened when MIRAS rules changed to restrict tax relief on mortgage interest to one-per-property instead of one-per-couple. There was a rush to get in before the door closed then buying fell off a cliff followed shortly afterward by prices.

Won't be a full-on MIRAS: this is much smaller effect, and (more crucially) doesn't touch regular buyers, including the FTBs for whom marginal changes make the biggest difference.

But I expect he'll be happy if he succeeds in damping down prices without causing a full-on HPC. Mini-MIRAS?

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He has forgotten about the value of buy-to-let investments for the millions of Britons who need homes to rent and for whom rental prices are soaring as demand outstrips supply.

When the first cavemen left their parental homes, where were the Landlords to provide the already built homes to rent huh huh?!!!

Edited by 200p

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Lots of people stampeded to get in before the MIRAS changes but they didn't realise that prices were going to collapse almost immediately afterwards (or at least to the extent that they did). For sure the same will happen with the change in stamp duty and likely it'll be marketed to ensure there's such a stampede - for vested interests. Basic marketing such as "Get in before the tax increase".

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Lots of people stampeded to get in before the MIRAS changes but they didn't realise that prices were going to collapse almost immediately afterwards (or at least to the extent that they did). For sure the same will happen with the change in stamp duty and likely it'll be marketed to ensure there's such a stampede - for vested interests. Basic marketing such as "Get in before the tax increase".

No, they would be running into something where the tax on th rent is going up too.

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No, they would be running into something where the tax on th rent is going up too.

That angle wouldn't be highlighted by those marketing - the vested interest. Everybody won't be stampeding into it (those who have the full picture won't) but there'll be a stampede. Even with the MIRAS lots were puzzled why but they still stampeded.

Edited by billybong

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Lots of people stampeded to get in before the MIRAS changes but they didn't realise that prices were going to collapse almost immediately afterwards (or at least to the extent that they did). For sure the same will happen with the change in stamp duty and likely it'll be marketed to ensure there's such a stampede - for vested interests. Basic marketing such as "Get in before the tax increase".

But it is worth remembering that they were being sensible - Rushing to fix the double miras in 1988 was worth about £1,000 to £1,500 a year for two higher rate taxpayers maxing out their allowance (ie, £60k+ property) - and this is when an average London home cost about £80k - so a substantial amount. It really made sense to 'overpay' by several years worth of payments. Of course, Miras was watered down soon after (base rate relief only, and only 10% when it was scrapped altogether). Now prices did crash by more than the double miras savings, but not many people predicted that. And I'm kind of sympathetic re. the miras losers, as they were predominantly just buying their house for themselves to live in, start a family, etc, etc.

No sympathy for the BTL 3% crowd of course - that is a business and if they can't see the headwinds blowing ever stronger (along with numerous storm warnings on the way) then they deserve to fail.

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These sort of rants have been a great source of entertainment these past few months :-)

The cheek of so many of these BTL self serving greedy vermin is just amazing, do they seriously believe they are going to convince the present government and more importantly the public that they are the reincarnation of Mother Teresa. Sure there will always be a demand for social housing, and I dare say they have a few other minor pluses. But without doubt their very presence and speculative greed has caused the demand for rental property for working educated people, it is not a remedy or solution. Most of the under working 40 year old's I know hate the system they are forced to use.

Once the millions of working people are back into the owned homes they should be in the BTL can have the rest to fight over, but please do not insult us by trying to make us feel you provide a service. You have turned a £15 per hour job into a £7 per hour job or less with your horrible evil industry that screws so many people out of most of their wages.

2afnbrs.jpg

h/t 25 year mortgage 8itch

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Lots of people stampeded to get in before the MIRAS changes but they didn't realise that prices were going to collapse almost immediately afterwards (or at least to the extent that they did). For sure the same will happen with the change in stamp duty and likely it'll be marketed to ensure there's such a stampede - for vested interests. Basic marketing such as "Get in before the tax increase".

There were lots of people who could afford to buy with double-miras but not without it, despite the price difference and the negative equity. So for them it was a perfectly rational choice, despite the negative equity.

Except of course for those who subsequently broke up ...

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