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Research Suggests Buy To Let Landlord Confidence In The Uk Is Low

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Research suggests buy to let landlord confidence in the UK is low


TUESDAY, 26 APRIL 2016


Recent and forthcoming changes to tax for buy to let landlords in the UK seems to have dented confidence with new pieces of research showing many are set to re-evaluate their situation and put new strategies in place.

One new report reveals that just one in five landlords believe there is still money to be made in the buy to let market even although many purchased buy to let property in the last three months to beat the Chancellor's stamp duty reforms.


The study conducted by online letting agent PropertyLetByUs, shows that 43% of landlords are considering putting their properties into a limited company to beat the tax rises. Some 5% of landlords have sold buy to let property because of the increased tax burden and 6% plan to reduce their property portfolio and invest their capital in stocks and shares.


However, despite all the rhetoric about buy to let profits, only one in six landlords are seeing a reduction in their profits and many of them appear to have strategies in place to off-set the tax rises such as opting for incorporation, but they are also set to increase rents.


The surge in landlords investing in buy to let property in the first quarter of 2016 has created a bubble of new rental properties in some parts of the UK, according to a separte report from research consultants BDRC Continental.


It suggests that in the longer term, it is likely that the tax changes will limit the supply of rental property and discourage potential new landlords from investing in the buy let market. The good news is that tenant demand will continue to rise, as unaffordable house prices push home owning out of reach for many people.


Continue reading here:




:angry:

Edited by spacedin

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Its just insane babble.

Incoperating they cannot FFS bank wont let them

Even if the bank did, have they seen to charge for Ltf Co. loans?

Fcktards and their fcktard cheerleaders.

Its like watching congential morons.

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However, despite all the rhetoric about buy to let profits, only one in six landlords are seeing a reduction in their profits and many of them appear to have strategies in place to off-set the tax rises such as opting for incorporation, but they are also set to increase rents.

It would be kind of miraculous if unimplemented changes had dented profits. Maybe they'll have more impact when they are implemented.

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From the article

The majority of landlords, 59%,believe that the 2015 Budget will decrease their profitability.
Some 81% of private landlords with 20 plus properties believe that they will experience a decrease in profitability, twice as many as single property landlords.

Source

I wonder if they were asked to give their expectations regarding whether or not they thought they'd be living in an HMO by Christmas 2021.

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To be fair, the investor behind this can make you "filthy rich in property in very quick time, within probably one year".

Where do I sign?

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Without wanting to be shoved into the anecdotes forum, Landlord came by for annual gas checks (SW London), says he's planning to edge up our rent to counter act tax changes but still below market value as we get on OK (best we can given what he stands for), planning to sell off at least half his London BTL flats in the coming months before any of the tax changes really start kicking in.

Was rather sympathetic about my FTB saver situation, although another of his tenants is a BTL landlord themselves, owning 3 flats in Liverpool! He reckons CGT exemption to sell to current tenants is the way forward. Other advice was just to get out of London (which is kinda my plan anyway) as a home he bought outside Norwich for 175k in 2007 now only worth 190k.

Anyway, he's an educated man, and he looked pretty scared yet prepared about what's to come, especially with yields being as low as they are in the SE.

Edited by Barnsey

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Without wanting to be shoved into the anecdotes forum, Landlord came by for annual gas checks (SW London), says he's planning to edge up our rent to counter act tax changes but still below market value as we get on OK (best we can given what he stands for), planning to sell off at least half his London BTL flats in the coming months before any of the tax changes really start kicking in.

Was rather sympathetic about my FTB saver situation, although another of his tenants is a BTL landlord themselves, owning 3 flats in Liverpool! He reckons CGT exemption to sell to current tenants is the way forward. Other advice was just to get out of London (which is kinda my plan anyway) as a home he bought outside Norwich for 175k in 2007 now only worth 190k.

Anyway, he's an educated man, and he looked pretty scared yet prepared about what's to come, especially with yields being as low as they are in the SE.

I'll bet he did. Gimme, gimme, gimme. No need for such carrots when the stick is barely out and people are heading for the exit. As an educated type, I'm sure he'd agree.

Edited by The Knimbies who say No

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although another of his tenants is a BTL landlord themselves, owning 3 flats in Liverpool!

It's as if the shoeshines have been picking up investor tips from their masters.

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Research suggests buy to let landlord confidence in the UK is low
TUESDAY, 26 APRIL 2016
Recent and forthcoming changes to tax for buy to let landlords in the UK seems to have dented confidence with new pieces of research showing many are set to re-evaluate their situation and put new strategies in place.
One new report reveals that just one in five landlords believe there is still money to be made in the buy to let market even although many purchased buy to let property in the last three months to beat the Chancellor's stamp duty reforms.
The study conducted by online letting agent PropertyLetByUs, shows that 43% of landlords are considering putting their properties into a limited company to beat the tax rises. Some 5% of landlords have sold buy to let property because of the increased tax burden and 6% plan to reduce their property portfolio and invest their capital in stocks and shares.
However, despite all the rhetoric about buy to let profits, only one in six landlords are seeing a reduction in their profits and many of them appear to have strategies in place to off-set the tax rises such as opting for incorporation, but they are also set to increase rents.
The surge in landlords investing in buy to let property in the first quarter of 2016 has created a bubble of new rental properties in some parts of the UK, according to a separte report from research consultants BDRC Continental.
It suggests that in the longer term, it is likely that the tax changes will limit the supply of rental property and discourage potential new landlords from investing in the buy let market. The good news is that tenant demand will continue to rise, as unaffordable house prices push home owning out of reach for many people.
Continue reading here:
:angry:

..it has been designed to be low......the BofE and the Chancellor are both working to reduce the country's and the UK Banks' exposure to BTL....why he created the mini December to April bubble only the devil knows ...unless it was to carve an HPC before BREXIT...watch the property data for UK 2nd quarter April to June 2016..although I am sure the April and May figures will be produced before voting begins by the 'Remain' camp...but at least there is a counter argument ....... :rolleyes:

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BTL is a national disgrace, the economic epiphany of a declining economy with no productive use for capital.

No offence to any misguided landlords reading this.

I suggest telling the misguided landlords to wake up and go ****** themselves like they are ******ing over the younger generations and the less well off and the less clinically insane people who dont want to take on crippling lifetime debt for the essential need of shelter.

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43% of landlords are considering putting their properties into a limited company to beat the tax rises

Except that there are plans afoot to limit the extent to which corporations can offset loan interest against profits:

Here

The recommended approach to address these risks has at its core a rule which limits net deductions for interest to a percentage of a company’s earnings before interest, taxes, depreciation and amortisation (EBITDA). To be effective, this fixed ratio rule would also apply to payments economically equivalent to interest. To ensure that countries apply a fixed ratio that is low enough to tackle BEPS, while recognising that not all countries are in the same position in terms of the size and make-up of their economies, the recommended approach includes a corridor of possible ratios of between 10% and 30%. The report also identifies some of the factors which countries should take into account in setting their fixed ratio within this corridor.

Edited by goldbug9999

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Except that there are plans afoot to limit the extent to which corporations can offset loan interest against profits:

Here

Thats the least of their probems.

Banks will not you transfer a perosnal mortgage to a Ltd co FFS!

Loan rates to Ltd Cos are in the region of 8-14%

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Thats the least of their probems.

Banks will not you transfer a perosnal mortgage to a Ltd co FFS!

Loan rates to Ltd Cos are in the region of 8-14%

True, there always room for another nail in the BTL coffin though ;)

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True, there always room for another nail in the BTL coffin though ;)

Oh there is - Basel 3

Thatll put a good 3-5% of the cost of a BTL loan.

And the door will be fully closed on leveraged LLs, meaing ecisting LL will have to sell to an OO, subject to MMR = a lot less sale price.

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