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George Osborne's buy-to-let levy on landlords raises an extra £700million for the taxman in just SIX months

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The other thing about this is that the Q3 data showed that a quarter of homes sold were BTLs or second homes. <_<

Weird housing crisis we're having. Either you can't afford a house at all, or you can afford two...

Quote

A quarter of properties bought in the third quarter of 2016 were buy-to-let or second homes, according to new figures from HMRC.

The latest stamp duty land tax statistics show that 56,100 properties out of 235,000 eligible to pay stamp duty in Q3 paid the extra 3 per cent surcharge levied on second homes since April.

The figure of 235,000 property transactions eligible for SDLT in the third quarter was 13 per cent higher than the previous quarter and 1 per cent higher than Q3 2015.

Source: A quarter of properties sold in Q3 were BTL or second homes, Mortgage Strategy, 28 October 2016

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10 hours ago, Bland Unsight said:

The other thing about this is that the Q3 data showed that a quarter of homes sold were BTLs or second homes. <_<

Weird housing crisis we're having. Either you can't afford a house at all, or you can afford two...

Source: A quarter of properties sold in Q3 were BTL or second homes, Mortgage Strategy, 28 October 2016

This is due to current owners with equity moving and renting their old house. Spoke to two colleagues this week, not selling, just adding more mortgage,  then the rent will cover the old mortgage and some of the new mortgage. Another two houses gone to LLs. 

 

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Doesn't seem like the 3% stamp duty surcharge has had much of an impact. 

That equates to £23bn of purchases in Q3 being either BTL or 2nd homes. l

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1 minute ago, satch said:

The model is very simple. Keep current property as mortgage covered and the capital will increase by 10% .... ie a total freebie, you would be mad not to do this. 3% SDLT is irrelevant and just a minor inconvenience ... the loss of 3 months capital gain. S24 will have an impact but best not to think about that as it does not apply at the moment and may get reversed ...... and if not just put the rents up innit.

Still it proves how vital hard-working houses are to the economy; there are 23 million of hard-working piles of bricks and on average they earn more each than the 20 million lazy human workers. If as a human you can create a business employing a few of these hard working houses there will be no need to work at all ..... negating the the effect of s24 to some degree .... happy days

If they are keen to abolish amateur landlords they need to more than s24 and 3% sdlt. They need to raise rates and make the model financially unworkable due to higher mortgage costs.

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5 minutes ago, GreenDevil said:

If they are keen to abolish amateur landlords they need to more than s24 and 3% sdlt. They need to raise rates and make the model financially unworkable due to higher mortgage costs.

This.  Presumably it is fairly straightforward for the government to selectively target Buy to let lending by applying a higher risk weighting to this class of mortgage.  This would make a typical BTL mortgage much more expensive to service and effectively close the sector to many new entrants.

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22 minutes ago, GreenDevil said:

If they are keen to abolish amateur landlords they need to more than s24 and 3% sdlt. They need to raise rates and make the model financially unworkable due to higher mortgage costs.

That will come. 

The new rules on rental cover will mean LLs have to pay down some debt and push rates up to reflect risk and basel3 will see that BTL mortgages more closely reflect commercial loan rates.

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6 hours ago, Ah-so said:

Doesn't seem like the 3% stamp duty surcharge has had much of an impact. 

That equates to £23bn of purchases in Q3 being either BTL or 2nd homes. l

Agreed. Let's get it raised to 10% in the Autumn Statement.

 

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On ‎30‎/‎10‎/‎2016 at 0:46 AM, GreenDevil said:

This is due to current owners with equity moving and renting their old house. Spoke to two colleagues this week, not selling, just adding more mortgage,  then the rent will cover the old mortgage and some of the new mortgage. Another two houses gone to LLs. 

 

hi, yes anecdotally I hearing this a lot also, alot of people have a lot of chips down...they think carnage has fixed the table for them...

I live only to see the day they lose their shirts.

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On 30/10/2016 at 0:46 AM, GreenDevil said:

This is due to current owners with equity moving and renting their old house. Spoke to two colleagues this week, not selling, just adding more mortgage,  then the rent will cover the old mortgage and some of the new mortgage. Another two houses gone to LLs. 

 

You must work with very high earming people.

MMR will not allow thus for 99% - all debt is accounted for, total debt has to be kept well below 4x earnings.

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7 minutes ago, spyguy said:

You must work with very high earming people.

MMR will not allow thus for 99% - all debt is accounted for, total debt has to be kept well below 4x earnings.

all debt including student loans?

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1 minute ago, SarahBell said:

all debt including student loans?

 

1 minute ago, SarahBell said:

all debt including student loans?

 

1 minute ago, SarahBell said:

all debt including student loans?

At the mo student loans are more an extra tax. They discount the loan repsyment/tax from your free cash flow, reducing how much you can borrow.

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