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Tax and mortgage crackdown cuts buy-to-let investment by 80pc

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Figures released by IMLA, the mortgage lender trade body, show that the value of new money raised to invest in buy-to-let properties has fallen by 80pc, from £25bn in 2015 to just £5bn in 2017. Telegraph

80% Is a lot! Something went badly wrong.

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Haha I keep an eye on various landlord groups and it's funny that they still don't really get that this is what the government (and wider population) have wanted all along; they talk of it as though it is an unforeseen consequence...

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There's that investment saying - dont let tax drive your investment decisions.

Even more insane for IO BTL - people borrowing (and banks lending) insane levels for something thats is fuxing insane.

I eman you used to get all those wie5rd low tax things distorting people's investing - investing in AIM at one point - Look I get xx releif by investing in junk.

But having people borrow more money then theyd ever earn in a lifetime to pour into BTL on the assumption that theyd be able disocunt rent against mortgage interest.

Insane.

Should have never happened.

The PRA, rising IRs and clarified  tax rules indviduals will see to it.

 

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I don't know how Rob Thomas produced the "net investment" figures for his IMLA report but the flow of new buy-to-let lending is steady.

image.thumb.png.3477776c00446beca4f4d208f56ffb89.png

Source

Here's some 2015 data

Chart 4: Number of buy-to-let loans for house purchase and remortgage 

20151215 October MLT 2015 - Chart 4

Source

My eye-ball analysis of that in 2015 BTL loans for purchase were running at about 10,000 a month and now they are running at about 7,000 a month.

Here's the IMLA chart and the accompanying text:

image.png.aa9447e30777d7ae01a01efddc2f57d2.png

In case anybody needs reminding of the author's credentials:

Quote

Director of Research at Instinctif Partners. He previously served as an economist at the Bank of England (1989-1994), a high profile analyst at the investment bank UBS (1994-2001) and as senior policy adviser to the Council of Mortgage Lenders (2005-12). He was also the project originator and manager at the European Mortgage Finance Agency project (2001-05) and created the blueprint for the government’s NewBuy mortgage scheme

And here's how Instinctif Partners describe themselves

Quote

We are an international business communications consultancy – a partnership – specialists in reputation, influence and engagement. We work with our clients to ignite multiple and complex audiences through deep insight, expert storytelling and creative delivery

(Emphasis added)

If this Rob Thomas comes up with a big number but won't tell the reader how he got his big number I get sceptical.

gif-bored-dr-evil-meh-right-sarcastic-sk

Edited by Beary McBearface

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1 minute ago, BuyToLeech said:

We’ll know when BTL activity falls by 80%, because our children will be able to afford homes again. 

yeah good luck with that one pal, how do you expect me to keep providing homes if the rents don't cover my costs? pop quiz, I won't! I'll gladly play chicken with my tenants and lock my props all up until they come begging. Keep em in line. Market rents = whatever I need to make my profit, same as it ever was

market price of mars bars? hmmm let me think, do mars start selling em at a loss because the lazy kids pocket money doesn't stretch as far as it used to? NO they make em smaller, and they cheapen the ingredients, make em more addictive, then they bang the prices up anyway, smart move I say, hats off can't beat em join em

If you think me providing homes for your kids is some sort of charity you must live in some sort of world where you think your children DESERVE a roof over their heads? good one pal let me know how that works out, meanwhile back in the real world money talks and hard work pays, maybe if your precious kids didn't spend all day infront of their iphones and got a paper round or an evening job they'd be able to pay my rents on time and in full and I wouldn't have to keep cramming more of their pals in to "help them out" 

the sooner these kids get a taste of the real world the better in my humblest, 

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1 hour ago, Beary McBearface said:

I don't know how Rob Thomas produced the "net investment" figures for his IMLA report but the flow of new buy-to-let lending is steady.

image.thumb.png.3477776c00446beca4f4d208f56ffb89.png

Source

Here's some 2015 data

Chart 4: Number of buy-to-let loans for house purchase and remortgage 

20151215 October MLT 2015 - Chart 4

Source

My eye-ball analysis of that in 2015 BTL loans for purchase were running at about 10,000 a month and now they are running at about 7,000 a month.

Here's the IMLA chart and the accompanying text:

image.png.aa9447e30777d7ae01a01efddc2f57d2.png

In case anybody needs reminding of the author's credentials:

And here's how Instinctif Partners describe themselves

(Emphasis added)

If this Rob Thomas comes up with a big number but won't tell the reader how he got his big number I get sceptical.

gif-bored-dr-evil-meh-right-sarcastic-sk

"to ignite multiple and complex audiences"

sounds dangerous...

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8 minutes ago, thewig said:

yeah good luck with that one pal, how do you expect me to keep providing homes if the rents don't cover my costs? pop quiz, I won't! I'll gladly play chicken with my tenants and lock my props all up until they come begging. Keep em in line. Market rents = whatever I need to make my profit, same as it ever was

market price of mars bars? hmmm let me think, do mars start selling em at a loss because the lazy kids pocket money doesn't stretch as far as it used to? NO they make em smaller, and they cheapen the ingredients, make em more addictive, then they bang the prices up anyway, smart move I say, hats off can't beat em join em

If you think me providing homes for your kids is some sort of charity you must live in some sort of world where you think your children DESERVE a roof over their heads? good one pal let me know how that works out, meanwhile back in the real world money talks and hard work pays, maybe if your precious kids didn't spend all day infront of their iphones and got a paper round or an evening job they'd be able to pay my rents on time and in full and I wouldn't have to keep cramming more of their pals in to "help them out" 

the sooner these kids get a taste of the real world the better in my humblest, 

A powerful argument, which has absolutely convinced me to buy a couple of mars bars. 

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25 minutes ago, thewig said:

yeah good luck with that one pal, how do you expect me to keep providing homes if the rents don't cover my costs? pop quiz, I won't! I'll gladly play chicken with my tenants and lock my props all up until they come begging. Keep em in line. Market rents = whatever I need to make my profit, same as it ever was

market price of mars bars? hmmm let me think, do mars start selling em at a loss because the lazy kids pocket money doesn't stretch as far as it used to? NO they make em smaller, and they cheapen the ingredients, make em more addictive, then they bang the prices up anyway, smart move I say, hats off can't beat em join em

If you think me providing homes for your kids is some sort of charity you must live in some sort of world where you think your children DESERVE a roof over their heads? good one pal let me know how that works out, meanwhile back in the real world money talks and hard work pays, maybe if your precious kids didn't spend all day infront of their iphones and got a paper round or an evening job they'd be able to pay my rents on time and in full and I wouldn't have to keep cramming more of their pals in to "help them out" 

the sooner these kids get a taste of the real world the better in my humblest, 

here here. 

up for the 118 crew

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4 hours ago, BuyToLeech said:

We’ll know when BTL activity falls by 80%, because our children will be able to afford homes again. 

As will the astute landlords waiting for prices to drop with the readies in their pockets, not all landlords are brain dead chasing them up to oblivion. 

 

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  • 407 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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