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Not banging up the rents innit


adarmo

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HOLA441

https://www.theguardian.com/money/2018/oct/16/taxes-buy-to-let-landlords-rents-generation-rent-buyers

Warnings by landlords that taxes on buy-to-letwould cripple the property market, driving down supply and pushing up rents, have turned out to be entirely hollow, according to research by campaign group Generation Rent.

It found that since the “bombshell” introduction of taxes on buy-to-let landlords in George Osborne’s 2015 budget, rents have fallen in real terms.

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7 hours ago, Unmoderated said:

haha, proves market rates were already being charged :)

Nope.

LL hypothecated that more taxes would mean higher rents.

However, it looks like the more you tax LL, the lower rents go.

Crank up the taxation......

 

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HOLA446
18 minutes ago, spyguy said:

Nope.

LL hypothecated that more taxes would mean higher rents.

However, it looks like the more you tax LL, the lower rents go.

Crank up the taxation......

 

It doesn't show that. It shows that taxes can't be passed on to the tenant because they're already paying top dollar or as much as the market can bear. Ergo, cet.par market rates being charged. 

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Who would have thought it? Rents were already at the maximum possible that the market could bear. Well I never! I totally believed the hollow self-interested threats of the landlords. I wonder how long it will be before they realise that they are firmly in the sites of government as a possible income source with few downsides politically speaking. 

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The argument was always hollow.

Firstly, it only applies to BTL landlords with leverage and only those that are "amateur" in that they're not registered through a ltd company. This group do not command the market therefore they cannot set the margin and will lose out to others who the loss of tax relief will not impact and can charge lower rents.

Secondly, part of the equation is the price of the asset ie. the house. New entrants who want to avoid the ltd company route will be aware (or should be) of the additional tax costs and should base their valuation of a potential property with that in mind when calculating the yield. In other words, prices of the asset can fall to maintain yields.

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13 minutes ago, mrtickle said:

post it!! :)

Haha they have dropped any pretence that they are representing tenants... dissenters (tenants) just get called a troll and banned. Little more than that echo chamber that is parasite118 unfortunately. I still like to read the posts on ATTT and roll my eyes at the formulaic responses (rent increases, homelessness etc). The desperation reassures me that some of these guys are really feeling the pain and will be, like it or not, offloading their portfolios in the near future at firesale prices.

Keep your powder dry ?

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This is pretty much exactly the same argument that gets wheeled out whenever someone threatens to raise taxes on a group with more assets or earnings than most. 

"You can't make the rich pay more - they'll leave the country!" 

What... and take the income they were earning in the UK with them (a lot of the often being derived from land/property)? 

Yeah... good luck sneaking that 20000 acre chunk of Suffolk through customs... 

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16 hours ago, oatbake said:

Haha they have dropped any pretence that they are representing tenants... dissenters (tenants) just get called a troll and banned. [...]

Keep your powder dry ?

Fair enough. They haven't spotted the dissenting Ha-Has that I've been adding then, the thickos.

More Ha-Has are always welcome of course folks!

 

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