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The First Btl Tax

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Glasgow Evening Times Link

Glasgow City Council have set up a landlord register which ALL landlords must register on by 31 March 2006 or face a £5000 fine. Cost of registering is £55 and a further £11 per property.

The most interesting part is that this is in addition to the nationwide (Scotland) multiple occupancy laws and landlords can be turned down. It then becomes a criminal offence to continue to rent out properties.

I can see other cities eyeing this up and implementing their own schemes if this proves to be a success.

NDL

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Glasgow Evening Times Link

Glasgow City Council have set up a landlord register which ALL landlords must register on by 31 March 2006 or face a £5000 fine. Cost of registering is £55 and a further £11 per property.

The most interesting part is that this is in addition to the nationwide (Scotland) multiple occupancy laws and landlords can be turned down. It then becomes a criminal offence to continue to rent out properties.

I can see other cities eyeing this up and implementing their own schemes if this proves to be a success.

NDL

I'm thinking this could be to cover the addtional cost of monitoring the new multiple occupancy laws...still, at least the landlord is paying and not the tax payer.

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I'm thinking this could be to cover the addtional cost of monitoring the new multiple occupancy laws...still, at least the landlord is paying and not the tax payer.

Possibly, but apparently they are taking on 9 members of staff to run this scheme. There are 20000 privately let properties in Glasgow according to the article.

It'll be self financing to the tune of £1m over the next three years so they say.

NDL

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Possibly, but apparently they are taking on 9 members of staff to run this scheme. There are 20000 privately let properties in Glasgow according to the article.

It'll be self financing to the tune of £1m over the next three years so they say.

NDL

Excellent news.....once the other local authorities see that they will all be up for it.

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Call me smug but we could see this a mile off

I've just been looking at the legistation, it's all there, registration, licencing, inspection (the essentials of a tax base) and an organisation to keep track and hold deposits (a nice clearing infrastructure), which means they know what is let, when it is let, from whom, when someone moves out, when someone moves in, tied in with HMRC they will know whether you're been claiming voids when you shouldn't have or if you've been pocketing rent. The HMO's are the first line of cannon fodder, then it'll be the BTL'ers.

Edited by BuyingBear

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Guest horace

How can one seriously believe this tripe when the progenitor refer to landlords `renting OUT`.

The writer, sub editor and editor should understand that landlords do not `rent out` they `let`.

Back to basics?

horace

Edited by horace

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I'm thinking this could be to cover the addtional cost of monitoring the new multiple occupancy laws...still, at least the landlord is paying and not the tax payer.

How is the landlord paying? Oh, thats right, they were collecting interest on money they didn't own before.

The tenant as usual is paying. But as a tenant I would consider it a bloody good and cheap insurance policy... oh have I missed the point, thats right, the landlord will now have to pay tax on his earnings just like me:o with the policing mechanism also paid for by me :D bloody good investment, maybe they can reduce my PAYE when the rental industry comes out of the BLACK MARKET.

It'll be self financing to the tune of £1m over the next three years so they say.

Forget so they say. In Australia this scheme makes a surplus, which is then put into the general revenue. Best tax I ever paid!

Edited by Elizabeth

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How can one seriously believe this tripe when the progenitor refer to landlords `renting OUT`.

The writer, sub editor and editor should understand that landlords do not `rent out` they `let`.

Back to basics?

horace

Horace, something tells me you aren't Glaswegian. ;)

NDL

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Couldn't this be seen as bad news for tennants?

If the landlord has to pay extra and maybe income tax, then the costs could be passed downwards.

Yeah, but there's only so much someone can pay in rent.

£55 + £11 is only £5 per month (assuming it has to be renewed every year). I think that's a good value insurance policy for the tenant.

IMO it's the £5k fines that'll throw the cat amongst the pigeons. That kind of money can't be squeezed out of tenants. That's the kind of thing that'll cause the BTL to go "bugger it" and sell up. Likewise, but to a lesser extent, with income tax.

I take your point though.

NDL

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Is this the same Glasgow Council that had its housing stock taken away because it was so completely incompetent and racked up billions of pounds of debts reducing the value of its houses to 130 quid each ?

Is this the same Glasgow Council which has the second worst Housing Benefit Fraud in the Country ?

Is this the same Glasgow Council that has 58,000 people on Invalidity Benefit, making it (after Liverpool) the unhealthiest place to live in Europe. (The figures for Chernobyl are slightly higher but difficult to interpret.)

The people who applaud this zealous prosecution and persecution of the private BTL sector bear marked similarities to the hoards of fanatics who demand beheadings over cartoons they have not even seen. It's gross ignorance to applaud the moves by Glasgow City Council. This Council was probably the worst slum landlord in the country, had its stock taken away and now pursues a vendetta against the private sector because of resentment.

FACT: Private Landlords are required to provide Gas and Electrical Safety Certificates annually. Councils are not.

(It doesn't even matter how bad the Council is as a Landlord: various legal precedents have established that it cannot sue itself.)

FACT: When Councils were first burdened with the duty of providing housing (and a central government subsidy to pay for it) in 1919 they issued and still continue to issue contracts outside the various Housing Acts which govern the private sector. They issued rock-solid contracts with virtually no right to evict simply to make themselves look more humane than the private sector. The effect of this was that the Council tenants were at perfect liberty to trash their housing which a large proportion of them duly did. This supreme act of left-wing vanity - a deliberate showing off vis-à-vis the private sector - didn't come cheap. You paid for it.

(Look at the proportion allocated to Housing in your Council Tax bills. True they reclaim from central government but you're still paying for it.)

FACT: A 2002 Mori Poll of Where You Would least Like to Live, listed Council Tower Blocks as 84%, Victorian Terrace 1% and Village House 0%.

(Ergo let's prosecute the private landlords who rent out terraces and village houses.)

FACT: Den Xiaoping, author of the Tiananemen Square massacre, almost certainly orchestrated the execution of 30,000+ landlords in Sichuan Province in 1949. The exact figure of executed private landlords in China upto the aftermath of the Cultural Revolution is unknown. Pretty well everybody though is a good guess.)

(First they came for the landlords...then they come for you.)

So the links between mad Jihadis (who jump up and down about things they have never even looked at), mad Communists (who make people bow down with their hands tied behind their back and then...), mad Glasgow councillors and mad HPCers who want to jump up and down and make people bow down are established.

This is a bit of a wind-up of course but HPCers mired in a legacy of resentment should get their facts straight rather than applaud the lynchings of BTLers.

If you think Glasgow Council is the way forward, you're insane. (Oh and by the way 25% of your Council Tax pays for the pensions of the cheka who seek out landlords for punishment. Pass these values onto your children.)

1.

Glasgow Council Housing Daily Record (Glasgow, Scotland); 8/15/1998; McCOLM, EUAN

Glasgow's Labour council have been told to sell off their houses for just pounds 130 each.

Independent consultants HACAS Exchequer have placed a pounds 13million price tag on Glasgow's 100,000 council houses. And the plan means the council would sell houses for pounds 30 less than the cost of a month's rent.

The valuation provides for a Government agreement to take responsibility for pounds 1300million of debt.

Housing convener James McCarron, briefing councillors on the homes crisis yesterday, urged them to give the go- ahead for a wholesale transfer of housing stock.

He said Scottish Office Ministers were prepared to take over responsibility for the debt provided the council gave up acting as landlords.

Mr McCarron and council officials have been holding talks about Glasgow's housing crisis at the Scottish Office since the General Election.

And despite the reservations of some Labour councillors the message has been spelt out to them loud and clear that radical action is needed to tackle the city's mounting housing debt.

At present, more than half the rent revenue goes toward interest charges - and the deficit keeps getting bigger.

Mr McCarron said initially a non-profit-making company would be set up to control the transfer of assets.

It then, in turn, would hive off sections of housing to local associations and private- sector partnerships.

But the SNP attacked the plan. A spokesman said: "People have paid up to pounds 30,000 for their council homes - it will sicken them if the council all but gives away the rest of its stock."

SNP Councillor Gordon Archer said: "The Govern-ment should wipe out the impossible debt burden and put housing on a sound basis."

Some Labour councillors also gave a cool reception to the plan.

Leaving yesterday's meeting, one senior figure said: "There were more questions in there than answers."

The Labour group will debate the issue in three weeks, but many backbenchers would prefer that the subject was buried until after next spring's elections.

Opposition members have accused the council of doing a U-turn after they tried to defy Tory right- to-buy legislation in the 1980s.

Mr Archer said: "For many years the council and others have fought to retain public stock. This is an abanondment of that.

"We are looking at turning a monolithic public monopoly into a private company. It is a very grave step."

But Labour leader Frank McAveety said: "This is not about privatisation. This is about a new form of community ownership."

A city council spokesman added: "The price suggested takes into account the massive repair bill and the fact that a number of houses must be demolished."

COPYRIGHT 1998 Scottish Daily Record & Sunday

2.

Benefit Fraud Inspectorate (BFI) report: Glasgow City Council.

M2 Presswire; 1/31/2005

M2 PRESSWIRE-31 January 2005-UK Government: Benefit Fraud Inspectorate (BFI) report: Glasgow City Council©1994-2005 M2 COMMUNICATIONS LTD

RDATE:01312005

The Secretary of State for Work and Pensions, Alan Johnson has today published an inspection report by the BFI on the administration of Housing Benefit and Council Tax Benefit and counter-fraud activity by Glasgow City Council.

The report concludes that the council has made significant progress since the first inspection and overall the level of performance was assessed as fair.

BFI's first inspection of Glasgow City Council in March 2001, reported that it needed to develop a more effective, efficient and secure benefits administration system. In 2003/04, Glasgow City Council administered some GBP350 million in housing benefits, about 17 per cent of its gross revenue expenditure.

BFI inspected the council against the Performance Standards, the council was not at Standard for any of the seven functional areas - Strategic management, Customer services, Processing of claims, Working with landlords, Internal security, Counter-fraud and Overpayments.

Customers received a good service in terms of caller facilities and the council had made significant improvements in the speed of processing claims. However it was failing to effectively protect the gateway to benefits due to inadequate verification of new claims and a lack of interventions after a claim had been awarded.

The council had taken a number of positive steps to improve the overpayment recovery process and while it had made a significant investment in resources for its Benefit Counter Fraud Unit, there continued to be insufficient controls around the number and quality of investigations.

BFI found a clear commitment to improve performance including plans to implement new Benefits IT systems and the implementation of the Department's Verification Framework. BFI is an independent unit within the Department for Work and Pensions that reports directly to the Secretary of State for Work and Pensions on the standard of benefit administration and counter-fraud activity. Chris Pond, Work and Pensions Minister announced the publication of the report in a written ministerial statement.

Notes to Editors

1. The process for the inspection at Glasgow City Council included an initial fact finding stage, an on-site visit, and production and clearance of the report. The on-site visit took place during July 2004.

2. Each BFI inspection report is considered by the Secretary of State who decides whether any further action is appropriate. The Secretary of State has powers to issue directions to a local authority to secure acceptable or minimum standards in performance.

3. In its response to the Housing Green Paper of November 2000, the Department for Work and Pensions developed a performance framework for housing benefits. The HB/CTB Performance Standards, published in April 2002, enable local authorities to make a comprehensive self-assessment of whether they deliver benefit effectively and securely. These are the standards that the Department for Work and Pensions expects local authorities to aspire to and achieve in time.

4. The Department for Work and Pensions has not set a timescale for when the standards need to be met by local authorities.

5. BFI inspects against the seven functional areas of the Performance Standards:

* Strategic management - clearly stated aims and action, resources and monitoring, with effective training and IT

* Customer services - providing an efficient and prompt service that meets the needs of all customers and persons with a legitimate interest in a claim

* Processing of claims - speedy and accurate claims processing with effective verification

* Working with landlords - to give private landlords the confidence to let to customers and to support delivery of social housing

* Internal security - preventing internal fraud

* Counter-fraud - deterring, preventing, detecting and pursuing fraud

* Overpayments - preventing, identifying and recovering overpayments.

6. The HB/CTB Performance Standards can be downloaded from: http://www.dwp.gov.uk/housingbenefit/publications/2003.asp

3.

Glasgow tenants vote to sell off council housing.(News)

The Independent (London, England); 4/6/2002; Duckworth, Lorna

GLASGOW TENANTS paved the way yesterday for the biggest shake- up of public housing in Britain by voting to transfer the city's 83,000 council homes to a housing association.

In a bitterly fought ballot, 58 per cent of tenants agreed that the Glasgow Housing Association (GHA) should take control of the city council's entire stock.

The result was closer than expected, with 20,836 tenants, or 42 per cent, voting to remain in municipal hands, compared with the 29,126 who backed the transfer plan. Turn-out in the postal ballot was 64 per cent.

Leaders of Glasgow City Council and the Scottish Executive hailed the 8,290 majority as a mandate for change and the only way to upgrade some of Britain's worst slums.

Iain Gray, the Social Justice Minister, said: "The GHA, over the next 11 years, will transform crumbling damp houses into attractive modern homes and many new houses will be built to replace those that will be demolished."

One quarter of Glasgow's council homes are estimated to be unfit to live in because they are so dilapidated and damp, while half of the housing stock is in need of substantial repairs.

The city council said it could not afford major refurbishments because of borrowing restrictions and a housing debt of pounds 900m, which swallows up 40p in every pound of rent.

But the Treasury said it would write off the council's historic debt if tenants voted to be taken over by a not-for-profit, social landlord.

Under the transfer plan, the GHA will spend pounds 1.8bn on repairs over 10 years and embark on the demolition of 11,000 properties. Existing tenants have been given an eight-year guarantee that rents will rise by no more than inflation plus 1 percentage point.

Ministers say the transfer will act as a catalyst for the social and economic regeneration of some of the most unhealthy and deprived areas of Europe.

Mr Gray said: "Tenants can now look forward to the good- quality, affordable housing so vital if we are to tackle, head-on, poverty, ill-health and disadvantage. In addition, we aim to create thousands of training and work opportunities in the construction industry as the GHA's investment programme gets under way."

Councillor Charlie Gordon, Glasgow's civic leader, said the "clear-cut" result would "accelerate the regeneration of Glasgow and bring in pounds 1.5bn of much-needed investment".

Opponents of the scheme, including the Scottish National Party and the Scottish Socialists, said it would spell the end of council housing in Scotland and lead to big rises in rent.

After the result was announced, Mike Kirby, Scottish convener of the Unison public- sector union, warned that a sizeable minority had voted no.

"The arguments against stock transfer still stand and other councils have taken different attitudes towards the issue," he said. "This is not a one-size-fits-all solution. The Executive has to take into account the substantial opposition to this policy and change their dogmatic approach."

Councils in Dumfries and Galloway, the Scottish Borders and the Shetlands are also planning to transfer their housing stock to a social landlord.

In England, about one-third of England's 300 housing authorities have already switched their stock as part of a growing trend over the past 10 years. A vote on the ownership of council homes in Birmingham - the biggest municipal landlord in Britain, with Glasgow second - will be announced on Monday.

Professor Steve Wilcox, of the Centre for Housing Policy at the University of York, said Scottish ministers would be "mightily relieved" by the vote in Glasgow.

The transfer plan had been a linchpin of housing policy since devolution and if it had been rejected, they had no other way to find the huge investment needed. "There were no other political options on the table that would give the opportunity to carry out, not just a major modernisation programme, but a complete restructuring of the housing sector," Professor Wilcox said.

The Glasgow vote could be seen as one step towards the end of council housing in Scotland, but not the rest of the UK, he said. "We are moving to a situation where local authorities will be minority landlords. It will be housing associations, local housing companies and local community organisations that take things forward."

COPYRIGHT 2002 Independent Newspapers (UK) Ltd.

Edited by Euphorion

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IMO it's the £5k fines that'll throw the cat amongst the pigeons.

That and the income tax... particularly if Joe Amateur BTL hasn't been paying tax on rents for a couple of years since he bought the place.

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The city council said it could not afford major refurbishments because of borrowing restrictions and a housing debt of pounds 900m, which swallows up 40p in every pound of rent.

Most BTL landlords would kill for that ratio! They must be closer to spending a pound in every pound on debt interest. :lol:

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Is this the same Glasgow Council that had its housing stock taken away because it was so completely incompetent and racked up billions of pounds of debts reducing the value of its houses to 130 quid each ?

the most useless council in britain,yes that's the one.the council who put their councillors up in 5 star hotels in brazil to go to conferences on poverty (flying 1st class of course).

seems this idea has come from the scottish parliament (you know the one were every week some MSP is resigning over expenses,usually for taxis everywhere when they tell us to get the bus).

they are as bad as each other the latest waste of money is £21M on "quality bus corridors" bus lanes to you and me.Glasgow is having these imposed on us despite widespread objections,yet First bus are cutting services.we are getting 1 right outside us,even though there is no congestion even at peak times.there will be nowhere to park except pay & display.of course this dosen't affect MSPs or councillors,who get taxis everywhere.

now that the council have offloaded the housing stock to the even more incompetent GHA,here are some of the headlines we are getting

Families face being evicted over unruly children

CALUM MACDONALD; The Herald; Feb 8, 2006; pg. 3

GBP9000 GHA repair bills spark home owner fury Anger over cost of work residents claim they don't need

STEWART PATERSON; Evening Times; Feb 1, 2006; pg. 11

GHA REPAIR BILL WILL COST MORE THAN OUR HOMES Debt fears as pensioners face massive charges

Evening Times; Feb 1, 2006; pg. 1

Repair bill for former council homes to soar GHA expects to double revenue from owner-occupiers to GBP25M a year

STEWART PATERSON; Evening Times; Jan 19, 2006; pg. 14

http://pqasb.pqarchiver.com/smgpubs/result...ons=0&x=54&y=10

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  • 301 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?


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