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DrBob

Official Response To Buy-to-let Number 10 E-petition

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The PM's response to the PricedOut.org.uk E-petition on BTL has been released:

The petition:

"We the undersigned petition the Prime Minister to Remove all tax incentives and bonuses that property investors currently enjoy."

Details:

"The phenomenal rise in popularity of Buy-to-Let investment and other types of residential investment is a significant contributor to house price inflation. There is now an obscene divide between people who own property as investment and those priced out of home owner-occupation and the security that brings them and their families. Tax breaks on property investment only add to this economic disparity and must be removed as a minimum step towards levelling the playing field."

The response:

Owner-occupiers already receive a more favourable tax treatment than those letting or renting residential property because individuals' principal private residences are not subject to income tax or corporation tax on rent returns or capital gains tax on housing sales. However, the Government keeps all taxes under constant review.

The Government recognises the difficulties faced by first time buyers and is acting in several ways to alleviate these pressures.

Firstly, in Budget 2005 the Government doubled the starting threshold for stamp duty to £120,000, thereby focusing support on first time buyers and those on low incomes. In Budget 2006 the Government raised the threshold again, to £125,000. As a result of these changes an additional 400,000 homebuyers per year will now pay no stamp duty. Currently, just over half of all first time buyers pay no stamp duty and, within all homebuyers, over eighty percent pay only the 1% rate or are exempted by the starting threshold.

Secondly, the Government's response to the independent Barker Review of Housing Supply, published alongside the Pre-Budget Report in 2004, set out how achieving the Government's aim to improve affordability for future generations of homebuyers will require housing supply to become much more responsive to demand. In the recent Housing Green Paper the Government raised its ambition for housing additions to 240,000 dwellings a year by 2016 up from the target of 200,000 set in 2005 and compared with around 185,000 now. This increase will be achieved through further planning reform and continued significant investment in the social, transport and environmental infrastructure necessary to support sustainable housing growth.

Finally, through measures set out in the Shared Equity Task Force Report - published at Pre-Budget Report 2006 - the Government expects 160,000 households to be helped into home ownership through private or public shared equity products by 2010, double its original estimate.

So there we go - stamp duty threshold up from £120,000 to £125,000, a raised "ambition" for new housing starts, and a prolongation of the p*sspoor 'shared equity' experiment. Affordable housing all round! :angry:

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The PM's response to the PricedOut.org.uk E-petition on BTL has been released:

So there we go - stamp duty threshold up from £120,000 to £125,000, a raised "ambition" for new housing starts, and a prolongation of the p*sspoor 'shared equity' experiment. Affordable housing all round! :angry:

Petition should have made clear that shared equity is bollo*ks, and so is stamp duty.

I'd rather pay 10K in stamp duty, if something was affordable or I didn't have to pay 100K+ in interest to the bank over 25 years.

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Also, security of tenure needs to be addressed in BTL - 2 years minimum, with landlord giving 3 months minimum (after 2 years), and rentee 1 month (after 6 months)- that'd would automatically shake the amateurs out.

Edited by OzzMosiz

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Guest Popalot

Fantastic for doing this. Thanks.

It' OK. In spite of the Stalinist response, it has clearly got on the radar. GB is obsessive about understanding public opinion.....this will be marked, but he will want it to look as "all his own idea". Watch the interim budget, up soon.

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Fantastic for doing this. Thanks.

It' OK. In spite of the Stalinist response, it has clearly got on the radar. GB is obsessive about understanding public opinion.....this will be marked, but he will want it to look as "all his own idea". Watch the interim budget, up soon.

i don't think GB will want to upset the property investors by raising taxes, I would like to hear on the amount COLLECTED from private landlords.

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The PM's response to the PricedOut.org.uk E-petition on BTL has been released:

So there we go - stamp duty threshold up from £120,000 to £125,000, a raised "ambition" for new housing starts, and a prolongation of the p*sspoor 'shared equity' experiment. Affordable housing all round! :angry:

No response would have been better because that response just highlights what we already knew, we have dickweeds in charge. <_<<_<

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Guest Shedfish

well, at least there's his answer. it's the usual hollow platitudes. i can only hope that greasy pompous one-eyed larcenist comes to my town on the election trail...

well, i say 'my' home town. actually i rent a few yards of it from a man with just over half my IQ

(for just over half what it would cost to buy it)

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Fantastic for doing this. Thanks.

I didn't start the petition - it was the PricedOut people. I just signed on after the petition featured here on the HPC forum.

Anyone want to start another? My personal view is that taxation doesn't need to be changed. Just reform the Assured Shorthold Tenancy as OzzMosiz suggests.

Here are my suggestions:

- reform the AST to give an initial 6 month letting period followed by one week's landlord notice requirement for every month the tenant has been in place up to a maximum of 24 weeks notice

- require all landlords to be registered (not just those letting out HMO properties), facilitating auditing of landlord's tax returns

- require all landlords to present an annual 'MOT'-type certificate for their properties (this would include evidence of functioning fire alarms and escapes, boiler tests, satisfactory living conditions and details of the tenants' deposit scheme the landlord uses)

- set up a proper system of rent review for instances where the rent rises by more than RPI

These rules wouldn't cost much to implement, but would make life difficult for tax-dodging and frankly criminal landlords, and would be just enough to put off some of the army of 'casual' BTL'ers who are driving up house prices nationwide.

Edited by DrBob

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The answer only addressed issues concerning those who have bought or are in the process of buying, nothing to do with those who are priced out. Typical response from our inaccessible, faceless government. I can't believe we still put up with this shit!

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I didn't start the petition - it was the PricedOut people. I just signed on after the petition featured here on the HPC forum.

Anyone want to start another? My personal view is that taxation doesn't need to be changed. Just reform the Assured Shorthold Tenancy as OzzMosiz suggests.

Here are my suggestions:

- reform the AST to give an initial 6 month letting period followed by one week's landlord notice requirement for every month the tenant has been in place up to a maximum of 24 weeks notice

- require all landlords to be registered (not just those letting out HMO properties), facilitating auditing of landlord's tax returns

- require all landlords to present an annual 'MOT'-type certificate for their properties (this would include evidence of functioning fire alarms and escapes, boiler tests, satisfactory living conditions and details of the tenants' deposit scheme the landlord uses)

- set up a proper system of rent review for instances where the rent rises by more than RPI

These rules wouldn't cost much to implement, but would make life difficult for tax-dodging and frankly criminal landlords, and would be just enough to put off some of the army of 'casual' BTL'ers who are driving up house prices nationwide.

DrBob,

Go for it, but landlord should have to give 6 months notice! Otherwise they kick you out and get another tenant in.

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Owner-occupiers already receive a more favourable tax treatment than those letting or renting residential property because individuals' principal private residences are not subject to income tax or corporation tax on rent returns or capital gains tax on housing sales. However, the Government keeps all taxes under constant review.

I'd take that as a taste of new policy to come

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