Labour Plans Red Light to Bring Buy to Let to a Dead Halt

[Grampa]

Labour is planning a massive tax onslaught for landlords and property investors should the party win the next General Election.

A new study commissioned by the Labour Party proposes to end a ‘buy to let frenzy’ that has gripped the housing market by raising property taxes and changing tenancy laws in favour of private renters.

The aim is to democratise property

Top of Labour’s property wish list is scrapping grounds for landlords to evict tenants to sell or refurbish a home when the tenants has not broken the terms of a minimum three-year rent agreement.

After the first 36 months, landlords must prove grounds for eviction.

Capital gains tax also comes under fire.

The Land For The Many report demands CGT for second homes and investment properties should rise in line with income tax rates (20%/40%) from the current 18%/28% thresholds to encourage people to ‘seek more productive and socially beneficial ways to invest their money’.

Other recommendations include:

• Capping rent rises to inflation-linked annual increases
• Abolishing council tax in favour of a progressive property tax paid by owners not tenants
• Tougher buy to let mortgage regulation
• To campaign to stop investors treating land and homes as financial assets

Labour spokesman said: “For too long, people across the country have had little or no say over the decisions that affect their communities and the places in which they live.  So much of this can be traced back to the broken system of land ownership. Concentration of land in the hands of a few has led to unwanted developments, unaffordable house prices, financial crises and environmental degradation.

“Labour is committed to tackling these head on and delivering a fundamental shift in wealth and power from the few to the many.”

[Melboy]

If, in the unlikely event an extreme left wing Corbyn government were to be in government and to implement the above in their manifesto it would lead to a mass housing shortage and homeless families which would increase the burden onto the state.

[bil8999]

On 6/16/2019 at 7:33 AM, Melboy said:

If, in the unlikely event an extreme left wing Corbyn government were to be in government and to implement the above in their manifesto it would lead to a mass housing shortage and homeless families which would increase the burden onto the state.

What if he was to compulsory purchase second homes, where needed, at his price?, no shortage then

 

[Melboy]

18 hours ago, bil8999 said:

What if he was to compulsory purchase second homes, where needed, at his price?, no shortage then

 

Then it would be time to emigrate as you would now be living in a totally Communist run country.

[Carryon Regardless]

What ever, who ever,

I'm sure the profits of our Lets will lessen and our responsibilities toward our tenants will increase. This until there is a problem with enough housing for the non buying masses.

But if housing values are controlled by detering the likes of us from investing then these houses become available to those that wouldn't otherwise afford them.

The more the likes of us are 'persuaded' to sell the more the housing market is 'controlled', and available to those that wouldn't otherwise afford them.

If it all happened over night there would be serious issues, but over a time we become acclimatised to changes and the effect on market controls is less obvious.

Are the bigger players still investing? Maybe RL knows that one, I genuinely don't.

[Richlist]

I don't know if the big players are still investing, I suspect they are. After all, where else would they put their money for capital gain ?

I'm very disappointed at the direction Labour is going. Many years ago I was a Labour supporter, voter, a union member and a union official. But Labour have become so left wing i couldn't possibly support them now.

The post from Grampa lays out the Labour vision for the future.......it's awful. It's almost as bad as the vision for driver less cars. I don't want either but I suspect some kind of compromise version will be coming......albeit some years in the future. Change and progress can't be stopped.

Remember some of valuable sound bites that often make sense.....

Don't put all your eggs in one basket, don't stretch yourself to far financially, roll with the punches, stay abreast of political matters, remain as flexible as possible, always do your homework/ due diligence, make wise choices, don't view everything with a cynical eye, make sure you have an exit plan, be prepared to pull out, have a long term plan etc. etc.

[bil8999]

We built a place in Spain some 12 years ago, never thought id say this, but if Corbyn gets in, it may be time to sell up and move out there, I have always said that the UK is the best country in the world, maybe not so much now.  

[Melboy]

Well I have been buying property for renovation recently and 1 more rental has been added to my small but manageable portfolio. I have to admit though it is much more difficult to purchase and sell property then it was 10 years ago. SDLT is a bit of a killer for me  and I will only seek out property that is well below market value and then add that value to it.

This Conservative government have not been any friend of the private landlord over the past 10 years and with section 24 in place it is going to get just that bit more difficult for the sums to add up. Of course a Labour government will kill it completely dead for years to come if Comrade Corbyn carries out his threats.

[Carryon Regardless]

RL I'm not seeing the capital growth. Certainly my portfolio is only attractive for its revenue, and that is continually attacked.

I have been more toward tory over the years, but more recently voted UKip pre referendum, but wouldn't now as they have become the racist thugs they were accused of being.

In the eu election I went for the Brexit Party, but they only have one policy and I don't see them as being a force that can manage the country.

Seeing the 'debate' on Tuesday caused me to realise that if that lot are all that can be put forward as leaders of the UK we are lost. Only Rory Stewart demonstrated enough proffessionalism to stay out of the over shouting confusion of noise. And he the only one that came across as being any where near honest. But he fell at the second fence and was promoting a continuation of the Groundhog Days anyway.

Labour offer no one as leadership quality, maybe Tom Watson one day, maybe. But I don't agree his policies and don't agree Labours style. Anyway Labour are in self destruct mode with antisemetism (dare I even mention that word w/o being hit by lightning?). Now Corbyn has fallen off his fence he seems to be adding to Labours self destruct attitude, no wonder the Tories don't have to try hard there's no competition.

I see no one to lead us. In some ways the eu couldn't do worse, as much as I am a Leaver.

Our choice now, stay and stuff democracy, Leave and be run by a total incompetant.

[Richlist]

Capital growth differs by location, size, type etc, it's not a level % across the country. Some areas are seeing strong growth and others are not. Whilst historical data is no guarantee of future growth, the property market has peaks and troughs like any other investment.

As for revenue growth....virtually everyone in the PRS has seen staggering increases in rents over the last decade.

All that along with the lowest interest rates in a generation and increase in demand have made many of us very wealthy. It's easy to criticise increased taxes whilst forgetting the tax breaks that have been gained such as increased & new personal allowances & the lowering of CGT etc.

Your post reminds me of the elderly people in my street who complain that they can't get any interest on their savings. I tell them that they have to be proactive and spend time looking because nobody else is going to do it for them. There are accounts out there that will pay more than they currently get.....they just have to put the effort in.I

It's the same with property.......can you say that you are claiming all of your tax allowances or that you have structured your business to produce maximum income and minimal outgoings etc.

What's probably best is to stop complaining and use your time & effort to maximise your potential. There is no such thing as a problem when you can approach it as an opportunity to improve your business.

Rant over. Post made whilst still under the effects of an anaesthetic to have a tooth removed. I hate dentists but we would struggle to live without them !

[Carryon Regardless]

As is often you write something flippin' obvious and believe you have educated the numpties.

Of course capital growth varies, it's broadly down to demand. We can't manipulate it we can only follow those market forces.

The rents we can charge are in comparrison to local market forces, again we follow as we aren't big anough to effect them. Try charging too much and we lose tenants to cheaper competition.

The tax that we are entitled to avoid paying isn't over complicated and to suggest that if I complain less and comcentrate on improving tax efficiency, or any other efficiency, is just plain insulting, but usual for you. The comment has no value.

I do not pay for rent guarantee insurance, for many reasons. For sure it is not efficient.

I have neglected the improvements to my properties for a number of years, those that I used to enjoy doing until Big Brother took on the role of over legislating my business. Now it's time to address these neglects, which will reduce my tax bill, if the cash flow can handle the loading.