Tag Archives: Budget

Landlord Taxes – Is this REALLY a Conservative Government?

image of George Osborne as Boy George

Boy George and landlord taxes

When Boy George was Chancellor under the Cameron government, he introduced a whole new raft of landlord taxes aimed at ‘helping first-time buyers get on the property ladder’. But did he really want to help them? The PR theme was that demand from landlords was making it difficult for first-time-buyers to enter the property market. And as usual it had a nice ring to it.

However, I would assert, as I have before, that George was more interested in letting the City have a bigger piece of the Buy To Let Pie as the new rules did not hit large corporate bodies in the same way as small private landlords – Prudential has bought into it in a big way.

Mother Theresa dismisses Boy George

Then we all breathed a sigh of relief when Boy George was sent packing by Mother Theresa and welcomed the somewhat less boyish Phillip Hammond, assuming he would actually start acting like a Conservative chancellor. Well it seems we rejoiced too soon, because so far he still seems keen on more landlord taxes and is continuing with the policies of scrapping of tax relief for interest on buy-to let mortgages and the increased Stamp Duty for buy to let properties.

They now talk about ‘level playing fields’ – don’t politicians love metaphors? They say that mortgage tax relief for landlords gives them an unfair advantage over first-time buyers. They forget that the incredibly low interest rate environment and mass immigration has meant that buying to let is just about the only game in town that’s left for individual investors. Also, they forget that when you sell a buy-to-let property, unlike permanent private residence, you have top pay a shed-load, or rather a house-load of Capital Gains Tax. But then again, the MPs Expenses’ Scandal showed they knew only too well about the importance of flipping a property to avoid CGT.

No Opposition at All

The thing is that Mother Theresa and her chums are no longer faced with any opposition at all. Jeremy Corbyn has managed to effectively reduce Labour to a student debating society in which Diane Abbott seems to be an all purpose minister for just about anything and probably even handles any small plumbing emergencies at Labour HQ. By claiming he was present at many events he wasn’t and knew people he didn’t, Paul Nuttall managed to snatch defeat from the jaws of victory for UKIP in the Stoke by-election. And the Liberal Democrats…well they’re still very Liberal and Democratic and that’s about it.

So, the Conservatives realise that Landlords represent a very small section of their natural constituency, have become folk villains, have nowhere else to turn and as such their wishes can be safely ignored.  They are now going for the ‘middle-ground’ to further increase their majority by tempting soft Labour voters away from Jeremy.

Residential Landlords Association

As I write this, the Residential Landlords Association (RLA) have mounted a last ditch attempt before The Budget to persuade Chancellor Phillip Hammond to scrap Boy George’s tax changes that stop landlords being able to offset mortgage interest against income from buy to let properties.

Let’s wish the RLA luck.

 

Landlords and Letting – Affordable Landlord Insurance

Is George’s Budget good news for would-be buy to let landlords?

George Osborne relaxed the rules on how pensioners can use their pension pot on retirement. And that is very good news, because instead of being forced to buy an annuity with poor returns they will be free to use their pension just as they wish.

People will be able to spend it on Bingo, wine, women, men(?), perhaps even song. But I reckon the majority will use it rather more wisely to invest in property in the form of buying to let. The great thing about being a buy to let landlord is that you invest your cash DIRECT – there is no middle man taking a percentage for managing the asset (apart from a letting agent if you are forced to use one). Your money goes 100% into the investment.

But there’s only one possible downside, and that is the fact that more landlords might well mean downward pressure on rents – you can’t win can you!

Landlords and Letting