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  • Section 24 HQ

    BTL property purchases in sharp decline



    Following on from recent reports that private landlords are in decline, it seems that the BTL mortgage market is offering up further evidence of this trend.

    High street banks approved 11% more mortgages for home buyers during August compared with last year as the market shifts away from buy-to-let and cash purchases.



    Full/source story - Property Industry Eye 

    Here at Property Tribes, we already have community evidence of the impact of Section 24:

    Up-date: Sold 25 properties to date > S24 

    Options - selling up due to Section 24 







    SEE ALSO  -          Number of private landlords in decline

    UP NEXT -              1 in 4 landlords to exit due to Section 24

    DON'T MISS -         Rents rise as Landlords exit the sector

    NOW WATCH:

     

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    If the intention of s24 was to discourage B2L and stimulate first time buyers then it seems like its having the desired effect

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    So the government will be smug,they have achieved its objective,stopping BTL and increasing FTB activity.

    Unfortunately they will soon realize the mess coming,not enough housing,higher rents,evictions,PL leaving the sector.

    Local Councils at bursting point, screaming out to PL for help.

    They maybe stealing our money,but,its going to cost them a bloody  fortune!


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    This is what the government wanted so I would say be careful what you wish it may not bring the results you may wish for in the long term

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    Utterly ludicrous that this is happening to the extent that local councils are now having to incentivise landlords to let to tenants on their housing waiting lists ....

    Croydon Council courting South East landlords 

    This lack of joined-up thinking is quite farcical - but sadly a lot of people - landlords and tenants - are going to feel a lot of pain because of it, which isn't funny at all.

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    Those LL  who offer TA will continue  to make fortunes.

    Council Tax bills will be increasing by the maximum allowed every year to pay for all the extra TA costs.

    Govt will also find it is having to support Councils with even more money to pay for these TA costs.

    It is economic  insanity to continue this way but Govt is wedded to their political ideology  and won't be for turning anytime soon.

    Many LL  on principle are refusing to assist councils due to the way they have been treated by them over the years.

    HB tenants are now more trouble than they are worth.

    They are now effectively losing their homes to richer tenants as LL  are forced to increase rents to cover all the additional  costs that are being imposed on them

    LHA is just insufficient  to cover all the costs a LL  is now labouring under.

    The problem for these HB tenants  is they are electorally insignificant.

    Very few of them would even bother voting.

    So they can effectively be swept under the carpet and ignored.

    This is clearly morally reprehensible and economically bonkers!

    The PRS is a marketplace and has NO social responsibility  to house  the less fortunate.

    That is what the State should be for via social housing.

    With declining BTL it is obvious that rents will increase making  the PRS unaffordable  for those on restricted Govt welfare.

    All the incentives in the world can be offered but few LL  will take the bait.

    They have invariably  been burned too many times by HB tenants and  now with ever increasing tenant demand can rent for more to richer tenants.

    As more LL  exit the PRS this situation will only get worse.

    Govt seems intent on ploughing blindly on with no indication that they are prepared to recognise how ridiculous their anti LL policies are and to the effect they are having

    Which tends to be the poor and disadvantaged.

    So no change there then!!

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    I'm assuming encouraging 1st time buyers was one of the driving factors of this and hence the desired effect.

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    This report is so much twaddle.

    There is simply no way it can be proven that FTB are now buying property that LL might have purchased previously.

    It is rare for a LL to ever pay more than a FTB would!

    It is simply not the case that LL ever prevented FTB from buying.

    Trotting out this propaganda is confirmation basis.

    It is probable that the properties that are being purchased by FTB are going for higher prices than a LL would be prepared to pay.

    It is not LL that prevent FTB from buying.

    MMR and lack of sufficient deposit are the main factors in fewer FTB buying..

    It would seem some FTB have come into more resources unless of course the figures are being distorted by HTB

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    The latest data and analysis from HMRC has revealed that residential property transactions in the UK decreased by 1.8% between August 2017 and September 2017.

    According to the report, the provisional seasonally adjusted UK property transaction count for September 2017 was 100,850 residential and 9,440 non-residential transactions.

    This month’s seasonally adjusted figure is 4.6% higher compared with the same month last year. Chart 1A shows the historic time series for residential property transactions.

    For September 2017 the number of non-adjusted residential transactions was about 6.8% lower compared with August 2017. The number of non-adjusted residential transactions was 1.2% higher than in September 2016.

    Paul Smith, CEO of haart estate agents, comments: “Whilst it is promising to see transactions continue to move in the right direction, crippling stamp duty and the Government’s ‘war on landlords’ is still holding the buy-to-let segment of the market back.

    Sales to landlords in London are still down 33% on the year, and almost 40% fewer are registering to buy. The treasury is squeezing investors out of markets like London where more homes for rent are surely needed.

    Rents are rising again as lettings stock is reduced, and the Government needs to question if it is really improving fairness in the market or if it is creating even more problems for young people struggling to pay rent and who may be unlikely to ever own a home of their own. The Budget is the opportune time to take a step back and consider whether we should really be attacking private landlords who play such a major role in the supply of housing.”

    Full/source article - Property Reporter

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    The attraction of buy-to-let is starting to wane as far as some people are concerned due to a series of recent tax and regulatory changes, new research shows.

    While there are still high rental yields to be achieved in some parts of the country, particularly in the north, other areas are seeing ultra-low returns by historical standards.

    London, for instance, is one of the worst areas across the UK for buy-to-let, with some investors achieving a rental return of less than 3%, which may explain why more than a third of investors in the capital no longer view property as a good investment, according to a new survey of over 1,000 UK investors and 500 High Net Worth Individuals commissioned by Rathbone Investment Management.

    Robert Hughes-Penney, investment director at Rathbones, said: “Recent changes to the tax and regulatory treatment of buy-to-let has caused investors to take a step back and assess the viability of these investments.

    “Whilst it’s understandable that property, and in particular residential property, has been a popular investment in the past, it’s now making less and less sense. Not only are the returns now being impacted by an increased rate of tax, but they can also prove high risk investments due to a lack of diversification.

    “Property investments require a large amount of capital to be held in one single asset and landlords will often hold a number of properties within one region.

    “Investors who are looking to invest in property, should make sure to assess their risk appetite, look at all alternative options and make sure this property is held within a well-diversified portfolio of investments.”

    Full/source article

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