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A quick survey to try and judge what effect S24 has had on the number of rental properties available.
Two questions -
Have you sold any properties as a result of S24, if so how many?
Have you purchased any properties since S24 was announced, if so how many?
No - Have not sold any.
Yes - Have purchased.
Though S24 has not been a bother to me as was well placed not having properties in personal name.
If people are selling it is exactly what the government wanted a changing of tenure, if they are not purchaseing agian it is what the government wants less landlords competeing with FTBs.
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Similarly I have not bought any properties since increase in SDLTand S24 makes me even more reluctant
I've not bought anything for 2 years ( Prior Sec 24 I would have bought about 3 a year. I am in the process of extending and developing an existing rental to sell on and will do so for about 5 more properties over coming years
Angela Bryant has sold 25:Up-date: Sold 25 properties to date > S24 Dom Glynn is selling one:Options - selling up due to Section 24
general operations director, site owner and moderator - propertytribes.com
Too late, It's sold Nick!
I sold 21 last year, haven't bought any since 2008.
Sold 3 of my own
Bought 2 of my own
One client has sold one . Another is selling one
Other clients are buying - Approx 8 since S24 announced
I will sell more though in due course as a direct result of sec 24 and LHA freezes and UC.
Jonathan Clarke. http://www.buytoletmk.com
Interesting that you sold 3 and paid the CGT and then bought 2 - are the returns that much better or were there other reasons?
How much was the selling due to S24 and how much to the LHA rates and UC?
I sold 3 at a good price to a cash buyer . I had maxed out on normal growth i felt due to refurbs and natural growth in my area
All tenants had to be sec 21
The reason for selling was a mixture of reasons in roughly these proportions
Sec 24 was maybe 90% with 5% LHA rate frozen and 5% due to the lease getting to about 90 years
The latter two reasons i could have worked around by letting to professionals and extending the leases
But S24 was the real killer blow
They had all roughly doubled in value since 2010 so i did a bit of profit taking to boost the contingency fund for s24 and took the CGT hit
Then two came up for sale at a price i couldn`t say no to as they both had good built in value from day one
I have / will do another refurb job to add value . They were cash purchases so PRA , Sec 24 is not a issue
The rental yield of 7.3% and 8% will pay my extra contribution required for sec 24 at maybe the 2 year increase mark
So my logic was that I boosted my contingency fund by about 40% and my increased tax bill will be covered year on year with the additional new rental income which also takes into account the loss of income from the ones sold.
I am taking much the same approach as Denise Naylor in her excellent interview with V
What I had been mulling over in my mind as a way forward was suddenly elucidated by her as I listened
I kept nodding my head at what she said which really struck a chord with me
So I have put that into action and envisage continuing that strategy over the next few years
A bit of pruning with some replanting to compliment it I guess.
The possible uplift in value and increase in yield must be significant to fund CGT at 28% plus 3% stanp duty on new purchase - I dont think I could find anything similar in my area - well done.