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  • Section 24 HQ

    How many properties have you sold due to S24?



    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?

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    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

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    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

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    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

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    [Image: 4995468760_6be86655d4_t.jpg]
    general operations director, site owner and moderator - propertytribes.com

    I sold 21 last year, haven't bought any since 2008.

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    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.

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    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?

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    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.

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    Jonathan Clarke. http://www.buytoletmk.com


    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.

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