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  • Buy-to-Let

    Labour view of property ownership

    The Labour Party have commissioned a report titled “Land for the Many” that proposes changes in the way land in the UK is used and governed.

    Some highlights relevant to landlords:

    Tenancies should be open-ended, and landlords should lose their power to evict a tenant who has not broken the terms of the tenancy agreement for the first three years of the tenancy agreement, and should have to provide grounds for eviction after that point.

    Cap on annual permissible rent increases, at no more than the rate of wage inflation or consumer price inflation (whichever is lower)

    Replace the council tax with a progressive property tax. This should be payable by owners, not tenants.

    Stamp Duty Land Tax should be phased out for those buying homes to live in themselves, and capital gains tax for second homes and investment properties should be increased

    Buy to Let mortgages should be more firmly regulated and restricted.

    Discourage land and housing from being treated as financial assets by encouraging banks to redirect lending into productive sectors, and encourage a more efficient use of the existing housing stock.

    http://labour.org.uk/wp-content/uploads/...e-Many.pdf

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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.

    Will it happen? I doubt it- too many rich people in this country Smile will not allow this to happen
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    The truly wealthy will find ways round it, the moderately wealthy will leave the country or downsize, property values will plummet , taxes rates will have to become huge to compensate, system collapses along with government income.

    Will the mandated rises also apply to the rest of lifes necessities, food, power, water, transport? Will it then extend to lifes modern necessities , phones, internet etc. 

    5 years of labour on the terms suggested by Corbyn and Co, will leave us in thrall to the chinese, americans and anyone else with a spare fiver to buy a chunk of  the UK. It won’t work . But given the parlous state of our education system and the lack of opportunity it offers the younger generation (in comparison to their expectations) the endless promises of everything for very little effort may well swing enough votes for the UK to elect a basket case government. Hopefully many of those so easily swayed will be sufficiently dependant on others as to be indifferent to taking the effort to vote.
    Which would be a very odd decider on the nations viability in the future.

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    I am curious, how do you define 'truly wealthy' and 'moderately wealthy'?

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    Chaos, and it will affect people far more than they understand, for instance compulsory purchase will change to use value, so basically they decide they want to build the Dianne Abbott Sewage Farm in Kensington your mansion is now only worth the cost of the land for a sewage farm...
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    A completely retarded way of thinking!

    To just aim at landlords and second home owners does not solve the basic underlying issue since the 1960's!
    We need to build over 300,000 new homes every year! 
    However, that level of building would require either A) a large tax rise to pay for it 
    B) huge borrowing to pay for it
    Both of which would not be popular with the electorate. 
    The much easier option & currently popular landlord bashing to appease the lefties will continue, unabated if Corbyn gets in! 
    Government must stop this cycle of populist politics and be honest to say, taxes must go up so we can invest in building the necessary housing!
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    Dan

    Universal Property Services Ltd

    01473 723366

    07957471717

    http://www.universalpropertyservicesltd.com


    In the 50 yrs from 1965 - UK added 2/3rds to original housing stock (extra 10 million homes) thereby lowering average occupancy rate by around 30% down to current 2.4 persons per home - despite 10 million pop increase.

    The core issue remains affordability rather than lack of homes per se - with millions of cheap homes for sale/rent in Midlands/North etc.

    Unless the mooted extra 300k homes annually is targeted solely at London/SE there is unlikely to be any major sustained fall in real prices - so unless we also give wages and Housing Benefit a major boost the affordability issue remains.

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    I disagree.

    The core issues remain:

    A) there is a belief that owning your own home is an assumed right. It is not. 
    B) many who want to buy are not truly committed to the sacrifice what it takes to do so. Take on extra job(s), reduce spending on luxuries like socialising, holidays, Sky TV et al subscriptions, 
    C) invest in yourself to enable you to increase your skill set at college or night school making you a more valuable employee, thus worth higher pay. 

    I have this conversation with peers / guys I employ and they want to own their own home but are not willing to sacrifice (part) of a lifestyle to achieve it.  

    With schemes like help to buy, stamp duty relief for first time buyers etc, it has made it easier to get onto the housing ladder. But they still don't want to commit. 
    Nothing can nor should come for free in life, hardwork is the key ingredient. 
    It's far to easy to say its someone else's fault poor little me, can you tax someone who's worked their nadgers off, so I can get a free leg up! 

    I don't get your reasoning behind your comment - "we also give wages and Housing Benefit a major boost the affordability issue remains" 
    Why boost wages?? What just give someone more money to do the same job?! That is so fundamentally flawed as if you pay the unskilled worker a minimum of £10ph like Corbyn has floated, what will the guy earning  £20ph want to earn? A directly proportionate increase! So the guy who's just got £10ph will be in exactly the same place as when he was earning £8ph. Inflation would shoot through the roof and no one would benefit! 
    You should only get a pay rise if you add that value to a business ie - you increase your skills and can assume more work/responsibility. 

    Again, your comment to boost housing benefit, why would that improve any situation?? 

    IMO - building more quality homes will slow house price inflation, encourage people who want to buy, to work hard to get a deposit & increase their own earning potential by way of further training to aspire to a more financially secure independent life away from welfare. 
    If we don't encourage that, we will have a burgeoning welfare state that will crucify my children & grandkids. 

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    Dan

    Universal Property Services Ltd

    01473 723366

    07957471717

    http://www.universalpropertyservicesltd.com


    You continue to ignore the evidence of the past 50 odd yrs or more - that any realistic number of extra homes (in locations where people want to live eg primarily London/SE) - has not so far dented the long term upward trajectory of prices.

    More recently since mid 1990s average wage is up only around 67% - whilst property prices in SE are up 5 fold or more and in parts of London up 10 fold. Irrespective of low mortgage rates - buyers are still constrained by a max loan multiple around 4.5 x S - and the 2013 MMR affordability criteria will severely limit the proportion of borrowers getting anywhere near that 4.5 xS multiple. Overall then whatever property an average paid person could afford in 1995 say - today in SE they can only afford 1/3rd of that same property - unless they have a massive deposit via BOMAD. Conversely they need to be earning 3 x average wage ie close to £90k to buy what they could have bought in 1995. That income would put them in the top 3% or so of earners. No amount of retraining/extra jobs/sacrificing Sky TV etc is gonna get great swathes of aspiring home buyers up to the wage of a GP!

    Hence CML data flags average FTB in Greater London has £60k gross household income (borrowing 3.8 x S) with a 30%/£100k deposit.

    Nationally FTBs have £38k gross household income (borrowing 3.11 x S) with a 17%/£24k deposit.

    You only have to spend a few seconds asking yourself - what were YOU earning at age 25 and what multiple was that of average property price - and compare what that same job pays today and what multiple of today's average price that comes to?

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    In your company's locale of Ipswich the price of a semi has risen 10 fold or more since 1995 - I bet wages have not seen an increase anywhere near that magnitude. See Rightmove Sold House Price data.

    ONS flags that when London wages are stripped out of UK total - workers outside London gross an average £17550 pa.

    You misconstrue my earlier comment on wages - I am not advocating a massive increase in wages - simply flagging that unless either wages increase or property prices fall - there will be little possibility of the peers of your kids/grandkids buying property without BOMAD/large inheritance at some stage in their lives - average age of receiving an inheritance being age 61.

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    So they are attacking Landlords financially but effectively setting up a Trust that is a Landlord to the people they are trying to help...........

    Labour have a very one sided view of things - the fact that this is effectively a pension fund for many of us seems irrelevant and the fact we take a risk that justifies the reward.

    All the Lazy unemployed and young voters will be all over this like a rash - unlike most people with any sense.

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