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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
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.
I am curious, how do you define 'truly wealthy' and 'moderately wealthy'?
Universal Property Services Ltd
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.
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?
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.
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.