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  • Property-a-holics

    Landlord death by 26 cuts



    Over the past five years, landlords have been hammered by increasing regulation that squeezes margins and brings more and more red tape into the private rented sector.

    The Government has said that this is to "professionalise" the sector and ensure that landlords treat their property holdings like a business.

    Whilst that is a very laudable goal, it seems there is little point in adding new regulation if existing legislation is not being enforced and each new piece of red tape seems to end up having the opposite effect to that intended.

    Investment commentator, Graham Rowan, describes this as "landlord death by 26 cuts".


    Here is a screenshot of Graham's original list:



    If you want to start adding your landlord voice, a reminder that Property Tribes is partnered with the Residential Landlords Association and PT members can claim a 25% discount off membership.

    What has impacted most on you and your business over the past 5 years and do you see anything optimistic about being a landlord at the moment?

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    Oh dear!

    I have the greatest respect for both Vanessa's and Graham's knowledge and experience but I found myself shaking my head throughout the entire interview. I completely agree that the changes can be devastating to some landlords, but this does not represent all private landlords.

    Being emotive, I could conclude that as I haven't chosen either the option to get out or get militant, I must therefore be in the third category of criminal, which is clearly not the case.

    A large proportion of private landlords are getting a hard time at the moment, but its not all private landlords and its incorrect to make that association. What's happening is not fair, but its happening.

    Instead of get out or get militant, how about get educated and get creative?

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    Third category of criminal?  Not sure what you mean by that.

    By getting militant, we said join a landlord association.  Getting educated could be a by-product of that.  Perhaps "get engaged or get out" would be more appropriate?

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    At 6:56 "... rogue landlords, let's call them criminal because that's what they are..."

    I'm not confident that the RLA, NLA, etc. will influence any significant change, but I respect them as organisations. There is now another organisation, claiming to be a militant landlord association, for whom I have no respect whatsoever.

    Get engaged or get out sounds a lot more positive Smile

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    As I see it, the issue with rogue vs criminal, is that the former is ill-defined and used for generic smear campaigns on all landlords, by groups such as Shelter and Gen Rent plus many commentators, whilst "criminal" has the benefit of being at least definable. Often "minority of rogue landlords" turns into "landlords" a couple of paras later, whilst never acknowledging eg that Tenant Satisfaction in the PRS routinely runs at about 85-90% (EHS).

    "Rogue" has even made it into the Government's official Guidance for the Tenant Fees Act. I'll leave aside that parts of the Guidance are self-contradictory gibberish.


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    I think the Landlord Associations are more impotent than militant.

    Get out or get engaged isn't correct either.

    I have no need to get out, I also have no need or desire to engage with the truly awful, embarrassing campaigning currently taking place.

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    It is very easy to see a lot of doom doom doom

    And the changes are really going to hurt some landlords more than others

    But what is Dyslexic Landlord seeing

    I am starting to see opportunity

    I know my personal BTL will see me through the rest of my life and quite a comfy one too I have hopefully my Private pensions to come in a few years and I can now see the end of the Tunnel with S24 due to some Landlord Shuffle ect

    So why do I see opportunity The reason is my Company structure

    The company works to build wealth and make a business more professional To build within the company has lower taxation than Personal BTL

    Ie pay 45% Tax in your own name pay 19% Corporation Tax in a Company so it has huge advantages

    It has a down side ie How do you extract the profits

    I look upon my company as the mini market hopefully to be a Super Market in future

    and you can have scale in a Supermarket and professionalise it too

    We all have to die ?? and I believe a Company Strategy helps a lot with planning succession

    I am happy to live of my personal BTL and I am more than happy to use my Company to build family wealth

    Passing over to the next Generation of Dyslexics has to be considered

    If you have been a landlord for the past 15 20 25 years you should be sitting in a good position as I am

    so why not plan for something larger if it turns you on

    Graham talks a lot of sense But he is missing the point Houses will always been needed and if we can provide good homes for our customers and make a few bob its still worth doing

    so its Business as Usual for me If I find the right deals to do and the right yield

    I am more interested in selling the baked beans every day than being concerned with the Capital Value of the Supermarket

    and yes I will still use pensions for my wife and I and who knows for my Son and his children

    and who knows I might just get the Bentley and the Aston

    They have done it so why not Me Too?

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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.


    @Dyslexic_landlord

    Have you done any sensitivity analysis as to what happens to your company model if, for example, Corporation Tax goes to say 26% or 30%?

    Given that the CGT rate for rental property is higher than usual, I see no reason why they wouldn't do that for Company owned assets wrt to the normal small business CT rate.

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    Yes I have factored in a Higher rate of CT

    its still better then a 45% personal Tax rate in personal BTL



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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.


    Hunt is suggesting dropping the Corporation Tax to Irish levels of 12.5% which will boost property companies.
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