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For many people buy-to-let continues to look an attractive income investment at a time of low saving rates and stock market volatility as illustrated by fresh data revealing that the number of landlords in the UK rose by 7% in 2013-14 to reach 1.75m.
Figures from estate agent ludlowthompson, based on data from HM Revenue & Customs, showed 1.75m people declared income from property during the year, up from 1.63m in 2012-13, as they seek to take advantage of attractive returns from but-to-let that currently beat all other mainstream investments, including commercial property, UK government bonds, shares and cash.
Landlords collectively earned £14.2bn in net income from their rental properties during the year, up from £13.1bn the previous year.Full/source story Related content:Questions to ask yourself before becoming a Landlord. Questions to ask yourself before starting a property business BTL returns out-perform FTSE 100Buy to let returns top all other asset classes Property "U.K.'s most popular asset class for investment"Landlords going head to head on the topic of leveraging!9 irrefutable reasons why property is still a viable investment + Landlord SurvivalAnatomy of a property hotspot - 12 indicators12 signs you know its a rising property market
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
Does this EA factor in the effects of C24 or incorporation or SDLT differentials is on supposed LL profits!?
Factor in the problems of eviction for usually non rent payers and the picture is far less rosy!!
As per usual EA don't address the many negatives involved with the PRS.
This is now far more than before.
So that's £14.2bn collectively earned by 1.75m landlords. I make that £8114 each. It doesn't exactly support the popular myth that all landlords are loaded, does it!? And since it's an average, it must mean that, although some landlords must be earning far more than that, others will be earning far less or even running at a loss.
Yep I feel the loss
I have spent over £1000 on fixing various gas and plumbing issues
I'm certainly not making anywhere near £8000 a year!!!!!
Of course I forgot to mention that magically my income has increased by £35000 courtesy of C24 on my mortgage interest!!
The £8k is the amount of rental income, and you just said you are getting at least £35k. Income <> Profit. Rental Income <> Income for tax puposes.
Also it hasn't just magically increased because C24 doesn't start to apply until the next tax year.
Yeah I know but rents will have to be increased now
Do it every year plus a normal increase aswell.
Tenants will have to get used to annual rent increases
The days of LL not increasing rents annually are over.
Osborne and his dopey ideas have caused this.
No. Rents do not have to be increased.
Some LLs will need to increase their rents and in some areas the market might allow that.
Nope rents will HAVE to increase for those LL subject to C24
There is NO alternative except to sell up or absorb somehow the tax hit.
That isn't feasible for many of those affected LL.
If I can't achieve the required rent I'll have to sell up
I doubt it will come to this as there is simply too much unsatisfied demand in my area
LL now hold all the cards!
So you agree with me. Only some LLs will have to increase rents, and even for the minority affected by C24 there all alternatives.
If I put up rents it will have nothing to do with C24. I have bought a property through a company and I plan to sell one property in 2019.
Sorry there are no alternatives for me to mitigate C24 affects.
I have no alternative than to increase rents......Of course not all LL would need to increase rents
Unless sole trader LL wish to absorb the tax hit then they will have little alternative than to increase rents
A big ancillary problem is those LL that will lose child benefit and pension reliefs due to their income being magically created by C24
Many LL could find that they are actually receiving less income because of owning a rental property in their own name
Not many sole trader LL seem to be aware of these forthcoming issues
They'll start noticing when the find they are no longer a BRT despite their income not increasing.
No sane person would ever imagine mortgage debt interest is to be regarded as income
Many LL are in for a shock!