Sign Up


By signing up I agree to Property Tribes Terms and Conditions

Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google


By signing up, I agree to Property Tribes Terms and Conditions

Already a PT member? Log In

Log In


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.

Already a PT member? Log In

Don't have an account? Sign Up

  • Section 24 HQ

    Are you selling up or disposing of properties because of Clause 24?

    I am getting a bit twitchy. I've just seen this article posted by Dislexic Landlord that claims new research has shown that buy-to-let investors purchasing mortgaged properties today are set to lose money within five years almost regardless of where in Britain they invest.

    Does anyone know the true impact of Clause 24?

    Are existing landlords selling up in droves?

    Are potential landlords thinking twice about getting involved in BTL?

    Please share your thoughts so that there is some kind of snapshot and reality check about what is going on at the coalface.


    I purchased a house at the end of last year (cash purchase, through a company) from a landlord that was rapidly 'consolidating' his position.

    The house was considerably less expensive than other similar properties being marketed in the area ( I wont say 'below market value' as I think that phrase is a load of cobblers ! - I paid the market value that day). Looking back I could have probably pushed even harder on the price as the vendor was very motivated to sell !

    I have cash available to purchase more residential properties 'outright' to let out, but I am going to sit tight for a couple of years, as I believe there will be a lot more sellers than buyers of 'lower end' properties once C24 starts to bite, interest rates creep up and BTL mortgage lending is tightened.

    I have a virtually unencumbered house (personally owned, not company) that is currently let out. If the tenant leaves I will sell it and put the funds into a more liquid investment for a while.

    Not forgetting that many of these lower end properties will require some additional expenditure to enable those properties to meet the EPC E standard by 2018
    Remembering that if you buy now a tenant may require the property to be brought up to EPC E standard which may not be reasonably refused
    Plus any properties in a flood area are unsaleable if a mortgage is required
    Flood Re will NOT cover rental properties
    What LL needing a mortgage will wish to pay £1000 insurance premium with a £10000 flooding policy excess!??
    Maybe a brave one with cash!!!!
    But of course if you buy then you will probably be limiting your future buyer market to other cash buyers
    There is simply no way I would even consider taking on a flood risk property even if I was given it!!!
    The are plenty of good rental opportunities in dry areas!!!
    One should also note that flood protection measures don't always work!
    Witness the lowering of a barrier because of the risk of it being stuck in the up position!!
    Many insurance underwriters will be seriously considering whether such measures would be truly effective and up the insurance premiums and flood excesses accordingly
    Some will even refuse to offer flood insurance
    I just cannot see how the figures stack for low end rental properties in flood areas
    If I was a LL with such properties I would be selling up as fast as I could
    At least FTB would qualify for Flood Re cover

    Just buying in Ltd company instead. The ones in my personal name still perform well, so should be fine. Perhaps change one into hmo to maximise returns..


    YOU CAN REACH ME AT BESPOKE FINANCE for HMO Mortgages, Cheap Life Insurance and Limited Company Buy-to-Let on 08009202001

    I am still working out a strategy to be honest. Some properties I have made a lot of money on and probably don't want in my portfolio anymore so could take the opportunity to sell these and buy something better. The new tax rules are complicated to be honest especially if you are paying CSA monies to your ex wife and are in the 62% tax band.

    One thing is for sure I will not be purchasing anymore in my own name. Any future purchases will be in my limited company.

    I am planning to buy more properties using a ltd co.
    Then in 2019 I plan to sell one.
    That is my former home in Reading, so the CGT should be low though hopefully the price will be high.
    In 2019 I can draw my private pensions without penalty.
    The income from them would push me push me into HRT.
    By selling the flat in Reading and using the tax free lump sum from the pension I should be able to pay off most if not all of the mortgages in my name, leaving me with just corporate ones.

    At the moment the public are in the dark.They believe that life will get better for them when the small BTL landlord is killed off .At some point the penny will drop.Homelessness will go through the roof and the local councils will be in big trouble.FTB's will still struggle to get on the housing ladder and rents will rise.At this point the Government might have to rethink their tax strategy.

    the restrictions on interest was tried by the irish govt in the 90s

    it completely backfired and was claiming interest was allowed back a few years later

    GO the twat does not know this
    On the basis that dopey Osborne may have to do a U- turn but not for a few years is it not worth LL deleveraging now and selling their worst properties to leave themselves a little encumbered as possible!??
    Especially if conversion to a LTD company is impractical
    Then when dopey Osborne U- turns the unencumbered LL can remortgage and snap up bargains with their cash resources
    But at least whilst Osborne is U- turning they won't suffer too much under the C 24 regime!!?
    If it took the Irish a few years to realise the stupidity of what they had done there is no reason to think that dopey Osborne will realise sooner!!??
    Surely LL need to defend their position now robustly
    This invariably means ensuring they reduce their exposure as much as possible from the stupid C 24
    This will usually mean having a reduced but less leverage portfolio that puts the LL in a more secure position!
    It surely is now a time to man the bunkers; batten down the hatches to weather the outrageous tax assaults about to be attempted by dopey Osborne
    Once he has exhausted his attacks and hopefully realised the fruitfulness of doing so, LL can emerge and counter attack to engage in the industry they know how to provide for
    Consequently lots more tenants will be able to find rental accommodation!!?
    LL need to protect themselves as best they can from this idiot Osborne!!

    Hi BMV Newbie,

    I am selling some of my properties as a direct result of C24. We have already completed sales on three and have another 10 in the process of being sold, plus more we plan to sell when empty.

    My brother is selling nine properties, half of his, to achieve an unencumbered portfolio - again as a direct result of the tax changes.

    We have heard from the local council housing department, with whom we have a relationship as we normally take tenants from them, that "a lot of other landlords are selling also" and they are struggling - not to mention the tenants that are being displaced.

    The whole thing is a desperate mess and muck up by Osborne and this stupid ignorant so-called government. It's sickening.


    Author of The Complete Guide to Property Strategies and The Complete Guide to Property Investing Success
    Learn more at http://www.completepropertysuccess.co.uk

    I also post property updates on my Facebook Page

    "It is the small decisions you and I make every day that shape our destiny" Anthony Robbins