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Whether you became a landlord 20 years ago, or you are starting investing today, there are always threats to consider and mitigate against.Over the years, these will change, depending on market conditions, but many remain largely the same.So for those starting out in investing in property in 2017 - what is the biggest threat?Is it .....Section 24 .... NO!The PRA .... NO!Interest rate rises .... NO!Tenant not paying the rent ... NO!The rise of institutional investors .... NO!All of the above can be mitigated to some extent by taking professional advice and action, and adapting accordingly.The biggest threat to landlords in 2017 is .... THIS GOVERNMENT!I believe the Spring Budget 2017 was nothing but a warm up act for the headline event - the Autumn Budget - where there will be more legislation against private landlords. They have not finished with us yet!Do you agree and what can landlords do to mitigate against anti-landlord Government policies?!Uncertainty is negative for any sector or industry and uncertainty will be part of the reason the PRS goes into rapid decline ... landlords not investing, not growing their portfolios, or even deciding to exit. This post was inspired by this post - Overwhelmed by BTL - and this tweet:SEE ALSO - Major industry stake-holders join Tenant TaxUP NEXT - Income Tax rate of 70% to 75% DON'T MISS - Government challenged on landlord tax claimsNOW WATCH:
Couldn't agree more V.
Many people have said many times, this government don't like or want us to be in the PRS.
They want their corporate donors to have total control of the rental market.
This can only mean bad news for us AND tenants who will face huge rent rises due to the cartel agreements that will no doubt happen.
In fact, it will be bad news for everyone.
The BTR brigade will not accept tenants at LHA rates.
This will force the government to subsidize these Corporate's - they cannot afford the bad PR of mass homelessness.
I can only hope that the example Wales has set in stopping RTB is replicated in England.
Otherwise, gawd help the lowly paid, zero hour contract millions.
Thanks for your thoughts Dom.This headline from Ireland shows the devastation S.24 caused over there:
Tax breaks for "accidental landlords" are in the pipeline in a bid to keep properties in the rental market and boost supply.
The Department of Finance has set out a range of possible tax reliefs which might be applied to encourage landlords to remain in, or to enter, the rental market.
More towns are also expected to be designated as rent pressure zones in the coming weeks amid growing concern about the rising cost of renting a home.Source article Heads up! Property Tribes will be running "Tenant Tax Awareness Week" from the 3rd April 2017, where we will be posting new content daily to help ramp up awareness of the campaign and highlight the disastrous consequences. Please tune in daily and share the content across the social web the week that Section 24 comes into effect!
It would be very interesting to know how much BTR is going on in Ireland.
There can't be much, or if there is, it's much more expensive than the traditional PRS.
Otherwise why would the Irish government be offering these incentives?
Corporate co's will not be able to offer the services we do at such a reasonable rate. Small LL's can be every bit (if not more) professional than these companies.
The sad fact with UK politics now is there is no party I feel I can put an X in the box for now. Too many lies, u-turns, and back taxing has gone on, and that's just in this Govt. alone!
I disagree, the Biggest threat to Landlords is LANDLORDS !
Just look at the Apathy & Ignorance from the Vast Majority of landlords over Section 24 which meant the Gov got away with Introducing this Totally unfair draconian Tax assault on LL's.
Compare this with the attack on the Self-Employed which didn't even last a week without being thrown out.
I was at an NLA local meeting the other week ran in conjunction with Several Local Authorities,among the speakers was an accountant taking about Tax Mitigation in light of Section 24, he asked who had heard about it, most people said yes & there were lots of murmurings about how bad it was, then he asked who had done anything about it, mine was the only hand to go up, so only 1 of about 70-80 landlords had bothered to try & protest against it. This was also reflected in the support for the Judicial Review, only a very small % of Landlords got involved.
I actually had a reply from the Treasury last week, in response to a letter from my local MP after I had met with him. The Treasury are still spouting their rubbish about only 1in5 Landlords being affected & the fact that we have plenty of time to prepare for the changes.
We as Landlords are a Soft Touch for the Gov. they have learned that they can pretty much do what they want to us & we will bend over & take it, unless we all stand up as a group & say NO MORE then we shall have to prepare for whatever comes our way & as Vanessa says above this Gov have hinted that their is more to come.
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very true words I have said the same myself
A great number of Landlords are clueless they don't think of BTL as a Business (Its a Bit on the Side ?)
The uneducated are in for a shock and they will only understand when they receive a tax Bill
Then they will bleat OH NO WHATS THIS ABOUT ?????
Learn Change and Adapt ?????
Sad but true DL
Sadly, there is a lot of truth in what you say John.We have addressed landlord apathy here recently:Landlord apathy will be the death of us "Landlord communication" problem revealed I really don't know what the answer is .... but those living in blissful ignorance will get a very nasty shock and then they will be up in arms about it!A lot more pain for landlords and tenants to go through before the folly of Section 24 is removed .... We have to find ways to hang in there until it does.See - Section 24 Landlord "Survival Guide"
Some of it will be landlord apathy and some will be due to -
Landlords having checked their own situation and decided that they can deal with the changes and carry on.
A reaction to the extra 3% stamp duty that was brought in as a result of highly leveraged landlords complaining that Section 24 was unfair as it didn't affect unencumbered landlords labelling them as rich landlords even though they may only have one property and less equity then those landlords most affected by Section 24.
A reaction to the suggestion that Section 24 should be replaced with an extra 2 - 3% tax across all landlords, increasing tax for the majority so they pay less tax irrespective that the low leveraged landlords are already paying tax on the rental income at a higher rate.
A realisation that even with the changes from Section 24 with low interest rates most landlords are probably better off than when interest were 7 - 8% plus with tax relief.
A view if landlords cannot adjust to Section 24 then those same landlords would not be able to adjust to an increase in interest rates and probably should be reviewing their business model anyway.
Annoyance with some of the comments being made by highly leverage landlords - another landlord forum comes to mind - which is likely to result in bad publicity and possibly more adverse legislation for landlords. Those same comments may also result in rent controls being introduced for all landlords.
I can understand the concern regarding Section 24 but some of the comments and insults have not helped the cause.
I think a lot of Landlords feel insulted by the actions of the Govt ???
There is anger and resentment to George and Co and who can blame them
Yes BTL has maybe been to good for too long and reform is a good thing
But its retrospective issues that hurt most A great number of Landlords have tried to find a way for there futures ie Pensions and BTL was a good bet
They are using a sledge hammer to crack a nut ?If BTL lending had been banned going forward I think most Landlords would go along with it with out choice and it would be fair
I can see where the Govt is coming from But if they chose to work with the PRS instead of against it things could have worked better
for all parties
The govt needs a PRS and maybe company formations would be the best way forward ? we could then be treated as Business Men and Women paying NI and Taxes
Not to mention Corp Tax
Now we have uncertainty and a lot of bad feeling
Running a good business is all most of us want cant the Govt not see this issue