Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Cotta
    • By Cotta 15th Jun 17, 3:51 PM
    • 2,361Posts
    • 959Thanks
    Cotta
    Any Renters Feeling the Pinch following Tax Change?
    • #1
    • 15th Jun 17, 3:51 PM
    Any Renters Feeling the Pinch following Tax Change? 15th Jun 17 at 3:51 PM
    I've spoken to a few people renting in the private sector who have incurred a rental increase due to the new tax laws for private landlords?

    Have many on here been affected and will this new tax law continue if it's impeding both parties so negatively?
Page 1
    • Conrad
    • By Conrad 15th Jun 17, 3:56 PM
    • 31,210 Posts
    • 54,080 Thanks
    Conrad
    • #2
    • 15th Jun 17, 3:56 PM
    • #2
    • 15th Jun 17, 3:56 PM
    I've spoken to a few people renting in the private sector who have incurred a rental increase due to the new tax laws for private landlords?

    Have many on here been affected and will this new tax law continue if it's impeding both parties so negatively?
    Originally posted by Cotta

    How funny, I just finished a post about this very matter.


    Yes I have written to my tenants over last 18 months specifically citing tax increases and why rents are going up. In the end as some try to argue, Govt spending is never free in the way Corbyn implies, the rises filter through to the market.


    Before some virtue signaller gets on my case, just pause a moment, you may not be a Landlord but if you have a pension or ISA, the fund mangers that own the corporations you all want to tax more, do the dirty work of profit maximisation on your behalf and so if anything you're less moral than me, at least I deal with my own dirty work (property is my pension)
    Will European citizens take kindly to bloated Brussels elites harming their livelihoods with barriers to their UK trade? 9% of Dutch exports come to the UK....
    • itchyfeet123
    • By itchyfeet123 15th Jun 17, 4:30 PM
    • 371 Posts
    • 413 Thanks
    itchyfeet123
    • #3
    • 15th Jun 17, 4:30 PM
    • #3
    • 15th Jun 17, 4:30 PM
    I'm surprised many landlords are willing to try it right now with headlines about downward movement in rents.

    For context, I'm living in London zone 2, and I've been in my current place for just over 18 months. Zone 2 not withstanding, it's a pretty undesirable location, tiny, has a few minor annoyances related to the layout. When I first viewed, I considered it a bargain for the price -- everywhere else I'd looked was either a sh*thole, at least £200 more, noticeably further out, or a combination of all three. I've been checking Rightmove lately, and there are now places listed for +/- £100, which would be huge improvements on my current place in either location, size, or "niceness". I'm probably not going to move just because, but if my rent increased I almost certainly would.
    • Cotta
    • By Cotta 15th Jun 17, 4:33 PM
    • 2,361 Posts
    • 959 Thanks
    Cotta
    • #4
    • 15th Jun 17, 4:33 PM
    • #4
    • 15th Jun 17, 4:33 PM
    I'm surprised many landlords are willing to try it right now with headlines about downward movement in rents.

    For context, I'm living in London zone 2, and I've been in my current place for just over 18 months. Zone 2 not withstanding, it's a pretty undesirable location, tiny, has a few minor annoyances related to the layout. When I first viewed, I considered it a bargain for the price -- everywhere else I'd looked was either a sh*thole, at least £200 more, noticeably further out, or a combination of all three. I've been checking Rightmove lately, and there are now places listed for +/- £100, which would be huge improvements on my current place in either location, size, or "niceness". I'm probably not going to move just because, but if my rent increased I almost certainly would.
    Originally posted by itchyfeet123
    I suppose from a LL's perspective where do they go? Their profits are going to be wiped out with the new tax rule.
    • theartfullodger
    • By theartfullodger 15th Jun 17, 4:41 PM
    • 8,775 Posts
    • 11,610 Thanks
    theartfullodger
    • #5
    • 15th Jun 17, 4:41 PM
    • #5
    • 15th Jun 17, 4:41 PM
    Many landlords seem to think they can put up rent. Funnily enough they didn't drop rents when interest rates dropped like a stone.
    • itchyfeet123
    • By itchyfeet123 15th Jun 17, 4:48 PM
    • 371 Posts
    • 413 Thanks
    itchyfeet123
    • #6
    • 15th Jun 17, 4:48 PM
    • #6
    • 15th Jun 17, 4:48 PM
    I suppose from a LL's perspective where do they go? Their profits are going to be wiped out with the new tax rule.
    Originally posted by Cotta
    It's not as though most tenants have anywhere to go themselves. Amongst my friends, 50% of income on rent is pretty common. We've been hearing for a long time that that's just the way the market is. I wonder if the market will still be considered an amoral arbiter if rents drop meaningfully.

    Besides, changes in the tax policy didn't come out of the blue. LL's have had plenty of time to run the numbers and see if it's still worth their while, and to get out if not.
    • dlmcr
    • By dlmcr 15th Jun 17, 6:03 PM
    • 118 Posts
    • 129 Thanks
    dlmcr
    • #7
    • 15th Jun 17, 6:03 PM
    • #7
    • 15th Jun 17, 6:03 PM
    I'm in Nottingham. Nice area, good school catchment. Compared to about a year ago, prices to buy are up surprise surprise, rents are down considerably, and in a lot of cases they don't shift at those rental asking prices and have to be reduced. Yields are nonsense eg an ok detached is 200k to buy, virtually identical is rental 690 pcm, where is the sense in that for a landlord never mind any new taxes etc? I keep an eye on these as I like to see what state my local market is like and it is noticeable the lack of demand for rentals here.
    Personally I don't buy this argument that nex taxes etc will force up rents: rents are not like prices to buy in that a) they are to a degree set by LHA, b) landlords that bought years ago (the majority) are not bothered anyway about a few % here or there since their yield % is so high and c) leading on there (in my area anyway) good supply of good rental properties so plenty to choose from. d) why would you risk losing a good tenant over the obsession with maintaining your yield %?
    • LdnFtB
    • By LdnFtB 15th Jun 17, 6:43 PM
    • 37 Posts
    • 37 Thanks
    LdnFtB
    • #8
    • 15th Jun 17, 6:43 PM
    • #8
    • 15th Jun 17, 6:43 PM
    Quite the contrary to be honest, rents in my part of the world (London Zone 2) are only heading downwards at the moment. If my landlord were to try raising rents I'd look elsewhere - the only thing stopping me at the moment is the hassle and the letting agency fees.

    Remember there are a great deal of landlords who own outright or whose tax status won't be affected by the removal of mortgage interest relief. It's only a relatively small proportion of landlords - the treasury estimated 1/5 - who will be affected by the loss of their tax advantages.
    • bob bank spanker
    • By bob bank spanker 15th Jun 17, 8:28 PM
    • 353 Posts
    • 601 Thanks
    bob bank spanker
    • #9
    • 15th Jun 17, 8:28 PM
    • #9
    • 15th Jun 17, 8:28 PM
    As some have alluded - it is the market that dictates prices, not Landlords. The market in London is headed down. How on earth would you increase prices?

    If all these LLs could arbitrarily increase prices, why haven't they done so sooner?
    • Crashy Time
    • By Crashy Time 16th Jun 17, 12:12 PM
    • 4,391 Posts
    • 2,020 Thanks
    Crashy Time
    http://news.sky.com/story/interest-rates-may-rise-sooner-than-you-think-after-surprise-vote-10916482
    • noddynoo
    • By noddynoo 16th Jun 17, 12:18 PM
    • 273 Posts
    • 60 Thanks
    noddynoo
    Our landlord sent a surveyor round Monday to do a valuation for a remortgage and the surveyor said the market is falling everywhere and he advises people to make offers so think prices are bout to head south finally
    • Crashy Time
    • By Crashy Time 16th Jun 17, 12:21 PM
    • 4,391 Posts
    • 2,020 Thanks
    Crashy Time
    Our landlord sent a surveyor round Monday to do a valuation for a remortgage and the surveyor said the market is falling everywhere and he advises people to make offers so think prices are bout to head south finally
    Originally posted by noddynoo

    Great news for money savers then?
    • martindow
    • By martindow 17th Jun 17, 11:46 AM
    • 7,077 Posts
    • 3,907 Thanks
    martindow
    Crashy - maybe your dream is about to become true (after all those years of predicting it!)
    • Cakeguts
    • By Cakeguts 17th Jun 17, 12:22 PM
    • 2,570 Posts
    • 3,531 Thanks
    Cakeguts
    Rents are still rising in the North West where we let because they are only just starting to catch up with the rest of the UK. The managing agents just put the rents up by a small amount because they had fallen behind the market rent. They will still be lower now but nearer. House prices have risen a lot but they are still lower than many places.
    • Crashy Time
    • By Crashy Time 17th Jun 17, 12:32 PM
    • 4,391 Posts
    • 2,020 Thanks
    Crashy Time
    Crashy - maybe your dream is about to become true (after all those years of predicting it!)
    Originally posted by martindow

    Not really a dream, more just an inevitable re-balancing, the property mania of the 2000 - 2007 period, and the Double Bubble that was created (mainly in London) to avoid taking the losses will be laughed at by future generations, but will also be the ruin of many if they are heavily indebted to take part.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

232Posts Today

3,346Users online

Martin's Twitter
  • Byebye! I'm about to stop work & twitter, to instead spend glorious time with Mrs & mini MSE. Wishing u a lovely summer. See u in 10 days.

  • WARNING Did you start Uni in or after 2012? The interest's rising to 6.1%; yet it doesnt work like you think. See https://t.co/IQ8f0Vyetu RT

  • RT @JanaBeee: @MartinSLewis Boris is the anomaly (coffee), the others are versions of normal (beer). Lots of same candidates = vote share d?

  • Follow Martin