Nationwide: BTL sector should receive tax breaks

Rinoa

http://www.moneymarketing.co.uk/mortgages/nationwide-in-plea-for-tax-breaks-in-buy-to-let-sector/1029934.article

Nationwide group distribution director Matthew Wyles has called on the Government to introduce tax breaks to encourage more investors to the buy-to-let market.

Speaking at the Great Housing Debate last week, Wyles said the buy-to-let sector has become hugely important to the property market.
He said: “The buy-to-let market is now a fundamental and important segment of our housing solutions and it is set to grow. It is an opportunity for the young to rent in a flexible, low-risk way.”
“We would rather lend at 75 per cent loan to value on a buy-to-let to a hardened, experienced investor than to a 22-year-old plumber who wants a 95 per cent loan.”
Wyles said he does not want to see the sector blighted by regulation and called on the Government to offer potential BTL investors incentives to attract more landlords.
He said: “I do not understand why new lenders are not coming to market more readily. We need to make sure our friends at the regulator cut us some slack around capital weightings so we do not end up with another social need obstructed by regulatory blindness.”
“It is something that should qualify for consideration by the Government for tax beaks. Some fiscal stimulus for the buy-to-let market, as long as it is not too distorting, would be welcome.”
Buy To Let Funding Services principal Geoff Laird says: “Were it not for the private landlords entering the buy-to-let sector in the last 11 or 12 years, there would be far less decent property for people to live in. Incentives for landlords would be much welcomed.”

Maybe George Osborne could offer a small financial reward to landlords for helping so many keep a roof over their heads.

whatyadoinsucka

is it not BTL buyers who are pricing FTB out of the market, so dave the plumber instead of paying £90k for a two bed terrace, now has to pay £130k, because the buy to let sharks keep on snapping up houses otherwise suitable for FTB

Graham_Devon

He's also pleaing for low rates to stay low, stating that rate rises of just 0.5% could cause "massive issues" for borrowers.

He also states that sub prime lending is to blame for most reposessions so far.

He also states that it's not the lenders fault that FTB's cannot easily get mortgages, and that FTB's have affordability problems. (no !!!!! sherlock).

He then goes on to blame regulation (the FSA) for lending less and slams Basel III as a reason.

Infact, doing a google search on him, it seems he was led to step down as chief of the Council of Mortgage Lenders, and to be frank, seems like a bit of a d*ck. One of his recent comments is that FTB's don't have much equity, and are in a bit of a pickle.

DexterA

Vested Interest. He wants capital reserve breaks for BTL mortgages. He also wants demand for BTLs to pick up through tax breaks. It's shameful self interest.

B_Blank

The day BTL people receive tax breaks......I dont know what I will do but I will be seriously ANGRY

HAMISH_MCTAVISH

whatyadoinsucka wrote: »

is it not BTL buyers who are pricing FTB out of the market,

No.

so dave the plumber instead of paying £90k for a two bed terrace, now has to pay £130k, because the buy to let sharks keep on snapping up houses otherwise suitable for FTB

There was a research article published and posted here.

The actual impact of the BTL boom in it's entirety was only around 7%. However the increase in BTL also dramatically reduced rents for the last decade, pushing them below their long term yield average, a situation which is only now reversing.

The biggest impact by far is the long term failure of house building to keep up with population growth and the increase in households.

Graham_Devon

This is fun.

Wyles in 2005...obviously a massive BTL fan...

But Wyles thinks BTL will be stronger because first-time buyers are holding off. He says: "Affordability is still an issue and this will help to underpin the BTL market. I think there are still, in some areas of the UK, buying opportunities for prospective landlords and we think the fundamentals of the BTL market are relatively sound."

He considers that Government intervention through plans such as home-equity schemes is unlikely to have a marked impact on the market. "What is more serious is that we have high oil prices, falling consumer confidence and rising taxation. None of that makes the prospects of a housing market look great. We are not forecasting a crash but I think anybody who is expecting the market to bounce back in the last quarter of 2005 to the levels of activity we saw last year and before is smoking opium," he says.

What happened after 2005? LOL.

Now, you may ask why I think he's got an interest in BTL.

Who led the way with the specialist BTL lender, the mortgage works? Who widended the products and relaxed criteria for BTL lending? Who started an adverse credit line for BTL lending? Matthew Wyles...of course!

What were his products?

"Light adverse". For those with just one or two CCJ's who wanted to enter the BTL market. "Credit repair" for those applicants with more recent credit impairments, including mortgage arrears.

VI? Oh I think so. He's probably wetting his knickers after implementing those corkers.

Turnbull2000

With BTL essentially replacing large numbers of first-time buyers, further incentives for landlords and shared-ownership are perhaps the best options for boosting asking prices of new build property and encouraging more construction. I'm sure swifter, easier evictions will be on the cards at some point too.

I've been saying it time and time again over the years. BTL is here to stay, big time. There's gonna be a lot of people owning a lot of property, more so once IHT is inevitably abolished. One section of society will essentially capture property wealth, with another sizeable group paying for it.

DaddyBear

BTL need to be taxed more, not less. In a country where housing is becoming a scarce resource, anyone wanting to own more than one house should be taxed heavily for the privilege.

Sibley

BTL need to be taxed more, not less. In a country where housing is becoming a scarce resource, anyone wanting to own more than one house should be taxed heavily for the privilege.

You are making a rod for your own back.
If we have to pay more tax your rent will go up. Simple.

DaddyBear

Sibley wrote: »

You are making a rod for your own back.
If we have to pay more tax your rent will go up. Simple.

I don't pay rent so my back is fine thankyou very much.
Don't assume that any increase in landlord costs will be directly passed onto tennants.