if Goerge Osbourne takes away tax benefit for BTL won't rents just go up?

lisyloo

Wouldn't we all love it too?

I've got 0.99% and although I'm not making a fortune there is definitely something that feels good about making money out of a bank.

Thrugelmir

lisyloo wrote: »

there is definitely something that feels good about making money out of a bank.

You are making it while other people are losing out. Banks make their profit on the margin. So they should never lose out .

chewmylegoff

chucknorris wrote: »

The market rent rate is a function of supply and demand, if the ability to claim mortgage interest was withdrawn (it won't be) there would be a very significant reduction in supply. So rents would increase, not so much because landlords put the rents up, but because the supply of property available for rent would be reduced.

Presumably it therefore follows that there would be a massive house price crash as the only reason supply would dramatically fall would be that landlords would all sell their houses leading to a massive increase in supply for sale (and a supply/demand mismatch as no one would be trying to buy property to rent out).

CLAPTON

chewmylegoff wrote: »

Presumably it therefore follows that there would be a massive house price crash as the only reason supply would dramatically fall would be that landlords would all sell their houses leading to a massive increase in supply for sale (and a supply/demand mismatch as no one would be trying to buy property to rent out).

............................no

JencParker

chucknorris wrote: »

The market rent rate is a function of supply and demand, if the ability to claim mortgage interest was withdrawn (it won't be) there would be a very significant reduction in supply. So rents would increase, not so much because landlords put the rents up, but because the supply of property available for rent would be reduced.

Or there could be a significant reduction in 'demand' to be btl landlord! In which case, more low end housing would be available for sale to ftb - not a bad thing at all. And because so many who could not get on the housing market are now able to buy, there would not be the demand for rental property!

chewmylegoff

CLAPTON wrote: »

............................no

No sh|t...

Landlords aren't going to sell houses just because the tax rules change. They would keep renting them out and nothing much would change. And the tax rules aren't going to change anyway.

PixelPound

chewmylegoff wrote: »

Presumably it therefore follows that there would be a massive house price crash as the only reason supply would dramatically fall would be that landlords would all sell their houses leading to a massive increase in supply for sale (and a supply/demand mismatch as no one would be trying to buy property to rent out).

The demand is such that an increase in supply would be absorbed. It would only be temporary due to the change.

chewmylegoff

nic_c wrote: »

The demand is such that an increase in supply would be absorbed. It would only be temporary due to the change.

Oh ok so supply and demand only affects the rental market not the sales market so rents would go up but house prices would stay the same. Good to know.

CLAPTON

JencParker wrote: »

Or there could be a significant reduction in 'demand' to be btl landlord! In which case, more low end housing would be available for sale to ftb - not a bad thing at all. And because so many who could not get on the housing market are now able to buy, there would not be the demand for rental property!

at the 'lower' end of the market, one might assume a potential FTB would be some-one living in a shared property or at most a one bed rented flat.

in all probability they would aspire to buy something better: if so then there will be a be net worsening in the situation of the unlucky renters

lisyloo

Banks make their profit on the margin. So they should never lose out .

Well I think you're actually wrong in this case.
The same bank pays me more to save their own money than they do to borrow it, so they are paying me.
It might be an exception but you need to be careful when you say never, b ecause you're wrong in this case.