What's the verdict for home owners after today's budget

cells

wotsthat wrote: »

Ask anyone on £30k who thought renting a social or council house was a good idea for the long term.

I hope they were saving the subsidy towards a deposit because saving is about to get a little more difficult and that renting vs buying calculation has shifted.

wont it effectively push a lot of higher earners in social homes to buy rather than rent at market price if they can do so

also how can it work in practise

£40k income in london leaves you £30k take home, to rent a social flat for £2k a month is not going to be viable at all. so whats going to happen? are they going to be given HB to allow them to live? or are they going to have to change jobs or ask for a pay cut

marleyboy

lisyloo wrote: »

Why?
won't the BTL taxes make BTL less attractive and hence put downward pressure on house prices which are more likely to be related to owner occupier incomes in future?

We are not on a BTL. and as the prices stand, I think we bought into home ownership just in time and at the right price.

cepheus

The Budget doesn't address the two main problems with the housing market: too little investment in new housing, and too much investment in unproductive second-hand private housing. Increasing the Inheritance tax exemption to £1 million will further stoke demand for unproductive assets, and increase inequality by polarising wealth between property and non property owning families.

Thrugelmir

cepheus wrote: »

The Budget doesn't address the two main problems with the housing market: too little investment in new housing, and too much in unproductive second-hand private housing.

Controlled immigration is not a matter for fiscal budgets.

padington

I forgot about the million pound tax free housing inhereritance allowance.

Has owning (one) property in the UK ever been so attractive ?

Has renting ever looked so futile ?

Has being a landlord ever looked like so much hard work for such little returns ?

lisyloo

Marleyboy, I understand and agree you made the right decision to buy.
I was just asking what specifically in the budget made you decide that because you post said something like "after seeing the budget...."

I can't see anything in the budget specifically that made owning a good decision.
The BTL comment was not clear, but some think that the taxes on landlords will have an effect on house prices, so there is a knock on effect to owner occupiers. it's not clear though because some think landlords will put up prices and others think some landlords will exit or not enter BTL, so how it plays out is not clear.

I just cannot see any direct impact of the budget on owner occupiers or non-social housing renters

There are indirect effects from some budget measures but as always Bulls/bears or whatever you want to call them don't agree on the effects so it's currently speculation.

Btw - I'm not trying to be pedantic or score points. I genuinely wanted to know if I had missed something that might affect me personally.

Generali

cells wrote: »

wont it effectively push a lot of higher earners in social homes to buy rather than rent at market price if they can do so

also how can it work in practise

£40k income in london leaves you £30k take home, to rent a social flat for £2k a month is not going to be viable at all. so whats going to happen? are they going to be given HB to allow them to live? or are they going to have to change jobs or ask for a pay cut

I suspect it will mean that market rents will fall.

Prices are set by supply and demand. If the Government removes a subsidy from the demand side, prices (rents) should fall.

Effectively the cost of this will be split between the landlord and the tenant.

Generali

cepheus wrote: »

The Budget doesn't address the two main problems with the housing market: too little investment in new housing, and too much investment in unproductive second-hand private housing. Increasing the Inheritance tax exemption to £1 million will further stoke demand for unproductive assets, and increase inequality by polarising wealth between property and non property owning families.

A house is hardly an unproductive asset: it provides housing services. It would be pretty miserable trying to live without one.

wotsthat

cells wrote: »

wont it effectively push a lot of higher earners in social homes to buy rather than rent at market price if they can do so

also how can it work in practise

£40k income in london leaves you £30k take home, to rent a social flat for £2k a month is not going to be viable at all. so whats going to happen? are they going to be given HB to allow them to live? or are they going to have to change jobs or ask for a pay cut

If, net, cost is being added to a system prices will increase. If cost is being taken out they'll fall.

There seem to be a number of housing related measures in the budget and it's not entirely clear where the balance lies. It's possible that your person on £40k will see a big jump in rent but rents on average fall. Maybe they'll move somewhere cheaper and leave the London market and prices fall. Or there could be a rush from rented to OO.

The market will decide. I think the net effect will be about zero but I don't see how anyone can be confident in their predictions 24 hours after a budget containing a number of new and complicated measures.

I'm still glad I bought!

cepheus

Generali wrote: »

A house is hardly an unproductive asset: it provides housing services. It would be pretty miserable trying to live without one.

I'm not referring to the builders, but the monopolization of access to any (physical, financial, intellectual, etc.) kind of property, and gaining significant amounts of profit without contribution to society.