What would encourage you to divest property?

lisyloo

Slightly off topic, but if the new tax won't encourage existing LLs to divest will it discourage new entrants at today's prices?

cells

lisyloo wrote: »

Slightly off topic, but if the new tax won't encourage existing LLs to divest will it discourage new entrants at today's prices?

the good thing about the current system of humans owning homes is that there is always churn. A person who gets into BTL at age say 40 can only realistically hold on for about 30 years so whatever the tax system or market conditions that home is going to change hands

if the uk moves more towards companies owning homes then i think there will be less transactions as companies can hold onto properties indefinitely as they dont die.


I think on the margin the additional stamp duty and other tax changes will put off landlords and let to buys. How much we wont really know for a few years

westernpromise

The goal seems to be to drive out small private landlords, but as we don't have a corporate letting sector to replace them as in Germany (because our tax laws are unfavourable to landlords compared to Germany's), the assumption seems to be that the displaced tenants all need to be converted into owner occupiers.

This requires the builders to be given guaranteed prices funded by HTB, so tenants can buy for prices at which builders can sell.

Remains to be seen if it will work, As we saw with tax credits, small limited handouts have a habit of becoming big universal handouts.