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Right to buy tenant plan to cost LLs £50 Billion
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Which rental market are you describing? This is not my experience. In the years that we have been letting property we have had two sets of tenants whose houses had been damaged by fire and who needed to rent somewhere while they were being repaired and we didn't have mortgages on either of those properties. Don't forget about the people who have to rent when their houses have been flooded and the people who rent before buying when they relocate. Not to mention the people who start a relationship and move into rented to see how it is going to go before they buy together. This is our rental market. These people are able to buy somewhere it just suits them not to do it at the present time.
Yes, renting is just a jolly old laugh for most families. Something people do while they have the East wing renovated on the mansion.0 -
I've not read the plan in detail, because I'm sure it will change anyway.
However I actually think there is something in there worth pursuing, even if it's not what they intend at the moment.
As an outline what they are suggesting is basically, if you sell your house to someone that rents it for a specific period then you get a discount on capital gains tax that you share with the person buying your house.
Cut out any automatic right and tweak the figures a bit and it seems like a good proposal.
More to the point, why haven't the conservatives proposed it? A lot of landlords feel trapped if they want to sell because selling because of the CGT bill.
Where do you get the idea that landlords are trapped from selling because of the CGT? Have you considered that they don't want to sell because buying a replacement costs as well because of the extra 3% stamp duty?0 -
They either sell now for whatever they can get and pay CGT, or be forced to sell to tenants for far less than market value and still have to pay the CGTWhere do you get the idea that landlords are trapped from selling because of the CGT? Have you considered that they don't want to sell because buying a replacement costs as well because of the extra 3% stamp duty?0 -
With Momentum in control you can guarantee that once they have got rid of the property owned by landlords they will start on people who live in houses bigger than Momentum think they need. Of course none of this will apply to Momentum or Labour party politicians they can continue to live in big houses worth close a £million in Islington.
The UK faces some of the largest changes ever since the world wars.
Momentum is a powerful and increasingly independent political force that is radically transforming the Labour party, with local groups challenging party orthodoxies, flouting national membership rules and fighting to get their activists selected.
Right to buy from private LLs is just one example of the big changes that could come and radically transform the environment.0 -
This is only the tip of the iceberg. With Momentum in charge of Labour policies, there will be a wholesale redistribution of wealth from those who have it to those who do not. Whether this is right or fair is a question for the electorate.
Everyone with property should be aware that that Momentum will come knocking for some of that property if Labour are elected.
It's not just if Labour are elected or not.
It's whether they are also elected with the majority large enough to push through these laws (which may be controversial to some MPs).0 -
Where do you get the idea that landlords are trapped from selling because of the CGT? Have you considered that they don't want to sell because buying a replacement costs as well because of the extra 3% stamp duty?
I would agree that LLs are not actually ''trapped'' at selling due to CGT.
But I would argue CGT certainly may act as to delay sales.
If I owned a few properties (that had actually made gains*), I would try to sell only one each year.
Thus CGT could make it harder for a LL to sell out quickly, without paying more CGT.
*may houses / flats still at 2008 prices.0 -
The UK faces some of the largest changes ever since the world wars.
Momentum is a powerful and increasingly independent political force that is radically transforming the Labour party, with local groups challenging party orthodoxies, flouting national membership rules and fighting to get their activists selected.
Right to buy from private LLs is just one example of the big changes that could come and radically transform the environment.
Are you a Momentum activist?
To me, this private RTB policy looks like the kind that would be designed for focused social media advertising.
ie Labour identify likely private sector tenants, via their social media / online profile and push the policy at them specifically, using targeted Facebook advertising etc.
It's not so much for general public consumption.0 -
I've not read the plan in detail, because I'm sure it will change anyway.
However I actually think there is something in there worth pursuing, even if it's not what they intend at the moment.
As an outline what they are suggesting is basically, if you sell your house to someone that rents it for a specific period then you get a discount on capital gains tax that you share with the person buying your house.
Cut out any automatic right and tweak the figures a bit and it seems like a good proposal.
More to the point, why haven't the conservatives proposed it? A lot of landlords feel trapped if they want to sell because selling because of the CGT bill.
This exact policy was suggested by the Daily Mail, who termed it ''Help to Sell''.0 -
[Deleted User] wrote:Even as a tenant myself this won't be getting my vote, it is unworkable and could actually cause rent prices to rocket as landlords want to cover their risks. It could create an increase in evictions prior to the legislation as landlords sell to protect their investment.
Many renters don't buy a house for various reasons and it is likely those reasons will still apply even with the right to buy. This scheme could attract false renters with the sole intention of buying a house at a knock down price.
It will also reduce the availability and choice for renters which again may increase rental prices.
If my circumstances change such that I want to buy a house, I'd happily approach my landlord with a fair market price offer and/or look at similar priced houses on the market - I wouldn't expect my landlord to give a compulsory discount, although I'm sure some may consider a small discount for a quick and easy sale.
But who would the LLs be selling to?0 -
With Momentum in control you can guarantee that once they have got rid of the property owned by landlords they will start on people who live in houses bigger than Momentum think they need. Of course none of this will apply to Momentum or Labour party politicians they can continue to live in big houses worth close a £million in Islington.
That's if such a socialist govt stays in power long enough.
What is being suggested here is a wealth transfer. These happen in most countries from time to time. The most recent example probably being asset value inflation, due to ZIRP.
But successful wealth transfers are usually ''smash and grab'' - and hard to reverse. For example, Thatcher's council RTB.0
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