Stamp duty holiday ?

AdrianC

danlightbulb said:

Owning a property and letting it out is not like other businesses. Its 'leasing' the property to the tenant. The tenant should therefore be covering the financing cost, as you say, but why should they also cover the capital cost when the landlord retains that? Take car leasing as an example - the financing cost, depreciation and maintenance are covered by the rental payments. For houses though, there is no depreciation (quite the opposite actually), yet we have the mortgage capital being repaid by the tenants. If the tenant is covering the financing cost then arguably he should also be sharing in the capital appreciation.

So should the tenant help to cover the lack of increase during a flat or falling market?

How do you propose to calculate how much a flat bought for, say, £150k in 2015 appreciated between 2018 and now? Or how much it's going to appreciate between now and whenever the new tenant moves out?

How about the companies that hire classic cars out? Should their customers also get a share of appreciation in a rising market?

What about commercial property letting?

BTW, you seem not to have noticed that the lease value on a £40k car is about the same monthly figure as the rent on a £200k property. So, just maybe, the rent already takes into account that there's no capital depreciation.

Grumpy_chap

Quite often landlords have an interest only mortgage and the tenant is covering only the interest charges.  The landlord never pays for the capital, but recovers it when selling (along with whatever gain there has been).  So, the tenant is not covering the capital.  If they were, the tenant would buy a house and repay the capital plus interest.

grumiofoundation

Densol said:

Fingers crossed its second homes too as I want to get a buy to let

I blooming well hope not.

SpiderLegs

danlightbulb said:

@Grumpy_chap whilst I'm not saying my ideas are flawless, you seem to be failing to be willing to be open to any suggestion of changes at all. What are your ideas?

Owning a property and letting it out is not like other businesses. Its 'leasing' the property to the tenant. The tenant should therefore be covering the financing cost, as you say, but why should they also cover the capital cost when the landlord retains that? Take car leasing as an example - the financing cost, depreciation and maintenance are covered by the rental payments. For houses though, there is no depreciation (quite the opposite actually), yet we have the mortgage capital being repaid by the tenants. If the tenant is covering the financing cost then arguably he should also be sharing in the capital appreciation.

I’ve read some drivel in my time but this goes to a new level.

If you want rent controls then just say so.

Grumpy_chap

Given that landlord's have it so easy, I am at a complete loss to understand why @danlightbulb is not a landlord.

Steve_KCS

If its announced on Wednesday and not effective until October you are wiping out 2.5 months of the year of property transactions 

Peony2016

I don’t know why they’d bother to make the announcement on Wednesday but not bring it into effect until Autumn. It seems that would just freeze the housing market for a few months.

I’m due to exchange contracts on my chain tomorrow! If they do put the SDLT holiday into place immediately, would it be likely to be based on date of completion rather than date of exchange?

LIMPIT61

No it’s based on date of exchange.

LIMPIT61

Apologies should have read date of completion 

Grumpy_chap

Steve_KCS said:

If its announced on Wednesday and not effective until October you are wiping out 2.5 months of the year of property transactions 

To follow the 3 months of transactions wiped out through lockdown...

I imagine if there is a change to reduce SDLT announced Wednesday, it will come into force almost immediately as the whole idea is to stimulate the market, not to suppress it further.  People moving home is a good stimulant as they then buy new decor, furniture, tec.