The Last One
Comments
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if housing is unaffordable how come people can afford to pay more and more for it each year?
if houses were unaffordable 3 years ago, why have prices risen since then?
come to think of it, if housing is so unaffordable, why do so many people want to come here from places where housing is so much cheaper?
Prices keep going up because mortgage lenders keep lending money to BTL landlords. Of course when the government then shovels money into these people's bank accounts, prices can keep rising. Now that the tax rules on landlords are changing, that situation will hopefully change.
People keep coming here because unemployment is high and pay is poor in Eastern Europe. If you work really hard in Britain for a few years and live with a few friends, you could easily afford to buy yourself a house without a mortgage in quite a few of the newer EU member states.
the majority of BTL landlords are cash buyers, also any extra costs they may incur will be passed onto their tenants rent, who will then claim more HB so who loses out here? mmmmmmm let me think about that one!
Anyway, the tax changes (only affecting mortgage btl's who pay higher rate tax) are currently under threat of judicial review and were to be phased in starting 2017, so hardly going to make much difference.
Sorry but unless you limit rent rises, then it will be either the poorer tenant or the tax payer who will foot the bill, cue a Steve0 retort
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https://uk.finance.yahoo.com/news/uk-house-prices-crash-global-141910551.html
It would have to be one hell of a crash to significantly alter the housing problem.
What exactly are the BTL tax proposals?
The proposals are in the article to which you've linked, under "The death of buy-to-let". IIRC, taxes will also now be on revenues rather than profits.0 -
I thought the big return from BTL was house price increases - so unless there is a policy aimed at curbing house price increases it will remain attractive unless rents drop . Anyone want to bet on any government not supporting rising house prices?0
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These tax changes, plus the expected interest rate hikes will have a significant negative impact on BTL. Expect the next few years to see quite a few selling up.https://uk.finance.yahoo.com/news/uk-house-prices-crash-global-141910551.html
It would have to be one hell of a crash to significantly alter the housing problem.
What exactly are the BTL tax proposals?
The proposals are in the article to which you've linked, under "The death of buy-to-let". IIRC, taxes will also now be on revenues rather than profits."I spent most of my money on birds, booze and fast cars: the rest of it I just squandered." [George Best]0
