Thank you for all the effort put in to actually inform us as we are clearly incapable of working it out for ourselves that 2 per cent of £250,000 is.....wait for it.....£5000.
All the stamp duty thing will do is suppress the house prices a little bit. Look at what happened when when stamp duty holidays were rolled out house prices soared. So more tax will just hold the prices down a little.
Existing landlords are going to do OK. Gavernment policy is effectively to reduce the supply of rental property and continue to increase demand. I foresee continuing large rises in rents.
Supposedly. I am not actually convinced the market is in demand mode. As someone who is currently advertising a property to rent in London, there has been no big increase in demand for rental property. If anything rental prices seem to be stagnating or indeed going down in some places. We are probably going to have to reduce our asking rent to attract more interest but its a sign for me that the alleged spike in demand as a result of these policies simply isnt there
How can one think this is just! A 5% tax on unnecessary tax on property! In order to return that youd need to produce a return of 10% on the initial investment just to get back to break even. This is not just a problem for landlords, but also on renters who get those costs passed on to them.
Hey Rob and Rob, great content as always…. I’d love it if you would do a video or talk about it on your podcast on how to take money out of property to live on and not look to further invest. For example I own a medium size portfolio…. And some of the gains are starting to really grow. For example one of my properties value at £250k of which I bought for 175k and used a deposit of 25% 44k So my equity is now around 119k Now I know that I probably should look to reinvest and buy another- but what I’d like to do is draw out what is possible (let’s say 75k) and use that to live off… then leave alone for ten years and rinse and repeat. Is this possible and what tips can you give? Love to hear your thoughts. Danny
I like how these videos cut through the neurosis and drama and don’t pander to political sides or get involved in debates on which government is / was best or worse for landlords etc. This is exactly what investors and landlords need, just straight-up practical information!
I am not sure the extra stamp duty will not be taking more consideration later on if you compare what happened in 2016. We already see the affects of rising interest rates making landlords selling their rentals this will slightly compound more reasons not to invest in properties and reducing rental supply. Although I appreciate the 250K figure, if you look at London is doubled that and rental market in London is crazy as it is. Whether or not this will discourage more investments in real estate so prices will fall so people can finally afford to buy is another question, but just looking at the market before this stamp duty rise, it seems the market is not going down but probably up as BoE indicates interest rates will get lower soon, which means more people can afford to buy and pushing up prices up again.
Starmer has a fairly strong property portfolio, as do many of his donors, so raising CGT wasn't going to be of benefit to Starmer and his chums, so it's given them time to reorganise to avoid it when it comes...
That is a bit of a short-sighted comment. This will only hurt small-time investors and opens the floodgates for institutional investors to run rampant in the UK housing market. There's already 100 billion of foreign investment in London alone.
Unfortunately i do believe you are biased on the subject due to your business interests, the stamp duty rise is an issue and the market is getting less attractive each year for investors it seems.
I'm a landlord and I am happy about the budget. It isn't all about me and maximising my personal wealth - I'd quite like society to function properly and reduce the waiting lists on the NHS. Anyone moaning should just cut back on their Netflix subscriptions and buy less from Starbucks.
you're not paying anymore tax as a result of this budget... unless you buy another property. No difference to tax on rents or any change to CGT. Why would you be unhappy?
@@seanduffy2214 I can see you writing this with a smug smile. How does this budget help anyone unless they’re sick and need medical assistance from your perspective? Majority of the people day-to-day don’t need to go to the hospital A&E. What they do need is shelter, heat, electricity, food/water. This budget with the increase of stamp duty has made it harder for developers to build property and for landlords to buy property hence decreasing supply of rental homes which will lead to increase in Rent. Why make the changes overnight when people are in the middle buying purchases as they spoke making it incredibly expensive for them to find thousands of pounds extra! if the government really wanted to help people they’ll abolished stamp duty for first time buyers up to £500k and for second home buyers they’ll keep the percentages the same as before the budget but lower starting threshold to £125k. This increase in stamp duty will not do anything for this supposedly £22 Billion deficit.
@ismaileyaqub6335 I am happy with it - my point is lots of people seem to be throwing their toys out of the pram for no good reason, lots of mock outrage for the sake of it
@@seanduffy2214 Yes, my point is that there's no reason for you to be unhappy, hence you being happy with it is understandable. People who are unhappy with it are understandable because their businesses (livelihoods) are affected by tax (cost) increases to fund the lifestyles of others...
@ismaileyaqub6335 I'm not sure it should be framed as funding lifestyles. Extra funding for NHS and schools is not exactly a lifestyle. I'm also a business owner and impacted by the NI increase - but I still see that as a sensible taxation choice. Wages are determined by what the market dictates is the expected salary for someone with particular skills, not how much a business can afford. If profits go up they don't all chuck it on salary increases, and it will be vice versa as well.
Yeah agree, even if you have 100 properties here, someone in Spain with no property to his name will have a higher and better quality of life than you😆
Very much part of my plan. Selling one property - waiting to see whether to sell the portfolio. Might as well build a life overseas where I don't have to pay for migrants, fatties and dossers!
Housing should not be an asset class and no one should have more than one home. Housing is a basic human right and a cornerstone of family and community. Furthermore, property is a sterile asset class meaning it doesn't do anything for our economy apart from concentrating wealth at the top.
Question? We have a rental property and plan to pay off the mortgage on it in 2 years and move in. Before we move in we want to upgrade the kitchen and bathroom, decorate etc. there may be an overlap with selling the main family home of several months or how long it takes to sell? Will this make us subject to this second house tax? I’m hoping not as we have owned the house for 20 years. Thanks in advance
You already bought the rental property so you won’t be making a new purchase. Just because the mortgage is paid off and you’ll change it from BTL to residential primary residence, it won’t be a new purchase. Stamp duty is payable on new purchases.
I imagine there will still be Capital Gains Tax due if you moved into the rental and then decided to sell it a year or so down the line which will be from when you purchased your rental to the time you moved in. Also if any of your properties are left empty then you will have to pay council tax still.
Property prices and rents are far too high. Landlords should either accept that they are providing a regulated public service or get out of property and invest in UK businesses like many of us, for too long property has just been a licence to print money. Housing is a basic need and rent/mortgage payments should be no more than 12% of income according to the governments own advice. Banks are permitted to lend far too much to owner occupiers and to landlords, this is flooding the housing industry with money delivering the huge profits of developers and land bankers. The cost of construction of new homes is only 25% to 33% of the sales price. Loans for older properties should be restricted as they are well depreciated. Instead, we should be building more new homes to replace the small, energy guzzling homes. When the government builds millions of houses for long term rent, private rents will collapse. Once there's more capacity for housing, things like the rent a room scheme, HMO's should be phased out with far higher minimum standards of housing. How about subscribing to funds to take stable growth companies on for the long term, instead of seeing them sold to US companies or global funds. No wonder there isn't money for public service, why people can't afford things, when we are being fleeced paying more than 50% of our incomes on housing costs. Labour party supporters, MPs, etc. have been benefiting from the property boom for the past 30 years. It needs to end, instead we need homes with decent rooms, storage, private outdoor space, hobby space, storage space and off road parking.
Transactional fees mean lower property prices, well ok in the situations that would affect property developers but not property investors or BTL wannabes.
What is often omitted is that real-estate investment in Britain would be worth it even if Stamp duty went up to 20%. This is because you do not pay taxes on OWNING a property (like, say, in France, or Greece, where you pay an annual tax), only on buying it. And you pay capital gains tax for renting it out, which is of a much, much lower rate. With housing prices hiking non-stop, and with virtually no homes being built, landlords being 'concerned' is just laughable, and ludicrous. If you have 250K to buy a rental as an investment (how many people have capital to invest thus?), 5K on top of that is a spec of dust. Not even a spec. As for banks and companies, who now have turned to investing in the rental market, these should be taxed into oblivion, to discourage this trend, indeed nip it in the bud. Because corporations cornering the housing market is not good either for landlords, or for tenants, nor indeed for individual investors.
false premise in your simple reasoning... is that all the 'investors' are buying new houses. they don't create the demand for new properties they create demand for old properties that baby boomers leave as the generation starts to die out if 'investors' will stop buying, in the short term, they don't create the demand, but eventually prices will fall and in the long term MORE ordinary people will be able to afford a house.
False. Small-time investors will stop buying, paving the way for institutional investors to gobble up the market, thus creating a monopoly. A quick analysis of the housing market in London will tell the story that is coming.
I have an idea how "landlords" can avoid the extra stamp duty. Start and run a real business and one that does not feed off poor peoples' misery. Oh, of course, that would be too hard, not to say too morally proper, for you would it not?
Labour hates landlords stamp duty is the last nail for me ,I’m not buying anymore I’ve got enough so I’m ok,5% is just a rip off when Starmer said no tax I believed him he’s a liar and he’s had the last vote he’s had off our family,
You're not going to buy no more property? Well good? Think labour want to stamp out people getting rich off of owning things and wants to get the country back to work. Too many people sit on their arse earning rents instead of working for a living. Back when more property was owned by the government this was less of an issue. Too many people in the UK don't work or are "professional investors". Only 62% of the UK actually work for a living.
this is stage 1 of the budget you do know its 3 parts landlord be next and i guarantee there will be a rental cap set by the properties council tax band.
@@marksmith9218 If your goal is to implement Communist then the more of these "problems" the better as it gives you more opportunity to increase government control and remove the market.
1.5 million more homes under this Parliament.. Renters do NOT like renting... It's like being condemned to prison with a life sentence... STOP buying all of the stock!!!
@@stevenhodgson834 The collective 'YOU' have bought all of the potential replacement stock .. It's impossible to buy anything unless it's a shed.. I will have to come up with £2k/month until I die because you've driven the prices up to unachievable values whilst your tory electorates refusing to replenish the stock.
Investing has its ups and downs. Landlords should understand the risks involved and stop crying when the bet taken doesn’t go their way. Banks are institutions, tenants are people. Don’t gamble on a persons livelihood. Rich people have a disproportionate chance of becoming richer. It is unsustainable to expect safe investments in any commodity Simply put, diversify your portfolio and invest is something else…
Thank you for all the effort put in to actually inform us as we are clearly incapable of working it out for ourselves that 2 per cent of £250,000 is.....wait for it.....£5000.
All the stamp duty thing will do is suppress the house prices a little bit. Look at what happened when when stamp duty holidays were rolled out house prices soared. So more tax will just hold the prices down a little.
There is only one solution. Leave the UK!!!!!!
Existing landlords are going to do OK. Gavernment policy is effectively to reduce the supply of rental property and continue to increase demand. I foresee continuing large rises in rents.
Agreed
Supposedly. I am not actually convinced the market is in demand mode. As someone who is currently advertising a property to rent in London, there has been no big increase in demand for rental property. If anything rental prices seem to be stagnating or indeed going down in some places. We are probably going to have to reduce our asking rent to attract more interest but its a sign for me that the alleged spike in demand as a result of these policies simply isnt there
@@glostergloster6945how much are u charging for rent?
How can one think this is just! A 5% tax on unnecessary tax on property! In order to return that youd need to produce a return of 10% on the initial investment just to get back to break even.
This is not just a problem for landlords, but also on renters who get those costs passed on to them.
Use another method to make money then, like investing
This will not be their only budget.
Hey Rob and Rob, great content as always…. I’d love it if you would do a video or talk about it on your podcast on how to take money out of property to live on and not look to further invest.
For example I own a medium size portfolio…. And some of the gains are starting to really grow.
For example one of my properties value at £250k of which I bought for 175k and used a deposit of 25% 44k
So my equity is now around 119k
Now I know that I probably should look to reinvest and buy another- but what I’d like to do is draw out what is possible (let’s say 75k) and use that to live off… then leave alone for ten years and rinse and repeat.
Is this possible and what tips can you give?
Love to hear your thoughts.
Danny
I like how these videos cut through the neurosis and drama and don’t pander to political sides or get involved in debates on which government is / was best or worse for landlords etc. This is exactly what investors and landlords need, just straight-up practical information!
it's so refreshing!
I am not sure the extra stamp duty will not be taking more consideration later on if you compare what happened in 2016. We already see the affects of rising interest rates making landlords selling their rentals this will slightly compound more reasons not to invest in properties and reducing rental supply. Although I appreciate the 250K figure, if you look at London is doubled that and rental market in London is crazy as it is. Whether or not this will discourage more investments in real estate so prices will fall so people can finally afford to buy is another question, but just looking at the market before this stamp duty rise, it seems the market is not going down but probably up as BoE indicates interest rates will get lower soon, which means more people can afford to buy and pushing up prices up again.
Is there a way a house could be bought by someone other than an investor ?
Starmer has a fairly strong property portfolio, as do many of his donors, so raising CGT wasn't going to be of benefit to Starmer and his chums, so it's given them time to reorganise to avoid it when it comes...
Rich people don't sell assets. They accumulate more wealth. So CGT doesn't affect them, really.
With the stamp duty change, will you be updating your handy giveaway BTL calculator spreadsheet?
The SDLT hits hard in high value areas like where I live in St Albans.
Labour voters tax Landlords and pay extra rent!! 😂😂 the irony!
If you can afford to get a second home then you can afford the extra stamp duty
That is a bit of a short-sighted comment. This will only hurt small-time investors and opens the floodgates for institutional investors to run rampant in the UK housing market. There's already 100 billion of foreign investment in London alone.
Money will just go abroad as is happening with the UK. More and more people who pay the taxes are leaving.
Unfortunately i do believe you are biased on the subject due to your business interests, the stamp duty rise is an issue and the market is getting less attractive each year for investors it seems.
I'm a landlord and I am happy about the budget. It isn't all about me and maximising my personal wealth - I'd quite like society to function properly and reduce the waiting lists on the NHS.
Anyone moaning should just cut back on their Netflix subscriptions and buy less from Starbucks.
you're not paying anymore tax as a result of this budget... unless you buy another property. No difference to tax on rents or any change to CGT. Why would you be unhappy?
@@seanduffy2214 I can see you writing this with a smug smile. How does this budget help anyone unless they’re sick and need medical assistance from your perspective? Majority of the people day-to-day don’t need to go to the hospital A&E. What they do need is shelter, heat, electricity, food/water. This budget with the increase of stamp duty has made it harder for developers to build property and for landlords to buy property hence decreasing supply of rental homes which will lead to increase in Rent. Why make the changes overnight when people are in the middle buying purchases as they spoke making it incredibly expensive for them to find thousands of pounds extra! if the government really wanted to help people they’ll abolished stamp duty for first time buyers up to £500k and for second home buyers they’ll keep the percentages the same as before the budget but lower starting threshold to £125k. This increase in stamp duty will not do anything for this supposedly £22 Billion deficit.
@ismaileyaqub6335 I am happy with it - my point is lots of people seem to be throwing their toys out of the pram for no good reason, lots of mock outrage for the sake of it
@@seanduffy2214 Yes, my point is that there's no reason for you to be unhappy, hence you being happy with it is understandable.
People who are unhappy with it are understandable because their businesses (livelihoods) are affected by tax (cost) increases to fund the lifestyles of others...
@ismaileyaqub6335 I'm not sure it should be framed as funding lifestyles. Extra funding for NHS and schools is not exactly a lifestyle.
I'm also a business owner and impacted by the NI increase - but I still see that as a sensible taxation choice. Wages are determined by what the market dictates is the expected salary for someone with particular skills, not how much a business can afford. If profits go up they don't all chuck it on salary increases, and it will be vice versa as well.
To quote Thatcher a county cannot tax its way to prosperity. Money goes where it is treated the best and thats not the UK.
And yet, high public spending has been used to successfully rebuild/establish multiple states throughout history.
@@FireSwordable Stop giving billions to other countries. Lower income tax in the UK . Hey presto everyone is happy.
Let's not quote Thatcher. Between privatisation and Right to Buy that old bag has knackered this country more than anyone.
All my rents are going up!
All your rents? What does that mean. You rent more than one house?
@@StaticDragon360 They're a landlord maybe?
@@StaticDragon360 this is why you rent and they are your landlord
my landlady has sold the property. got a letter one day before the budget. no notice. no idea what's happening. there's 4 flats. she's sold them all.
Everything will backfire on consumers!
Buy one property work overseas and never return to this mossy shit hole. 😅
Yeah agree, even if you have 100 properties here, someone in Spain with no property to his name will have a higher and better quality of life than you😆
The grass always looks greener on the other side
@@aliasgur3342 I've been there, seen that...
Very much part of my plan. Selling one property - waiting to see whether to sell the portfolio. Might as well build a life overseas where I don't have to pay for migrants, fatties and dossers!
If your property portfolio is in a Limited Company won't your children get clobbered an extra 20% tax on assets over 1 million the same as farmers?
Housing should not be an asset class and no one should have more than one home. Housing is a basic human right and a cornerstone of family and community. Furthermore, property is a sterile asset class meaning it doesn't do anything for our economy apart from concentrating wealth at the top.
CGT frozen?
Question? We have a rental property and plan to pay off the mortgage on it in 2 years and move in. Before we move in we want to upgrade the kitchen and bathroom, decorate etc. there may be an overlap with selling the main family home of several months or how long it takes to sell? Will this make us subject to this second house tax? I’m hoping not as we have owned the house for 20 years. Thanks in advance
You already bought the rental property so you won’t be making a new purchase. Just because the mortgage is paid off and you’ll change it from BTL to residential primary residence, it won’t be a new purchase. Stamp duty is payable on new purchases.
I imagine there will still be Capital Gains Tax due if you moved into the rental and then decided to sell it a year or so down the line which will be from when you purchased your rental to the time you moved in. Also if any of your properties are left empty then you will have to pay council tax still.
Property prices and rents are far too high. Landlords should either accept that they are providing a regulated public service or get out of property and invest in UK businesses like many of us, for too long property has just been a licence to print money. Housing is a basic need and rent/mortgage payments should be no more than 12% of income according to the governments own advice. Banks are permitted to lend far too much to owner occupiers and to landlords, this is flooding the housing industry with money delivering the huge profits of developers and land bankers. The cost of construction of new homes is only 25% to 33% of the sales price. Loans for older properties should be restricted as they are well depreciated. Instead, we should be building more new homes to replace the small, energy guzzling homes. When the government builds millions of houses for long term rent, private rents will collapse. Once there's more capacity for housing, things like the rent a room scheme, HMO's should be phased out with far higher minimum standards of housing. How about subscribing to funds to take stable growth companies on for the long term, instead of seeing them sold to US companies or global funds.
No wonder there isn't money for public service, why people can't afford things, when we are being fleeced paying more than 50% of our incomes on housing costs. Labour party supporters, MPs, etc. have been benefiting from the property boom for the past 30 years. It needs to end, instead we need homes with decent rooms, storage, private outdoor space, hobby space, storage space and off road parking.
Well said Tomm9y!
Im a landlord and i love labour 🤑
Transactional fees mean lower property prices, well ok in the situations that would affect property developers but not property investors or BTL wannabes.
What is often omitted is that real-estate investment in Britain would be worth it even if Stamp duty went up to 20%. This is because you do not pay taxes on OWNING a property (like, say, in France, or Greece, where you pay an annual tax), only on buying it. And you pay capital gains tax for renting it out, which is of a much, much lower rate. With housing prices hiking non-stop, and with virtually no homes being built, landlords being 'concerned' is just laughable, and ludicrous. If you have 250K to buy a rental as an investment (how many people have capital to invest thus?), 5K on top of that is a spec of dust. Not even a spec.
As for banks and companies, who now have turned to investing in the rental market, these should be taxed into oblivion, to discourage this trend, indeed nip it in the bud. Because corporations cornering the housing market is not good either for landlords, or for tenants, nor indeed for individual investors.
It seems you are much more clever than all these thousand and thousand investors leaving the UK property market every month...
@@SycAamore That's not the high bar you think it is 🤣
false premise in your simple reasoning... is that all the 'investors' are buying new houses. they don't create the demand for new properties they create demand for old properties that baby boomers leave as the generation starts to die out
if 'investors' will stop buying, in the short term, they don't create the demand, but eventually prices will fall and in the long term MORE ordinary people will be able to afford a house.
False. Small-time investors will stop buying, paving the way for institutional investors to gobble up the market, thus creating a monopoly. A quick analysis of the housing market in London will tell the story that is coming.
The big rip off
I have an idea how "landlords" can avoid the extra stamp duty. Start and run a real business and one that does not feed off poor peoples' misery. Oh, of course, that would be too hard, not to say too morally proper, for you would it not?
Yes, she has ruined the future of farmers and our food supply. Idiots!
Labour hates landlords stamp duty is the last nail for me ,I’m not buying anymore I’ve got enough so I’m ok,5% is just a rip off when Starmer said no tax I believed him he’s a liar and he’s had the last vote he’s had off our family,
You're not going to buy no more property? Well good? Think labour want to stamp out people getting rich off of owning things and wants to get the country back to work. Too many people sit on their arse earning rents instead of working for a living. Back when more property was owned by the government this was less of an issue. Too many people in the UK don't work or are "professional investors". Only 62% of the UK actually work for a living.
Im a landlord and i love labour🤑🤑🤑
this is stage 1 of the budget you do know its 3 parts landlord be next and i guarantee there will be a rental cap set by the properties council tax band.
Whistling past the graveyard again...Renters "Rights" Bill and EPC next...
Landlords will have to pass the rises on to the idiotic Labour voting tenants who are responsible for this mess. You reap what you sow
Rent controls next.
tpynegar01which will exacerbate the problem
@@marksmith9218 If your goal is to implement Communist then the more of these "problems" the better as it gives you more opportunity to increase government control and remove the market.
@@tpynegar01*If*
@@tpynegar01 yep, Venezuela here we come.
The Three Stooges
Your obviously a Labour person
1.5 million more homes under this Parliament.. Renters do NOT like renting... It's like being condemned to prison with a life sentence... STOP buying all of the stock!!!
Nah, my tenants are free to go outside the properties whenever they like.
@@stevenhodgson834 But they have to come back because you've bought any potential replacement... and you know it.
@@jonhenson1991 _"because you've bought any potential replacement"_
Nope. I do not own all the properties in this city.
@@stevenhodgson834 The collective 'YOU' have bought all of the potential replacement stock .. It's impossible to buy anything unless it's a shed.. I will have to come up with £2k/month until I die because you've driven the prices up to unachievable values whilst your tory electorates refusing to replenish the stock.
Private property should never be a business in the first place
About time landlords stop lining their pockets with the scraps of the poorer population
The banks line their pockets with the ludicrous amount of interest paid by the "homeowner" (rents off the bank) - what would you suggest?
Investing has its ups and downs. Landlords should understand the risks involved and stop crying when the bet taken doesn’t go their way.
Banks are institutions, tenants are people. Don’t gamble on a persons livelihood.
Rich people have a disproportionate chance of becoming richer. It is unsustainable to expect safe investments in any commodity
Simply put, diversify your portfolio and invest is something else…
Stop covering for labour!