View more on these topics

Housing minister at odds with Govt on buy-to-let crackdown

Parliament-Building-UK-London-700x450.jpg

Mortgage experts say anti-landlord tax changes instigated by former chancellor George Osborne will still come in despite the new housing minister setting out a favourable stance towards the rental sector.

Osborne has imposed higher stamp duty rates on buy-to-let properties and second homes, as well as cuts to mortgage interest relief in a bid to discourage private landlords and support Conservative homeownership ambitions.

But last week new housing minister Gavin Barwell said there should be a focus on building homes “of every single type” and backed the “good, thriving private rented sector”.

Barwell said: “Recent growth in the bespoke rental market has been impressive, but this progress must be expanded.”

But Mortgages for Business managing director David Whittaker says: “I don’t see the new housing minister repealing anything Osborne has put into place on the private rental sector. Once HM Revenue & Customs has something dialled in, they don’t let go. Not a cat’s chance in Hades.”

Richard Farr Consulting director Richard Farr says: “The clampdown on landlords is going to roll out.

“The biggest structural issue is we aren’t building enough houses. Suppressing the buy-to-let market just makes rents even worse.”

But Bill Warren Compliance director Bill Warren says: “They have been hammering buy-to-let, but that market supplied the rental properties for which there was a big demand.

“I don’t think it is too late to have a look at it, though I know once the Government has a source of income they are reluctant to give it up.”

Recommended

4

Is Help to Buy helping the borrowers it was meant for?

Mortgage experts have called for Help to Buy to be overhauled and say the scheme may not be helping the would-be buyers it was intended for. The Help to Buy equity loan scheme, launched in April 2013, sees the Government lend up to 20 per cent of the value of a new-build home to buyers […]

UK-Houses-Home-Mortgage-700x450.jpg
1

FCA eyes buy-to-let clampdown

The FCA is considering tightening its control on buy-to-let lending, according to a letter sent to smaller lenders. The regulator is concerned that buy-to-let lenders solely governed by the FCA could present a risk to the wider financial system, according to Sky News. The letter says the FCA is reviewing the risk that these lenders […]

2

FCA moves to close buy-to-let loophole that leaves FSCS exposed

The FCA plans to close a regulatory loophole that leaves the Financial Services Compensation Scheme liable for paying claims made against mortgage brokers who advise on consumer buy-to-let. Although the Financial Conduct Authority does not regulate this sector of the market, brokers need a supplementary permission to advise on such cases. Consumer buy-to-let mortgages include […]

Solving the income puzzle

There is a puzzle at the centre of financial markets. The global economy is growing, there are signs of inflation and interest rates are going up, yet yields remain low. In this article, James Foster, manager of the Artemis Monthly Distribution fund, unpicks this conundrum and looks at where investors can find income. There is […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. It’s long been the philosophy of our nation to own your own house , this is at odds with many other countries , if we are ever to redress the balance and achieve this we have to build more houses for buyers . Landlords have a place but rent exploitation isn’t part of it , controlling that sector in part is a viable and acceptable option . I bought my first house at 24 , my children may not get theirs before 30 at the earliest and maybe much later than that ! Fair rents and realistic house inflation is crucial , we must redress the issue of supply and demand , until we do simple economics will prevail .

    • Rents have just followed the laws of supply and demand, whilst the Government continues to sell off social housing under the Right to Buy scheme and crucially not build hardly any replacement housing. Demand for rent accomodation will continue to rise and as a result so will rent.

      The continued Government meddling on the demand side makes for good headlines but only makes matters worse. Extending Right to Buy to Tenants who live in Hosuing Association properties will do the same at it did for Council housing – i.e. kill it off. As will taxing to death BTL Landlords in the PRS will only force rent higher making it even more difficult for Tenants to save for a deposit, and the various Help-to-Buy schemes will only increase demand for properties and push prices even higher.

  2. Take London out of analysis and house prices don’t actually rise. Look more closely at the availability of public sector housing since the Thatcher years precipitated by right to buy – the great union breaker – without private landlords town centres would need more benches.

  3. Irrespective of what HMRC wants, or what Barwell says, or indeed what the new Chancellor, Phillip Hammond, stance is, does repealing S.24 Fiance Act (No.2) 2015 will happen just as it did in Ireland 14 years ago. It is just a question of foresight either do it now and save the pain and misery it will cause, or the hard way. Either way it will be repealled.

Leave a comment