Budget Crackdown on Buy-to-Let Makes Grim Reading for Landlords

Budget Crackdown on Buy-to-Let Makes Grim Reading for Landlords

If you are a private landlord who bought property as an investment for the future then March 2016’s Budget will no doubt make miserable reading for you.

Every commentator has lambasted the Chancellor of the Exchequer, George Osborne, for the way he has continued his bruising assault on property owners.

For several budgets in succession Mr Osborne has introduced tough measures which make it increasingly difficult for private landlords to profit and protect their investment.

It would not be surprising, therefore, if many landlords decide that this budget is the one which breaks the camel’s back and press ahead with selling their portfolio.

If you are in that position then you have come to the right place.

R&T Property Solutions can help.

We offer you a very fast property sale service.

If you have decided that the rental game is not for you, because the returns have not been as good as expected (thanks in part to George Osborne’s policies), then we can help in a hurry.

Because we are not acting for a third party, but rather buying to expand our own portfolio, we can make an instant decision on whether or not we want to buy your property.

In some cases we should be able to complete the arrangements to buy your property within seven days.

We at R&T Property Solutions are proud of our fast purchase service. And, although we are based in Glasgow, we operate throughout the whole of Scotland. Consequently we want to buy your property wherever it is situated.

In particular, we are looking for property which is tenanted.

As a landlord you are subject to various rules and regulations which govern regulated tenancy agreements. We are more than happy to accept these agreements and guarantee to treat your tenants fairly and ethically in line with our code of conduct.

• We will not disturb tenants.
• We do not require internal access.
• We do not require to conduct internal surveys.
• We will always act ethically and be reasonable to existing tenants assuring them minimal disruption.
• We exercise strict client confidentiality for vendors.

So what did the Chancellor do to make life so difficult for private landlords?

Here’s what David Cox, managing director of the Association of Residential Letting Agents (ARLA) said in an interview with Property Wire website:

Mr Cox pointed out that this is now the third Budget which directly attacks landlords. “The sector has been punitively taxed, with stamp duty on buy to let properties, mortgage interest relief and now capital gains tax changes. It’s an outright assault on the sector,” he said.

“Every other sector has been offered a tax break yet there is nothing here to help the private rented sector, including landlords and most importantly tenants, who will see rent costs rise to subsidise the taxes that landlords pay on property.

“In November, when Osborne announced an increase in stamp duty tax on buy to let properties, we described this as a catastrophic move. The news that larger investors will also have to pay the tax is even worse.

“Professional landlords, those who typically own more than 15 properties, play a vital role in providing rental stock to the market, and providing the army of renters we have in this country with housing.”

If you are a professional landlord, whether you own one or 15 properties, we want to hear from you.

Our fast, no-nonsense approach is designed to appeal to landlords and owners alike, who can provide tenanted or vacant possession.
Either way we will guarantee you a quick solution.

The Budget’s crackdown on landlords has been roundly criticised.

The International Business Times website states:

“Landlords and the property industry are lashing out at George Osborne after he extended a planned hike to stamp duty and exempted them from his cuts to Capital Gains Tax (CGT). They are the latest in a string of tax increases on property investors.”

The criticism came after it was announced that from 1 April, all purchases of additional property — anything that is not intended to be the buyer’s main residence — will be subject to an extra 3% levy on top of standard stamp duty rates.

There had originally been an exemption for large-scale purchases of 15 or more properties. This was over concerns that institutional and big investors who fund crucial housing developments would be deterred by the higher stamp duty.

But the chancellor announced in his 2016 Budget that the 15 property exemption threshold would no longer apply.

Moreover, Osborne slashed CGT rates — but said gains made on property prices would still be subject to the old higher tax rates. It follows a number of tax increases on property investors, including the scrapping of a relief that allowed landlords to offset their mortgage interest against income tax bills.

R&T Property Solutions has 50 years of experience in this business. We can use our expertise to help you dispose of your property in the fastest possible way.

If the Chancellor has made you think it’s time to cash in on your investment then contact us today.

We promise a speedy resolution if we want to buy your property. Get in touch today