We haven't increased ours because the mortgage hasn't gone up, we had a long term. We don't plan on upping it for at least another year.
We haven't increased ours because the mortgage hasn't gone up, we had a long term. We don't plan on upping it for at least another year.
They do both of those things - first-time buyers don't have to pay stamp duty up to a certain amount (425,000 instead of 250,000), additional properties incur a higher rate (additional 3%), foreign owners pay an additional rate too (2%, this can be in addition to the additional home rate of 3%) and homes bought via a company incur a higher rate too (additional 3% surcharge + 15% on residential properties over 500k).
Stamp Duty Land Tax
You pay Stamp Duty Land Tax (SDLT) when you buy houses, flats and other land and buildings over a certain price in the UK.
Cheap credit, 100%+ mortgages, tax incentives etc. made BTL an overly attractive investment for a certain generation. Once the money poured in, prices started to rise. The more money people made, the more other people wanted in, the more money people made, the more they invested. And so begun a horrible cycle of ridiculous house price inflation for those with skin in the game. If you weren't already on the ladder, you were stuffed.
If you couldn't afford to buy by this point, you had to rent. You know what landlords and agents love? A captive market. People literally had (have..) no choice but to rent if they want a roof over their head. Meaning in a previous generation if they could have bought that two bed flat with a small deposit and paid £1,000 month they would have done so. But now they can't because they can't save the required £50k deposit, so there's a whole bunch more people trying to rent that similar two bed flat. What happens when there's 10 people putting in rental offers on the same flat? Surprise surprise, the rent will go up. And so begins the secondary cycle from this whole affair. You now have two whole generations that can't really get on the housing ladder and are forced to rent. Rents continue to go up, far higher than equivalent mortgages. And in doing so, further locks them out of the housing market.
Does that help explain how we got here? Add to that general landbanking, right-to-buy, tax dodges by foreign investors, a weak pound encouraging even more foreign investors, heck even council tax discounts for second homes. Need I go on?
It's not just landlords who took advantage of cheap credit (landlords are responsible for about 1 in 10 house purchases).... you're conflating different issues though, cheap credit/low rates affected price way more than affordability!
If rates rise&prices fall a bit properties can still be out of reach for the same people they were already out of reach for as there isn't enough supply.
Just think about what you're arguing here, people are competing for homes, if you don't have sufficient housing stock available then that competition increases and it affects affordability.
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And how many house sales?
Slightly more:
‘Lots of us are very anxious’: why Britain’s buy-to-let landlords are selling
UK rent and rate rises plus tougher rules are fuelling a crisis for both tenants and owners
www.theguardian.com
Answering "slightly more" is a tad disingenuous to what my (admittedly vague) question was.Slightly more:
‘Lots of us are very anxious’: why Britain’s buy-to-let landlords are selling
UK rent and rate rises plus tougher rules are fuelling a crisis for both tenants and owners
Has the overall supply of houses reduced because of landlords holding onto properties?
I think you need to go to specsavers, there is also a link there and a direct quote putting into context just how many more they sold:
I'll put it in a larger font for you
"Landlords sold 35,000 more properties than they bought across 2022"
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That isn't the question I am asking, lol. Where did I say "across last year?".I think you need to go to specsavers, there is also a link there and a direct quote putting into context just how many more they sold:
I'll put it in a larger font for you
"Landlords sold 35,000 more properties than they bought across 2022"
I'm not really sure what you're asking then or why you're asking me or what it has to do with my point that lack of supply/new homes is the main issue here.
I'd suggest you could consult this website if you're trying to search for information on previous years etc..
www.google.com
If you aren't sure what I am asking or why I am asking you, why are you replying?
If you aren't sure what I am asking or why I am asking you, why are you replying?
You literally quoted me and asked a question... why are you being so cryptic, 1 in 10 house sales are to landlords at the mo, you asked me how many are sold and it's a similar number albeit a tad more... 35k more (as of last years figures). Now you seem to have come back with some vague reply that that's not what you're asking ergo perhaps you could clarify for yourself whatever it is you're asking and try to find the information yourself. If 35k more have been sold than have been purchased then clearly there are 35k more properties available for other purchasers... you were aksing if the supply has been reduced or not surely the answer is there no?
If you've got something relevant to say re: what I've posted or argued then just go ahead and make your point/argument etc..
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What don't you understand about that question? Cherry picking one year and saying "for a given year they sold more houses than they bought" doesn't mean anything if the year before they bought 10x more than they sold, and the year before 20x etc.
Sure and you could go all the way back to the early 1900s if you like... but didn't specify anything in terms of timeframe, your initial question was in ref to what I'd posted, now you're changing it into some vague question re: some uncertain timeframe/window looking back.
Do you have a point to make here with regards to what I posted? Again the point I'm making is that the supply of new housing isn't sufficient.
If landlords are currently selling slightly more homes than they're buying then the presence of landlords in the market clearly that doesn't negate my point re: lack of supply, does it?
Also some people do need to rent and lack of rental properties affects rent prices too. Again... an issue with supply.
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Just unclear why you'd try and answer a question you didn't understand!
That's retrospective, it's only after you objected that it's unclear therefore what you're asking. Why not clarify? What timeframe are you looking at? Why not go and look up the data? what does it have to do with my point?
FWIW UK rates of home ownership fell from 70%ish to somewhere like 64% or so across the first couple of decades of the 00s IIRC, I'm sure you could go and look that up too if that's the timeframe you're interested in.
Currently, though rental properties are decreasing slightly in number and supply in general of properties is only really increasing rather slowly.
I don't really think it's a difficult point to follow, it's literally basic supply and demand, we're simply not constructing enough homes in the UK... some people have a chip on their shoulder about landlords but that doesn't negate the obvious supply issues.
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Yes, the initial tenant is still there. I was expecting a battle/negotiation for this reason, however they accepted 3 months notice. I was pleasantly surprised and happy enough with that in the grand scheme of things.
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Caporegime
The massive problem with everything the government do is that its completely focussed on maintaining these crazy high property prices. They aren't even trying to hide it either. Anyone with half a brain cell could see that a stamp duty holiday wouldn't save anyone any money. Quite frankly im astounded it passed even the most rudimentary of sanity checks.
Any government that was in power when the housing market collapses is onto a hiding. People don't care that they paid £400k for a house. If it was worth £500k at some point and now its only worth £400k again they will be ****** because people are fundamentally idiots.
Any government that was in power when the housing market collapses is onto a hiding. People don't care that they paid £400k for a house. If it was worth £500k at some point and now its only worth £400k again they will be ****** because people are fundamentally idiots.