Updating post from Reddit.

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INFORMATION
Posted by phpadam 3 weeks ago
SDLT increase for Landlords
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Posted by phpadam 3 weeks ago

🏠 Up to £250K: 5%

🏠 £250K-£925K: 10%

🏠 £925K-£1.5M: 15%

🏠 £1.5M+: 17%

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Posted by Anon 1 second ago
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Posted by mikolv2 3 weeks ago

Fuck me, I was due to complete in a week or 2. I was hoping these changes wouldn't come into play until next fiscal year. Getting dropped with £6k bill out of the blue is slap in the face.

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Posted by PM_ME_SECRET_DATA 3 weeks ago

Comes into effect tomorrow apparently.

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Posted by TravelOwn4386 3 weeks ago

Annoyingly i wanted to put my btl into a ltd company now it is hardly financially worth it.

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Posted by Anon 1 second ago
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Posted by ChangWeCanBelieveIn 3 weeks ago

Go work for a living then 😉

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Posted by Anon 1 second ago
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Posted by phpadam 3 weeks ago

Any chance of exchanging TODAY!

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Posted by stupid151 2 weeks ago

Just Exchanging wouldn’t help

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Posted by DaenerysTartGuardian 3 weeks ago

SDLT changes always come into effect very quickly. They know the effect it has on the market if they announce early. You should've been whipping the horses to complete before the budget.

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Posted by Hungry-Recover2904 3 weeks ago

get owned

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Posted by mikolv2 3 weeks ago

Don't worry, it will be passed down to tenants. I just need to fork it upfront and wait to recuperate the costs.

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Posted by MultipleJars 2 weeks ago

Oh no! What I plan to do, and if a reason is asked I’ll tell them it’s the budget and policy of this government.

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Posted by uklandlords-ModTeam 3 weeks ago

Please Keep it Civil

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Posted by Puzzled-Opening3638 2 weeks ago

I'm lead to believe if you have exchanged that's fine...as intent was there.

Deals which have not exchanged are subject to the additional tax.

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Posted by Thunderkettle 3 weeks ago

Have you already exchanged? If so then you're fine as there's an exemption for those who exchanged by tonight.

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Posted by stupid151 2 weeks ago

Are you sure? I thought it only applied to completion? Are you saying if I exchanged on a 2 year off-plan deal that my stamp duty liability on completion in two years would be based on when I exchanged?

For there to be a stamp duty tax event, you have had to pay at least 80-90% (not sure which) of the price, so unless you’ve exchanged with that amount, my understanding is you’ll pay the higher rate.

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Posted by stupid151 2 weeks ago

Oh wow, I stand corrected sorry. It doesnt give timescales either after exchange just, substantially or completed.

Quote: Transitional rules will apply so that contracts which were exchanged before 31 October 2024 but which are completed or substantially performed after that date continue to pay the surcharge at 3 percentage points above the residential rates in force at the effective date of transaction.

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Posted by mikolv2 3 weeks ago

No, we were supposed to exchange this Monday but as per usual, delays. I'll have to take this on the chin I'm afraid.

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Posted by Thunderkettle 3 weeks ago

If you're not exchanged and aren't in a crazy rush, it might be worth asking the seller to drop the price by a tiny bit? If it's between starting from scratch with a new buyer (3-6 months of delay) or dropping by even one or two thousand they might be willing to drop it a little. Not amazing but might take a bit of the sting out.

That is brutal though, I'm sorry you're in that position. Must be a lovely sucker punch there.

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Posted by mikolv2 3 weeks ago

Im considering it. I was expecting some tax hikes but not as soon as tomorrow with no prior warning. That's the brutal part. If I knew about it ahead of time, I could have taken it into account and plan accordingly.

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Posted by notouttolunch 3 weeks ago

Classic Labour. They did virtually the same with tuition fees.

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Posted by Anon 1 second ago
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Posted by junanda 3 weeks ago

Is this correct? I exchanged two weeks ago but don’t complete for a month. Where did you find this exemption. Any help greatly appreciated!

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Posted by stupid151 2 weeks ago

I think this relates to second home only purchases does it not? So if it’s an investment or second home, you’re all good on the surcharge rising from 2-5%

The standard stamp duty rises do not come in effect until March.

Transitional rules will apply so that contracts which were exchanged before 31 October 2024 but which are completed or substantially performed after that date continue to pay the surcharge at 3 percentage points above the residential rates in force at the effective date of transaction.

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Posted by Thunderkettle 3 weeks ago

Pretty black and white as far as I can tell, I'm in the same position as you. Section 2.58 in the budget document.

I'd send a screenshot but don't actually know how on here...

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Posted by Anon 1 second ago
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Posted by Bastienbard 3 weeks ago

Oh no... Anyways.

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Posted by mikolv2 3 weeks ago

What did you expect in a property investment subreddit?

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Posted by BaBeBaBeBooby 3 weeks ago

This is great news for existing landlords (who don't want to expand); rents will increase.

Terrible news for tenants as rents will increase - current landlords unlikely to be replaced by new landlords when they exit.

Bad news for any landlord who wants to buy more property.

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Posted by Primary-Effect-3691 3 weeks ago

Depends on how quickly Labour can build. Rents aren’t a function of landlord costs, rents are simply a function of scarcity in the market 

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Posted by BaBeBaBeBooby 3 weeks ago

Fully agree, and this will - in the medium term at least given how long it would take to build a market moving amount of property - reduce supply, therefore increasing rents.

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Posted by pinwheelpepper 3 weeks ago

First time buyers can access an increased level of support nowadays. Hopefully we’ll see more young people getting on the property ladder rather than getting stuck in a rent cycle.

I’ve just bought my first home and beat out an investor who offered a few grand more because they wanted it to go to someone who was going to live in it themselves. Positive change for sure.

Edit: that’s to say some of the demand for homes will be met by people becoming homeowners - I don’t think prices will rise as much as you think.

Edit 2: Can’t reply… been banned for calling a lazy person lazy

TravelOwn - I see what you are saying, but the minimum wage is increasing, interest rates coming down, more provisions in place for buyers w/ low income etc...

Not sure where you are, but a good amount of first time buyers aren’t going to be looking much higher above the threshold price for stamp duty. I certainly didn’t have to - £74k purchase price on an end terrace. Don’t want to seem ignorant as I know that’s not possible everywhere, but the point is to get on the housing ladder, not to buy a forever home on day 1.

There will also be landlords deciding to sell up, freeing homes.

Re: social housing, more homes are being built to replenish stock & funds raised from this will actually start to flow back into communities. This is about sustainable growth.

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Posted by AlanBeswicksPhone 3 weeks ago

I was in the exact same situation beat out an investor despite the sellers being pressured like crazy from the estate agent to accept the offer.

I think one of the things that gone amiss in this thread (unsurprisingly given its for landlords) is that it levels the playing field so Investors can't come in and gazump first time buyers for properties.

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Posted by Omlet_OW 3 weeks ago

that would be the case if we could start our lives with a decent wage. im 21 and i cant get a £3 pay rise until im 22. which makes no sense tbh, and jobs are getting pretty scarce for younger people as more jobs are wanting more qualification or experience. i cant wait to be able to afford to move out my mums house 😂 that wont happen for some time tho. rent is too expensive and most forms of housing are too. not to mention the help we get seems to be pretty pick and choose based on what my mates have had to go through.

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Posted by Christine4321 3 weeks ago

Im pleased for you, but in a year, the demand for rentals will be twice what it is today so it looks like you just got in there. (Feel free to book,ark and we’ll come back to this in a year)

Im also concerned our unemployment figures are about to take a nasty turn too so social housing (which wont be built by this government) will be an absolute nightmare for those needing it. A penny off a pint is ridiculous when the cost of employing the barman to serve it has just leapt significantly.

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Posted by AlanBeswicksPhone 3 weeks ago

How are you defining demand? Do you mean twice as many houses going through "the process" i.e being bought or with new tenants (hmm maybe). Or literally twice as many people looking for rented accommodation (pie in the sky)?

Unemployment has been fairly stable even with some of the pay awards unions got in 2022. The idea that it's going to spike because of an extra 80p an hour is for the birds. Same with national insurance employer contributions, it might affect salary sacrifice schemes and a bit of pensions here and there, but if a business needs to make redundancies because of these increases it was a poorly ran business.

Also, I'm pretty sure they serve more than 80 pints an hour in my local. So it's a net gain for the pub. And even if not, the good pubs have diversified and are resilient enough to take the hit.

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Posted by TravelOwn4386 2 weeks ago

You realise she lowered help for those able to buy their council homes and there is a stamp duty which will hit ftb from the new tax year. It will actually mean ftb need to find more funds whilst juggling the demand to find what is left of the rental market and at high rents which will eat up any chance to become a ftb if anyone needs to rent.

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Posted by Randomn355 3 weeks ago

There's such a huge gap in what we have and what we need, that element of the equation isn't changing anytime soon.

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Posted by Christine4321 3 weeks ago
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Posted by mikexallan 3 weeks ago

The answer to which party builds more homes per capita in the UK depends on the measure and time frame being evaluated.

Under recent Conservative governments, house building increased from the post-2010 levels, reaching peaks in 2019-2020 with around 242,700 net additional dwellings, which was the highest annual level since the early 1990s.

However, affordable housing, particularly social rent housing, has decreased significantly under the Conservatives compared to earlier Labour governments. Labour’s last term saw over 550,000 affordable homes built, with a focus on social housing, whereas the Conservatives have emphasized market-driven affordable rent, which is generally more expensive for tenants.

While both parties have struggled to meet overall housing targets, Labour’s focus historically included more social housing, which reduced substantially under Conservative policies. In short, both parties have faced challenges in achieving housing targets, but Labour governments typically emphasized affordable housing, particularly social rent, whereas Conservative policies have leaned more on market-based solutions and higher total housing counts in recent years.

This complex record makes it difficult to declare one party as definitively superior in housing per capita without specifying the type of housing and the time frame considered. For context, recent Conservative governments have promoted higher total housing builds but with less emphasis on traditional affordable housing types compared to Labour’s tenure up to 2010.   

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Posted by Some-Ad-3938 3 weeks ago

If only this were true.

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Posted by reddit-raider 3 weeks ago

They definitely are a function of landlord costs (not only of that, but it's a factor). If a landlord can't pay the bills they will raise rents. If no one will pay the raised rents, they sell.

This reduces rental supply if they sell to anyone who wasn't previously renting in the UK/a landlord. Reduced supply drives up rents.

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Posted by Primary-Effect-3691 3 weeks ago

>Reduced supply drives up rents.

Only if demand is constant - this probably isn't the case if we're disincentivising property as an investment. People not entering the market to buy a 2nd or more means less demand for housing and blunts housing inflation. This in turn will enable more renters to leave the rental market and become owners

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Posted by BaBeBaBeBooby 2 weeks ago

We're importing 100,000s people every year. They need somewhere to live. So rental demand will only increase.

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Posted by Primary-Effect-3691 2 weeks ago

All the more reason to get the help the current set of renters become owners - good point

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Posted by reddit-raider 2 weeks ago

That's house price demand you're talking about, not rental demand. Rental demand remains strong. People didn't stop wanting to rent because of the anti- landlord legislation. And rental supply shrinks with rising landlord costs unless the market can absorb rent rises. No one keeps operating a business at a loss indefinitely. Not even the big operators.

Also, contrary to what some people believe, not everyone wants to buy houses. A lot of people actually want to rent a place. I'm not talking about slum landlording, but nice places.

Some tenants pay enough rent in advance to pay for a deposit on a purchase elsewhere - they have the money - but they don't want to be tied down to a mortgage/maintenance etc. They want to get on with their own jobs.

Some people only want to live somewhere temporarily (even if it ends up being where they live for life). Many of my foreign friends rent in the UK for many years, thinking they may move back to their home countries at some point.

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Posted by Dougalface 3 weeks ago

.. and hopefully decreased purchases by landlords will make more stock available to owner-occupiers and drive down rental demand.

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Posted by Worth_Banana_492 3 weeks ago

Exactly. They screwed tenants over. Won’t make a difference to the landlords now. Even those who want to buy. Because it will soon be built into the cost of renting. So much for helping working people. More like helping starmer tax working people. And as for upping the minimum wage. Upping it right into the first tax band immediately.

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Posted by PM_ME_SECRET_DATA 3 weeks ago

Not sure. I think it'll slow the market enough to allow prices to drop which will actually allow me to purchase a few more at prices I felt were more reasonable.

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Posted by Snuffleupuguss 3 weeks ago

You could stop buying up property and save some for the rest of us? 🫠

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Posted by PM_ME_SECRET_DATA 3 weeks ago

I’m not stopping you from doing so? You realise what sub this is right?

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Posted by Anon 1 second ago
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Posted by Anon 1 second ago
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Posted by aidankd 3 weeks ago

it's worth considering that since there might be less landlords on the market buying additional homes, it might result in house prices going down/increasing less if there's less buyers demand - which could then potentially make it more attainable by first time buyers (which I suppose is the goal).

Which may, maybe not any noticeable amount - reduce the pool of renters as well.

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Posted by Important_Hunter8381 3 weeks ago

But if rents increase, doesn't this make the extra 2%, worth paying, thus increasing the number of rental properties?  Alternatively, if less homes are being snapped up by landlords, house prices will not increase as quickly giving some people a better chance of buying trug own home.  

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Posted by OkFeed407 3 weeks ago

It’s not ideal but in the past decade there are changes in regulations, tax and legislation. Landlords had been responding with resilience and adaptability. I am still a believer of BTL properties as the government will not be able to build as fast to ease the demand. At least not the coming 10 years to come. Hang tight and stop shitting yourself, if you are looking for a new BTL then factor in all costs, keep calm and carry on. The government wants a piece of cake from the sector, they are basically making tenants pay for it when landlords buy new BTL. Make sure your AST has a rent review clause.

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Posted by Acrobatic-Record26 2 weeks ago

Renters rights bill will stop rent hikes not in line with the lower of local wage growth or the CPI and limit them to once a year. No more offsetting increased taxes onto the tenants. But that isn't till next year so have at the poors now while you can!

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Posted by BaBeBaBeBooby 2 weeks ago

If landlords can't make an adequate return they will sell. Which doesn't help tenants.

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Posted by Acrobatic-Record26 2 weeks ago

More houses on the market don't help the people who can't afford houses, I am shocked

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Posted by For_The_Watch 3 weeks ago

Landlords in general are bad news for society

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Posted by phpadam 3 weeks ago

Lower FTB SDLT (& exceptions), wasn't enough.
Lower FTB mortgage rates weren't enough.
Lower FTB deposit requirements weren't enough.
FTB Government support, wasn't enough.
Landlords taxed on revenue wasn't enough.

Comentariart apparently stated that first-time buyers need more advantages.

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Posted by My_smalltalk_account 3 weeks ago

Oh, comentariart are quietly dreaming of Land Reform Movement China style in 1950-ties.

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Posted by Dougalface 3 weeks ago

God forbid anyone should be able to actually buy a single property to live in if it diminishes your ability to hoover up multiple properties to whore out for profit.

What a disgustingly greedy, entitled and selfish position to take - the epitome of the unproductive, leeching landlord stereotype.

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Posted by ralaman 3 weeks ago

She pulled a fast one there! SNAKE

std surcharge increase from TOMORROW!

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Posted by Shot_Annual_4330 3 weeks ago

That you can offset from capital gains tax (that has been frozen for residential property sales) and just means it'll take a bit longer for your investment to pay off through rent or capital appreciation. I don't see it hitting long-term landlords particularly hard but it'll put off people who try to flip properties short term. Mostly hits career landlords expanding their portfolios rather than 'accidental landlords' or those with a couple of properties to their name. Not as bad as it could have been with the potential for changes to capital gains tax.

Rents have gone up hugely recently and mortgage rates are going to start trending downwards - how many landlords were planning on cutting their rents when their mortgage repayments drop?

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Posted by ThatAdamsGuy 3 weeks ago

> Rents have gone up hugely recently and mortgage rates are going to start trending downwards - how many landlords were planning on cutting their rents when their mortgage repayments drop?

I predict approximately 0 to 0%?

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Posted by Christine4321 3 weeks ago

Landlords will always be driven by the market. If the costs to rent out a property drop, then LLs will drop to compete locally for decent tenants. Theres always LLs looking to undercut competition, quick tenant turn round and minimal void periods are far more valuable than an extra £100.

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Posted by ProtoplanetaryNebula 3 weeks ago

You’re right, but there is a budget every year, if i had to guess, things will get worse in future and not better. They will keep turning the screw.

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Posted by Anon 1 second ago
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Posted by TravelOwn4386 3 weeks ago

Just another thought on this how many landlords will not be able to move into another home due to the big increase? Potentially breaking the upper end of the housing market chains.

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Posted by phpadam 3 weeks ago

When a landlord sells their existing home, they dont pay the extra SDLT on new purchase.

You are right if they decide to keep their existing home, when purchaseing a new one.

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Posted by Anon 1 second ago
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Posted by bishsticksandfrites 3 weeks ago

Not how it works, mate.

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Posted by Anon 1 second ago
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Posted by i-am-a-passenger 3 weeks ago

I believe you are wrong, but please check with the government calculator yourself to see for sure.

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Posted by IG0tB4nn3dL0l 3 weeks ago

This policy doesn't penalize existing landlords at all, only new entrants or those seeking to grow their portfolio. Seems quite regressive.

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Posted by Spam250 3 weeks ago

That seems very sensible - nobody is directly worse off, but it prevents more buy to let.

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Posted by Rathernotsay1234 3 weeks ago

I agree, this avoids upsetting existing landlords but should prevent the amount of housing being bought to let, hence helping housing costs

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Posted by NIKKUS78 2 weeks ago

Genuine question, where do those who rent live without BTL? Please tell me you dont expect the council to replace the PRS.

All it will do is increase rents further and reduce choice for tenants.

Its insane, all it is doing is incentivizing the lowest common denominator LL, if their goal is to remove all the nicer property in nicer areas this is about the perfect way to do it.

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Posted by ElectricalPick9813 3 weeks ago

Isn’t that the point?

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Posted by Christine4321 3 weeks ago

Correct. MP landlords and drawbridge pulling springs to mind. It guarantees continued upward pressure on rents too, so Im sure theyll be having a beer in the Commons bar to celebrate this evening. She also didnt bring in the threatened changes to capital gains on landlords selling, so they can celebrate that one too.

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Posted by Netzero1967 3 weeks ago

This is fantastic news for existing landlords. This puts a huge entry barrier for landlords (existing or new) to buy additional properties. Which will help keep supply scarce and rents high.

I am about to offload one of my properties. But now thinking maybe i should not and keep hold. anyone else having similar thoughts?

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Posted by shadow__boxer 3 weeks ago

Reinforcing the idea of property is no longer a worthwhile investment long or short term. Ultimately you could argue both ways whether this is a benefit or not to renters. I think private landlords have a huge potential to support the housing market but the vilification continues.

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Posted by Primary-Effect-3691 3 weeks ago

Probably makes strategic sense. Less people competing against first-time buyers in the market should blunt housing inflation somewhat. Plus people with extra cash now need to find different way to invest, like stocks, which the British stock market needs anyways 

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Posted by shadow__boxer 3 weeks ago

Also I get the feeling that it's only a matter of time until inheritance tax is increased so handing down additional properties as part of the estate will invariably take a big hit sooner or later. Now is as good a time as any to turn away from investing in bricks and mortar. I certainly am not planning on adding anything more.

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Posted by lonathas_ 3 weeks ago

I agree completely. Not ideal for current landlords but hopefully will benefit everyone down the line as new investment opportunities appear.

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Posted by JamJarre 3 weeks ago

Landlords wouldn't get vilified if so many of them weren't absolute bells. You have to treat people well if you want them to respect you

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Posted by FranzFerdinand51 3 weeks ago

> Reinforcing the idea of property is no longer a worthwhile investment long or short term.

Thank god.

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Posted by Jakes_Snake_ 3 weeks ago

Offer £5k for everyone to complete today?

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Posted by One_Lobster_7454 3 weeks ago

Rents go brrrrrrr

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Posted by dubsteppa11 3 weeks ago

After two sales fell through over 18 months due to EWS1 cladding issues and high service charges, we’ve given up trying to sell our flat. We want to start a family and need more space, so we’re going the ‘accidental landlord’ route buying a second property and hoping it works out long-term.

We managed to scrape together funds for a deposit on a new place, plus the higher rate stamp duty, which wasn’t easy as having to leave a good amount of equity on our current flat to make it viable. But just as we’re close, SDLT has increased! Not much I know and I get that we can sell within three years to recoup it, but right now, we still have to come up with the extra upfront. Another kick in the teeth!

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Posted by hpsauceman 2 weeks ago

We’re in the same position. Just had an offer accepted this week on a ‘second’ house now we have to find another 10k for stamp duty 🫠

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Posted by hapispark 3 weeks ago

I completed on a BTL today at 3pm. Close one.

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Posted by Aggravating-Method24 3 weeks ago

I once met a man, i asked him what he did and he said word for word - "I am a landlord, so nothing"

He was being honest. on further conversation he attended a meeting a month. I taught his kids to ski, this was not a man short of money. This was a man admitting that he did not work for his wealth that will likely always exceed mine, that he inherited from his father.

This may enlighten you as to why landlords are seen as a bad thing.

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Posted by ProtoplanetaryNebula 3 weeks ago

He’s a landlord of a big portfolio, so he does nothing. Lots of landlords have jobs.

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Posted by phpadam 3 weeks ago

Jelousy is a vicious thing. His family worked hard so he didnt have to, they taxed them on death but not enough for your envy.

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Posted by DomTopNortherner 3 weeks ago

How many generations should "his family worked hard last"? Should someone's great, great grandchildren not have to work a day in their lives because that person was lucky in some land speculation?

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Posted by Anon 1 second ago
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Posted by Equivalent-Most-7333 3 weeks ago

If you don't have to work you're a leach. If any of my kids never worked I'd be fucking ashamed of myself

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Posted by uklandlords-ModTeam 3 weeks ago

This is a community for Landlords. You can be anti-landlord in other places like /r/HousingUK/

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Posted by Aggravating-Method24 3 weeks ago

Excuse me for expecting people to work for their wealth.

Honestly, i think you are a terrible human being for what you have said here. We are simply not going to agree on this. You just sound like you feel entitled to an easy life. I dont care how hard great grandaddy worked for you, i care what you are worth, and currently that sounds like nothing.

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Posted by AnonyMouseAndJerry 3 weeks ago

Perfect, and on second properties too. About time some housing stock was freed up for people who deserve it.

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Posted by therealJaspr 3 weeks ago

What do you mean by Deserve ?

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Posted by AnonyMouseAndJerry 3 weeks ago

Middle income earners aka those earning 35-50k who have been struggling to get on the property ladder for years due to being gazumped by (mostly) landlords. Had it happen 3 times in 2 years and each time it’s back to the drawing board. If even 5% of you are put off buying second properties then it’s a massive win for FTB on the cusp of being able to purchase who shouldn’t have to dream about owning a home.

A net positive for the majority, a small price to pay for the afforded minority.

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Posted by ThatAdamsGuy 3 weeks ago

Couldn't agree more.

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Posted by Anon 1 second ago
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Posted by phpadam 3 weeks ago

Just one more advantage, like the last one, is never enough.

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Posted by dimebaghayes 3 weeks ago

I’m enjoying seeing landlords being seen off

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Posted by uklandlords-ModTeam 3 weeks ago

This is a community for Landlords. You can be anti-landlord in other places like /r/HousingUK/

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Posted by Jordcore 3 weeks ago

Fully expecting my landlord to pass this cost onto me. Amazing.

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Posted by phpadam 3 weeks ago

This tax is on a purchase, so more unlikely. However less rentals entering the market (as this is designed to do) will push up your rents over time, as agents will be telling your landlord "i've got tenants waiting who will pay more".

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Posted by Jordcore 3 weeks ago

Ty appreciate you taking time to give me extra context

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Posted by Christine4321 3 weeks ago

Yet further squeezing the supply side of the rental market. If anyone thought there was a chance rents would become more affordable under this government, this is your guarantee rental values will only continue one way. Up.

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Posted by travis_6 3 weeks ago

When someone with a single property wants to move, they'll be forced to go into a chain or somehow come up with an extra 5% cash on top of their deposit to 'float' until they sell their old home and get it back.

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Posted by corickle 3 weeks ago

I missed this so thanks for posting.

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Posted by ddamian__ 3 weeks ago

If I completed 2 weeks ago and my lawyers are working on SDLT forms, will I be affect ? I own another property and not selling it so this new completion is my 2nd property.

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Posted by ctjsmith92 3 weeks ago

You'll be fine. It's calculated from completion date 👍

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Posted by ddamian__ 3 weeks ago

Thank you kind stranger on the internet for easing my worries lol

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Posted by phpadam 3 weeks ago

"Those who exchanged contracts prior to 31 October 2024 are not affected by this rate increase"

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Posted by Thunderkettle 3 weeks ago

Where did you find this if you don't mind my asking? I've been looking for exactly this info but can't find it!

EDIT: Never mind, I've since found it. Good find, thank you very much for the information!

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Posted by phpadam 3 weeks ago

It's in the Red Book look for 5.75 here.

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Posted by Thunderkettle 3 weeks ago

Thanks very much, I just looked there myself following your comment. You're the detail orientated hero we all need - crazy how many people are going mad about this before knowing the details. The upsetting thing is that I was briefly one of them.

For clarity for anyone else looking, the section that mentions exchange date is 2.58

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Posted by Emergency_Hurry280 3 weeks ago

You will not be affect.

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Posted by NIKKUS78 3 weeks ago

Hahaha well it seems like they have looked at the private rented sector over the last 5 or 6 years and thought yes this is exactly what we want...

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Posted by elegance78 3 weeks ago

There are other surprises coming your way.

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Posted by NIKKUS78 2 weeks ago

Yeah I fear this is right, honestly I have very little skin in the game these days, certainly nothing compared to the average tenant, who is going to be paying higher rents with little or no choice going forward.

It seems like they are trying to make renting as difficult as possible for tenants.

They have made buy to let incredibly unattractive, now they are going after refurb. We had 3 cash only purchases, complete gut jobs fall through yesterday. The extra 8% CGT & 2% SDLT makes the profit no longer worth the risk... if you are hoping to make a 20-25% return suddenly 10 or 12% means there is NO room for risk

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Posted by phpadam 3 weeks ago

As commentators celebrate another advantage for first-time buyers, the government's expected revenue increase suggests landlords will keep buying.

https://preview.redd.it/3p562fesnwxd1.png?width=640&format=png&auto=webp&s=9bbd4b18d07e19731cc7df8cf58a1e383812efcc

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Posted by TellInternational535 3 weeks ago

Rishi did this, could have had an election next year’s December. Inflation is now 1.7%, he could have cut taxes right now. Instead, he held an election when taxes were at historic high, throwing the election to Labour, giving Labour freedom and excuses to raise taxes even further because “The Tories made you suffer not us”.

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Posted by JamJarre 3 weeks ago

Oh yeah the Tories would have absolutely got their own landslide in December and not, say, been even more crushed into oblivion. You are living in a fantasy land. I bet you think the public like Boris too

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Posted by phpadam 3 weeks ago

About to buy your first buy to let property for £500k?

Your stamp duty bill just went up £10,000

How many months, no, years, of rental profits is that?

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Posted by Miserable-Band-2865 3 weeks ago

Womp womp

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Posted by The_Flurr 3 weeks ago

>How many months, no, years, of rental profits is that?

Usually about 6 months?

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Posted by PM_ME_SECRET_DATA 3 weeks ago

Just charge more on rents to make up for it?

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Posted by TFCxDreamz 3 weeks ago

The question is does this apply to limited companies?

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Posted by PM_ME_SECRET_DATA 3 weeks ago

Yes

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Posted by TFCxDreamz 3 weeks ago

Source?

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Posted by phpadam 3 weeks ago

LTD Company BTL's always pay the additional rate, by design. They have increased the additional rate, so will apply to them.

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Posted by ThatAdamsGuy 3 weeks ago

I honestly don't have enough tiny violins for this thread.

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Posted by Equivalent-Most-7333 3 weeks ago

The tears sustsin me

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Posted by ThatAdamsGuy 3 weeks ago

My skin is moisturised

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Posted by Equivalent-Most-7333 3 weeks ago

Unbothered, demure, in my own lane, not hoarding housing stock like a shit balding dragon

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Posted by Amnorobot 3 weeks ago

My friend is about to sell his property which was a cash purchase. The buyer's solicitor wants him to pay for "mortgagee protection indemnity" - whatever that means as this clause was not included in the lease..

  1. Would be most grateful for anyone with experience in this matter.

  2. Could anyone explain why the seller should be "protecting" the buyer's mortgage with his hard earned money?

  3. Who should my friend turn to - for assistance/ advice in this regard?

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Posted by simbawasking 3 weeks ago

His own solicitor can advise him.

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Posted by Amnorobot 3 weeks ago

Thanks In this situation, both Seller and Buyer's solicitors work for the the same company.

His solicitor is asking him to pay! I disagree. This is why I raised the query

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Posted by simbawasking 3 weeks ago

Well that’s the solicitor’s advice. If he doubts it he needs to get his own independent solicitor.

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Posted by FatBloke4 3 weeks ago

>both Seller and Buyer's solicitors work for the the same company

That's a bit dodgy.

Mortgage protection indemnity will insure the lender against a default by the borrower/buyer. It has nothing to do with the seller.

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Posted by ElderberryCalm8591 3 weeks ago

Waaaaa

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Posted by MojitoBurrito-AE 3 weeks ago

Womp Womp

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Posted by readitonreddit99 3 weeks ago

Drop the SDLT and allow properties to be used as rentals

What they should do is tax people appropriately and not allow them to use ltd companies like they're running a "legitimate" business and avoid tax

Make your money but pay what's due just like everyone on else on PAYE

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Posted by phpadam 3 weeks ago

Whats not "legitimate" about running a BTL Business in a LTD Company? an odd thing to say.

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Posted by readitonreddit99 3 weeks ago

Okay fair it's legitimate thing to do, but it doesn't contribute back to society.

A company that has actual employees and contributes to national insurance is something I would see as an actual business.

And yes, there are BTL business owners who are large enough where they do have actual business activities that contribute.

I'm talking about the boom in smaller landlords who use the ltd company to fund their leased cars that they drive for pleasure, pay their main residence with and pay the 12,750 allowance and then take dividends.

Yes it's legitimate, just a loophole which isn't fair to the rest of society who have are on PAYE which contribute.

BTL properties is a good thing. Just tighten the loophole for better contribution.

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Posted by phpadam 3 weeks ago

It's not the loophole you think it is. LTD Company BTL Tax Advantages come from not withdrawing the profits but useing it to re-invest. Otherwise you get into double taxation area.

Them TikToks with idiots paying for a Holiday as Business Expences, will be in deep trouble if/when they are found out.

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Posted by readitonreddit99 3 weeks ago

A married couple can still take separate dividends out of the business?

And using a Ltd company Corp tax is lower than an individuals tax would be?

I'm not saying tax landlords to death, absolutely not, but I personally know of far too many abusing the tax advantages.

Make it profitable, but do not allow it to be abused.

Reward good landlords and make the bad tenants known!

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Posted by Substantial_Dot7311 3 weeks ago

It’s been 6% for a while now in Scotland, you can still function, you just have to buy better

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Posted by phpadam 3 weeks ago

There is a significant difference in average house prices between Scotland and London; the average property price in Scotland is £188,000, while in the London region it is £685,000.

Who knows, you might get more landlords up there. I wouldn't, but you never know.

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Posted by Substantial_Dot7311 3 weeks ago

A little simplistic to quote these broad averages I have properties in both London and Edinburgh. Many places in England are cheaper than Edinburgh though.

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Posted by mightbegood2day 3 weeks ago

Zero time to prepare not on

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Posted by layland_lyle 3 weeks ago

So they want lower rents for tenants and more property on the rental market, their solution, make buying a rental property even more expensive!!

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Posted by ReluctantWorker 2 weeks ago

People with no jobs are about to raise other working people's rent so they can live for free and have other people pay their loans off.

Just get a job if you need to pay for something.

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Posted by RomyJamie 2 weeks ago

Every one talking like this will have some sort of seismic shift and ‘price landlords out of the market’ its a one off additional cost equivalent to 2% of the properties total value. If you’re thinking anywhere near long term that is a drop in the ocean.

They could have gone MUCH harder honestly.

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Posted by sbos_ 2 weeks ago

Long term price fall. The foundations are being set. Scrapping right to buy. Tweaking planning laws. If they build the amount of homes promised in this term…then they’ll get another 5 years to continue building. It’s dull to continue looking at housing at lucrative asset at this point.

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Posted by MetalGearUK 3 weeks ago

I'm currently in the process of buying a property, will I be affected if I exchange today?

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Posted by Long_Ad2432 3 weeks ago

No, are you exchanging today?

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Posted by MetalGearUK 3 weeks ago

Nope, I've desperatley been on the phone trying to get an exchange today but they are telling me it's not possible

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Posted by Long_Ad2432 3 weeks ago

Exchanges have to be agreed in advance and cannot be arranged on a whim. You will sadly be paying the extra SDLT.

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Posted by phpadam 3 weeks ago

The red book says:

> Those who exchanged contracts prior to 31 October 2024 are not affected by this rate increase

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Posted by OnlyDiscussion2128 3 weeks ago

I apologise for being dense, I just want to clarify, I've literally just exchanged on a second home this afternoon, due for completion on 31/11/2024.

I've only just learned about the budget and beelined it here.

Will I need to pay the current stamp duty levy tax or the new rates announced by the budget?

If I am lucky enough to be on the ore-budget rate, is there any literature to help me show my solicitor that this is the case?

Thank you in advance.

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Posted by OnlyDiscussion2128 3 weeks ago

Found the answer

https://www.gov.uk/government/publications/rates-and-allowances-stamp-duty-land-tax/stamp-duty-land-tax-rates-23-september-2022-to-30-october-2024#:~:text=The%203%25%20additional%20rate%20was,will%20apply%20instead%20of%205%25.

1.2 Higher rate for additional dwellings

"Where contracts have been exchanged before 31 October 2024 but complete on or after the 31 October 2024 the additional rate of 3% will apply instead of 5%."

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Posted by ProfessionalNewt7 3 weeks ago

Unbelievable

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Posted by OG_Madonna 3 weeks ago

This and private school costing me around £6k extra this year, awesome

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Posted by Latter-Head7649 3 weeks ago

maybe cut back on the Netflix and Costa coffees?

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Posted by izzitme101 3 weeks ago

dont forget the avocados

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Posted by Alarmed_Book_752 3 weeks ago

You forgot about the Avocado and Toasts too

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Posted by T18Z 3 weeks ago

Oh how will you ever survive

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Posted by OG_Madonna 3 weeks ago

By putting rent up I think

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Posted by pinwheelpepper 3 weeks ago

Pure laziness

Edit: banned for this? lol

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Posted by Rathernotsay1234 3 weeks ago

You're not helping the perception of landlords here... lol

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Posted by OG_Madonna 3 weeks ago

Well, it was somewhat a joke, but it’s also totally expected that this will happen.

So while much of the country are celebrating this landlord tax and vat on school fees, I will await their shock and horror, that as landlords pull out, rents will increase and as people don’t go private school the state class sizes will keep going up.

And then they will wonder where all the money went? oh it’s been pissed up the wall.

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Posted by LordvaderUK 3 weeks ago

Why should the state subsidise private schools?

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Posted by phpadam 3 weeks ago

You're getting Tax and Subsidy the wrong way around. Two different things.

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Posted by LordvaderUK 3 weeks ago

Let me put it another way then -- why should private schools be exempt from VAT?

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Posted by phpadam 3 weeks ago

Not only is it saving money from state funded education, not only do private schools support state schools in facilities, not only is better education of youth a good for a countries prosperity but Why should education be taxed at all?

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Posted by LordvaderUK 3 weeks ago

Because it's free for every child. If parents choose to opt out and buy education, that's their choice, but the taxpayer is already paying for universal education, why should private schools be exempt from this particular tax?

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Posted by Icretz 3 weeks ago

The state offers free education for everyone.

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Posted by bournemouthjames 3 weeks ago

But private schools (mostly) have charitable status, therefore don’t charge VAT… BUT they also can’t claim back VAT on spending.

If they move to business status as they are now paying VAT to gov’t, they can claim back VAT on expenditure.

It’s not going to have a big impact on government pots. It’s just going to cost parents more.

…If only state schools were of a standard where people want to send their kids…

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Posted by LordvaderUK 3 weeks ago

Maybe if fewer parents sent their kids to private schools, the standard of state education would increase.

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Posted by bournemouthjames 3 weeks ago

How do you figure that one out? 🤯

Classes are already over subscribed.

You really think the govt can afford to cover the cost of all those extra kids in state education??

Odd argument to make.

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Posted by LordvaderUK 3 weeks ago

The Government would need to invest more in state schools if there was a sudden influx of ex-private school pupils arriving, in order to keep class sizes down. But I think this is all academic, most private schools will absorb some or all of the VAT, and even if they don't, the increase in fees, a small increase, won't put off most parents.

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Posted by bournemouthjames 3 weeks ago

I disagree the govt would be able to find enough to do that, given schools are bursting.

But i do agree with your point some costs will be absorbed.

We’ll just have to see how/if it impacts numbers. 👍

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Posted by notouttolunch 3 weeks ago

Because there would be some role models to look up to. Seeing someone clever inspired me to be clever. And it stuck.

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Posted by FatBloke4 3 weeks ago

>If they move to business status as they are now paying VAT to gov’t, they can claim back VAT on expenditure.

Once registered for VAT, independent schools will be able to reclaim VAT on capital expenditure for the preceding 10 years.

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Posted by Christine4321 3 weeks ago

Because all those kids will go to state school instead……..so we the tax payer can now pay the £18k it costs to put one child through basic education.

As to the impact of availability of places at good state schools? I wouldnt like to even guess at the impact, but currently circa 6% of UK children attend private schools so its a significant number and one that could break education provision in certain areas.

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Posted by elegance78 3 weeks ago

Nationalisation of private schools would be the right solution to your worries about places.

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Posted by Christine4321 3 weeks ago

True, in that no child would have to physically move if you simply nationalise their school, but adding a further 500,000 children to the current state education bill would be eye watering. (There would also be the costs of maintaining those premises and wonderful extensive grounds many stand in 🤷‍♀️).

Its currently far cheaper to the government (and tax payer) to provide a subsidy, which is a tiny % of the cost to educate a child, to keep that child out of the state school system, than in it.

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Posted by PinZealousideal1914 3 weeks ago

Unbelievable comment!

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Posted by ThatAdamsGuy 3 weeks ago

Have you considered pulling yourself up by the bootstraps? Maybe saving better or eating less avocado?

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Posted by Equivalent-Most-7333 3 weeks ago

Stop eating that avocado toast, I'd play you a song but my violin for you is so small I've lost it

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Posted by DeadbyDaytime 3 weeks ago

Boo hoo

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Posted by Anon 1 second ago
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Posted by damianositos 3 weeks ago

So if I’m buying a second home as anon resident landlord do I pay 7% STD?! Or is the field evened out at 5%?

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Posted by mikolv2 3 weeks ago

5% on the first £250k

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Posted by damianositos 3 weeks ago

But do you still have to pay the surcharge on top of that for expats?

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Posted by phpadam 3 weeks ago

Yes, my understanding is two surcharges are cumualtive and very high.

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Posted by Jonnydq 3 weeks ago

Did you manage to find out the answer? I would assume it’s sadly 7% another 2600 pounds extra compared to yesterday for me! But not sure

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Posted by cursed_phoenix 3 weeks ago

Good

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Posted by thesonglessbird 3 weeks ago

great news :)

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Posted by OkFeed407 3 weeks ago

All costs will be added to to sale and to the renter. Period. They want the property market to heat up even more not down. These people invest in properties too so I can see why they are happy to pull a quick one on this.

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Posted by cagemeplenty 3 weeks ago

Won't somebody please think of the landlords!

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Posted by Anon 1 second ago
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