Osborne poised for ‘imminent’ new crackdown on buy-to-let

Chancellor George Osborne could crack down on the buy-to-let sector “imminently”.

The new curbs would be on top of measures already announced this month, to scrap the wear and tear allowance and to limit tax relief on the interest of buy-to-let mortgages.

Osborne has now told the Treasury Select Committee that the Bank of England could be handed radical new powers.

These could include the Bank being given powers to restrict the number and size of buy-to-let mortgages.

The Bank of England has warned that a buy-to-let bubble could threaten the financial stability of the whole country.

Osborne said he had already asked Bank of England governor Mark Carney for a consultation.

Asked by MPS about a timeframe, Osborne said: “I think the next couple of months. I have just written a letter [to Carney]. It’s all imminent. It’s happening this year.”

The move follows a downbeat assessment by the Residential Landlords Association of the curbs so far announced.

It says that as a direct result of the Budget, 65% of landlords are now considering raising their rents.

The RLA also attacked Osborne for arguing that landlords are currently taxed more favourably than home owners.

Alan Ward, RLA chairman, said that this was wrong, since unlike home owners, landlords are taxed on capital gains.

He said: “The belief that landlords should be compared to home owners is like comparing apples with pears. The two are vastly different.

“It’s time the Treasury recognised residential landlords as a business.”

x

Email the story to a friend!



8 Comments

  1. Robert May

    Sorry Mr Osborne you haven’t thought this through have you?  Even with no tax breaks at all BTL is still a better investment than  with the financial service industry.
    Let me see 5-10% yield plus compound 7%  capital growth, even taxed at a full 40% (net 3%) it is still better than  getting 2% off your  FS banker who then take 1% in fees (effectively a 50% tax on yield)
    This strategy is a delaying tactic for inevitable interest rate rises that will decimate  the London South East property market which is about 16% over inflated right now. An over inflated market funded by excessive LTV  mortgage calculations. This won’t be pretty to watch.

     

    Report
  2. GIOpoint2

    Why is national lottery still promoting Z on social media twitter?
    Camelot ceo – Andy Duncan
    Camelot owned by the Ontario Teachers’ Pension Plan OTPP (Canadian).
    The ceo of OTPP is Mr Mon Mock and fawned over by the financial press as a hedge fund Tsar.
    Why is the Advertising Standards Authority ASA not doing anything about this?
    Being awarded the national lottery franchise is a privilege from the UK Gov. which indirectly awards Camelot a pseudo monopoly status in the UK.
    The national lottery was set up / aim /cause/ duty to raise money for good causes which include a broad spectrum of arts, culture, charities and good causes  
    The Culture, Media and Sport Select Committee should be questioning [their conduct] Camelot OTPP
    And why is the BBC not pulling up their reigns on OTTP?  
    Along with the @TNL account which RT @z ***la  account yesterday
    Dodgy twitter accounts were used to RT  the Z account (on closer inspection) Z / and the odd one or two estate agents should be ashamed using public national treasure!
    Answers must be raised or too scared!
    The national lottery is a UK national treasure (even though it is run by a plc Camelot) it is not a public platform for corporate promotion that inc EAT food)  both FTSE buddies. ( pun intended !) it should be  only promoting the good causes with money raised from ticket sales.
     
    Franchises can be revoked by UK Gov bodies “national lottery commission “and “ the Gambling Commission”
    Camelot does not meet the statutory requirements to run the lottery
     
    “Eye” will you at least champion this cause???????? or too scared  you may offend  the “ media “ circus newspapers sponsors ? or are you all ex members of each other’s companies & that why it’s so awkward ?  can’t be that hard Camelot’s only down the road from PIE ? (Nothing personal just the way I write in a weird way)
    PS. thing is, you’re all noisy (who isn’t) Inc. peebee..love to know all what’s going on, but don’t publish sweet £A  I have complained to the gov bodies and there has been no response / feedback    
    PPS Chesterdud sold off 500K shares yesterday …
    You will probably pull this also, from the comments and dislike away  ! 
     
      

    Report
    1. smile please

      Anybody able to translate?

      Report
      1. Robert May

        Yes but I’m not sur Ros and Nick would  appreciate the grief!

        The like is from me!

        Report
  3. Ewan Foreman

    Where this has the effect of driving a more professional approach to investment property ownership I am broadly supportive. None of these measures will have any effect on a limited company which is generally seen as a more appropriate and responsible ownership vehicle for multiple property ownership.

    The days of signing up for a 1 day training course on how to become the fastest property millionaire in the west by re-mortgaging everything in site may be coming to an end – no bad thing!

    Report
    1. Robert May

      This has nothing to do with a professional approach to investment it is a knee jerk to Oooow ang, what have we done, how do we stop it? All the over 55’s are now going to raid their pension pots  to invest in BTL rather than have Shifty McShift & Co doing a Marvo the Magician with their life savings and pension investments.  A few  conservative investors will be put off but until investment yields are attractive, honest and reliable again most sensible people will hang tight and stick with the raw economics of property investment.

      Report
  4. Ewan Foreman

    … or “everything in SIGHT” even. Really should have made more effort at school !!

    Report
  5. fotw2614

    Wow, and I thought I was reasonably bright and up on things… what is “Z”, what has Camelot controlling the National Lottery got to do with a Property Related website?! Nick come on.. your views!!! (::). Petitioning a Government who don’t seem to understand the fundamentals of the UK housing market and how to restrain it is one thing… but campaigning against the OTTP – that is another thing!

     

     

    Report
X

You must be logged in to report this comment!

Comments are closed.

Thank you for signing up to our newsletter, we have sent you an email asking you to confirm your subscription. Additionally if you would like to create a free EYE account which allows you to comment on news stories and manage your email subscriptions please enter a password below.