The budget’s repercussions for landlords

Wednesday, 21 March 2012 3:45 PM

The budget announcement today seemed to focus on economic growth and squeezing the high-end markets for money.

But landlords will also be affected by the changes, especially those with large corporate portfolios.

The Get Britain Building fund is to be expanded leaving more opportunity for landlords to grow their portfolios with new builds.

A new stamp duty of seven per cent will be charged on properties priced at more than £2 million which could have an effect on high-end landlords.

But this also means high-end residents might be more inclined to choose rental accommodation for their second and third homes rather than buying further properties and having to fork out the extra stamp duty.

One of the changes which will most impact high-end investors is an additional tax of 15 per cent on properties over £2 million that are held in corporate envelopes.

This means investors who choose to buy high-end properties over this threshold will pay out a whopping 22 per cent of the purchase price in tax.

In terms of personal tax the system is to be simplified which means lodging returns should be easier.

But any return claiming more than £50, 000 in income tax reliefs will be capped.

It is good news for business tax with the headline rate of corporation tax falling to 22 per cent from 2014.

Forecasts are also positive with the country expected to escape recession.

Landlords will see some relief with inflation looking to fall to 1.9 per cent in 2013.

Landlords will be affected by the budget changes.

Landlord association’s reaction to the budget

The budget release yesterday has seen a mixed bag of feedback but one message is clear, landlords and investors want a tax break. Changes to taxation to close loopholes used by tax avoiders will effect the lettings market, according to industry heads.

A call has been made to see landlords get tax concessions.

Call for landlords to see budget benefits

The Association of Residential Letting Agents (ARLA) is pushing for the government to consider landlords in the budget as rental demand skyrockets. ARLA has put together and lodged a submission asking for rented property to be treated as an entrepreneurial business.

Get your finances in order.

The real cost of letting a property

Letting a property is more complex than comparing mortgage costs to monthly rental intake. There are many hidden costs that new landlords often forget to take into account according to expert Sarah Rushbrook from Rushbrook & Rathbone.

Landlords should factor interest rate rise into their budget

Landlords 'must plan for an interest rate rise'

An expected rise in interest rates could lead to buy-to-let landlords struggling to keep up with their mortgage payments, experts warn. Landlord Assist is urging landlords to prepare for a rise in interest rates over the forthcoming year.

Seek help when buying commercial property

Why take professional advice when buying commercial property?

Purchasing a property, or properties, to let out to tenants can certainly provide a substantial income, but it's important to consider the commitment of buying such a development before handing over any money or signing a contract. In the same way as you would when buying your own home, it's a good idea to seek out professional advice.

Firms should select offices to buy with care

What should businesses look for when buying offices?

Purchasing offices presents a great opportunity for a business to expand and increase its ability to generate revenue. However, whether an organisation plans to occupy the development they want to buy, or invest in buildings to let out to other companies, it is not a process that should be done hastily. Indeed, there are many factors that need taking into account.

The green tax could see boiler repairs cost more than expected.

What the green tax means for landlords

The new green tax could see minor repairs on buy-to-let properties hit the back pocket of landlords. According to MP Tim Yeo, head of the energy select committee, landlords could face extensive bills for green improvements under the new tax.

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More Brits ‘looking to invest in holiday lets’

One in four Brits is considering investing in a holiday home to supplement their income, research shows. The study by Holiday Lettings also reveals that holiday home owners with properties worldwide are thought to have earned £540 million this year.

Most regions see house prices rise in 2011

Average house price 'is £164,785'

Nine out of 13 regions across Britain recorded property price increases last year, according to the Nationwide index. The average house price is now around £164,785, up by 1.1 per cent over 12 months and by 0.3 per cent over the past three months.

Record low rate to be held again, says Bank of England

The Bank will keep rates low for at least one more month

The Bank of England has once again voted to keep interest rates at their record low rate of 0.5 per cent, it was announced today. This historic low rate has now been maintained for 23 months.