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The Property Podcast

TPP205: What does the Housing White Paper mean for landlords

The Property Podcast

Rob Bence & Rob Dix

Business News, News, Business, Education, Investing

4.82K Ratings

🗓️ 16 February 2017

⏱️ 21 minutes

🧾️ Download transcript

Summary

The much anticipated white paper has landed and it seems clear that the government are keen to bring institutional investment to the rental market. Is this anything to worry about? Not necessarily and it should clamp down on rogue landlords, but it's definitely something to have you your radar. A key point in the paper states that ‘Encouraging more institutional investors into housing, including for building more homes for private rent, and encouraging family- friendly tenancies.’ Rob and Rob discuss what this really means and what impact this may have on private landlords... The report goes on to state that more needs to be done to prevent homelessness, but predictably the detail of how this will be done, appears to be lacking. It goes without saying that in a country as wealthy as ours, we should do a lot more to help this issue. All in all the white paper seems to have been watered down and we can't pretend we're anything other than underwhelmed with it. There's nothing for us to be concerned about in there, but there's nothing radical here at all.   Stamp duty receipts soar as buy-to-let investors are undeterred by tax hike. So, the Treasury collected 18% more stamp duty from the sale of residential properties in 2016 compared with 2015 “One in five of all homes bought in the last six months of the year were additional properties, and this raised £962m for the Treasury's coffers, representing 21% of the tax take during this period.  This amount was higher than forecast by the Office for Budget Responsibility, which had pencilled in £660m for the 2016/17 financial year.” So if the policy was intended to raise more tax overall, it worked. If it was meant to deter investors to benefit FTBs, it didn’t! Read more here. Resource of the week Rob B came up with our resource of the week this week. It's used within the RMP team to educate on The Northern Powerhouse. There's tons of news here and if you have this area in your investment sights, this is a brilliant place to research. Check it out here.  Continue the conversation over in the forum What do you think to the white paper? Discuss your options here. If you enjoyed The Property Podcast, please leave a review on iTunes Reviews are really important in helping other people to find the show, so by way of thanks we read out every single review we receive on air. If you’d like to hear your name on the show, leave us a review on iTunes here. Not sure how to leave a review? This video shows you how to review and subscribe on iTunes. See omnystudio.com/listener for privacy information.

Transcript

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0:00.0

Hello everyone it's episode 205 of the property podcast Rob B here with Rob D the government

0:05.2

has once again been sticking a nose into property what have they done and how is it going to

0:10.4

affect you find out this week.

0:13.0

Yes, that pesky government is at it again.

0:20.0

Welcome to the Property Podcast. We're going to be getting into all the details of the housing white paper,

0:24.7

which came out this week. We've also got a resource for you, which you'll be a big fan of,

0:30.0

if you're interested in the Northern Power House. But before we get to any of that,

0:34.3

let's kick off with our news story this week. So this week's story is from the

0:39.6

telegraph and the headline is Stamp Duty Receipts saw as by to let investors are undeterred by tax hike.

0:47.0

And the story is basically saying that Stamp Duty revenues were up 18% in 2016 compared to 2015 and it also says that one in

0:58.7

five of all the houses bought in the second half of 2016 were what they're calling additional

1:05.4

properties so like second homes by to letts and so on and that raised a lot more

1:10.4

money than they'd expected. So Stamp duty revenues specifically from additional

1:15.6

homes was much higher than expected. So that's made up a big proportion of the overall increase

1:20.8

in the Stamp duty take.

1:22.7

So I think that's really interesting and it kind of raises the question of, well, does that mean

1:27.0

that the policy has worked or not?

1:29.7

From the government's point of view, is this good news? It's a funny one because if the policy the idea of it

1:36.2

was to raise more tax overall then it worked. It raised more than they thought it would.

1:40.9

But if the aim of the policy was to deter investors and therefore

1:46.7

benefit first-time buyers, clearly it didn't work because the real story here seems to be that investors haven't been deterred anyway.

1:55.4

So while lots of people were rushing in to get in before April when the new rules came in,

...

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