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Stamp duty bombshell

Posted on 21 July, 2019 at 17:55 Comments comments (294)

Home » News » Housing Market » Boris Johnson lands another Stamp Duty bombshell


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Boris Johnson lands another Stamp Duty bombshell

The Tory leadership hopeful says he is to consider switching the duty from buyers to sellers if he becomes Prime Minister.


boris johnson stamp duty


 

Boris Johnson is to consider switching stamp duty from the buyer to the seller if he becomes prime minister, it has been revealed, an idea first proposed to him by the Association of Accounting Technicians (AAT) last year but now being re-examined during his premiership bid.

 

Johnson met with representatives from the AAT last week and had further discussions with them about the radical taxation proposal, and asked for more supporting information, which has now been provided.

 

The AAT claims that switching who pays stamp duty would save the exchequer £700m a year by eliminating the need to subsidise first time buyers by exempting them from purchases under £300,000 and only charging them 5% on the rest up to £500,000, as is currently the case.

 

stamp duty“The AAT is naturally pleased that Boris has agreed to look at our long-standing proposal to switch Stamp Duty liability from the buyer to the seller,” says its Head of Public Policy, Phil Hall (left).

 

“It will also protect the £9 billion of revenue stamp duty generates as it will still be paid in full, simply by different people.”

 

Hall also claims it will save those moving up the property ladder money because they will pay tax on the lower-priced home they are selling, rather than the usually higher-priced property they are buying.

 

These proposed changes come hot on the heels of Johnson’s promise to cut stamp duty for all house sales under £500,000, and cut it for the highest value homes from the current 12% (charge on a property’s sales value over £1.5 million) to 7%.

LATEST NEWS

Posted on 27 June, 2014 at 16:40 Comments comments (1)

 

 

 

In an Opposition Day debate on the private rented sector on Wednesday, Labour’s shadow housing minister Emma Reynolds declared the private rented sector “no longer fit for purpose”.

 

Reynolds told the Commons the UK has "one of the most short-term, insecure and unstable private rented sectors in Europe", with tenants facing "exorbitant rates".

 

Reynolds said if Labour came to power the party would cap rent increases, ban letting agent fees and legislate for three-year tenancies to give greater security and stability to the UK's nine million renters.

 

However, planning minister Nick Boles accused Labour of recycling old ideas to tackle the problem and dismissed the policy as "idiotic", warning it would drive up rents and undermine confidence in the sector.

 

Reynolds said: “The opposition have called for this debate because we believe the private rented sector is simply not fit for purpose. It is in fact more suited to the 1980s than the 21st century.

 

“The sector has grown massively in size, but also beyond recognition in terms of the demographics and character of those renting from private landlords. Nine million people now rent privately, more than those who rent a social home.

 

“Over a third of those who rent privately are families with children and nearly a half are over the age of 35. However many people who are renting privately are not doing so out of choice but because they can't get on the housing ladder and they are being priced out or they can't secure a social home.”

 

Responding, Boles warned of the negative effects of rent controls.

 

He said: “They disinter a mouldy old policy from the 1970s, spray a bit of shiny new paint over it and present it as the solution to all of the ills of the modern market economy. We have seen them follow this script in relation to energy bills and now they are trotting it out for rental housing.”

 

Labour MP Lilian Greenwood invited those against regulating renting to come and see for themselves the ‘misery’ caused by an unregulated market.

 

Conservative MP Jackie Doyle-Price said letting agents encourage ‘churn’ in the rental market because they can charge fees each time a new tenancy begins, and that many landlords would prefer long term tenancy agreements – a point echoed by Labour MP Andrew Love, who said long term tenancies would assure institutional investors as well as tenants.

 

Conservative MP Angie Bray argued that young people prefer to move house often, saying Labour’s proposals for a three-year tenancy would not be popular with those who prefer the short-term lifestyle. Emma Reynolds explained that under Labour’s plans, tenants would have the choice to leave during the tenancy.

 

Several Labour MPs pointed at the damage done to children’s education when families have to move at the end of a tenancy. “Just ask primary teachers what effect it’s having on their pupils,” said Jeremy Corbyn, Labour MP.

 

Alex Hilton, director of Generation Rent, said: “If you’re in a damp flat that is making your children ill, or if your landlord suddenly increases your rent above what you can afford, it’s not a ‘choice’ to leave, it’s a necessity.

 

“As long as long term tenancies remain voluntary, letting agents will systematically deny renters a stable home as they seek annual renewal fees. Politicians owe the 9 million people living in private renting – including more than a million children – the right to a long term tenancy.”

 

Friday 27th June 2014

 

 

In an Opposition Day debate on the private rented sector on Wednesday, Labour’s shadow housing minister Emma Reynolds declared the private rented sector “no longer fit for purpose”.

 

Reynolds told the Commons the UK has "one of the most short-term, insecure and unstable private rented sectors in Europe", with tenants facing "exorbitant rates".

 

Reynolds said if Labour came to power the party would cap rent increases, ban letting agent fees and legislate for three-year tenancies to give greater security and stability to the UK's nine million renters.

 

However, planning minister Nick Boles accused Labour of recycling old ideas to tackle the problem and dismissed the policy as "idiotic", warning it would drive up rents and undermine confidence in the sector.

 

Reynolds said: “The opposition have called for this debate because we believe the private rented sector is simply not fit for purpose. It is in fact more suited to the 1980s than the 21st century.

 

“The sector has grown massively in size, but also beyond recognition in terms of the demographics and character of those renting from private landlords. Nine million people now rent privately, more than those who rent a social home.

 

“Over a third of those who rent privately are families with children and nearly a half are over the age of 35. However many people who are renting privately are not doing so out of choice but because they can't get on the housing ladder and they are being priced out or they can't secure a social home.”

 

Responding, Boles warned of the negative effects of rent controls.

 

He said: “They disinter a mouldy old policy from the 1970s, spray a bit of shiny new paint over it and present it as the solution to all of the ills of the modern market economy. We have seen them follow this script in relation to energy bills and now they are trotting it out for rental housing.”

 

Labour MP Lilian Greenwood invited those against regulating renting to come and see for themselves the ‘misery’ caused by an unregulated market.

 

Conservative MP Jackie Doyle-Price said letting agents encourage ‘churn’ in the rental market because they can charge fees each time a new tenancy begins, and that many landlords would prefer long term tenancy agreements – a point echoed by Labour MP Andrew Love, who said long term tenancies would assure institutional investors as well as tenants.

 

Conservative MP Angie Bray argued that young people prefer to move house often, saying Labour’s proposals for a three-year tenancy would not be popular with those who prefer the short-term lifestyle. Emma Reynolds explained that under Labour’s plans, tenants would have the choice to leave during the tenancy.

 

Several Labour MPs pointed at the damage done to children’s education when families have to move at the end of a tenancy. “Just ask primary teachers what effect it’s having on their pupils,” said Jeremy Corbyn, Labour MP.

 

Alex Hilton, director of Generation Rent, said: “If you’re in a damp flat that is making your children ill, or if your landlord suddenly increases your rent above what you can afford, it’s not a ‘choice’ to leave, it’s a necessity.

 

“As long as long term tenancies remain voluntary, letting agents will systematically deny renters a stable home as they seek annual renewal fees. Politicians owe the 9 million people living in private renting – including more than a million children – the right to a long term tenancy.”

 

How to increase a tenants rent

Posted on 3 May, 2014 at 13:10 Comments comments (0)

How to increase rent

 

Normally, rent is increased at the end of a fixed term, this is done by getting the tenant to sign a new tenancy agreement. However arranging a new tenancy agreement is not actually necessary (as the tenancy will roll on anyway as a periodic tenancy under the same terms and conditions – section 5 of the Housing Act 1988). However, if you want to increase the rent, doing this by giving the tenant a new tenancy agreement is the best way to do it.

 

If you do not want to give a new tenancy agreement, you can also get the tenant to agree the rent by signing and returning to you a copy of a letter sent regarding the increase. The fact that the tenant has signed and dated the letter will be proof that they have agreed to it.

 

The rent can’t normally be increased half way through a tenancy agreement unless the Tenancy Agreement has a review clause. But be careful, the clause must be fair and comply with the Unfair Terms in Consumer Contracts Regulations 1999.

 

One way to make a rent review clause fair is to specify what the new figure will actually be (ie say that it will increase to £X month after 4 months). This will be deemed fair as the tenant will have approved the actual amount by signing the agreement. What will not be deemed fair is a clause saying that the landlord can increase the rent to whatever he likes

 

Ongoing interest rates, Bank of England

Posted on Comments comments (0)

Five years ago this month, on 5 March 2009, the Bank of England took the dramatic step of cutting interest rates to their lowest level in more 300 years. The previous 18 months had seen Northern Rock nationalised, RBS, Lloyds and HBOS rescued by massive taxpayer bailouts and Lehman Brothers collapse in the United States. House prices were falling, car sales plunging and Britain found itself facing a deep depression.

 

For a decade before the crisis the Bank had dealt in finely tuned adjustments, usually amounting to a scrupulously judged quarter point cut or rise. But in 2008 everything changed and it took just five months to slash the base rate from 5% down to 0.5%. And there it has stayed, with rate-setting committee member David Miles last week suggesting 5% would not be seen again for years, perhaps never.

 

Homeowners and businesses have undoubtedly been saved from repossession or administration, but savers have watched their savings growth dwindle to almost nothing as the UK adjusts to an era of low rates.

 

These are the effects on both winners and losers

 


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