So, you think it’s just Landlords that are having a tough time? Well think again! If Labour get in at the next general election, all of us need to make sure we are all completely future proof, or we will have to kiss goodbye to our investment income for EVER and that very well could include our own homes!
Don’t take my word for it, here is a brief summary of what Labour have in store for you as a hard-working responsible individual, plus some of my thoughts and comments. Finally, I have also added a link to the actual Labour document that really does spell this nightmare out for you, so you can see for yourself.
So, just before you start to read this can I just make one thing absolutely abundantly clear, in order to avoid any stereotypical responses on this article.
I am not impressed in the least by ANY political party currently. I think on the whole, they all are self-centred, egotistical, individuals, who are more interested in their own self-preservation rather than in the best interest of the people they represent. I think that is self-evident to anyone that has listened to the news and any political programme, especially about Brexit in the last few years.
However just like everything else in life there is a scale, normally rated Good to Bad), only in this particular case, I would suggest “Bad to Worse!” So back in your box Corbynistas! I am not a fan either of Conservatives, Lib Dems, Brexit or Green parties either. Although perhaps a wry smile for the Raving Loony party simply because their name more honestly reflects the state of politics in the UK today!
If we have a general election, ALL HOME OWNERS may want to take note of Jeremy Corbyn’s plans to scrap council tax and replace it with a ‘progressive property tax’.
If Labour wins, Comrade Corbyn, would ensure that those with larger (i.e. family) homes and gardens would be faced with a staggered higher rate of taxation for each of the top four property bands by value.
So, now it’s no longer just landlords, they want to penalise. This policy is clearly directed at anyone who has the audacity to have worked hard and been reasonably successful. Especially those who have shared some of the fruits of their hard work with their families. Like a nice house, with a garden, to enhance the “quality of life” for your family. If you fit these criteria, you are now “Fair Game” to the Labour party.
In a slightly more confusing move, the report says that Stamp Duty Land Tax should be phased out for those buying homes to live in themselves, and capital gains tax for second homes and investment properties should be increased.
It also proposes that tenants will be exempt from council tax and that only property owners will pay, but unsurprisingly, they make no comment whatsoever, about how that would affect rents.
Well that just about takes the biscuit doesn’t it? These politicians, don’t even have the basic common sense to realise that the letting industry and that includes ALL landlords including Housing Associations, are in fact businesses. Indeed, current legislation even states this fact by actually referring to Landlords in legislation as a business. However with regard to the landlord paying the council tax, I think you will find that this doesn’t apply to Council Housing. Why? Because councils are part of government and therefore exempt.
I believe the communist mantra is;”
Everyone is Equal, except some are More Equal than others?
Once you understand that. You can understand that if a business has additional costs forced upon them, then the only way they can survive, is to increase its prices (THAT’S RENTS JEREMY)! So, what the labour party is actually promoting, is hurting their own core voters, yes, the most vulnerable ones, increasing the chances of actually making them homeless. HOW VERY CARING OF YOU JEREMY!
Although JEREMY will tell you that they can’t increase prices because he is capping rents. Although he hasn’t mentioned that if he caps rents, landlords can’t make a living from their investment so they will stop renting and sell up. The result of that is that there will be no rental properties other than council housing and they can’t survive without the private rented sector. There is of course Social housing but they are landlords too so they are going to be hit with Council Tax according to this report, So I think you may well be looking at the end in Social Housing Associations as well. GOOD ONE JEREMY, YOU ARE REALLY CAUSING HAVOC NOW!
So we can now see that an increase in rents could now increase the amount of homelessness in the UK and THIS IS WHY JEREMY. Three main scenarios here.
Firstly, because the less well-off people will no longer be able to afford the rents. OR. The housing market will crash because landlords cannot afford to maintain rents that have been capped! OR Labour are going to have to dramatically increase the amount of Housing Benefit that is currently being offered to meet the changes they have caused. Oh and by the way, as no one is paying tax because their businesses are not generating income, Labour won’t have any money to increase the benefits!
This is not just a nightmare for landlords either. As we have discussed earlier ordinary homeowners could really struggle as well, just to keep up their mortgage payments whilst running at a loss, because Labour have increased their council tax to cover the stamp duty given away to other owner occupiers. This means they may well have to sell up and downsize. So, prices will inevitably fall dramatically (A HOUSING PRICE CRASH JEREMY).
It is also worth noting, that this scenario is probably the most likely outcome, as the vast number of homeowners have mortgages. Sadly, pretty big mortgages, most with a very high “Loan to Value” (SO VERY LITTLE EQUITY JEREMY)! This means that there will be a very high percentage of home owners in negative equity so they cannot downsize. If they sold they COULD LOSE EVERYTHING JEREMY!
Now the effect of this Labour policy is gathering momentum there is something else to consider. As Labour have now created an environment where “Everyone” now wants to live in a small; property (YOU KNOW JEREMY, THE ONES WE USED TO CALL STARTER HOMES? So all this demand, will dramatically increase the lower priced properties to spiral upwards in price. THOUGHT OF THAT ONE JEREMY!
Indeed, what Labour will have succeeded to do, is to have made the lower priced property from a starter home sector into a very competitive market indeed and the higher priced properties will become un-affordable. A bit like the “Holiday Home argument where richer incomers purchase local housing as second homes driving the prices well above what the locals can afford.
Only instead of second holiday homes it will be the families with larger houses and gardens that want the smaller houses so they pay less tax (or more realistically they cannot afford to pay the higher Labour taxes).THAT MEANS YOU HAVE JUST CRIPPLED THE HEART OF THE LABOUR MOVEMENT JEREMY!
These plans won’t bring any rays of sunshine to hard pressed landlords (or agents) either, who market what we would have once described as “Normal’ Family Homes”.
All of these ridiculous recommendations come from within Labour’s “Land for the Many” report, which aims to “Change the way our fundamental asset is used, owned and governed.” I believe their way of turning the UK into a Communist style State!
The proposals within the report are for the Labour Party to consider, as part of its policy development process in advance of the next general election.
James Brokenshire, our current Housing Secretary, said, “These proposals are extraordinary and deeply damaging in equal measure. This tax bombshell for families would mean family homes with gardens paying far more and higher taxes on pensioners by abolishing the single person discount.” So, it’s not just the BBC either. By the way, my monies on Corbyn promising to reverse that policy if you vote him in! He hasn’t got any money now remember it is just another cheap political lie!
This “Land for the Many” report, also believes major reform is needed in the PRS and actually states. “We recommend major reforms of the Private Rented Sector” it goes on to say for example, “tenancies should be open-ended and landlords should lose their power to evict a tenant who have not broken the terms of the tenancy agreement for the first three years of the tenancy agreement and should have to provide grounds for eviction after that point.
They also said that there should be a cap on annual permissible rent increases, at no more than the rate of wage inflation or consumer price inflation (whichever is lower). We propose that Buy-to-let mortgages should be more firmly regulated and restricted.”
They really have no idea of what goes on in the real world have they? Landlords only want nice people who will look after their rented properties and pay their rent on time. Is that not too much to ask? As long as they wish to keep their property, they want to maximise their investment. Every time they change a tenant, they pay a fee (twice as much now thanks to the conservative party)! Why on earth would they want to serve a notice on a tenant that will cost them additional fees unless the tenant wasn’t paying his rent, wasn’t looking after the property, or because he was selling the property or needed it for another purpose (family etc). It doesn’t make sense!
Well I think we ought just to summarise here. A government doesn’t actually have any money of their own. They have some of our money that they have harvested through taxation (Income Tax, VAT, Stamp Duty, Council tax etc.). If people are losing their homes because they have been driven to by government policy, or if landlords have to sell up because they cannot afford to let then there is no income tax to pay so THE GOVERNMENTS POT OF MONEY WILL REDUCE JEREMY, SUBSTANTIALLY! So, they will have to borrow more money, increase the debt of the country and of course send us into bankruptcy!
That’s why in my opinion, NO ONE SHOULD VOTE LABOUR! It is such a great pity though, that the rest of the UK political landscape is not much better but definitely better than this!
Please Read the report for yourselves. I have and someone actually commented to me, that “It is VILE COMMUNIST PROPAGANDA”! If only I could recall who. Or indeed how many!
If you require any advice on letting, require your property to be sold, let or professionally managed in the Newcastle, Tyne & Wear, Northumberland, Sunderland or Durham areas. Please contact me at my Durham Office, on 0191 212 6970, or e-mail me at; email@example.com. Thank you for reading, I trust you found it of interest. J