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Tory peer warns BTL attack could “destabilise” housing market

Conservative peer Howard Flight has condemned his own party’s attack on buy-to-let.

Lord Flight published an article on the Conservative Home website outlining his concerns about the upcoming changes to the tax regime for landlords.

A former Conservative shadow chief secretary to the Treasury, Flight warned the buy-to-let tax changes could trigger a sharp fall in house prices, “if not a crash". 

He went on to warn that landlords paying more tax on their rental income and higher stamp duty rates on investment properties could "put thousands of tenants’ security at risk",  as landlords rushed to evict tenants and sell properties. 

Lord Flight’s comments come just days after a leading accountancy firm warned that tax changes would lead to higher rents.

KPMG warned that the stamp duty hike for landlords could result in developers struggling to sell new build property while reduced supply of rented property could mean higher rents for tenants.

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    At last a conservative who speaks some sense, he will probably be sacked.

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    Hear! Hear!

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    Well done Lord Flight. This regulation is typical of some parliamentarians attitude. GO (Osborne) does not, cannot, is scared to do the same with all businesses (especially the big ones, like Amazon, Startbucks etc.), in not allowing legitimate business expenses to be deductible. The imminent Judicial Review may put mud in his face.
    The significant factor in house price escalation is largely overseas investors bringing in money which cannot be verified as "CLEAN" or otherwise. Also why permit non residents to simply buy up properties in UK. Exceptional situations demand exceptional solutions, at least temporarily. No overseas person may buy here unless they prove that they are legitimately and actually doing business here. Give them 5 years to sell up and levy 80% capital gains tax on such properties. Additional measures can also be brought in to apply to UK investors limiting their BTL to no more than 2 houses per person, until govt. can improve its housing supply. Fix a time span for this 5-10 years. After many have forgotten how a female PM in UK sold off all the council houses in London and never put any of the money back into house building, instead paid off the national debt or or part of. Then came "Labour" and spent money without any care, due to squabbling between AB & GB (Tony Blair & Gordon Brown) as to when GB should sit at no. 10. No one in Parliament then observed the spendthrift ways of GB, which all blew up at the elections in 2010. OFcourse we deserve the govts. we elect, but the MPs are petrified to balance books and live within sensible means - sensible taxes, borrowing and spending!

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    Legitimate law abiding landlords are an easier target than the likes of Amazon and Starbucks et al?

  • Brit Sixteen Sixty Four

    Lets hope it does bring the much needed house price crash. The bubble has been kept inflated far too long, time for a correction.


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