What Did Labour Just Do To UK Property?

On Wednesday the Labour government’s first budget raised taxes by 40 billion pounds, but the question is…who is going to pay them?

Landlords and investors have been worried ever since labour came into power, and the rumours about rent controls and capital gains tax haven’t helped to calm them down.

So the team and I dug into the budget to work out: How the budget will impact the property market and what the biggest changes will be and most importantly, how much of the £40 billion landlords will need to cough up…

So the video will have a big emphasis on the UK budget announcement and how that budget will impact UK taxes for property investors and the UK property market in general.

[mlj]

Existing landlords are going to do OK. Gavernment policy is effectively to reduce the supply of rental property and continue to increase demand. I foresee continuing large rises in rents.

[alihaggis]

All the stamp duty thing will do is suppress the house prices a little bit. Look at what happened when when stamp duty holidays were rolled out house prices soared. So more tax will just hold the prices down a little.

[journeytoself]

If you can afford to get a second home then you can afford the extra stamp duty

[queenofmyownuniverse]

Question? We have a rental property and plan to pay off the mortgage on it in 2 years and move in. Before we move in we want to upgrade the kitchen and bathroom, decorate etc. there may be an overlap with selling the main family home of several months or how long it takes to sell? Will this make us subject to this second house tax? I’m hoping not as we have owned the house for 20 years. Thanks in advance

[johnmurphy]

Starmer has a fairly strong property portfolio, as do many of his donors, so raising CGT wasn't going to be of benefit to Starmer and his chums, so it's given them time to reorganise to avoid it when it comes...

[daleherbert]

With the stamp duty change, will you be updating your handy giveaway BTL calculator spreadsheet?

[chrishart]

Is there a way a house could be bought by someone other than an investor ?

[seanduffy]

I'm a landlord and I am happy about the budget. It isn't all about me and maximising my personal wealth - I'd quite like society to function properly and reduce the waiting lists on the NHS.

Anyone moaning should just cut back on their Netflix subscriptions and buy less from Starbucks.

[erikpfister]

How can one think this is just! A 5% tax on unnecessary tax on property! In order to return that youd need to produce a return of 10% on the initial investment just to get back to break even.
This is not just a problem for landlords, but also on renters who get those costs passed on to them.

[I_like_YT_lots]

I am not sure the extra stamp duty will not be taking more consideration later on if you compare what happened in 2016. We already see the affects of rising interest rates making landlords selling their rentals this will slightly compound more reasons not to invest in properties and reducing rental supply. Although I appreciate the 250K figure, if you look at London is doubled that and rental market in London is crazy as it is. Whether or not this will discourage more investments in real estate so prices will fall so people can finally afford to buy is another question, but just looking at the market before this stamp duty rise, it seems the market is not going down but probably up as BoE indicates interest rates will get lower soon, which means more people can afford to buy and pushing up prices up again.

[CROSSNSHOOT]

Labour voters tax Landlords and pay extra rent!! 😂😂 the irony!

[mirceaungureanu]

Housing should not be an asset class and no one should have more than one home. Housing is a basic human right and a cornerstone of family and community. Furthermore, property is a sterile asset class meaning it doesn't do anything for our economy apart from concentrating wealth at the top.

[MrCraigShepheard]

The SDLT hits hard in high value areas like where I live in St Albans.

[markyelwell]

Buy one property work overseas and never return to this mossy shit hole. 😅

[EllieI-dp]

false premise in your simple reasoning... is that all the 'investors' are buying new houses. they don't create the demand for new properties they create demand for old properties that baby boomers leave as the generation starts to die out

if 'investors' will stop buying, in the short term, they don't create the demand, but eventually prices will fall and in the long term MORE ordinary people will be able to afford a house.

[Tommy]

Property prices and rents are far too high. Landlords should either accept that they are providing a regulated public service or get out of property and invest in UK businesses like many of us, for too long property has just been a licence to print money. Housing is a basic need and rent/mortgage payments should be no more than 12% of income according to the governments own advice. Banks are permitted to lend far too much to owner occupiers and to landlords, this is flooding the housing industry with money delivering the huge profits of developers and land bankers. The cost of construction of new homes is only 25% to 33% of the sales price. Loans for older properties should be restricted as they are well depreciated. Instead, we should be building more new homes to replace the small, energy guzzling homes. When the government builds millions of houses for long term rent, private rents will collapse. Once there's more capacity for housing, things like the rent a room scheme, HMO's should be phased out with far higher minimum standards of housing. How about subscribing to funds to take stable growth companies on for the long term, instead of seeing them sold to US companies or global funds.
No wonder there isn't money for public service, why people can't afford things, when we are being fleeced paying more than 50% of our incomes on housing costs. Labour party supporters, MPs, etc. have been benefiting from the property boom for the past 30 years. It needs to end, instead we need homes with decent rooms, storage, private outdoor space, hobby space, storage space and off road parking.

[davidhall]

To quote Thatcher a county cannot tax its way to prosperity. Money goes where it is treated the best and thats not the UK.

[leighrandle]

I like how these videos cut through the neurosis and drama and don’t pander to political sides or get involved in debates on which government is / was best or worse for landlords etc. This is exactly what investors and landlords need, just straight-up practical information!

[DEVAEGIR]

What is often omitted is that real-estate investment in Britain would be worth it even if Stamp duty went up to 20%. This is because you do not pay taxes on OWNING a property (like, say, in France, or Greece, where you pay an annual tax), only on buying it. And you pay capital gains tax for renting it out, which is of a much, much lower rate. With housing prices hiking non-stop, and with virtually no homes being built, landlords being 'concerned' is just laughable, and ludicrous. If you have 250K to buy a rental as an investment (how many people have capital to invest thus?), 5K on top of that is a spec of dust. Not even a spec.

As for banks and companies, who now have turned to investing in the rental market, these should be taxed into oblivion, to discourage this trend, indeed nip it in the bud. Because corporations cornering the housing market is not good either for landlords, or for tenants, nor indeed for individual investors.

[youtubeman]

Labour hates landlords stamp duty is the last nail for me, I’m not buying anymore I’ve got enough so I’m ok, 5% is just a rip off when Starmer said no tax I believed him he’s a liar and he’s had the last vote he’s had off our family,