The cost of this will be passed straight onto the people renting anywhere demand is at least level with supply.Might force a few sales in low demand areas but I have my doubts.
Far better to tax the fuck out of airbnb style holiday lets and require the same standards as BnBs.
Well, of course it will be passed on, but probably not entirely.
I don’t think forcing sales is a particular positive or negative thing - they are still houses and what’s important is that they are being lived in, not that they are owner-occupied, IMO.
As a matter of principle I think that rent should be treated as income for tax purposes, even though it won’t make a huge difference.
I think so many small landlords using b2l are so heavily leveraged thry have no choice but to pass it on, then that dictates the price as almost everyone else just follows the market in high demand areas.
I used to feel the same way around rents when they fairer but the market has gotten out of control, particularly in heavy holiday rental areas i think fuck that. As its resulted in renting becoming out of step with costs to buy in some areas.
I agree that all profit should be taxed but its a massive own goal with kipper fave waiting in the wings to take advantage. Renters seeing price rises won’t blame landlords directly for this.
Working in the mortgage industry, part of it is also how lenders assess the income from the property when compared to its value. With interest rates having shot up the last few years (albeit coming back down somewhat recently) the stress calculations mean lenders want ever higher rent to cover the mortgages they have on the properties.
Doesn’t help that your average investor is usually borrowing the max of 75% LTV either, as you said.