So will the tenants pay the landlord if there’s capital depreciation then?
Well what happens currently is the government takes a share of the capital appreciation in the form of CGT. So, we already have this.
The only question is why that should go directly to the tenant and not be added to the common pot of tax money.
This already happens, but its the Government, not the tenant who get the cut. The Government clips the seller for Capital Gains Tax and incidentally also clips the buyer with Stamp Duty, which both enter the national tax pot which everyone (supposedly) benefits from. I do not think the Exchequer will be very happy with the idea of surrendering their share to a few lucky renters who happened to be in the property at the point the Landlord sells up.
The majority of private rental properties are either wholly owned or use interest only mortgages. The tenant doesn’t pay down the capital value of the property.
The appreciation or depreciation of the asset value is not really the question.
The problem we have is housing used as assets and speculation of appreciation couple with low social and private rental stock has caused and house a price appreciation spiral or bubble.
The only ways to fix this are:
1. Increase housing stock
Rental controls or taxation on housing assets or rental income only either shift ownership offshore or to corporations who can operate on reduced margins or further reduced rental stock increasing prices until the housing assets become viable again.
Yet another proposal that will reduce the supply of rental properties, pushing up rents even further.
The UK urgently needs to build more houses and apartments, rather than coming up with new rules and taxes to deter owners from renting existing ones out.
Well suggest anything except building houses
4.5 million short and net immigration last year was like 500k
6 comments
So will the tenants pay the landlord if there’s capital depreciation then?
Well what happens currently is the government takes a share of the capital appreciation in the form of CGT. So, we already have this.
The only question is why that should go directly to the tenant and not be added to the common pot of tax money.
This already happens, but its the Government, not the tenant who get the cut. The Government clips the seller for Capital Gains Tax and incidentally also clips the buyer with Stamp Duty, which both enter the national tax pot which everyone (supposedly) benefits from. I do not think the Exchequer will be very happy with the idea of surrendering their share to a few lucky renters who happened to be in the property at the point the Landlord sells up.
The majority of private rental properties are either wholly owned or use interest only mortgages. The tenant doesn’t pay down the capital value of the property.
The appreciation or depreciation of the asset value is not really the question.
The problem we have is housing used as assets and speculation of appreciation couple with low social and private rental stock has caused and house a price appreciation spiral or bubble.
The only ways to fix this are:
1. Increase housing stock
Rental controls or taxation on housing assets or rental income only either shift ownership offshore or to corporations who can operate on reduced margins or further reduced rental stock increasing prices until the housing assets become viable again.
Yet another proposal that will reduce the supply of rental properties, pushing up rents even further.
The UK urgently needs to build more houses and apartments, rather than coming up with new rules and taxes to deter owners from renting existing ones out.
Well suggest anything except building houses
4.5 million short and net immigration last year was like 500k
Simple maths