How does this help the Private Rented Sector? It is electioneering and greed. The (mistaken) politics of envy.

http://www.standard.co.uk/news/mayor/mayoral-hopeful-abbott-proposes-50-levy-on-rents-above-local-caps-9912718.html

Further evidence, although it’s not needed, of how little politicians understand about supply & demand and how markets work. Their ignorance is depressing.
Why do politicians listen to the idiots at Generation Rent? Landlords will go out of business. Landlords are taking big risks in buying property anyway, and their net profits are frequently NEGATIVE as esp in London they are relying on capital growth. So what will happen to the housing stock when landlords sell? Who will buy it? Who will provide housing for those who cannot afford it? If its not the Private Rented Sector then how do these idiots propose that housing is made available? Do they think that a bankrupt Governmment can magic them? Do they believe that they can steal enough properties?

Alternatively, Landlords put up rent to compensate for the additional tax. Who does that benefit? Not the voters that they are appealing to. When will socialists learn that interfering in markets distorts them, and that businesses need to make a profit to stay in business?

Most landlords only have 1 property. These are not rich people, just ordinary folk. Gordon (“the moron”) Brown destroyed the pensions industry. Nobody trusts banks. Interest rates give no return, and the stock market is very risky. Where do people invest their savings to get a return? They are gambling on property values increasing! Now as a result of this Gvmt incompetence, they are proposing to compound their mistakes by taxing people more.

This will end VERY badly.

This is great news! Not before time. Previously is was a bizarre and unfair tax.

At last the unfair block system has been removed and a system akin to income tax rates has been introduced. This means that the higher rate only applies to the price banding rather than the full value of the property.

Residential properties Purchase price of property Rate of SDLT…more http://lnkd.in/daGMf5D

This will free up the distortions in property prices & enable properties to be sold at market value, not a value distorted by avoidance of a major increase in SDLT costs.
A property being sold at £260,000 will now attract SDLT as follows;
The first £125000 = Nil
£125000-£500000 = £2500
£250000-£260000 = £500.
Total £3000.

Previously this would have been £7800

Well done Chancellor. Can’t remember the last time I complimented a Minister.