The best comment on this election is whether the next prime minister needs a house in multiple occupation licence for 10 Downing Street.
If so, the local council will have to judge home a ‘fit and proper’ person to manage the government.
In seriousness this election does not really mean much to property investors.
The only sure thing for buy to let landlords, property investors and developers is house prices are likely to stay flat while taxes and mortgages rates are hiked up gradually over the coming year or so.
Whoever sits in the big chair at No 10 really doesn’t have a choice – they have to raise taxes to pay for the economic crisis Labour and the banks dumped on the country. Gordon Brown was a dead man walking after picking up the poison chalice of government from Tony Blair. The poor guy was pretty much battered by the system and he didn’t know how to react other than to lie down and take it.
The next incumbent will have to deal with raising taxes and making cuts.
It’s a bit like rearranging deck chairs on the Titanic.
Capital gains tax (CGT) is likely to be a casualty. The current rate of 18% does not make sense – it’s got to be tied back in with a rate that’s the same as the taxpayer’s highest rate because it just doesn’t make sense to sell investments at a lower tax rate than the general rate of income tax.
Property investors who want to dispose of homes should look at sealing the deal before the first post-election budget that is predicted within 60 days. The clock is ticking to take advantage of the low CGT rate.
Inheritance tax is the next big hitter. The Tories have indicated during their campaign that the threshold will rise to £1 million.
Houses in multiple occupation (HMO) are an interesting one. David Cameron has gone on record as intending to repeal the new planning and licensing rules that were introduced on April 6. This would be a major reversal of policy after Labour hung so much stock on demonising landlords with the new regulations.
If HMOs go, it’s likely the online ‘rate your landlord’ web site will be another casualty as well.
Likewise, furnished holiday lets need action too. The current rules run out on June 30 and the Tories successfully negotiated the removal of Labour’s new holiday let tax laws from the last Budget. There seems little point in supporting second home and holiday let owners in the run up to a vote only to forget the promise afterwards.
