Heading across to the summer fair last weekend in Chertsey, Surrey, and our local MP and current Chancellor of the Exchequer pulled up outside my house. Not a regular visitor I must admit but a fortuitous meeting none the less. He had time to answer some of those pesky questions that I’m sure he is always asked “will you be the next Prime Minister?” for example.
I managed to delve a little deeper into property policy and the reason why small landlords with just a handful of properties were being taxed so disproportionately. My question was simple, why in just a few short years have the conservative party turned the country from a nation of homeowners to a nation of renters? Why are the conservatives making it difficult for everybody to make money from property, own multiple homes, complement their extremely low pension?
The answer was that the increase in values of homes and the lack of supply has led to affordability issues that only major providers of rental accommodation or PRS will be able to manage. Essentially the Government can earn more from PRS in tax, than smaller landlords and so they are handing the property market to the large corporations.
So how to dissuade people from owning multiple properties… tax them – even harder.
I am an ardent conservative supporter, but as a property professional, I have to question the measures this government have taken with regards to property investment, home ownership and stamp duty. It appears on the face of it to be a few giant leaps too far.
My concern which is echoed by Brett’s thoughts is that despite all this I’d rather be one of the ones owning a portfolio than renting and for this reason, we still see property as the only viable alternative for most investors now and even more in the future.
Feel free to discuss in the comments.