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John McKay
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About Me

my expertise in the industry

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John McKay

From: John McKay 18 April 2019 08:04 AM

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From: John McKay 13 March 2019 08:03 AM

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From: John McKay 25 February 2019 08:10 AM

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From: John McKay 04 February 2019 08:57 AM

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From: John McKay 28 January 2019 09:34 AM

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From: John McKay 07 December 2018 17:26 PM

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From: John McKay 02 November 2018 08:15 AM

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From: John McKay 23 October 2018 12:56 PM

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From: John McKay 22 October 2018 09:58 AM

John McKay
Sue, I'm not sure if you just don't understand or if you're purposely contradicting yourself. Most full time landlords never increase rents on sitting tenants, period! Up until S24 was announced I had tenants that had been with me 10 years and not seen even one rent rise. So you see landlords understand very well that putting up rents whenever they can is just not the right policy. Most will (sorry.... would) only increase the price at the time of tenancy change. Indeed if you look at the measures of rent inflation they tend to look at advertised rents, and they basically keep in line with inflation overall. Now Government is forcing a different picture. It's starting with sitting tenants seeing rents rise substantially and will rise further over the next few years. There are now also 40k less properties in the rental market than this time last year. This restricts choice and further supports rent rises. This scenario is not something the rental sector wanted, and just to be clear, Government knew damn well that this would be the outcome. The issue is felt greatest by the lowest income individuals and families that are being forced out completely by Government meddling, and from what I glean this is where your particular concern is. What these measures will further do is discourage investment in housing. One major housebuilder is already reporting that they can't hit targets because of landlords no longer buying. Many landlords convert commercial buildings into resi, or bring back disused houses into use, or convert big houses into flats etc. This is now reducing, further exacerbating the problems. If you really believe that people should have somewhere decent to live then you're banging the wrong drum.

From: John McKay 18 June 2018 09:24 AM

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From: John McKay 29 May 2018 08:26 AM

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From: John McKay 05 April 2018 07:54 AM

John McKay
I think Brit is failing to see the inevitable consequences of the tax changes, maybe intentionally, maybe not. Firstly there is no unfair advantage with BTL as economists repeatedly explain. BTL is taxed higher where an owner occupier is not, the mortgage rates are higher and greater deposits are needed. The list goes on. However many, many landlords (myself included) never increase rents on a tenant in situ. This has now changed due to S24 of the 2015 Finance Act. Tenants that have been with me for over 8 years have now had their first rent increase and there will be annual ones all the way through to 2020 and beyond whilst C24 hangs over us. When a much milder form of this punitive tax was tried in Ireland rents shot up by 40%. Osborne knew this but didn't care. He is just after the tax and to hell with the poor tenant that will be paying it. I recently asked an economist if he could give me a list of products and services that have not increased in price when the tax has increased. His response was that the question was like an exam question for Economist Undergraduates... along the lines of 'Describe a business where the cost of the product or service does not increase when tax is increased'. The answer is a monopoly because such a business would generally charge the maximum it could, i.e it is market led. A normal business is cost led. Well, being a landlord is definitely not a monopoly so rents will go up. They have to. If landlords choose to exit the market it just supports higher rents. Then we have the knock-on effect of the impact on house building. Landlords will not put down deposits off plan and that hurts builders cashflows. This in turn means less output and that supports higher house prices. I'd suggest that Brit may support Osborne's tax attacks but needs to carefully consider the damage that will result.

From: John McKay 16 July 2016 12:12 PM

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