The event, which enjoyed a high turnout, also included guest speakers Benson Hersch of the ASTL, Edward Green of Savills, Lorna O’Brien of the FCA, Jonathan Newman of Brightstone Law and Chris Taylor of Titlesolv, who discussed present and future issues within the short term lending market.
Edward Green of Savills kicked off the event with his analysis of the UK property market and gave his thoughts on how property investors will be affected by new tax changes brought in by the government this year.
Edward explained that buy-to-let investors will notice the pinch with the new tax.
“We think there will be a rationalisation of portfolios, there will be less stability in people to expand their portfolios,” Edward suggested.
“People will be searching for higher yields in areas which are less established”.
Vince Cable, who focused on the political landscape of mortgage lending, agreed that George Osborne had done “the right thing” to tighten up tax relief.
“There is absolutely no justification [whatsoever} for giving preferential tax treatment to borrowing for buy-to-let as opposed to borrowing for other forms of investment,” Cable said.
“I would be surprised if they don’t tighten it up further.”
Vince Cable was also questioned about the reasons why Permitted Development Rights may or may not be extended – a subject Development Finance Today has been following closely.
Vince said: “There are parts of the country where you have excess demand for housing and an excess supply of office space so it seemed common sense to allow councils, or to require councils, to change the use.
“The problem was, and this was where I had disagreements with Eric Pickles (former Secretary of State for Communities and Local Government) and George Osborne, was because the situation varies enormously from place to place.”
Leave a comment