TENANCY

% OF PEOPLE FORCED TO RENT DUE TO

SHARP INCREASE IN PROPERTY PRICES

TENANCY
67% OF THE PEOPLE RENT BECAUSE OF THE
STABLE HOUSING VALUES, NO PANIC BUYING
ORDERER PRINCIPLE
PREVIOUSLY, TENANTS HAD TO PAY THE
FEES FOR REAL ESTATE AGENT SERVICES,
NOW THE LANDLORD HAS TO PA

REDUCTION OF SOCIAL HOUSING

IN 1979, MARGARET THATCHER
PROPAGANDA RIGHT TO BUY &
RECENT HELP TO BUY SCHEME
LACK OF LAND TO CONSTRUCT
GREENBELT CONSIST 13% OF
TOTAL LAND &
PLANNING AUTHORITY IS TOO
SLOW TO ALLOCATE PLOTS

UK DE

SUPPLY VS DEMAND
LACK OF HOUSING,
REQUIRED 250,000 HOUSES A
YEAR. BUT IN 2014, ONLY 141,000
WAS CONSTRUCTED

WORSENED
STANDARD
OF LIVING

UNAFFORDABLE PROPERTY PRICES

TIGHT MORTGAGES AFTER
FINANCIAL CRISIS , & LAND PRICE
170%, WHEREAS HOUSE PRICE
124%.
RENT NOT CONTROLLED BY
GOVENMENT
NO MORE FAIR RENT, ONLY
MARKET RENT

INSECURITY IN RENT
AVERAGE TENURE OF 6 MONTHS
NO LIMIT ON RENT INCREASE
NO FAULT NOTICE
REVENGE EVICTION
DISASTROUS SHARED HOUSE

EFFICIENT PLANNING
LOCAL GOVERNMENT HAVE
DIRECT FINANCIAL INCENTIVE
TO PROVIDE LAND FOR
HOUSING
RIGHT TO BUILD CLAUSE

IMPROVED
STANDARD
OF LIVING

RESPONSIVE HOUSING SUPPLY

IN THIS JANUARY ALONE, 21,600
NEW APARTMENTS WERE BUILT

ALREADY HIGH PROPERTY PRICES

MORTGAGE FINANCE STRICT
LOAN TO VALUE RATIOS CAPPED
AT 60% TO DISCOURAGE BUYERS
STATE REGULATING THE MARKET
RENTAL INCREASE LIIMIT TO 10% THE LOCAL
COMPARABLE RENT
RENTAL PRICE BREAK
SECURE RENTAL TENANCY
TENANTS HAVE PROPERTY RIGHT
NO REVENGE EVICTIONS
UNLIMITED TENURE
RENT CAN ONLY BE INCREASED EITHER
FOLLOWING RENOVATION WORK OR LIMITED
INCREMENTS

UK
OWNED / PRIVATE

LAWS

HELP TO BUY
15% OF PROPERTY VALUE PROVIDED BY
GOVERNMENT EQUITY LOAN
STAMP DUTY LAND TAX (BUY)
1% FOR HOUSE <250,000
3% FOR HOUSE<500,000
CAPITAL GAIN TAX (SELL)
18% - 28%
NO ANNUAL PROPERTY TAX
VALUE ADDED TAX (RENT)
17.5%
TAX ON RENTAL INCOME
UP TO 40%
INCOME TAX
20%
SYMMETRICAL TENANCY AGREEMENT (6
MONTHS)
SHORTHOLD ASSURED TENANCY AGREEMENT,
NEITHER TENANT NOR LANLORD CAN TERMINATE THE AGREEMENT
HOUSING BENEFIT (RENT)
ALLOWANCE 442 POUNDS, FOR THOSE WITH
SAVINGS OF LESS THAN 16,000

DE
RENTED / SHARE

LAWS

PRINCIPLES IN GERMAN TAXATION

THE ABILIT TO PAY PRINCIPLE
EQUITY IN TAXATION
LAWFULNESS OF TAXATION
WELFARE STATE PRINCIPLE
INCOME TAX
0-45%
NO INCOME TAX ON BASIC
ALLOWANCE-8,354 EURO
SOLIDITORY CHARGE
UP TO 5.5%, WHEN ANNUAL INCOME TAX IS 1340 EURO
PROPERTY SALES TAX
TRANSFER OF PROPERTY, 5-6%
CAPITAL GAIN TAX
NO NEED IF PROPERTY IS HELD FOR MORE THAN 10 YEARS
INHERITANCE GIFT TAX
50%
RENTAL INCOME TAX
OWNERS CAN DEDUCT EXTRA EXPENSES OR COST
LOCAL GOVERNMENT RECEIVE GRANTS BASED ON
THE NUMBER OF INHANITANTS

UK HOUSING IS A FACTORY BUBBLE

HIGHLY RESPONSIVE SUPPLY

RESTRICTIVE LANDUSE POLICY

REGULATED RENTS

DEREGULATED RENTAL MARKET

TENANT HAS SECURITY OF TENURE

LACK OF TENURE ENSURED THAT

RENTING IS A SECOND RATE OPTION

POLITICAL SYSTEM IS HIGHLY

SENSITIVE ON RENTAL RIGHTS

PLANNING OBJECTIVE IN UK URBAN

CONTAINMENT & DENSIFICATION