Aldermore Share Discussion Threads

[togglebrush] 11/7/2015 10:41

Diary Dates
'
27 Aug 2015____2015 Half Year Results
12 Nov 2015____Q3 2015 update

[mazarin] 10/7/2015 08:31

Glad to see ALD together with OSB and SHAW today are showing some signs of a 'stronger' recovery first thing from recent 'budget inflicted woes'. I'm hoping the trend will continue, as and when we hear some results currently now overdue IMO. SHAW has declared its due to report on 28th July.

[zho] 09/7/2015 18:41

Challenger banks to lobby George Osborne over controversial new tax

Small banks say the Chancellor's 8pc levy threatens their survival




But the so-called challenger banks, whose rise Osborne likes to champion as examples of the government’s pro-competition policies in action, will also be obliged to cough up when their profits are large enough.

[investordave] 09/7/2015 14:43

That bounce didn't last long.

[maurillac] 09/7/2015 12:58

i thought so too which is why i bought a few late yesterday !
m

[eddyeagle1979] 09/7/2015 12:39

Bouncing hard now - think yesterday's falls were overdone!

[gargleblaster] 08/7/2015 18:55

This from IC explains why the challenger banks have been hit so hard - not just buy to let tax changes but surcharge on pre-tax profits. I managed to get out but not before taking a mugging - most unfortunate for all investors involved;

After the foot-stomping by the City's major banks, Chancellor George Osborne gave in to the pressure. Maintaining that the levy had raised revenue and increased balance sheet stability, he added: "Now it risks doing harm unless we change it."

The bank levy will be reduced from its current rate of 0.21 per cent, falling to 0.18 per cent from January next year, 0.17 per cent from January 2017, and reducing to 0.10 per cent from 2021 - whereupon it will be restricted to banks' UK balance sheets only. This was the announcement that had been awaited, but never arrived, in Mr Osborne’s Mansion House speech last month. It immediately lifted the shares of HSBC ( HSBA ) and Standard Chartered ( STAN ), which have a great deal of overseas business - and indeed had seen the levy as a factor in reconsidering their UK domiciles.

But these gains were only brief, as the industry digested the levy's replacement, an 8 per cent corporation tax surcharge on bank profits, effective from this coming January. The Treasury estimated this would raise an additional £2bn from the banks across the forecast period, the policymakers understandably keen to demonstrate the banks were paying their way.

Treasury officials admitted this figure had a "very high" uncertainty rating, as it includes assumptions about banks' profitability, as well as their response to the change, given the possible incentive to adapt their numbers to reduce the charge. The change is likely to hit challenger banks especially hard, as they will have to pay the surcharge on pre-tax profits above £25m.

The Budget also revealed the government plans to raise £2bn of cash from its sale of shares in the Royal Bank of Scotland ( RBS ) in 2015/16, and £5.8bn in each of the following four years.
IC VIEW:

The government argues the change of tack aligns bank contributions with profit and capital accumulation, rather than constraining their lending, or pushing them outside of the UK. Of course, there was no point taxing bank profits back when these lenders were not making any money, but a conclusion on the longer-term impact is tied up with a prediction of future profitability of these lenders. In fact, smaller lenders were the bigger fallers on the day, as the reduction in buy-to-let tax breaks helped to send share prices lower among the sector's mortgage lenders.

[johnv] 08/7/2015 18:24

Would be nice for ALD to put out some sort of statement like OSB did.

[mazarin] 08/7/2015 18:00

Another shocking day, down 44.4p (14.89%) at close on top of yesterday's dramatic 6% fall. Its now clearly due to someone yesterday first getting info (i.e. leaked) ahead of the Chancellor's Summer Budget provisions for a '4 year phased-in' cut on tax relief for 'Buy to Let' Landlords. This has effectively wiped 20% off ALD's share price in just 2 days and is undoubtedly a massive over-reaction.

[matt] 08/7/2015 16:31

Buy-to-let landlords face cuts in the amount of tax relief they can claim on mortgage interest payments, the government has said.

The amount that landlords will be able to claim will be set at the basic rate of tax, which is currently 20%.

The move is aimed at creating a "level playing field" between homeowners and investors, chancellor George Osborne said.

The change will be introduced over four years from April 2017.

Currently property investors can claim tax relief on their monthly interest repayments at the top level of tax they pay, meaning the wealthiest can claim as much as 45%.




Mr Osborne said the current system gave buy-to-let landlords "a huge advantage in the market", compared with home buyers.

"The better-off the landlord, the more tax relief they get," he said.

Buy-to-let properties now account for over 15% of new mortgages, something the Bank of England warned last week could pose a risk to the UK's financial stability.

Separately, Mr Osborne said tax relief for people who rent out a room in their home would be increased from its current level of £4,250 - where it has been frozen for 18 years - to £7,500 from next year.

'Major blow'

Nicholas Leeming, chairman of national estate agents Jackson-Stops & Staff, said the changes to tax relief would hit many small and older private investors.

"This is a major blow to a sector that is heavily reliant on private investors and who provide a crucial supply of property to the private rental sector," he added.

He also warned the move could hit the supply of rental properties making it harder for people who wanted the flexibility of being able to rent rather than buy.

But the director general of the Council of Mortgage Lenders, Paul Smee, said the fact the change was being introduced slowly would soften the blow.

"The phasing is important. We will need to understand whether this will have a behavioural impact on higher-rate buy-to-let landlords, but a four-year timetable does at least reduce the risk of sudden market shocks," he said.

Shares in house building firms Barratt Developments and Redrow fell by 4.8% and 1.5% respectively following the announcement.

[aishah] 08/7/2015 16:18

See p215 of Admission doc.

[future financier] 08/7/2015 16:08

What proportion of ALD business is made up of BTL?

[melf] 08/7/2015 15:53

Yes I think it's an overreaction. It all sounds bad but what a lot of people don't realise is wear and tear allowance, can only be claimed on properties that are let furnished. For unfurnished properties landlords have never been able to claim the 10% wear and tear. what we may see, is that landlords will be less inclined in the future to furnish properties they are letting as the 10% was rather generous.

[igoe104] 08/7/2015 15:31

Stop losers kicking off me thinks ?

When it steadies out, the buyers will be back for the bargains.

[gorilla36] 08/7/2015 15:25

Jeez - Talk about an overreaction!

[igoe104] 08/7/2015 15:23

This is the problem.



UK Housebuilders, Estate Agents, Lenders Hit By Buy-To-Let Tax Changes
Wed, 8th Jul 2015 14:01


LONDON (Alliance News) - Shares in UK housebuilders and buy-to-let lenders dropped on Wednesday afternoon after Chancellor George Osborne used his Summer Budget announcement to outline plans to restrict the tax relief offered to buy-to-let landlords.




Osborne said the government will restrict the relief on finance costs offered to residential landlords to the basic rate of income tax. The restriction will be phased-in over the course of four years, starting in April 2017.

"This will reduce the distorting effect the tax treatment of property has on investment and mean individual landlords are not treated differently based on the rate of income tax that they pay. It will also shift the balance between landlords and homeowners," Osborne said.

The chancellor also said the government will reform how residential landlords can account for the costs they incur in improving and maintaining their rental property. At present, landlords are able to deduct 10% of their rent income from their profit in order to account for so-called "wear-and-tear" on their properties, meaning they can reduce their tax liability even when they have not improved the property.

Starting in April 2016, the government will replace this allowance with a new system which allows all landlords to only deduct costs that they actually incur.

The clampdown on the tax treatment of residential landlords hit shares in housebuilders, with FTSE 100 constituents Barratt Developments PLC, Taylor Wimpey PLC and Persimmon all seeing their shares drop to sit among the worst performers in the blue-chip index. Barratt shares were down 3.8% to 606.5 pence, Taylor Wimpey shares down 3.0% to 180.00 pence and Persimmon shares down 2.4% to 1,921.00 pence.

It was the same story for housebuilders in the FTSE 250, with Berkeley Group Holdings PLC down 6% to 3,137.00 pence, Crest Nicholson Holdings PLC down 4.6% to 523.5 pence, Bellway PLC down 3.6% to 2,307.00 pence, Galliford Try PLC down 3.0% to 1,670.54 pence and Bovis Homes Group PLC down 2.5% to 1,099.28 pence. All were among the worst performers in the index.

The news also hit shares in estate agents and property portals in the FTSE 250, with Foxtons Group PLC falling 3.0% to 214.3 pence, Countrywide PLC down 2.2% to 526.00 pence and Zoopla Property Group PLC down 4.4% to 226.96 pence.

Sharing in the woes are buy-to-let lenders, with Paragon Group of Companies PLC shares falling 2.9% to 388.6 pence, Aldermore Group PLC falling 5.0% to 283.2 pence and OneSavings Bank PLC down 6.1% to 292.756 pence.

[scottishfield] 08/7/2015 15:06

staying put here

[leeson31] 08/7/2015 15:03

willl be interesting to see if broker notes change ie they alter/reduce eps forecasts. even if eps growth slows, these will still see massive growth.

[liquidkid] 08/7/2015 15:00

They implicitly state that they are trying to kill off the BTL market.
Its not just the headline "tax relief & wear-and-tear allowance". There are many other gov't schemes that are coming in that are going to send the BTL sector down to Hell.
Trying to increase the rent is not going to be the easy the way out.

[melf] 08/7/2015 14:36

Mr Market dose have a habit of seeing the glass half empty. What about the reduction of corporation tax to 19% in 2017 - surely good news for companies with growing profits.

[celeritas] 08/7/2015 14:20

Who'd have thought it, the government leaked.
Ideal fall for me as I didn't have enough before.

[harryjp123] 08/7/2015 14:11

Yes, seems a very exaggerated reaction in my opinion. Still, wish I had waited a few hours to top up.