Rent review letter post Autumn Statement

by Property118.com News Team

13:28 PM, 23rd November 2016
About 2 years ago

Rent review letter post Autumn Statement

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Rent review letter post Autumn Statement

Below is a rent increase letter that will be sent by a Property118 campaign member now that there has been no reversal of Section 24 in the Autumn Statement.post box

Rent Review :

Since you moved in to XXX I have not reviewed the rent and it has remained at £525 for several years.

As you may be aware, the Westminster Government is changing the way that landlord taxation is calculated and for many landlords this will mean much larger tax bills. The Government is doing this as it wishes to encourage home ownership and reduce the number of rented properties owned by private landlords.

Since the tax change was announced on 8 July 2015, landlords have campaigned against its introduction but despite their best efforts (including an unsuccessful legal challenge) the Government has decided to go ahead with the change which takes effect from 6 April 2017.

The following website explains the implications of the Government tax change for landlords and the knock-on consequences for tenants.

http://www.tenanttax.co.uk/

The Government is phasing in the change as they say they wish to give landlords time to adjust. Landlords are already adjusting by evicting tenants in order to sell properties and / or by increasing rents.

I am one of the many landlords across the UK who will be affected by the tax change. I have held off taking action in response to this legislation for 17 months. I had hoped that the new Chancellor would have announced a policy change today as part of his Autumn Statement but he has decided that the change will go ahead. With the tax change now certain to come in to effect in the next few months, I am now forced to take action.

I have reviewed the rent you pay with the rent being charged by other landlords for similar properties in the area. The rents vary from £550 to £640.

I am proposing that your rent be increased to £550 with effect of 29 January 2017. I have drafted an Addendum to your tenancy agreement which is enclosed herewith. Please sign this and return it to me, confirming your acceptance of the rent increase.

Please feel free to contact me if you wish to discuss the matter.

Landlords who are increasing rents are encouraging tenants to write to their MPs to express their concern about the implications of the tax change for tenants in the private rented sector.  I would encourage you to write to your MP.



Comments

CazT

13:56 PM, 23rd November 2016
About 2 years ago

Could we have a look at the addendum please? Great letter BTW.

Mark Hartell

14:45 PM, 23rd November 2016
About 2 years ago

Mark - I'm a little worried that the second sentence of this letter and the link will reinforce the message given out by the government that its only super wealthy landlords who are affected and that we have somehow been avoiding paying the proper level of tax anyway

Think about this from the tenant perspective. They see the phrase "and for many landlords this will mean much larger tax bills" and then they follow the link to immediately see someone from "Platinum property partners".

Most are led to believe that we have been getting special treatment or avoiding taxes to date (after all, the government has said they just want to "level the playing field"). I think the crucial thing for tenants to understand is that we will be getting taxed on money that is not a profit and that you don't have to be a higher rate taxpayer under the old definition to be hit by this.

BTL INVESTOR SCOTLAND

15:36 PM, 23rd November 2016
About 2 years ago

Good letter. I wonder how many others will be sending out similar letters this week.

Russell Thomas

16:44 PM, 23rd November 2016
About 2 years ago

A little to wordy. If I was a tenant I would just note ;

1) my rent is going up 5% after being held down for a few years (not bad).
2) The aim of the change is to reduce the number of properties held by (rich) landlords
3) This may flood the market with more properties to buy (which is good).
4) After all it is only 1 in 5 landlords (no sleepless nights for me).
5) The (evil) landlord is paying more tax (about time)

From a previous comment I calculated that this was 400,000 landlords affecting 2,500,000 tenants who will face either increase in rent or eviction.

I believe a shotgun between the eyes is a much better approach!!

Or as a fellow contributor Richards Peeters said:

“Tory tax grab to make 2.5 million homeless”
“Shelter supports evicting millions of decent tenants so Yuppies can get on the ladder”
“Tories force 400,000 small businesses to bankruptcy”
“Government forces councils to spend £10b filling hotels with homeless”

Dr Rosalind Beck

16:55 PM, 23rd November 2016
About 2 years ago

I will be tying my next increase in with the start of the lunatic tax in April 2017, but see now as as good a time as any to start. I made my first increase to tenants in situ last November (increasing rents for current tenants was not previously part of my business procedures). Those of us who will face the huge levy on the main cost of our business, with it having been redefined by sleight of hand as 'profit' should increase rents incrementally as this makes more sense than waiting and then having to impose drastic rent increases. This is obviously necessary in order to avoid the Government-forced sale of our legitimate businesses (providing swathes of essential housing throughout the UK), bankruptcy and the eviction of our tenants. The measure is ostensibly designed to possibly help the wealthier (compared to renters) putative first time buyers if they are able to purchase the houses or want to. It's anyone's guess where the evicted tenants will go in cases where the rented home is converted into an owner-occupied one.

Philip Hammond had an opportunity to reverse this insane attack on the PRS, but he would appear to be as dull as his predecessor and the staff in the Treasury who repeat inane nonsense about Section 24, disregarding the damage it is going to wreak.

Martin

14:14 PM, 9th January 2017
About 2 years ago

Maybe cc the Chancellor and Housing minister on all such letters? Time to bring this grief to them.

H B

21:21 PM, 9th January 2017
About 2 years ago

I would make it clear that it is not just a tax on profit but a tax on rent - otherwise the tenant will think you are being greedy.

He might also wonder why you are putting up the rent in January rather than when the tax is implemented.


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