More like 40% than 1 in 5 according to AXA
Independent research carried out by AXA reveals over 40% of Landlords asked think they will be worse of after Section 24 mortgage interest relief reductions.
This compares to the standard government and treasury policy script quoting only 1 in 5 landlords will be affected by the tax changes made in the Summer Budget 2015 and now coming into force.
Almost half of private landlords have told AXA they are now looking to withdraw from the residential lettings sector by 2020.
- 21% plan to sell all their rental properties
- 10% are looking to reduce the number of properties in their portfolio
- 7% want to switch to ‘safer’ commercial property ownership
- 8% will transfer ownership of rental property to their spouse or another family member who is in a lower tax bracket to try and stay under the section 24 penalty of being a high rate tax payer.
Two in three landlords also report feeling scapegoated for the housing crisis and stigmatised by government, politicians and sections of the public for providing homes to rent.
One landlord said,”It’s a myth that we are rich. After mortgage, tax and repairs, I don’t make a profit on the two properties I own. People think landlords are fat cats who sit back and do nothing for their tenants.”
Head of Marketing for AXA Insurance, Gordon Rutherford said; “Landlords have been subject to one piece of new legislation after another in recent years, much of it very complex indeed. We see a real confusion as to what the new tax changes will mean, with government and landlords giving very different estimates of the impact.
“We need to remember that few landlords are professional property tycoons. Two thirds in the UK are ‘accidental’ landlords. They tend to own just one rental property that they’ve inherited or are finding hard to sell, and they make a modest income once time and expenses are out. They do feel increasingly apprehensive, as we can see from the numbers thinking of withdrawing their properties from the rental market in the coming years.”
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Member Since September 2016 - Comments: 2533 - Articles: 73
11:49 AM, 6th April 2017, About 9 years ago
Yes we all know that the 1 in 5 estimate is nonsense and that the proportion of affected landlords will be far higher. It is also a red herring as the focus on this obscures the impact on far more tenants. I had an email from the Treasury today saying that the 1 in 5 argument is not a ‘justification’ but an estimate. Uh if it isn’t a justification what is the point in mentioning it all the time?
Member Since July 2013 - Comments: 1998 - Articles: 21
12:04 PM, 6th April 2017, About 9 years ago
Reply to the comment left by “Dr Rosalind Beck” at “06/04/2017 – 11:49“:
It is mentioned all the time because it sticks in the public’s mind. Gavin Barwell instantly backtracked when I called him out over it in January but I don’t suppose ministers will stop using it. Landlords should keep calling out their MPs over this. Go to their surgeries, write to them until they are sick of hearing. Let them have no excuse that they did not know what they have done.
As was rightly said there are three kinds of lies: Lies, damned lies and statistics.
Member Since September 2015 - Comments: 1013
12:35 PM, 6th April 2017, About 9 years ago
Reply to the comment left by “Ian Narbeth” at “06/04/2017 – 12:04“:
Sorry to have to correct you Ian but it should be “Lies, damn Lies, and Treasury/politicians statements”.
BTW how can you tell a politician is lying? – their lips are moving!
Member Since January 2017 - Comments: 124
1:11 PM, 6th April 2017, About 9 years ago
Reply to the comment left by “Barry Fitzpatrick” at “06/04/2017 – 12:35“:
A wise man once told me a quote that you will appreciate Barry.
If it was not for double standards/bad ethics/bad morals politicians would not have any.
Hope you are well.
Member Since September 2016 - Comments: 105
1:30 PM, 6th April 2017, About 9 years ago
Member Since September 2013 - Comments: 534 - Articles: 2
2:12 PM, 6th April 2017, About 9 years ago
Reply to the comment left by “CazT ” at “06/04/2017 – 13:30“:
I am in a similar position, to be honest with you, Landlords have become the bloodsport of the media.
Now we can be fined £30,000 without a court hearing, its a bloody joke!
If you treated a Jew, Gay or Muslim like this there would be a Public Outcry.
AXA are only reporting the tip of the iceberg.
How the hell did we get into a situation in the UK, where you are discriminated against because of your chosen occupation?
Do you realise that you now have a worse tax position than a necrophiliac paying interest on a mortgage for their funeral parlour?
That’s right! – if you pay for a funeral parlour and you are a corpse fiddler, you don’t pay as much tax as a BTL Landlord, that provides houses for the living.
So that’s 0% of necrophiliacs affected by Section 24.
The same applies to
Taxi Driver Rapists
Bank Robbing LIBOR fraudsters
1970’s TV Presenters in Prison
The Moors Murderers
Jeffery Archer
Salman Rushdie
Gary Barlow
and Sooty
#Vote UKIP
Member Since September 2016 - Comments: 105
3:04 PM, 6th April 2017, About 9 years ago
Member Since September 2016 - Comments: 2533 - Articles: 73
6:44 PM, 6th April 2017, About 9 years ago
Reply to the comment left by “Gary Dully” at “06/04/2017 – 14:12“:
Gary I just had tears of laughter with that one. You’re a one-off.
Member Since February 2016 - Comments: 977 - Articles: 1
8:08 AM, 7th April 2017, About 9 years ago
Reply to the comment left by “Gary Dully” at “06/04/2017 – 14:12“:
I am reading it only today (Friday) and – together with my first coffee this morning – it made my perfect start of the weekend (in 8 hours time).
I am REALLY tempted to pass that on to my MP…