Call to save the PRS by scrapping landlord levies

Call to save the PRS by scrapping landlord levies

11:49 AM, 30th August 2024, About a month ago 19

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The private rented sector (PRS) is in dire straits, with rocketing tenant demand and a fall in the number of homes to rent, Ben Beadle says.

In an article for The Times, the chief executive of the National Residential Landlords Association (NRLA), argued that tax increases over the past 14 years have made it more difficult for tenants to access the homes they need.

The rise in demand and fall in supply is also leading to significant rent rises.

Mr Beadle points to a Capital Economics study suggesting that that eliminating the 3% stamp duty surcharge on second homes could unleash a wave of new rental properties, with nearly 900,000 additional homes entering the market nationwide.

This would not only alleviate the housing shortage but also inject £10 billion into the Treasury’s coffers through increased income and corporation tax revenues.

Potential capital gains tax increases

On Twitter, Mr Beadle wrote: “My article in The Times online highlights the pressing issue of potential capital gains tax increases and their impact on #tenants.

“Tax hikes over the past 14 years have hindered access to homes, and taxing our way out won’t solve the problem.

“We need a thriving #privaterentedsector and investment in all housing types to address the imbalance between supply and demand, which drives up rents and limits renters’ purchasing power.”

He added: “The lowest number of first-time buyers for a decade recorded in 2023 (290k) underscores the urgency for change.”

‘Boost investor confidence’

Mr Beadle continued: “Rather than stifling investment, let’s foster an environment that boosts investor confidence.

“Instead of banning bidding wars, focus on increasing supply to prevent them.

“And, let’s support responsible #landlords and empower #renters to hold bad housing providers accountable.

“Bold and pragmatic changes in taxation and housing supply are crucial to avoid harming those least able to bear the burden.”

George Osborne’s attempt to ‘level the playing field’

In his article, Mr Beadle spelled out Chancellor George Osborne’s attempt to ‘level the playing field’ between homeowners and renters as backfiring.

His policy, which favoured homeowners by imposing higher taxes on rental properties, has only exacerbated the housing crisis.

Mr Beadle says this was a classic case of unintended consequences which made it more expensive for landlords to operate.

Mr Osborne also inadvertently discouraged investment in the PRS which also, in turn, led to a decline in the supply of rental properties.

Tenants then saw rents rise and they struggled to find affordable housing.


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Cider Drinker

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8:44 AM, 30th August 2024, About a month ago

Osborne’s Section 24 outrage didn’t result in an unintended consequence of less investment in the PRS. It was the intention of this insidious tax.

Reversing SDLT on additional homes will do little to revive the PRS. Trust is broken.

Who on Earth would invest in property in a country where the government can steal your investment from under your nose, at the flick of a political switch?

The PRS is dying. Tax changes will only come about when small, private landlords are a thing of the past and large corporations have taken over (build to rent). BTR will eventually drive out homeownership - watch this space.

Patricia

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9:54 AM, 30th August 2024, About a month ago

It was a devious ploy from the start to usher in large corporations to take over the rental sector. The onslaught continues and will not stop until all small landlords have been driven out and large asset management companies own everything. Home ownership will go the same way, by increasing taxes to a level that homeowners cannot sustain. Such is the power big corporations now wield.

Ivor Tennant

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9:55 AM, 30th August 2024, About a month ago

Absolutely right … investment funds are pushing to take over the PRS but as we have seen with other councils and big organisations they cannot manage the operational side of the PRS. They know this so Draconian enforcement is only applied to private Landlords. The big money takeover of the PRS will fail.
Ben Beadle misses the point entirely. Private landlords are a business and must be treated as such so that costs can be deducted against income just like any other business. Most private landlords already have their portfolios so SDLT is not the priority, a level tax playing field is and it is this that will incentivise landlords to continue investing to provide housing and very little else.
The Westminster bubble have decided that Landlords are evil and until that view changes the outflow of Landlords will continue and those innocent tenants made homeless as a result will just increase the pressure on none existent social housing… by then it will be too late.

TheMaluka

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10:02 AM, 30th August 2024, About a month ago

It is also too late for Ben Beadle to restore confidence in the NRLA.

Frank Jennings

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10:09 AM, 30th August 2024, About a month ago

Reply to the comment left by Cider Drinker at 30/08/2024 - 08:44
This is another red flag, among a sea of red flags. This govenment hates the PRS and want to destroy it. The Marxist agenda in full speed deployment. The uniparty are changing our society quicker than we can cope with, and they are racing towards their 2030 deadline for compliance with the WEF and the globalist vision of world order. They think this will stop wars and famine, and bring peace to an otherwise turbulent world. They are deluded! It will take a lot more than politicians forcing us into compliance to their agenda. I don't like where we are heading, and communist china type system is just an example of where we might end up, if they have their way.
So the best option for LL's seems to be to sell up and emigrate to where you are treated best, before they take everything you have worked for from you, and leave you destitute and totally dependent upon the govenment for benefits and housing. Look to 3rd world countries to see how bad it could get. Total control of your life, and your thoughts and your money, and your family. A totalitarian system where you are totally controlled. CBDC's are on their way already. Rejoining the EU is just around the corner, as 2TS demands total control!

graham mcauley

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10:14 AM, 30th August 2024, About a month ago

Reply to the comment left by Cider Drinker at 30/08/2024 - 08:44
I agree, when George Osbourne brought in section 24, I read, he was part of, or helping a syndicate based in the Netherlands that formally invested in commercial property, but as the returns were decreasing they wanted to move into PRS were profits were growing, and they had 600 million to spend. Did anyone read this?

Stella

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11:17 AM, 30th August 2024, About a month ago

Reply to the comment left by graham mcauley at 30/08/2024 - 10:14
This does not surprise me and he had the cheek to say on TV some months ago that in his opinion that the government were being unfair to landlords and that they had gone too far.
Sheer humbug!

NewYorkie

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12:15 PM, 30th August 2024, About a month ago

Reply to the comment left by Cider Drinker at 30/08/2024 - 08:44I agree with your long term thinking about the rise of BTR.
We will never be able to build enough social housing when the government continues to move the goalposts by prioritising illegal [irregular!] migration. So, something must change, and I can't see any government wanting to be seen as handing more money to 'non-professional' private landlords.
BTL will remain for large portfolio incorporated landlords focused on the lower tiers of renting. BTR will become the investment asset of the future, providing higher quality lifestyle choice rentals for families and young professionals in gateway cities who can afford to pay more.

KAREN SIMMONS

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15:02 PM, 30th August 2024, About a month ago

Has anyone read as I did today in he Telegraph that it has been advocated to Rachel Reeves to levy National Insurance on Landlords' income ?

TheMaluka

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15:27 PM, 30th August 2024, About a month ago

Reply to the comment left by KAREN SIMMONS at 30/08/2024 - 15:02
If that were so, surely it can no longer be classified as investment income?

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