Government urged to stop ‘grandstanding’ and help landlords

Government urged to stop ‘grandstanding’ and help landlords

0:03 AM, 3rd April 2024, About 2 weeks ago 5

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There needs to be a shift in government policy to stop ‘grandstanding’ and recognise landlords’ rental income as business income for tax purposes, one firm warns.

The call comes from Andy Halstead, the chief executive of HomeLet, after its latest rental index revealed an annual 7.52% rise in UK rents.

Tenants are now paying an average of £11 more each month compared to February.

Mr Halstead says that current tax policies create undue stress on both landlords and tenants and that recognising rental income as business income would offer landlords greater tax relief.

‘Rent remains high, demand is strong’

He said: “Rent remains high, demand is strong, and supply remains limited. These indicators do not look like moving significantly for the foreseeable future.

“Professional letting agents have the dual challenge of delivering acceptable yields to their landlord customers and delivering sustainable profits for their businesses.

“Continued government grandstanding and indecision are making life difficult for all stakeholders in the private rental sector.”

He added: “Until landlords’ rental income is recognised as business income rather than earned income for tax purposes, the stress on individual private landlords and their tenants is likely to continue.

“It has never been more important for landlords to benefit from the services of professional letting agents, who take the steps to mitigate the risks that individuals face when renting an investment property.”

Rental index analyses rent data

HomeLet’s rental index analyses rent data to provide a snapshot of the UK’s rental market and for March, its data shows:

  • Average UK rent increased by 0.9% compared to February
  • The North East and Yorkshire and Humber witnessed the biggest monthly rises (+2.1% and +2% respectively)
  • Greater London saw a more modest increase (+1.5%), though this translates to an extra £32 per month for tenants
  • Only Wales and the East Midlands saw slight decreases in rent prices.

Mr Halstead highlights the year-on-year increase, with average rents now 7.52% higher than March 2023 which is squeezing tenant budgets.


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Comments

Blodwyn

13:52 PM, 3rd April 2024, About 2 weeks ago

It is well past high time that the current government either takes notice of its traditional core supporters or calls a GE now and accepts dismal humiliation, much if not all self-inflicted? I'm a life long Conservative, stood in Maggie's GE 1979 (came a good 2nd in Sunderland North) but I am now in despair at the antics of the Trusses and other pressure groups led by such as the Ridiculous Moggster, interested more in scoring points than winning?
It may be a defeat and its consequences and perchance such as the Moggster losing its seat that may bring sense?

Cider Drinker

15:52 PM, 3rd April 2024, About 2 weeks ago

The government firmly believes that landlords have made £millions from house price inflation. I have that much in writing from Sir Robert Goodwill MP.

This is why landlords are seen as a legitimate target for unfair taxes and ridiculous legislation.

Reluctant Landlord

16:24 PM, 3rd April 2024, About 2 weeks ago

Reply to the comment left by Cider Drinker at 03/04/2024 - 15:52
the politics of envy at play, despite the basis of the argument being floored in the first place.

If that were true there would be no landlords left at all....we'd have all exited the sector with our £M's years ago and the BTL market would have crashed.

michael caffyn parsons

18:18 PM, 3rd April 2024, About 2 weeks ago

The government don't care about landlords renters they only care about the 24 hour news cycle.
Section 24 is a tenant tax everything imposed on the landlords will be be felt by the tenants. Unfortunately leftists have taken over university's the public sector the private sector and pump out the communist property is theft propaganda. Our only hope is if The Reform party who will abolish section 24 raise tax thresholds make work pay not impose green levies. Unfortunaley before that can happen we will have labour bankrupt the country first. Most people I know are not looking to expand due to high taxes they are just looking at cost cutting. Every country with low tax has a disproportionately high tax take Ireland Singapore
Business here is just suffocated with tax and regulation. I urge everyone to read Reforms manifesto if you keep voting for the same you will get the same.

howdidigethere

19:02 PM, 3rd April 2024, About 2 weeks ago

It is not about landlords, or renters, it is about robbing the productive.

It is also about benefitting the corporations because corporations are bribing the politicians.

No one has raised the issue that S24 double taxes the same transaction. How is that legal/lawful?

We are taxed on the money we pay to the lender because it is not deducted from turnover, and the same money the lender receives from us is taxed revenue.

"You will own nothing and be happy", right?

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