Iain Duncan Smith Has Spoken Out For Landlords
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Iain Duncan Smith Has Spoken Out For Landlords

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Iain Duncan Smith Has Spoken Out For Landlords

On Sunday 18th June 2017, Iain Duncan Smith was quoted by the Sunday Telegraph as saying ….

“Finally, it is time to look again at the way we treat private landlords who buy houses to rent. George Osborne’s decisions to impose a stamp duty levy on the purchase of homes to rent, to restrict mortgage interest relief to the basic rate of income tax and to tax a landlord’s turnover rather than profits have led to landlords scaling back or even leaving the sector altogether.
They are a significant provider of the additional housing we need. We should be encouraging them with devices such as VAT relief on conversions or even capital allowances, not punishing them. It’s no wonder buy-to-let purchases have fallen dramatically. If the purpose was to stop foreign owners buying up property and leaving it empty

…………………………………………………. We are in danger of throwing the baby out with the bath water.”

Comments

Gary Dully

A month ago

My God, at long last the penny might have dropped with these idiots.

Shame about the election then isn't it?

Is this because Gauke has finally been moved?

No houses in Jeremy Corbyns constituency, I notice, so it's luxury apartments as an alternative for the fire victims.

What are the rents on that lot?

Dr Rosalind Beck

A month ago

I have sent the following to IDS and urge others to also write:

Dear Ian
As a landlord, I would like to thank you for your intervention, published in the Telegraph, regarding the Treasury's fiscal attack on landlords and specifically the policy which disallows the finance costs of our businesses as a legitimate expense. If you are able to somehow corral other members to support us in our endeavour to get these outrageous assaults on our businesses reversed, that would be truly appreciated. We are already extremely grateful for your support so far. To date David Jones and Howard Flight have voiced their opposition to this, notably in articles on Conservative Home, but not many others have spoken out. If there could be some coordination to create a parliamentary voice about this, that would be great.

In order for you to have some more background I have pasted below the link to my comprehensive (and yet concise, I believe) report on Section 24 of the Finance (no.2) Act 2015 for you to have a look. As you will be pressed for time, initially if you just scan the Executive Summary and the expert quotes at the beginning, you will get the gist of why we are so furious about this Conservative attack on our businesses, livelihoods and pensions. It will also become apparent what an own goal this really is.
All the best.
Dr Rosalind Beck
Portfolio landlord and campaigner against Section 24.

https://www.property118.com/wp-content/uploads/2016/10/6G0YKMd1Wf.pdf

Even if you just write to thank him for his comments that would be really good as when people stick their necks out like this, it is good to praise their efforts. We did this with Howard Flight and he has written several articles against s24 now. IDS also had several people pointing out the issues related to s24 at a debate at Olympia recently - it shows that these efforts can all pay off.

I have sent an email to IDS as well. The more support he gets the better.

Dear Mr Smith

Congratulations on being the first MP to criticise publicly George Osborne's anti-BTL tax attacks, and thank you.

I posted the following comment under the online article from the Sunday Telegraph:

Finally an MP has publicly pointed out a predictable consequence of disallowing mortgage interest for individuals - that they have stopped increasing the supply of dwellings - almost two years after the policy was announced. Hitherto, Lord Flight has been a lone voice.

There are other consequences as well - rents are being increased to cover the extra tax, and tenants on benefits who cannot afford the increases are being evicted, adding to the number of homeless people and the cost of putting them in “temporary” accommodation wherever it can be found.
Other tenants on benefits are being evicted so that the owners can sell with vacant possession.

The predictions of these consequences were not theoretical. They had already been experienced in Ireland where governments twice introduced milder forms of disallowance, and then had to repeal them.

This policy cost the Conservatives votes, and possibly their majority, given that only 75 votes would have swung it. These votes will not come back until George Osborne’s lunatic tax is repealed.

Kind regards

april lee

A month ago

As a letting agent in somerset i have noticed the change in the lettings market over the past couple of weeks. Throughout the town we have minimal housing available. The rents have rocketed and they will continue to do so.
We have tenants that are looking for a new home as some landlords have no choice but to sell up or increase rent. For these families finding a home is proving very tricky. As an agent we are helpess. We are trying to find a home for these families but with the increasing rents complicated by few homes available i fear they will end up in a b and b or homeless.
We have landlords deciding to manage themselves. As an agent we work for the tenants as well as the landlord. We make sure both are happy. I fear with more landlords doing this proper care and protection will be reduced.
Banning agent fees is a new worry. How will this help tenants? Agents will be forced to up landlord fees, landlords will be forced to up rents to cover extra costs. People will struggle to pay and end up in rent arreas and then eviction. Will the councils be able to rehome? Again as an agent we are tied. We need to cover costs yet care about our customers .
The majority of our landlords do not own multiple properties. For most it is to help with retirement. The rent sinply covers the morgage and maintenance. These working class people are being unessessarily punished. Punished for trying to protect their future.
As an agent we charge one fee just like morgages and holiday firms etc. We do not charge a rediculous amount, very low in comparison to most. We do not charge again whilst they remain at the property. It takes time and money to do these checks.
My proposal is for the goverment to rethink punishing landlords through tax etc and encourage. We need private properties. The councils will not cope without.
To cap fees instead of banning so more cost is not put on landlords and then effect rent prices.
Please look at the rental availability in bridgwater, somerset. We are struggling to find suiteable homes for the people who live here. The desperation from some tenants is upsetting as they struggle to find a home after eviction. We have very limited properties availiable. This will happen across the uk. Never have i known our office to be so quiet.

Mark Alexander

A month ago

Great letters folks, l hope every Property118 member is equally inspired
.

Mark Alexander

A month ago

Richard Bowser of Property Investor News posted the following on Facebook ...

Thank you to all concerned on Facebook yesterday following the comments made in the Sunday Telegraph but I was not alone in lobbying Iain Duncan Smith (IDS) at Olympia last week. Both Carolyn Uphill from the NLA and Peter Littlewood from the SLA also made some very valid arguments to Iain Duncan Smith about S24 and landlord licensing in particular during the panel debate at Olympia. As organisers of the Landlord Investment Show both Steve and Tracey Hanbury also deserve much praise for getting the former Leader of the Conservative Party to their event.

Unfortunately there was insufficient time for all the audience's questions to be answered in the panel debate which was attended by some 300+ landlords but I did get the opportunity to pose a few questions to IDS and was pleasantly surprised at his response. He does seem to grasp some of the main issues affecting private landlords and he quoted examples in the debate of how personal contacts of his were being adversely affected.

I asked him in private a key question on behalf of readers of Property Investor News as to why his party had not raised their intentions at the 2015 General Election to raise taxes on private landlords and as such that many private landlords felt betrayed by the Conservative Party.

His memorable reply was along the lines of:"what you have to understand is that there is Government and then there is the Treasury. It was they who saw an opportunity with George Osborne as Chancellor of the Exchequer at that time - after the 2015 Election - to put a proposal forwards to tax landlords. It was not thought through in respect of the consequences. The Treasury probably thought that Osborne would not run with it but he saw political advantage, went along with it and then subsequently with the 3% extra charge on SDLT".

As IDS has now followed through and made these comments in the recent Sunday Telegraph article on behalf of private landlords, my view is that the tide could be turning and that where possible all landlords should seek to make representations to their local MPs about the absurdity of S24 in particular.
.

Steven Burman

A month ago

It is all very well Iain Duncan Smith speaking against S24 and the additional stamp duty levy now but where the bloody hell was he 2 years ago when that buffoon Osborne decided to screw us all over?

I have news for you all.....S24 is already here and one newspaper article by a washed up Conservative politician is not going to change anything. Actions speak louder than words!

I would be more than happy to eat my words but I dont believe this changes anything. It is too little too late....many of us are already suffering under the changes made by Osborne with the prospect of worse to come as S24 heads towards full implementation.

I have already started pulling out of the PRS and I know of many others who are doing the same.

A predictable case of 'shutting the stable door afetr the horse has bolted' I'm afraid.

NW Landlord

A month ago

Excuse my nativity does anyone have a direct contact for him

A ray of hope...
Does anyone has a link to that article? I would like to pass that to my MP too.
Many thanks

Douglas Barley

A month ago

I am a life long conservative and actually voted for IDS when he became leader for a short time, however pardon my cynicism but could the conservatives have actually worked out that they have been hitting their core voters with all sorts of legislation and they are now trying to get back all the PRS landlords they have alienated! Self preservation is a strong motive.

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