Labour Manifesto – Attack on the PRS

by Property 118

13:50 PM, 21st November 2019
About 3 weeks ago

Labour Manifesto – Attack on the PRS

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Labour Manifesto – Attack on the PRS

The Labour Party have released their 2019 general election manifesto. This has been very briefly summarised with the key points of interest for Landlords and the PRS industry. Download the full manifesto here

Pretty much all previous threats to the PRS have been included along with additional regulation and taxation policies.

Private Rental Sector

Labour will take the following action to ‘protect’ private renters through:

  • Rent controls
  • Open-ended tenancies
  • Binding minimum standards
  • Capping rents with inflation
  • Give cities powers to cap rents further
  • Ban discrimination against benefits tenants
  • Scrap Right to Rent checks
  • Regulate Airbnb and short lets
  • National levy on second homes used as holiday homes

“We will give renters the security they need to make their rented housing a home, with new open-ended tenancies to stop unfair, ‘no fault’ evictions. We will make sure every property is up to scratch with new minimum standards, enforced through nationwide licensing and tougher sanctions for landlords who flout the rules. We will fund new renters’ unions in every part of the country – to allow renters to organise and defend their rights.”

“We will get rid of the discriminatory rules that require landlords to check people’s immigration status or that allow them to exclude people on housing benefit. We will give councils new powers to regulate short-term lets through companies such as Airbnb.”

“We will bring in a new national levy on second homes used as holiday homes to help deal with the homelessness crisis, so that those who have done well from the housing market pay a bit more to help those with no home.”

Taxation:

Income Tax: Additional Rate payable from £80,000 and new Super-rich Rate payable from £125,000

Corporate taxation: Gradually reverse cuts to corporation tax to reach 21% (Small Profits Rate) and 26% (main rate)

Introduce a second homes tax: This is an annual levy on second homes that are used as holiday homes equivalent to 200% of the current council tax bill for the property

Taxing income from wealth equitably and efficiently

  • Tax capital gains at income tax rates
  • Tax dividends at income tax rates

Financial Transactions Tax: Extend stamp duty reserve duty

Reverse cuts to inheritance tax and Bank Levy

Impose VAT on private school fees

Scrap Married Persons Allowance



Comments

Neil Patterson

13:58 PM, 21st November 2019
About 3 weeks ago

I am not sure the attacks on the PRS will make much difference to landlords once the economy is crashed anyway.

The Bond market will have leverage to charge whatever they like (Pimco have already expressed concerns).
Capital takes flight.
Any company with over 250 employees will look to relocate rather than have 10% of it's equity stolen.
The wealthy can and will move abroad.
Sterling would drop through the floor.
Exchange controls will need to be used for the first time since the 70s.
The visceral hatred of success will lead to the death of ambition.
Just for starters.

Neil Patterson

14:14 PM, 21st November 2019
About 3 weeks ago

RLA Press release:

LABOUR WOULD LEAVE TENANTS WORSE OFF

RESPONDING to the publication of Labour’s General Election manifesto, David Smith, Policy Director for the Residential Landlords Association, said:

“Labour’s plans would hurt tenants. It wants longer tenancies, yet is proposing nothing to encourage and support good landlords to stay in the market long-term. Whilst enabling tenants to remain in their property is a good thing, it needs to be matched by a system that gives confidence that landlords can swiftly regain possession of their properties in legitimate circumstances such as tenant rent arrears or anti-social behaviour. Nothing in Labour’s plans provide that assurance.

“Its plans for rent controls linked to inflation are also nonsense. The Office for National Statistics has shown that rents are increasing by less than inflation. The Party has failed to heed the warning of the Labour Chair of Parliament’s Housing Committee who has previously warned that rising rents will only be addressed when more homes are built. The party’s former Housing Minister in Wales has also warned that rent controls serve only to reduce the quality of accommodation, choke off supply, and make it more difficult for tenants to find the homes to rent they need.

“We need to focus on providing more homes of every kind, including for private rent. Labour’s plans will fail to achieve this.”

Ian Narbeth

14:31 PM, 21st November 2019
About 3 weeks ago

Sadly a lot of this is in the same direction of travel as the current and previous "Conservative" governments. Labour's slogan should be: "On the Private Rental Sector we are finishing the job the Tories started"
I was pleased to see the RLA reacting quickly.
Scrapping Right to Rent checks is the only sensible part of Labour's policy. A nationwide licensing scheme of every landlord will be unworkable and will drive many accidental and small landlords out of the market.

David Price

14:44 PM, 21st November 2019
About 3 weeks ago

Labour's attack (or Conservative's for that matter) will have little effect on the PRS for there will soon be little or no PRS left to attack.

Gary Nock

14:55 PM, 21st November 2019
About 3 weeks ago

Will the last landlord left standing please lock up and hand the keys back to their lender......

LVW4

14:58 PM, 21st November 2019
About 3 weeks ago

Reply to the comment left by Neil Patterson at 21/11/2019 - 13:58
This is truly frightening!
This is no longer about party politics, it's about our future as a successful nation and the security of our families.
This manifesto will spell the end of the PRS as landlords exit the market, leaving LHAs to find their own accommodation.
The UK's success as a magnet for inward investment will disappear, people's pension plans will be devastated, Death Tax... homes we have saved all our lives to pass to our children will be stolen by Corbyn, investment will dry up, businesses will relocate (it will please Labour and LibDem friends in the EU!), aspiration will be finished, unemployment will explode... I don't need to add to this because its enough to finish off the UK.
And why? Politics of envy! There are more voters that don't have and expect everything for nothing!
Surely, this must energise everyone who has been planning for their future and their children's futures to vote against Corbyn and the SNP who will support him.
He must never reach No10.

Martin

15:00 PM, 21st November 2019
About 3 weeks ago

Great ! I'll be better off!
I rarely increase rents as I have always been of the belief empty houses cost money. I try to keep my properties at the top of the pile and hence attract premium rents. Unless a tenant has been with me for more than 3 to 4 years I don't review the rent and then only after much discussion with them. In addition I keep the new rent just below the market rate, because quite simply I don't want them to leave.
Annual inflation capped increases will actually make me better off, but how on earth does it help the tenant?
The problem, as always is the road hell is paved with good intentions.
Policies and regulations are introduced to try and control rogue landlords, the issue is of course they already ignore the existing legislation so why would they take notice of the new stuff.
Meanwhile life gets harder, more complicated and less profitable for the grown ups.
About 70% of my portfolio is USAF families who stay between 2 and 5 years.
The other 30% I'm looking to sell over the next year or so, with the exception of a couple of very long term tenants who I'm more than happy to keep forever.
Everyone agrees the country has a housing problem and we have just become the political punching bag, it's all votes votes votes and the future be damned.
I predict in about 5 years time when the PRS has taken a massive hit that suddenly there will be financial incentives offered for private portfolio landlords.
To act as if there is no necessity for private landlords is lunacy and combine that with taxation designed to punish the achievers we are on a slippery slope.
How is it we have an election where we are looking for the least worst to vote for as opposed to the best?

Chris Mayger

15:02 PM, 21st November 2019
About 3 weeks ago

Reply to the comment left by Neil Patterson at 21/11/2019 - 13:58
Should we be writing to all our tenants and warn them that if they vote Labour, and Labour get in, it could cost them their homes as even more private landlords would be forced out of business?

Martin

15:07 PM, 21st November 2019
About 3 weeks ago

Just as footnote to my last comment, I am currently looking to restart my property renovation business.
SDLT +3%
CGT
Corporation Tax
Income Tax
Dividend Tax
Entrepreneurs Tax
So if you want to sell me the property you've just inherited that's run down and needs stripping back and redoing to turn it into a nice house for someone to raise a family in. Well take £50K off your market price and I'm interested.

Lesley Lester

15:20 PM, 21st November 2019
About 3 weeks ago

I hope this is not a stupid question, however isn't there an MP or Party that supports PRS?

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