Labour Manifesto – Attack on the PRS

Labour Manifesto – Attack on the PRS

13:50 PM, 21st November 2019, About 2 years ago 96

Text Size

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

by B4lamb

13:30 PM, 25th November 2019, About 2 years ago

Obfuscated Data

by NewYorkie

19:18 PM, 25th November 2019, About 2 years ago

Reply to the comment left by B4lamb at 25/11/2019 - 13:30
I very much doubt councils and housing associations will have to comply. My sister bought an ex-council flat and spent a lot on bringing it up to spec. She decided to let her council have it for 3 years and they insisted on even greater levels of refurb. 18 months later, she 'inspected' her property because neighbours had complained to her because the council wouldn't respond. She found staffie-breed puppies being bred in the lounge. Dog faeces and vomit everywhere. Her new carpet had been ripped up. Her new kitchen was falling apart. There was evidence of drug use. Who's going to force them to inspect?

by Whiteskifreak Surrey

20:08 PM, 25th November 2019, About 2 years ago

Just heard on Radio 4 that the penalty for non compliance will be £100,000. I think it is time to sell and finish that adventure with BTL.

by Martin

20:20 PM, 25th November 2019, About 2 years ago

Reply to the comment left by Whiteskifreak Surrey at 25/11/2019 - 20:08
I have worked out if i got hit with that sort of fine i would have to sell at least 2 houses to cover it.
The first one would be easy but how do I explain to the second tenant?

by The Forever Tenant

10:25 AM, 27th November 2019, About 2 years ago

You would never get that fine, never on a first offence, probably not even after several offences.

Our legal system is one where the maximum punishment is rarely handed down. Only in extreme cases would it even come close. There are guidelines about what the fine should be and those are the actual ones used.

by Whiteskifreak Surrey

12:51 PM, 27th November 2019, About 2 years ago

Reply to the comment left by The Forever Tenant at 27/11/2019 - 10:25
Which world are you living in? How do you know how it will work when the blood & money hungry Commie lot is going to rule and destroy this country? Landlords have already been declared enemies of the state by Tories, do you seriously think that attitude will change? It will, for the worse. Rules will mean nothing to Labour. I experienced Communism/Socialism and the way you exist rather than live under that system.

by Monty Bodkin

13:03 PM, 27th November 2019, About 2 years ago

Reply to the comment left by The Forever Tenant at 27/11/2019 - 10:25
I generally agree (Although the legal costs, time, stress and inevitable non-payment of rent also need to be factored in).
The problem is the direction of travel.
Who will/is taking the place of the 'good' landlords being driven out by all this landlord bashing?

by Martin

13:17 PM, 27th November 2019, About 2 years ago

Reply to the comment left by The Forever Tenant at 27/11/2019 - 10:25
I actually agree with that, but it isn't just the fine, it's everything else that goes with it.
The stress of a protracted case ( which it would be) the expense of defending yourself and as previously mentioned you can be sure rent won't be paid while this is happening.
So no rent means no ability to pay that mortgage, repossession then credit rating through the floor.
Lender takes the property, evicts the tenant eventually and sells at a massively reduced price and I lose my 25 to 30% equity I had in the property.
Now in reality I would continue to fund that mortgage but I couldn't do if I had 2 or even 3 going on at the same time.
My properties are spread over 4 towns and many of them are next door to each other.
It's not a huge leap to imagine the conversation over the garden fence of " I'm not paying rent anymore, it was easy all I did was....."
Or worse it becomes one of Shelter's suggestions.
So out of everything suggested if you join the dots for me this is by far and away the scariest.

by Ian Narbeth

14:26 PM, 27th November 2019, About 2 years ago

Reply to the comment left by The Forever Tenant at 27/11/2019 - 10:25I disagree. By analogy, the Tenant Fees Act provides for fines up to £5000 for a first offence and up to £30,000 for a second within five years. Councils are allowed to adopt their own policies. For example Bristol https://democracy.bristol.gov.uk/documents/s40700/Appendix%20A%20TFA%20Penalty%20Notice%20Policy%20Final.pdf and Lancashire https://democracy.bristol.gov.uk/documents/s40700/Appendix%20A%20TFA%20Penalty%20Notice%20Policy%20Final.pdf (see Appendix 4 and Appendix 5) have similar policies and a starting point of £1250 fine for a first offence and £3500 for a second. These are for the least serious offences causing the least harm.
In theory, taking one penny too much interest or a few pounds too much holding deposit puts you in breach. In practice Councils probably won't pursue landlords where trivial sums are involved but they might. Fining "rogue" landlords (you are a rogue because you broke the rule and have been fined, don'tcha know?) will go done well with many local authorities.

by john mcghee

12:10 PM, 7th December 2019, About 2 years ago

Hi Trish,
I wholeheartedly agree with you, l remember Maggie from the 80s being an ex-miner. Under the tories we have lost pits , steelworks, clothes manufacturing, high street shops etc. and now look like losing our NHS, Rail services and so on. I actually earned more in the early 80s than l do now. Boris wants to make it less,.paying for medical services, private companies putting up travel fares etc. Where will all the cash go if tories get in.......l dread to think!!!!!
Vote tory,, youre having a laugh.


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

BECOME A MEMBER