A Level Playing Field Between Homeowners and Landlords

by Mark Alexander

10:19 AM, 29th August 2015
About 4 years ago

A Level Playing Field Between Homeowners and Landlords

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A Level Playing Field Between Homeowners and Landlords

This is my third Open Letter to Mr George Freeman MP – Conservative, Mid Norfolk Level Playing Field Between Homeowners Landlords

A Level Playing Field Between Homeowners and Landlords

Dear Mr Freeman

A response was received this week to the petition to Government regarding the restrictions of finance cost relief to individual landlords. The key message seems to be that Government wishes to “level the field” for homeowners and landlords. I have given that a lot of thought, and on reflection I think I may have been wrong all along. I now agree the playing field should be levelled. I have listed how this might be achieved below:-

1) Homeowners do not receive tax relief of their mortgages at all. However, when they take a lodger into their home the first £7,500 of rent received is tax free. This should be extended to all rental properties, i.e. the first £7,500 from each unit upon which Council Tax is paid should receive the same £7,500 per annum tax free allowance.

2) When a homeowner sells their home the capital appreciation is not taxed. This should also be applied to each of their rental properties.

3) A homeowner is allowed £1million of IHT relief against the value of their home. This should be extended to equity in rental portfolios.

4) A homeowner is given the choice as to whether they should obtain a CP12 annual gas safety certificate. This should also be applied to tenants, not imposed upon landlords.

5) A homeowner is free to evict a lodger subject to providing “reasonable” notice, without having to refer to the Courts. This is very fair and prevents the Court systems from clogging. This should be extended to private landlords.

6) A homeowner is not required to protect a lodgers rent deposit in an approved government scheme. This should also be extended to private landlords.

7) Homeowners may choose to have as many people as they wish living in their home without the requirement to purchase a licence. If that home is considered to be overcrowded then Councils have the means to deal with that issue. The same rules should be applied to tenanted properties. Whilst the UK is subject to a Housing Crisis it is important to remember that every person needs a roof over their head. The finances of those people in need of accommodation dictates where they can afford to live. The solution to preventing over crowding and leaving people with no choice, other than to suffer in poor quality housing, is a simple one; provide them with affordable choices. The only reasons that people live in poor conditions is lack of choice and affordability. The cause of the problems associated with overcrowding, sub-standard and unsafe accommodation are quite obviously due to lack of choice. The solution to the problem is to increase supply of property, i.e. BUILD MORE!

8) Homeowners are not required to verify the legal rights to live in the UK of guests invited into their homes. Quite rightly, they leave this to the border agencies. The same should apply to landlords.

Every year that passes whereby Government allow new property development figures to fall behind the need for new housing should be considered a failure on the part of the Government. The blame for such failures should most certainly not be pointed back at society, or any section of it. Constant vilification of landlords is not addressing the true cause of the Housing problem, which is quite clearly the responsibility of Government . The only real power to control immigration and population growth rests with government, as does the development of additional housing.

I do not blame the current Government for the state of the Housing Market, only time will tell whether it is successful in solving the problem. The reason I voted for you, and the Conservative Party, is that I believe you provide the best hope of being able to solve the issues associated with the Housing Crisis and the economy. I have not judged you on the failures of all governments in the last three decades, I expect better of you.

Given that successive Governments have become so reliant on the Private Rented Sector I think the suggestions I have made above are fair. I sincerely hope you will agree and that you will also consider the following:-

1) It has become a lifestyle choice for several people not to own their own property, they prefer the flexibility associated with renting

2) Many people are reliant upon the PRS for work mobility reasons

3) A significant section of society are unable to obtain mortgage finance required to purchase their own home. This is due to being on low wages, in need of benefits so as not to be living below the poverty line or having a poor credit rating.

4) Government have stated they wish to reward hard working people by helping them to make provisions for their own future. Buy to let can be an effective strategy if it is not taxed and regulated into oblivion.

5) Government clearly acknowledge the UK has a ‘Housing Crisis’

My conclusion is that if Government are to be true to their word they must consider a root and branch overhaul of UK Housing and associated legislation and taxation policies.

Yours sincerely

 

Mark Alexander

Related Open Letters >>> http://www.property118.com/category/open-letter-to-mp/



Comments

Mark Alexander

16:05 PM, 29th August 2015
About 4 years ago

Reply to the comment left by "Ros ." at "29/08/2015 - 14:36":

I'm ahead of you there Ros, I sent the same letter to Megan Shaw and Sean Rath this morning.
.

Dr Rosalind Beck

16:12 PM, 29th August 2015
About 4 years ago

Reply to the comment left by "Mark Alexander" at "29/08/2015 - 16:05":

That just shows it was a good idea. Great minds and all that.

Gary Dully

10:45 AM, 30th August 2015
About 4 years ago

Thanks for the thanks folks,

Just remember, try and avoid the term "Landlord", and I would suggest that you don't warn MP's anymore, they will discredit your campaign if you pre-warn them.

Send them to the appropriate press office for that social group.

Here are a few more.

Gay private tenants taxed through the back door by "Clause 24"
Lesbian private tenants face huge rent rises under Osborne's "Clause 24"
Pregnant mums face huge rent rises under Tories new "Clause 24"
Feminist campaigners alarmed about discrimination of "Clause 24"
Muslim Tenants face massive rent increases due to "Clause 24"
Sky TV and Virgin set to lose millions in subscription fees from Private Tenants thanks to "Clause 24"
UK wage increases to be snuffed out by hidden UK housing levy called "Clause 24"
Osborne not fit to be PM thanks to his "Clause 24"
Infinite compound tax rates introduced on legitimate business by Osborne's "Clause 24"
Students face catastrophic rent increases under Osborne's new "Clause 24"
Parents of students face catastrophic rent increases under Osbornes new "Clause 24"
Monumental stupidity of Osbornes "Clause 24"
Tory MP's red faced over "Clause 24"
Osborne misled Parliament over "Clause 24", he now taxes 80% of legitimate Business Costs at 40%
Gay Private Tenants can't get new boilers from Landlords thanks to Tory "Clause 24"
Anglers that Privatly Rent face massive rent increases under "Clause 24"
BBC staff face massive rent increases in Salford and London because of "Clause 24"
ITV companies warn staff of massive rent increases under Osbornes "Clause 24"
London tenants face mega rent rises under Tories new "Clause 24"
Scottish Tenants face mega rent rises under Cameron's "Clause 24"
Child poverty set to increase under Cameron's "Clause 24"
Massive Collapse in Housing market expected under Osbornes "Clause 24"
Cameron to force up Scottish rents under Osbornes "Clause 24"
Banks concerned about another recession under Osbornes "Clause 24"
First time buyers renting whilst saving a deposit set to pay more under Tory "Clause 24"
Social Housing rents to Shadow Private Rents under Osbornes "Clause 24"
House Price Inflation set to soar under Osbornes "Clause 24"
Letting agents face oblivion under Osbornes "Clause 24"
Solicitors facing closure as BTL mortgages are now useless under Osbornes "Clause 24"
Banks face defaults of £Billions under Osbornes "Clause 24"
Mortgage costs set to soar because of Osbornes "Clause 24"

and you can just go on and on with this theme.
-------------------------------------------------------------------------------
You will note that the word "Landlord" is never mentioned.
Anything written should mention that a particular "Social Group" will pay for the hidden levy and Landlords are powerless to avoid passing it on, despite warning the academics at HMRC and the chancellors ministers of their Gross stupidity.
-------------------------------------------------------------------------------

steve sanders

10:53 AM, 30th August 2015
About 4 years ago

Ok, lets talk about level playing fields.

What about level playing field between individual landlords and LTD company landlords???

What about level playing field between individual landlords and Trust landlords???

What about level playing field between individual landlords and any off shore landlord entities (trusts, off-shore companies et)????

Comparing individual landlords with homeowners is ludricous. As individual Landlords we are now at significant disadvantage to other corporate entities

Gary Dully

11:47 AM, 30th August 2015
About 4 years ago

Reply to the comment left by "steve sanders" at "30/08/2015 - 10:53":

Hello Steve,

You are absolutely right, we know how you feel, we all feel the same way.
We all suffer from Landlord Brain Rot and can peel this stuff off without thinking.

When talking with people I have found that they only seem to get emotional when it affects them, so with that in mind, figure out who will scream the loudest when pinched and see how they will be affected. Then we have to convince people that haven't a clue what you have just written actually means in plain English.

On the assumption that if you could justify the rent increases you will require to stay in business from next April, what would you say?

I want an even playing field with blah blah blah
Or
Council rents will be forced up to match Private Market Increases under new Government Legislation called "Clause 24"

Gay tenants have been victimized with Osbornes "Clause 24"
Pregnant mums will have to pay more and I want you to sign my petition to stop it.

If you say it, I don't believe you, if Shelter say it, then it's true.

It's a simple process for us to increase the pressure on our MP's.

We have never complained like this before as, landlords don't have a national voice, so leverage the people who have been screaming at politicians for years or decades, they have the contacts to MP's and we don't.

Just give the Social Groups the tools to do what you want them to do.
Tell them how their group will be badly affected by "Clause 24" followed by
1 . A link to the petition and ask them to sign
2. A link to http://writetothem.co.uk and ask them to complain.

If they think they can do better than that, they will.

Then let the MP's deal with the mailbox bursting with complaints.

We just need to keep stoking the fire!

If we can get "Clause 24" reviewed, postponed or killed off, it will require the support of different social groups.
Landlords are the spawn of the Devil, according to the UK press, so I am quite happy to cause a bit of mischief and live up to our reputation.

I don't have to explain my figures or argument until asked and neither will you.

"Tenants pay all my Taxes, through their rents, I don't pay a penny" just like British Gas, or EON" ,"thats why this "clause 24" is so unfiair on tenants", "its about 32p in the £", is a good one to start with.

I still haven't bleated that's it's unfair on me, I have said its unfair on poor tenants, no corporate relief requests at this moment required to the general public etc.

We need to keep it very, very simple and I reckon we may have a good chance.

Shakeel Ahmad

13:22 PM, 30th August 2015
About 4 years ago

" I have found that they only seem to get emotional when it affects them "

Self preservation society & I am all right Jack and divide & rule comes to mind.

Gary Dully

18:00 PM, 31st August 2015
About 4 years ago

Reply to the comment left by "shakeel ahmad" at "30/08/2015 - 13:22":

I'm not too sure what to call it, but here are a few more to "chew on" and a request to Mark.

London Tube workers to face monumental rent rises under "Clause 24"
Mac!illan Nurses face inflation busting rent rises under Osbornes "Clause 24"
London office workers to face eviction under Tory "Clause 24"
Welsh speakers face eviction under Tories "Clause 24"
Scottish Nationalists Supporters Targeted under Tories "Clause 24"
Sturgeon remains silent over Tories Scottish Housing Levy, called "Clause 24"
Scottish tenants to pay more under Tory "Clause 24" Housing Levy
Welsh Student Teachers face massive rent increases under Tory "Clause 24"
Union workers to face eviction under Tories "Clause 24"( it's a hidden housing levy)
Letting Agents Face Oblivion Under Tories "Clause 24"
Osborne invents back door renters tax called "Clause 24"
Gay tenants to pay landlords 32% "Fairy Tax", under Osbornes "Clause 24" on money that doesn't even exist!
Cancer patients to pay massive renting levy or face eviction under "Clause 24"
Nurses can't afford rent increases under Tories "Clause 24"
Fire fighters face Backdraft attack by Tories on their rents under "Clause 24"
Labour renters to be attacked by Tory Homeowners Under "Clause 24"
Tories spin "ClapTrap" to defend "Clause 24" and try to blame HMRC and Landlords.
Accountants declare "Clause 24" as theft from the poorest in society.
Osborne's new poll tax in Scotland? No it's worse than that, it's called "Clause 24"
Tory Ministers fail to explain the 'Discrimination' of "Clause 24"
Tories now blame your landlord for "Clause 24", UK say Osbornes "Lost The Plot"
Carney backs chancellor over "Clause 24" , cancer nurses say "charge rich instead of us"
Osbornes family business is exempt from "Clause 24", as he stamps on nurses faces with his back door rental tax.
Osbornes break from reality is called "Clause 24" as millions to pay more new finance levy
Accountants gasp in "Unbelievable Stupidity" of Osbornes "Clause 24", an infinite tax levy on poorest of tenants.
Even Accountants cant explain absurd "Clause 24". HMRC must explain this "Sham" of a totally unfair tax.
HMRC in denial over colossal cock up over "Clause 24"
----------------------------------------------------------
Note: At the end of this, you won't even need to be a landlord to hate "Clause 24", I know I used "Landlord" in a few, but that's why they need proof reading.
----------------------------------------------------------
The next step is to build up a bank of very short tag pieces, to accompany the headline.
don't give a breakdown of how you came to your conclusion, let your readers imagination do it for you.
Then point them to the petition and how to write to their MP.
-------------------------------
Note to Mark.
Our spreadsheet needs changing to show how it will affect just our tenants.
The actual engine of it could be hidden or placed on a back sheet.
(I could do an example myself, but I don't know if the author would be offended, and email it to you)
Eg; Rent paid now with say a new tenant, who has a landlord with a borderline tax rate and a max LTV of say 75%.
This landlord is brand new to our industry and his tenants will be hit hardest and never asked to be discriminated against or collector of HMRC's tenant Levy
The tax increases should be divided by the number of tenancies they have and then divide that number by 12.
That will show the minimum average increases required each month just to stand still and when he changes tax bands that should be headlined as well, as "Tenant To Pay "£XXX" in Obornes Clause 24 Levy"
-------------------------------------------

Roger Rabbit

20:18 PM, 31st August 2015
About 4 years ago

Please keep letters short and simple. I would suggest that these changes are unfair because they penalise individual landlords over corporate landlords.

Why should corporate landlords enjoy much better tax treatment than individuals?

I don't think they would try to push this onto corporates as they would fight it in the courts and it screws up standard accounting practises

So just point this out to your MPs. Mr MP its unfair to apply these changes to individuals and not corporates. It should be both or neither

Mark Shine

23:25 PM, 31st August 2015
About 4 years ago

Reply to the comment left by "Roger Rabbit" at "31/08/2015 - 20:18":

Agreed Roger. Many corporate LLs could be better off than they are now due to future reduction in corporate tax rates as a result of the budget speech.

Also bear in mind that a 'corporate LL' could be just one person with one or two rental properties. As long as they don't wish to withdraw too much cash annually from their businesses they will be better off too.

Gary Dully

1:48 AM, 1st September 2015
About 4 years ago

Reply to the comment left by "Mark Shine" at "31/08/2015 - 23:25":

Mark & Roger,

I'm about to write something 'controversial', in an attempt to polarize what we are fighting for, which to be fair, is not the fault of our 'incorporated' friends.

I agree with your sentiment, but I'm not currently concerned with the "incorporated".
They are just the same as me or you, except when it comes to taxation from next April.

We still have to deal with the day to day running of wayward tenants etc and we all face being the char wallahs of the governments bidding or latest press release.

I do have an argument though, about being discriminated against every other God Damn Business in the country, on the basis of accountancy advice given to me over 13 years ago and ongoing advice since then.

This measure called "Clause 24", is designed to destroy all BTL landlords, FULL STOP!

All this clap trap about being brought into line with hands off investments and first time buyers is simply bullshit.

Tenants are NOT shares, they need homes, councils are in no position to supply them and neither are housing associations.

100% of a cost, magically converts into an INCOME, less 20% tax relief, means that 80% will be classed as taxable income at a 40% rate, or 32p in the £.
All but the "tiddliest" of landlords will suddenly be 40% tax payers overnight.

But not if your a plumber, hairdresser, green grocer, accountant, solicitor, barrister, judge, politician or florist with no homes to offer the homeless.

No just you "smelly landlords", "you creepy greedy bastards" that we wish to "encourage".

That is just balatant OBSCENE discrimination, dressed up in a politicians double speak and mumbo jumbo
I propose a simpler explanation, which is this......

The corporate big boys are coming, whispering in Osbornes ear, but they can't compete with BTL, their costs are to high and they are too slow. They need a board meeting to change a lightbulb. (but they do know how to charge higher rents)

They need economies of scale to offer to the general public and supply is being met by individuals like you or me. That's no way to control a market.

In 10 years time we could have a big 6 rental companies, just like in Energy and so now is the time to fight the 'right' enemy.
We are now being softened up, ready to be slaughtered by HMRC over the next 4 tax years.

So instead of us complaining about corporate structures, of our next door competitors, may I suggest that we continue to concentrate on discrediting the HMRC and government's lie?

Please understand I have no argument against what you are saying, i only wish that i could incorporate myself, but we need to keep our aim on the opposing team we are fighting and not complain about the meat pie sellers and the other teams in our football league.

This new levy is the financial equivalent of persecution of the Jews, Serbs or Croats before they were forcibly interred by the opposing viewpoint holders and put to death.
(Please don't take offence, I just wish to forcibly highlight how things start and take hold).

One rule for us, but not if your a Jewish, Black, Gay or from Indonesia = One rule for us, but not if your a private landlord.
Jewish were seen to be too successful in a bankrupted Germany and became the scapegoat.
What about the "Thick Irish"?, The Poles?, the Romanians?, the Gypsies?, The
Do you see any similarity?
Do you see why some of us are absolutely bloody hopping mad over this travesty?

So I'm quite happy to have competition, just like you, I will try and out perform you, (Thats what we all signed up for), but treat us all fairly, but our new taxable income calculation by HMRC is simply unforgivable discrimination and our incorporated competitors are not at fault.

What's more worrying is that any future chancellor now has a free hand at practically anything they wish to do with ANY industry at the drop of a hat.

It's Cameron, Osborne and HMRC, that need to be castigated in all of this, not our incorporated landlord competitors.

I hope that you can both agree with my sentiment and prepare for a dirty battle with Osbornes lie factory, oops sorry I meant HMRC.

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