Lib Dem Manifesto – 3 year tenancies and mandatory licensing

by Property 118

15:03 PM, 20th November 2019
About 2 weeks ago

Lib Dem Manifesto – 3 year tenancies and mandatory licensing

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Lib Dem Manifesto – 3 year tenancies and mandatory licensing

The Liberal Democrats 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

The Lib Dems want to reform the Private Rental Sector:

Promote longer tenancies of three years or more with an inflation-linked annual rent increase built in, to give tenants security and limit rent hikes.

Improve protections against rogue landlords through mandatory licensing.

Increase minimum energy efficiency standards for privately rented properties and remove the cost cap on improvements.

Help young people into the rental market by establishing a new Help to Rent scheme to provide government-backed tenancy deposit loans for all first-time renters under 30.

Increase income tax by 1p:

Raise £7 billion a year additional revenue which will be ring-fenced to be spent only on NHS and social care services. This revenue will be generated from a 1p rise on the basic, higher and additional rates of Income Tax (this revenue will be neither levied nor spent in Scotland.)

Corporation tax reset back to 20%:

Restore Corporation Tax to 20% and keep the rate stable with a predictable future path.

Abolishing separate Capital Gains Tax-free allowance:

Taxing income from capital more fairly compared to income from work by abolishing the separate Capital Gains Tax-free allowance and instead taxing capital gains and salaries through a single allowance.

Commercial Landowner Levy

Replace Business Rates in England with a Commercial Landowner Levy based solely on the land value of commercial sites rather than their entire capital value, thereby stimulating investment, and shifting the burden of taxation from tenants to landowners.



Comments

Neil Patterson

15:14 PM, 20th November 2019
About 2 weeks ago

The RLA commented:

“We welcome the Liberal Democrats’ plans to support younger tenants in accessing rented housing with a deposit loan scheme. This is a policy we have long been calling for and believe it could considerably improve prospects for younger people. This is tempered by the Party’s proposals for three year tenancies with rent increases linked to inflation. It is bizarre to be proposing this when the average length tenants have been in their properties is over four years and when private rents are increasing by less than inflation according to the Office for National Statistics.

“Proposals to end the Local Housing Allowance Cap as well as ending the hostile environment for immigration are welcome steps and reflect proposals put forward by the RLA in its own manifesto for the private rented sector. However, the Party’s plans for a blanket licensing scheme for landlords needs further thought. The crooks will simply not come forward, leaving the good landlords to pick up the tab for what would be a costly waste of time.”

Sam Smith

19:40 PM, 20th November 2019
About 2 weeks ago

I wonder how the commercial landowner levy works. I assume landlowers will get a discount like current businesses do.

Alison King

9:10 AM, 21st November 2019
About 2 weeks ago

Well, automatic rent increases every year would work for me as I don't usually raise the rent during a tenancy; as long as I can reset the rent to catch up to market rates for those properties that are behind. Unfortunately this would particularly affect one long-term tenant who struggles to pay even at his below market rate rent.

Dylan Morris

9:14 AM, 21st November 2019
About 2 weeks ago

I was going to comment on several points but decided against as fortunately these bunch of clowns have zero chance of getting into power and I’ve got to spend time this morning watching my newly painted window frames dry.

patricia sander

11:23 AM, 21st November 2019
About 2 weeks ago

Reply to the comment left by Alison King at 21/11/2019 - 09:10
Same as me, I have had several tenants for 7 years plus, not a chance I would put their rent up or they could afford it. Rent controls in the guise of inflation linked increases does not make any sense, and they are trying to help the tenants?! Politicians interfering in the housing market always make things worse as they haven't a clue about the actual business.

Whiteskifreak Surrey

11:26 AM, 21st November 2019
About 2 weeks ago

It has been reported recently that increase in rents in London are actually lower than inflation. So it would work perfectly for Landlord, but no so perfectly for tenants. We do not increase rent for the long term tenants, but might do that now, with S24 bitting harder and harder. What a idiotic world we are living in!

Pete David

12:45 PM, 21st November 2019
About 2 weeks ago

Reply to the comment left by Neil Patterson at 20/11/2019 - 15:14
We have one set of tenants who are seriously damaging our rental property and their arrogance is being fuelled by the stance by governments that all tenants should be treated like special royalty. They just don't care and are ignoring all our advice to air the place correctly. We've had five different building surveyors into the property and they all say the tenants are damaging the property. Getting them out is almost impossible. What about recognising bad tenants? 99 per cent of landlords are falling over backwards to cater for their every whim. Rents will continue to rise as landlords try to fight back against the increasing cost of government anti landlord pro tenant bias. It's ridiculous.

SimonR

15:18 PM, 21st November 2019
About 2 weeks ago

"Increase minimum energy efficiency standards for privately rented properties and remove the cost cap on improvements."
This would have the biggest impact on the PRS sector, many houses just cant be improved any further than they already are so these landlords will just sell up reducing housing stock further and making it even harder to get a decent rental property for the younger generation.


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