Points and questions for my Labour MP – Have I missed anything?

Points and questions for my Labour MP – Have I missed anything?

0:02 AM, 31st January 2025, About A week ago 20

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Hello, I am having my first video call with our local Labour MP later this week. I have sent an email before our discussion. Let me know if I have missed anything?

Please see the email below:

Government policies are inadvertently contributing to homelessness and increases in house prices and rents

Landlords operating in the PRS should be encouraged and not vilified for political reasons. Landlords are selling up and new investors are not coming into the market to replace them for many reasons, some of which are as follows.

Section 24

An old Tory tax raising policy that Labour are happy to continue to benefit from. This is the only system that taxes a business on turnover and not profit! Landlords can make an actual loss but still have to pay tax on a fictional profit. No wonder very few people see being a landlord as a viable business proposition.

SDLT (Stamp duty land tax)

Once again, landlords are being single out, and treated differently from any other business. In the Budget, Rachel Reeves announced stamp duty surcharge on additional homes would  increase from 3% to 5%. They are taxed at a massive extra rate when buying an investment property making new investment un-viable. Another reason not to invest your money into the PRS and to look elsewhere.

Section 21 abolition

Nearly 70% of property professionals have issued S21s due to rent arrears (NOT for dodgy reasons). When we have to give a reason it will become apparent what the actual scale of rent arrears are in this country.
S21s are also used when an anti-social tenant scares all the others in a block. The good tenants will not go to court and stand as a witness if using a S8. They just leave instead!

The courts have massive backlogs and are not ready for the massive influx of S8 notices. All evictions will require a written reason and have to be heard in court. It takes many months to regain possession of a property (even now) and the tenant will often not be paying anything and causing problems with the adjoining flats.

The courts are not ready for the change and this will cause chaos. The landlord is faced with massive debts for repairs and cleaning and have no recourse to recover unpaid rent.

Universal Credit—Housing Benefit

The High Court has declared the Department for Work and Pensions’ (DWP) method of deducting rent payments from tenants in arrears from UC recipients unlawful. Apparently, it’s because the claimant felt “unempowered”. Who would rent to a tenant on UC if you can’t use a UC47?

Selective Licensing

This is used by local councils as a revenue collection tool. It does not require a landlord to do anything new that is not already covered in law. The fee is payable up-front for a 5 year licence and cannot be moved to a new owner. If the license is against the landlord, why does he have to apply and pay in full for each property he owns? More reasons to leave the PRS.

EPCs

Requiring landlords to meet and EPC C targets by 2030 will make a massive part of the rental stock unrentable. Owners cannot afford the upgrades and there is a national shortage of contractors to do the work. The current EPCs are not fit for purpose and do not reflect the true value. Also, what about social housing? Once again, landlords are being scapegoated and singled out for discrimination.

Forcing landlords to accept pets

Whose asset is it? Ridiculous.

Notice periods and periodic tenancies

When the Renters’ Rights Bill comes in, all tenancies will be periodic from the start. A tenant will be able to give 2 months’ notice on day 1 and the landlord will still have to give at least 2 months notice.

Using the S8 route, it will take many months to regain possession of a property with a bad tenant. There is no security for the landlord and he/she risks having to pay all the costs of finding new tenants and repeated void periods. If a landlord needs to realise their investment (plans do change) they cannot use this ground of the Section 8 until the tenant has had 1 year’s occupancy. Any other investment gives you control of your assets.

Rent Controls

Fortunately, we have not (yet) had rent controls enforced upon us as a sector, but we are aware of calls from many agencies demanding this, including the Mayor of London and the likes of Shelter and Crisis. Rent increases are a consequence of increased legislation and taxation. If controls are put in place many landlords will have literally no choice but to sell up and leave the PRS. Why would we go through the vilification and victimisation for being a landlord, only to make a loss at the end of the year?

Professionalism

Apparently, this is all moving the PRS into a more professional era. This means larger corporations taking over the sector and small, private landlords leaving en-masse. After all, Sir Kier Starmer said that landlords “do not fit his definition of working people”. What an insult. Just try working with us for a day and see what we do as ‘non-working’ people!

More Landlords Selling

54.5% of Landlords are exiting the PRS. Only 11.9% of these properties are being sold to other landlords. Where will everyone live that’s being evicted?

Landlords will be required to give longer notice periods to get their property back, or to increase the rent. Tenants will be able to query ANY rent increase which will delay it (and it cannot be back-dated to when the increase should have been from). Just another way to reduce any profits a landlord may be making.

Renters’ Rights Bill

Clauses 13 & 14 will severely affect tenants on low incomes, with poor credit history or self employed or people on variable income. Clause 13 prevents collecting several months’ rent in advance and clause 14 prevents collecting a month’s rent before signing the tenancy agreement.
Who would take tenants that may not be able to pay their rent? Once again, this will adversely affect the people it is meant to protect.

Is it time for a Landlord Equity Bill?

Discrimination takes many forms but financial discrimination is S24 where landlords are treated more harshly than any other business.
The ridiculous claim that tenants are not responsible and contributors for many of the issues like damp and mould need to be addressed.

An energy assessment system that works and isn’t based on false and incorrect assumptions should also be adopted.

Recognition that non payment of rent is tantamount to theft, and in many cases more stressful, as landlords are open to repeated thieving.
A recent court case awarded a tenant £5000 for illegal eviction when they owed £17,000 in rent. Such laws need to be changed to bring a balance as this can’t be seen as equitable.

The Bank of England should be brought to book for raising interest rates to double its own affordability rules. Then, instead of supporting people with borrowings, they scrapped their own affordability rules and allowed lenders to feast.

Lenders have created huge problems, like The Mortgage Works, by raising interest rates to more than 8% in a so-called SVR after deals end.

Equality would prevent them from hiking rates by more than, say, 2% or the current BoE interest rate.

Many landlords go through hell when they are up against difficult tenants, the pressures often appear unbearable. A support system needs to be made available with fair and fast resolution.

Any other suggestions?

Thanks,

Mark


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Comments

Crouchender

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16:52 PM, 31st January 2025, About A week ago

If you look at all the recent LL crusader's articles all the points you need are articulated within them very well with sound reasoned arguments making it easier for your MP to speak about in parliament.

Although as it has it not had its final reading in HoC so not a lot can change now??

Cider Drinker

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17:58 PM, 31st January 2025, About A week ago

Section 24
S24 only impacts higher rate taxpayers or those that may become higher rate taxpayers. What is wrong is that Ltd companies annd other structures can avoid the impact (and intent ) of S24.

SDLT (Stamp duty land tax)
Labour (and the Tories before them) do not want private landlords.

Section 21
This area needed reform. It cannot be acceptable that tenants are wrenched from their homes without knowing why. A simple solution would be to have added a reason to the S21 but then that would be more appropriate to S8.

Universal Credit—Housing Benefit
If tenants do t pay, we must evict them.

Selective Licensing
If SL was introduced in my area, the full cost plus an admin fee for my time would be added to the rents.

EPCs
I will not spend £10k to save my tenants £20 per week.
The drive for better EPCs is to ensure the U.K. has sufficient capacity to deliver energy to the 1.5 million new homes for migrants.

Forcing landlords to accept pets
I agree that landlords shouldn’t dictate whether tenants can have pets or not. We rent out homes, not prison cells.

Notice periods and periodic tenancies
My tenants loved it when I offered fixed terms of 3 years.
The notice period for non-payment should be two weeks.

Rent Controls
There are no plans to introduce Rent controls in England. If I cannot set the rent, I will stop being a landlord.

Professionalism
There are too many incompetent landlords.

More Landlords Selling
I’m making sure that I only sell to people who’s family have lived in the area for generations.

Renters’ Rights Bill
The RRB is a product of popularism. MPs only care about soundbites and FaceBook likes.
Every line of the RRB increases costs and risks for landlords and these costs will be passed to tenants through higher rents.

Is it time for a Landlord Equity Bill?
No., it’s not.

Ryan Stevens

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15:08 PM, 1st February 2025, About A week ago

Reply to the comment left by Jason at 31/01/2025 - 14:23
I would mention it. There is no reason (apart from large professional landlords supporting political parties) why there should be positive discrimination against non-corporate landlords.

Trisha

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19:35 PM, 1st February 2025, About A week ago

DEPOSITS!
Woefully inadequate deposits and last months rent.
So many tenants don’t pay the last months rent telling landlords to use the deposit for the last months rent. This leaves nothing for cleaning and repairs. We are fined 3 x the deposit if not protected. Therefore tenants should pay 3 x the last months rent if unpaid. It’s only fair.

Wolfey

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8:57 AM, 2nd February 2025, About 7 days ago

Great letter. I did a similar one to my MP, Emma Llewell Buck, but had no reply at all. Couple of things I said:
Restricting when guarantors can be used, restricting the guarantor to the equivalent of 6 months rent, and not allowing rent in advance more than 1 month, all work against tenants who would otherwise struggle to pass referencing.
I understand of the proposal is that a tenant can either be required to pay a 5 week deposit, have a guarantor, or a take a rent guarantee. Why not any combination?
My minimum tenancies or 1 year. I prefer 2. Properties are generally given a repaint, sometimes re carpeted, and new tenant has to be referenced and signed up while no rent is coming in,
If a tenant can serve notice after 2 months, it is not economical to provide that standard, particularly if I use a company for referencing (which here is the equivalent cost of 3 weeks rent).
A tenant’s pet can cause £100’s damage in little time.
I had to replace every carpet, two doors and repaint all the woodwork due to a dog the tenant had. Any insurance against this would have to be in the landlords name and at the tenant’s expense, but I don’t want claims to result in higher premiums for me.
The tenant disappeared after two months and it took 6 months to regain access (legally).
Good luck with your meeting 🙂

PAUL BARTLETT

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14:29 PM, 2nd February 2025, About 6 days ago

Reply to the comment left by Ryan Stevens at 31/01/2025 - 12:07
"This is incorrect, you are taxed on profits (not turnover) before interest at your highest marginal rate, say 40%, but only get tax relief for interest at 20%."

This is incorrect, you only get tax relief for interest at 0%. None, nada, nowt.

You are taxed on turnover, as the Self Assessment calculator shows 0% tax relief for interest.

PAUL BARTLETT

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14:36 PM, 2nd February 2025, About 6 days ago

Reply to the comment left by Jason at 31/01/2025 - 10:38
"S24 was brought in by the Conservatives too long ago and I personally think that because its classed as an investment and not a trade and effects 40%+ tax payers you are wasting your breath revising this conversation now."

It was unjust then, and it still is a gross distortion of the market. If the MP wants tenants to have a level playing field, and to improve property availability, they would abolish it.

Government For Growth doesn't mean punishment for hard work.

Paul Essex

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18:07 PM, 2nd February 2025, About 6 days ago

Pet part could be enhanced by talking about unsuitable accomodation particularly garden less flats. What about shared housing and allergies, do pet owners have the right to Inflict their pets on others in common areas, what about a doberman and a kitten?
ABS very unclear if I make comments about your looks or politics and make you uncomfortable how can I be evicted by the landlord - as long as I am not actually committing a crime can I be removed at all? Do tenants need to report missing milk from the fridge to the police in future?

Ryan Stevens

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10:43 AM, 3rd February 2025, About 6 days ago

Reply to the comment left by PAUL BARTLETT at 02/02/2025 - 14:29
I'm a tax consultant, I can assure you that you get 20% tax relief for qualifying interest paid.

The issue is that you can have rental profits of £50k before interest, Nil after interest. The £50k is added to other income and can suffer tax at up to 60%, but you only get tax relief on interest at 20%.

For example, if the profits before interest of £50k are taxed at 40% you would have £20k of tax to pay, but if your interest is £50k you would get a £10k tax credit. So you would end up paying £10k tax, even though you made no profit after interest!!

NewYorkie

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14:42 PM, 3rd February 2025, About 5 days ago

Reply to the comment left by Ryan Stevens at 03/02/2025 - 10:43
The inequity of s24 for unincorporated landlords!

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