RLA ask for longer term tenancy tax incentive

by Property 118

11:09 AM, 5th October 2018
About 2 months ago

RLA ask for longer term tenancy tax incentive

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RLA ask for longer term tenancy tax incentive

Landlords are urging the government to back longer tenancies in rented housing to meet the needs of the growing numbers of families with children who rely on the sector for their home.

Almost 40 per cent of private rented homes have at least one child living in them, with such families seeking long term stability to settle into their communities and local schools.

Rather than resorting to legislation to impose longer tenancies on the sector, where tenants have already been living in their rented homes for almost four years, the RLA is calling for tax reforms to encourage and support more landlords to offer them.

The government has already admitted that such incentives “could be quicker to implement” than legislation.

It would also ensure that the vital flexibility the sector is good at providing is retained, enabling those wanting short term tenancies to quickly access new work and educational opportunities.

In its submission to the Treasury ahead of the Budget on 29thOctober, the RLA is calling for tax relief on rental income which could increase each year a tenancy continues up to a maximum of five years if the tenancy is renewed. The relief would then remain at this level.

Alongside this, the RLA is calling on the Government to develop its plans for a housing court to speed up justice for tenants and landlords if something goes wrong in a tenancy, especially long term tenancies.

At a recent event hosted by the RLA, the Housing Secretary, James Brokenshire confirmed that it will be consulting on a housing court in the next few months.

The RLA’s research exchange, PEARL, has found that 73 per cent of landlords would offer longer-term tenancies with a combination of financial incentives and court reform to ensure that they have the confidence that where they provide a longer tenancy they can swiftly regain possession in cases such as tenants failing to pay their rent or committing anti-social behaviour.

David Smith, Policy Director for the RLA said: “Landlords recognise the demand for longer tenancies which provide stability for tenants and landlords.

“Recent statements by MPs suggest that positive taxation to support longer tenancies would gain support in Parliament, enabling such tenancies to become available far quicker than imposing them by law.

“We call on the Chancellor to back this pragmatic proposal.”

To read the budget submission in full visit www.rla.org.uk/budget2018



Comments

Luke P

13:04 PM, 5th October 2018
About 2 months ago

"...calling for a tax relief..."

Yeah, like a frightened little mouse begging for scraps.

Pit.I.Ful.

Dr Rosalind Beck

13:49 PM, 5th October 2018
About 2 months ago

This would mean landlords being penalised when their tenants want shorter tenancies. It makes no sense and as Luke says, it is pretty lame.

Rod

15:34 PM, 5th October 2018
About 2 months ago

Who knows what's round the corner, if long term tenancies come in, I may well search for the exit door!

Cathie Hawkins

21:31 PM, 5th October 2018
About 2 months ago

My tenant wanted a long term tenancy (great) but after 2 years has met someone and wants to move in to his place. What about my tax relief?!?

Mark W

20:10 PM, 7th October 2018
About 2 months ago

I do not understand why clever landlords would not agree to a rebate clause for long term tenants. Just share the tax relief with your tenant if it finally arrives from HMRC. Alternative solution is to improve the property when the rebate arrives, so that both of you benefit in the long term

John Walker

17:49 PM, 22nd October 2018
About 2 months ago

I like Mark W's idea, which could provide a win-win result.


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