RLA call for Section 24 rethink after Stamp Duty windfall

by Mark Alexander

15:40 PM, 1st February 2017
About 4 years ago

RLA call for Section 24 rethink after Stamp Duty windfall

Make Text Bigger
RLA call for Section 24 rethink after Stamp Duty windfall

A few weeks ago I wasn’t at all happy with the RLA (“Residential Landlords Association”) and I published a rather damning article entitled Are the RLA losing the plot?”

Well, by my reckoning, they have now redeemed themselves with a Call for tax rethink after stamp duty windfall

Are the RLA losing the plotIn an article yesterday on the back of the figures published showing a £1.19 billion Stamp Duty surcharge windfall for the Treasury up to the end of last year the RLA have called for a Landlord Tax rethink.

“The RLA is now calling on the Government to use this extra revenue from the stamp duty changes to scrap planned reforms to mortgage interest relief, which will, in turn, prevent landlords selling up or having to increase rents.”

One RLA survey has found that 58% of landlords are considering reducing investment in their rental properties because of the changes. And 66% feel the tax changes will place upwards pressure on market rents.

At the very least, the RLA believes the Government should pause the start of the introduction, from April, of the mortgage interest changes to enable a better assessment to be undertaken of the likely impact of the policy.

RLA Policy Director, David Smith, said: “In raising nearly twice as much in just nine months as the tax was predicted to make in one year this stamp duty windfall gives the Government a chance to back the rental market and support the development of new homes which we desperately need.

“At no stage has evidence been published to support the assertion that landlords are taxed more favourably than homeowners, or that they are squeezing first time buyers out of the market.

“Assessments by the Institute for Fiscal Studies and the London Schools of Economics contradict the Treasury’s position completely.

“It is also nonsense for HMRC to suggest that one in five landlords will be affected by the mortgage interest changes, when what matters is the number of properties affected.

“The Government has received far more money than it  expected. We urge them to use this to support the country’s tenants and undertake a fuller impact assessment of a policy that has the potential to cause untold damage to the rental market.”

Comments

Old Mrs Landlord

8:48 AM, 5th February 2017
About 4 years ago

Reply to the comment left by "Gary Dully" at "05/02/2017 - 07:46":

I find this anecdotal evidence that the government's avowed aim of increasing home ownership is to some extent being achieved most interesting. Five indivuals have been made homeless to enable one (family, presumably) to purchase your HMO. In this respect the prime minister's aim of helping the 'JAMs' seems to be serving the 'haves' rather better than the 'have nots'. Those at the bottom of the pile have little hope of ever bettering themselves. (Don't interpret this as meaning I am in favour of the lazy and feckless being handed everything on a plate at the expense of those of us who work hard and pay our taxes, only to have the fruits of our labours snatched away from us by unfair retroactive tax adjustments)

Kenny Ingham

9:05 AM, 5th February 2017
About 4 years ago

Would it be an idea to ask members the number of properties they own which are mortgaged and get accurate figures per portfolio reflecting actual reality which might be scoped up to be a true reflection among property owning Landlords?

H B

12:06 PM, 5th February 2017
About 4 years ago

Reply to the comment left by "Old Mrs Landlord" at "05/02/2017 - 08:48":

This also got be thinking about all the money builders are going to make converting perfectly good HMOs back to their original condition over the next few years.

CazT

12:11 PM, 5th February 2017
About 4 years ago

Reply to the comment left by "Old Mrs Landlord" at "04/02/2017 - 20:39":

I would say 'deliberately misleading' . When have estate agents ever thought about anyone but themselves. It is their job to sell to pay their wages, so there is absolutely no way they are going to warn the people who 'pay' them. I met several young people who were being encouraged to jump on the BTL ladder and I mentioned Section 24 without going into detail, they all, without exception, looked blank! Only one estate agent portfolio holder knew what I was talking about and he had taken it all into his planning! The chap who bought the second property didn't know much, but because he was such a genuine nice guy, I spent some time explaining it and he went away and did his research. He was in a position to pay cash, so he did and is living there now. He may rent one day, but at least his decision was informed so I'm happy that the 'wool wasn't pulled' over his eyes and my conscience is clear. We aren't all nasty people, in fact most of us are just doing what we need to do to create an income/pension and are quite happy not to put up rents. I'm not sure whether or not I will be happy when the govt has to eat crow pie - it will be all too late for me and many like me!

CazT

12:13 PM, 5th February 2017
About 4 years ago

Reply to the comment left by "Kenny Ingham" at "05/02/2017 - 09:05":

Kenny - in a word - YES. I think that this would be very interesting but would need an element of privacy taken into consideration.

1 2 3

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

Telegraph requesting landlord feedback on Budget corporation tax increases

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More