Scary stuff if you’re a Tory MP

by Gary Dully

11:18 AM, 20th March 2017
About 2 years ago

Scary stuff if you’re a Tory MP

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Scary stuff if you’re a Tory MP

In an effort to get the politicians to finally wake up and smell the coffee, in regards to Section 24, (The Tenant Tax), its now time to get your tenants on the side of the landlords.

I have now produced my thoughts on a very large postcard and it pulls no punches!

Feel free to use it and comment on it, I have already sent the first drafts to a few of my tenants that haven’t had a rent rise yet and they are not happy at all.

I don’t have properties in the South East, but I have a feeling that Jeremy Corbyn is soon to be our next Prime Minister, thanks to George Osborne.

View a full copy of the letter here: https://www.dropbox.com/s/rox9bn7uaf911sn/Section24%20Letter%20To%20Tenants.pdf?dl=0

 

View a full copy of the letter here: https://www.dropbox.com/s/rox9bn7uaf911sn/Section24%20Letter%20To%20Tenants.pdf?dl=0



Comments

NW Landlord

12:25 PM, 20th March 2017
About 2 years ago

That is brilliant I will be using

JohnCaversham

14:04 PM, 20th March 2017
About 2 years ago

Will indeed be using..good job..
Maybe finally we're getting through, had a response today after writing to my MP Rob Wilson, please see response below......

Dear Mr Maynard,
14 March 2017
Ref: SPRW2028

Thank you for contacting me regarding changes to the taxation of landlords; I apologise for the delay in responding.

I note that you have raised concerns about the impact that Section 24 of the Finance Act 2015 will have on landlords. I have highlighted these with Gavin Barewell MP, Minister of State for Housing and Planning, and have requested further information on this matter.

Thank you again for taking the time to contact me; I will contact you again once I have received a substantive response.
Yours sincerely

ROB WILSON MP Member of Parliament for Reading East

Barbara Gwyer

14:15 PM, 20th March 2017
About 2 years ago

There is one major issue with this: supply and demand. It might work in the rest of the UK, but there's actually a lot more rental stock available in SW London than demand at the moment and rents have been falling. Yes I can put my rents up 12.5% but unless ALL landlords do this, I'm just going to end up with empty properties. .

Whiteskifreak Surrey

18:51 PM, 20th March 2017
About 2 years ago

Good letter Gary, although I am not so sure about the statement "Landlords do not pay for anything - the tenants do". Sounds somehow like we are the greedy lot.
NB: We are increasing 5% this year and see what happens, We are asking our tenants to write to whoever they can. I am happy to share our template below.
==quote==
Dear
You are undoubtedly aware that the previous Conservative Government started so called “War on Private Renting Sector (PRS)” – more commonly known as “Tenant Tax” (Section 24). PRs has been hit with 6 new taxes. Despite all actions taken by Landlords (LLs), Landlord Associations and some esteemed economists the present Government did not repel that tax.
As of 6 April 2017 all private LLs are no longer able to class their mortgage - their biggest running cost - as a business expense & instead this will be taxed as if it was their profit. This is the only business in U.K. that now gets taxed on turnover rather than a profit. In some cases it will mean landlords have to pay tax on a loss. Effective tax rate for LLs will raise to 70%-80% and in some cases to over 100%. What is even worse – this tax will be applied retroactively!
Sadly the knock-on effect is that most private LLs (with mortgages) across the country are going to be forced to either sell up (as their business is no longer financially viable) or to increase the rent. The bigger the mortgage the more tax is due. The lenders (banks) are also writing to LLs urging them to apply a substantial increase to the rent charged.
We have been waiting for a long time with the decision what to do – we were hoping beyond hope that in the recent Spring Budget the Conservative Chancellor would come to his senses and would revoke that extremely unfair tax.
Unfortunately that has not happened and - to avoid putting the property on the market and evict tenants – we are forced (by the Government) to increase the rent. That has been a very difficult decision for us, as generally (despite a rent increase clause in your AST) we tend not to change the rent for the long-term existing tenants. Nevertheless we still remain very competitive on price.
Majority of LLs already increased taxes in a region of 10%, often more. For the current financial year we decided on a very modest increase of 5%, because we consider you as excellent tenants. We will then see what happens, but if the Government still carries on with “Tenant Tax”, we will be forced to execute further yearly increases just to cover that tax grab.
Please find attached “Section 13 Notice” advising the new proposed rent details in full – if you are in agreement please just let us know.
Please bear in mind that we will not receive a single penny from that increase – we will merely act as a tax collector for the Government. We will cover the other taxes from our own funds.
What you can do? – Quite a lot, actually! NOW IS THE TIME TO ACT!
Please write a message to your PM – name / email address, Minister of Housing Gavin Barwell ( gavin.barwell.mp@parliament.uk ), the Chancellor Philip Hammond (hammondp@parliament.uk), the PM Teresa May (mayt@parliament.uk) and Shelter (http://england.shelter.org.uk/get_advice/how_we_can_help/advice_by_email),
stating that you received rent increase and you were informed that it was SOLELY DUE to Section 24 of the Finance Act (Tenant Tax) introduced by the Conservative Government.
If the government receives a huge number of complains it just might force them to re-think.

Please check the below websites with details of the Tenant Tax. https://media.property118.com/wp-content/uploads/2016/10/6G0YKMd1Wf.pdf - this is a famous Ros Report.
https://www.facebook.com/pg/clause24/posts/?ref=page_internal
https://www.landlordtoday.co.uk/breaking-news/2017/3/the-government-is-wiping-out-the-buy-to-let-economy
https://www.tenanttax.co.uk/tenants
https://www.landlordtoday.co.uk/breaking-news/2017/3/uk-rents-to-rocket-20-in-the-next-five-years?source=newsticker
https://www.property118.com/spring-budget-2017-landlords-reactions/95299/comment-page-3/#comment-88511
We realise that it is not a good news for you, but very much hope you will stay with us. However if that is no longer financially viable for you - we will fully understand .In that case please just let us know your decision so we can agree on a mutually convenient schedule.
If you have any questions whatsoever please let us know.
==unquote==

Gary Dully

20:58 PM, 20th March 2017
About 2 years ago

The letter is now in two parts and I am going to send the links to my various tenants around the country.

It just gets worse as you read them, especially for the 3 blind monkeys who thought Section 24 up.

Part One
https://www.dropbox.com/s/z1pl497rw4ffoze/Section24%20Letter%20To%20Tenants-Part%201.pdf?dl=0
and
Part 2
https://www.dropbox.com/s/rp8udi1xyy4f9sd/Section24%20Letter%20To%20Tenants-Part%202.pdf?dl=0

If you would like the Original MS Word Documents,
Here is a link:

Part One
https://www.dropbox.com/s/ndgdtgf5huz8aiv/Section24%20Letter%20To%20Tenants-Part%201-P118.docx?dl=0
Part 2
https://www.dropbox.com/s/eoij21a16ysh1dn/Section24%20Letter%20To%20Tenants-Part%202.docx?dl=0

IMPORTANT: Please remove my own details if you find any and replace them with your own.

If you want to generate your own charts, similar to the ones in the letters,
utilise this link to the spreadsheet.(MS Excel).

https://www.dropbox.com/s/eqm01blycv47uhz/Section%2024%20-%20Ugly%20Version8.xlsx?dl=0

Simply Copy & paste the charts into your personal Word Documents, but there is enough ammunition in those documents already.

A good target would be the Letting Agents in each town listed.

Mandy Thomson

14:04 PM, 23rd March 2017
About 2 years ago

"Landlords do not pay for anything – the tenants do” speak for yourself.


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