Section24 and SDLT hitting tenants – RLA

by Property 118

9:30 AM, 21st January 2019
About 7 months ago

Section24 and SDLT hitting tenants – RLA

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Section24 and SDLT hitting tenants – RLA

Data released by the Royal Institution of Chartered Surveyors, click here, warns that whilst demand for rented housing from tenants “held more or less stead for the third month running”, the number of landlord instructions “declined once again, rounding off a year in which they have fallen in all twelve months.”

The RLA is blaming the Government’s tax rises on the sector for the difficulties tenants now have in accessing suitable private rented housing. This includes the restriction of mortgage interest relief for the sector to the basic rate of income tax and a stamp duty levy which penalises the development of new homes to rent. This is despite the Chartered Institute of Housing recently noting that “tax reliefs deliver a much bigger benefit to home-owners than they do for private landlords.”

RLA Policy Manager, John Stewart, said:

“Whilst the Treasury seeks to dampen investment in rented housing, demand from tenants shows no signs of slowing down. Recent tax rises have served only to make the housing crisis worse.

“Rather than seeing it as a problem to be managed, the Treasury needs to develop a series of pro-growth tax measures that support and encourage the majority of good and decent landlords to provide the new homes to rent we desperately need. Otherwise tenants will find it increasingly difficult to find suitable homes to rent at affordable prices”



Comments

Whiteskifreak Surrey

10:06 AM, 21st January 2019
About 7 months ago

I have just seen out tax returns and it is an ugly picture. And this is only just beginning. We will be selling and evicting decent, well behaving and always paying tenants - who enjoy a decent house and immediate service when anything goes wrong... Among them a family with children and a hard working couple. I am sure they will appreciate what these idiots in the government do for the tenants like them...
Yes, the rogue Landlords will be on the rise.

NW Landlord

10:13 AM, 21st January 2019
About 7 months ago

Have you not incorporated ?

Whiteskifreak Surrey

10:26 AM, 21st January 2019
About 7 months ago

Reply to the comment left by NW Landlord at 21/01/2019 - 10:13
We have 5 properties in expensive areas. It did not seem to be worth a rather big expense. But we will be planning a consultation with Mark soon.

NW Landlord

10:33 AM, 21st January 2019
About 7 months ago

Figures arnt pretty are they my friend missed the boat this year with incorporation and he has 300 his first tax bill is horrific it actually defies belief .

Whiteskifreak Surrey

10:51 AM, 21st January 2019
About 7 months ago

Reply to the comment left by NW Landlord at 21/01/2019 - 10:33
And all that in the middle of the greatest housing crisis in the last century.
I doubt the big private companies (cronies of osborne and likes) will be able to take over - unless they start buying from stressed landlords. Is that happening actually?

Whiteskifreak Surrey

10:53 AM, 21st January 2019
About 7 months ago

NB: What is being done about that by our new Landlords Alliance? Are they at lease as vocal as RLA? They keep quiet recently - or maybe I missed something?

NW Landlord

10:59 AM, 21st January 2019
About 7 months ago

I have been thinking that it has gone very quiet

Old Mrs Landlord

12:07 PM, 21st January 2019
About 7 months ago

I am currently reading the CIH study referred to by Neil ("Dreams and Reality?" by the very experienced and well-respected researchers Prof. Steve Wilcox and Dr. Peter Williams). It compares the effects of the government policies of subsidising incentives for home ownership such as HtB, with the effects of financial disincentives to providers of private rental housing and the stringencies imposed on social renters by shortage of supply and restrictions of benefits. They show that the generosity of subsidies, incentives and tax treatment for homeowners (who are in the first place generally better of than renters) means that renters, both private and social, as well as landlords, are being disproportionately targeted. The already wealthier echelons of society are therefore being subsidised by those at the lower end of the wealth spectrum. More social housing construction and a rethinking of the taxation of private rental housing providers are therefore recommended in order to 'level the playing field' (cf. George Osborne's use of that term). This is the sort of evidence that our blinkered politicians have so far studiously ignored and, if they continue to ignore it, will see Corbyn in No.10.

Larry Sweeney

15:58 PM, 21st January 2019
About 7 months ago

To those wondering where the Alliance stands. We cannot be on every issue all of the time. We currently have 2 campaigns ,Exposing Shelter and dealing with the ICO and their refusal to deal with GDPR breaches by councils. Re Shelter, we have not said anything recently as our campaign is about to step up a gear. There will be an announcement Shortly. Re the ICO, this is very relevant as it concerns landlord licensing schemes around the country.

Coastal

11:10 AM, 26th January 2019
About 7 months ago

The draconian S24 tax changes by the Conservative Government clearly demonstrate yet another 'out of touch' position, just as we witnessed with the Brexit referendum in which Cameron was 'out of touch' with the reality of many. The Tory moto of 'makiing work pay' is clearly false in that one works hard to build a business (a rental business with mortgage commitments) being also part of ones pension plans, then the rug is pulled! This of course would have been more acceptable had it applied to new finance borrowing for BTL from a certain date rather than moving the goal posts on existing borrowers. I would suggest that any landlords evicting perfectly good tenants, thus adding to the UK housing crisis, include a letter stating to them that this is occurring as a direct result of government tax policy changes and not the fault of their landlord. As with many 'out of touch' policy changes, it will go full full circle once housing gets to critical mass (which it will) but of course the damage has already been done with many landlords, tenants and their families.

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