Shadow housing secretary accusing Sunak of massive ‘Bung’ to Landlords

by Property 118

9:57 AM, 13th July 2020
About 3 weeks ago

Shadow housing secretary accusing Sunak of massive ‘Bung’ to Landlords

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Shadow housing secretary accusing Sunak of massive ‘Bung’ to Landlords

Labour’s shadow housing secretary, Thangam Debbonaire, has written an open letter to Robert Jenrick accusing the Conservatives of sneaking out a £1.3bn bung to second home owners and landlords in the Summer Economic Update.

This is despite the 3% surcharge still being applied to all second homes and residential rental property.

The letter dated 9 July 2020 says:

“Dear Robert,

I am writing to you after the Chancellor’s financial statement in the Commons yesterday.

Subsequent to the Chancellor’s statement, the Treasury revealed that the stamp duty changes will also provide a tax break for second homeowners.

The Treasury has confirmed that those looking to buy a second property, or buying to let, will only have to pay stamp duty at 3% up to £500,000, rather than the 8% from a quarter a million up.

I’m seeking to clarify why your government is giving such a large tax break to owners of second homes at a time of an acute housing crisis.

If someone bought a second home yesterday for half a million pounds, they would have expected to pay £15,000 more than they would today.

You’ll know that in total, since its introduction in 2016, around 29% of all liable transactions have been subject to the Higher Rate (of Stamp duty) for Additional Dwellings. The majority (88%) of HRAD transactions are on properties sold for under £500,000.

In 2019/20, 34% of homes bought were second properties meaning this policy could cost the Exchequer £1.3 billion. This could fund the immediate gap in local council finances, which the LGA predicts will be £1.2 billion by the end of the year.

At a time when we have an acute local government funding crisis, I question how the Government can justify giving a tax break to people already fortunate enough to own an existing property rather than giving councils the funding they need.

Over a million people are on council waiting lists whilst the number of new social homes has fallen by 80%. This money could be much better spent on truly affordable housing to buy or rent, rather than on a tax break for second homeowners.

The Chancellor had an opportunity to rebuild and invest in truly affordable housing to buy or rent. But he failed to take it. He talked about jobs but did little to address the skills shortage in construction sector.

Please urge the Chancellor reverse his decision to give a tax break to second homeowners. We are calling for clear action in the spirit of constructive engagement.

Yours sincerely,

Thangam Debbonaire, MP for Bristol West”



Comments

Whiteskifreak Surrey

12:12 PM, 14th July 2020
About 3 weeks ago

Reply to the comment left by terry sullivan at 14/07/2020 - 12:02
I do not have that source at the moment but I read a few days ago that apparently the government is working on a Free Trade Ageement with Turkey. Part of it will of course be a visa free access and working rights (same will be conditional to our FTAs with India, Cina, Russia etc). Soes that answer your question? In terms of me working with Turkish bankera it was in Belgium and The Nedtherlands, not in the UK.

Whiteskifreak Surrey

12:17 PM, 14th July 2020
About 3 weeks ago

Reply to the comment left by Whiteskifreak Surrey at 14/07/2020 - 12:12Source: https://www.ft.com/content/f641b245-8bf3-4b54-b7d2-13f6b423db45
"
>"Turkey’s foreign minister also said Ankara was hoping to negotiate a separate immigration deal that would grant Turks special status when the UK implements new migration rules in the Brexit era."

terry sullivan

12:36 PM, 14th July 2020
About 3 weeks ago

thanx

my point was that there are huge numbers of turks already here--how did they get permission to come and to stay?

Whiteskifreak Surrey

12:45 PM, 14th July 2020
About 3 weeks ago

Reply to the comment left by terry sullivan at 14/07/2020 - 12:36
I am sorry I have no idea. I think it was something like Ankara Agreement in 1970s. When FTAs will be negotiated there will be new freedom of movement quotas with these countries so we will have tenants. Plus from Commonwealth, as they will have preference it seems.

Whiteskifreak Surrey

12:47 PM, 14th July 2020
About 3 weeks ago

I am sorry I have no idea. I think it was something like Ankara Agreement in 1970s. When FTAs will be negotiated there will be new freedom of movement quotas with these countries so we will have tenants. Plus from Commonwealth, as they will have preference it seems.

Jay James

15:36 PM, 14th July 2020
About 3 weeks ago

Hi Old Mrs Landlord
That's an understandable comment, but I did indeed mean west european.

Jay James

15:41 PM, 14th July 2020
About 3 weeks ago

Reply to the comment left by terry sullivan at 14/07/2020 - 12:36
our government (imbeciles) gave it to them

bob the builder

16:38 PM, 21st July 2020
About 2 weeks ago

Who cares what Communists think about anything.

Whiteskifreak Surrey

15:21 PM, 28th July 2020
About A week ago

Today's City am: https://www.cityam.com/stamp-duty-cut-sees-london-house-sales-rocket-27-per-cent/
It clearly shows that the lower the stamp duty the higher amount the Treasury will collect. Applies to all taxes.
However I have no doubts that the current so called Chancellor (Santa Claus for some, though) will revert to the punishing taxation at the end of this stamp duty holidays. Everything will stall again. Those people in the government will never learn.

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