Government’s holiday let crackdown ‘not enough’, warns renters’ group
2 years ago | 15 comments
Spareroom calls for tax equality for private landlords
12:01 AM, 26th February 2024, 2 years ago
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Spareroom is criticising the government for failing to address the underlying issues driving landlords to short-term lets.
The government recently announced a crackdown on short-term lets with plans to introduce a national register.
However, the flatshare website says many landlords are concerned about the discrepancy in tax incentives between short-term let landlords and residential landlords.
Government needs to level the playing field
According to Spareroom, 97% of landlords think residential landlords should have the same tax reliefs as short-term let landlords.
A massive 94% of landlords agree that levelling these tax breaks would encourage more landlords to rent out their properties on a long-term basis.
Matt Hutchinson, SpareRoom director, said: “Clamping down on short-term lets is great, but the government has to address why landlords are so keen to offer short-term lets in the first place.
“The current tax system offers landlords of short-term and holiday lets several incentives that residential landlords don’t get, which makes no sense whatsoever when we have a housing crisis, not a hotel room crisis.
“At the very least, the government needs to level the playing field and stop making short-term lets more attractive than homes.”
94% of renters do not have confidence in the government
According to Spareroom, the majority of renters (94%) do not have confidence in the current government’s approach to housing.
Data from the flatshare site reveals that the average UK room rent was £806 in January 2024.
Spareroom says many renters are considering moving abroad due to the unprecedented surge in rental costs.
Tags:
affordable housing, Government Policy on Rental Properties, housing crisis, Landlord Tax Incentives Discrepancy, Rental market, Short term Let vs Long term Let Taxation, short-term rentals, Spareroom Tax Equality Campaign, tax equality, UK housing crisis solutions
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Member Since May 2019 - Comments: 42
1:08 PM, 26th February 2024, About 2 years ago
High rents are due to high property purchase prices. No one is going to let out a property worth 250K for less than 5% before tax. Why would they? Sell and put the money in the bank instead. If anyone wants lower rents…then their must be more housing built.
Member Since February 2024 - Comments: 2
7:37 AM, 27th February 2024, About 2 years ago
This is the most sensible comment I have seen on this site so far.
If there was more affordable choice for renters then landlords with substandard properties would have to improve them to attract tenants. No government interference required.
Member Since February 2016 - Comments: 1056
11:54 AM, 27th February 2024, About 2 years ago
You mean go back to how things were before Government started interfering? No chance! Too many renter votes to consider and Shelter, Generation Rent etc. shout much more loudly than landlords who tend to just vote with their feet. Besides, without private landlords to scapegoat and demonise, people might start to look for the real culprits for the mess the housing market is in.
Member Since February 2016 - Comments: 1056
11:57 AM, 27th February 2024, About 2 years ago
Reply to the comment left by Nicola Bass at 27/02/2024 – 07:37Reply above to Nicola Bass. I must not have pressed hard enough on the reply button.
Member Since May 2023 - Comments: 225
1:44 PM, 2nd March 2024, About 2 years ago
This false concept of tax relief is HM Treasury inspired nonsense. It is reasonable for a business to pay tax on profit however completely unreasonable to pay tax on costs.
So short let’s are treated like a normal business in being taxed on profits. There is no tax relief to that.
Residential landlords are being taxed on costs meaning that profit is impossible for a buy to let situation were the mortgage costs are most of the turnover.
Crooked George did that and his mates can’t complain about the results on housing generally. A deliberate and foolish distortion of the market.