21st
Nov 2016
It is no real surprise that a recent poll of landlords showed that 92% of those taking part are adamant that the government is 'anti landlord'.
Who can blame them when the catalogue of offences includes:
• April's increase in Stamp Duty
• The 10% Wear and Tear Tax relief is scrapped
• The mortgage tax relief is set to be phased out starting from April of next year.
• Having to adhere to the Right to Rent checks
The ex-Chancellor's punitive measures against the private rented sector will result in some landlords being forced out of the market. The other worrying effect will be that landlords will have to raise rents to cover their increasing costs, which in turn could force families out onto the streets.
The sector as a whole is demanding that the government to change its ways and with various rumours that the Prime Minister is looking at relaxing austerity measures, then in turn the Chancellor should 'herald' some good news for the PRS in his autumn statement.
The poll also claims that 74% of landlords would like the 3% stamp duty being rescinded by Hammond and surprisingly only 50% wants him to scrap the reduction in mortgage tax interest relief.
The chief executive of the lettings and estate agent chain, Ian Wilson, said: “The government seems to be set on making life as difficult as possible for property investors, while ignoring the fact that landlords provide essential rental properties in locations where there are housing shortages and no realistic ability to buy.
“People are relying on the private rented sector to supply property, so we need the Chancellor to back our landlords and encourage them to continue to invest and provide a vital pipeline of homes for people who simply cannot afford to buy.”
The chairman of a conveyancing association, Eddie Goldsmith, is hoping that the autumn statement will be “a pivotal moment for the UK housing market” because of Osborne's concerted “anti-landlord and investor policies”. Goldsmith also believes those measures along with the Brexit vote, may be responsible for a “perfect storm”, and if this remains unchecked could “reduce transaction levels to rubble for many months to come”.
Goldsmith said: “It may be too much to hope that the 3% extra charge on additional property stamp duty will be abolished, but such a move – as well as a u-turn on next year’s mortgage interest tax relief changes – would be most welcome.”
Richard Merrick of PIMS, said: " The housing shortage and increased market prices are a result of this and preceding government's failings to provide adequate new builds over the last decade."
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