2nd
Oct 2023
An industry figure is telling MPs they must make the repeal of Section 24 a major political priority.
Section 24 is a major kick in the teeth for landlords as it has removed their rights to deduct major costs from their rental income before sending their tax liability, this includes arrangement fees and more importantly mortgage interest.
Allison Thompson, national lettings managing director of one of the largest property services groups in the UK, calls for MPs to make the repeal of Section 24 as one of the major points in the oncoming party conferences.
She rightly states that Section 24 has caused a surge of higher rents resulting in household poverty in many instances and worst still homelessness.
She says: “Over 29,000 landlords signed a recent petition calling on the government to reverse Section 24, but the government confirmed they would continue to set mortgage interest relief against rental income only at the basic rate of tax.
“Due to substantially increased costs - not only of property finance, but of energy and building materials - this change is much needed.”
Thompson also demands that MPs must also prioritise the creation of specialist housing courts: “Landlords are facing widespread and serious delays in the courts when seeking to regain possession of their properties.
“This will be exacerbated in future if the Renters Reform Bill is enacted, removing Section 21 of the Housing Act and replacing it with Section 8.
“A dedicated housing court would be the best way to address this serious backlog.”
Another work colleague Michael Crook says he wants even more support from MPs by abolishing the Renters Reform Bill and slates it as being “ill thought-through and would be detrimental to both landlords and tenants.”
He says: “The removal of Section 21 is unnecessary and damaging. Our research shows Section 21 is rarely used for ‘no fault evictions’ and, as Shelter has said, the abolition of Section 21 won’t end unfair or no-fault evictions where they do occur.
“It is proposed that Section 8 of the Housing Act will replace Section 21 but this will create less, not more security for tenants. It will also mean many more cases going through the courts which is costly, stressful and prone to considerable delay.
“We know there is widespread concern as to how the courts will facilitate effective possession hearings under these new grounds.”
Cook states the Bill’s measure of replacing assured shorthold tenancies with periodic tenancies will harm both tenants’ and landlords’ security as it will end long term contracts and substituting it with two months’ notice
Cook says: “Abolishing clear fixed term tenancies seem to contradict the government’s objective to provide families the ability to put down roots in local communities with the security of knowing they have certainty of tenancy for in most cases one year, but often two or three.”
“Any detrimental changes to the sector could force landlords to leave the sector which would impact on supply, force rents up further and exacerbate homelessness.”
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