Buy-to-let landlords avoided a further tax clampdown in the Budget yesterday, while the Chancellor Philip Hammond revealed government plans to review whether landlords should be offered ‘incentives’ to offer tenants longer tenancy agreements.
The government wants to offer greater support to those who rent, as the number of people who do not own their own home continues to grow.
Tim Walford-Fitzgerald, private client tax partner at the chartered accountants HW Fisher & Company, commented: “Buy-to-let landlords could be forgiven for pinching themselves. For once they’ve not been the whipping boys of a Budget.”
But while some buy-to-let investors are supportive of longer-term tenancies, many are disappointed that the Chancellor failed to address calls for tax incentives for landlords.
Perks could have included clawing back tax relief that is currently being phased out of mortgage interest tax relief for buy-to-let.
David Smith, of the Residential Landlords Association, commented: “The Budget could have acted on proposals to provide tax relief for landlords prepared to do offer longer tenancies and taking action against mortgage lenders who block them being granted.
“Instead we have yet another consultation adding to the 15 already ongoing which relate to the private rented sector. Tenants cannot live in consultations.”
Jeremy Leaf, a north London estate agent, welcomed the government’s decision not to increase the rate of tax on buy-to-let investors.
“This would have had a detrimental effect on the supply of affordable property to rent as investors have been in retreat for some time,” he said.
Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions.
If any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals, then the post may be deleted and the individual immediately banned from posting in future.
Please help us by reporting comments you consider to be unduly offensive so we can review and take action if necessary. Thank you.
.png)
Join the conversation
Jump to latest comment and add your reply
One other interesting development in the budget was the announcement of a £2m competition to help tenants add rent to their credit history. This could ultimately benefit landlords as it encourages tenants to pay on time which can result in lower arrears.
Interestingly, the solution already exists and at CreditLadder we are already working with landlords across the country. Please do contact us via www.creditladder.co.uk if you would like to discuss how we can help you have your tenants rents reported.
Please login to comment