The majority of landlords in the UK’s private rented sector do not believe that new Prime Minister Boris Johnson has a plan to boost the supply of homes to let by stimulating investment in the buy-to-let market, a new poll shows.
The survey from Landlord Today found that seven out of 10 landlords believe that the new Prime Minister has no plan to reverse punitive tax policies in order to encourage more people to invest in buy-to-let and as a result increase much needed housing supply in the private rental sector.
Almost 300 readers have taken part in the poll, which was launched 48 hours ago, with 71% stating that they believe Johnson has no plan to help ‘reinvigorate the buy-to-let market’.
Most landlords were hoping that Johnson would address recent punitive taxation changes which have had an adverse affect.
Draconian tax changes applying to buy-to-let investors have left a number of private landlords with little alternative but to evict tenants and sell properties en masse or simply increase rents for tenants.
There is plenty of evidence to suggest that some landlords have not been able to cope with punitive tax hikes introduced by former Chancellor George Osborne, including the phasing out of mortgage interest relief.
Many private landlords have also had to endure the scrapping of the ‘wear and tear’ allowance for furnished properties, the launch of the 3% stamp duty surcharge, as well as the introduction of stress tests for buy-to-let mortgages.
A separate poll from Landlord Today found that 75% of readers do not expect the new chancellor, Sajid Javid, to address and potentially reverse recent tax changes that have adversely affected private landlords, as the main political parties continue to chase for generation rent votes.
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A sizeable % of families are unlikely ever to buy their own home. Politicians would never say that. One step would be to build new council houses as we did in the 50s.And to ensure that any council homes sold under Right to Buy should by law be replaced on a one for one basis. We do of course come back always to the question of migration. If there is a net migration increase of 300,000 per annum that probably means at least 90,000 extra housing units required each year before we touch any backlog. So just have a problem....Politicians will spout on about the housing market just as they do about social care. Their main concern though is the 'next' Election. So these cans just get kicked down the road.
Get used to it the government don't like us, only one way forward, increase rents.
Rent increases are all very well but sometimes there is simply no headroom to increase.
In those particular markets it would be worthwhile LL selling up as they will never be able to increase rents to cover increasing costs.
So even more homelessness.
There are simply some markets where rents can't be increased and are pointless remaining invested in.
If you can't even cover all the penal cost burdens being imposed on LL what is the point!?
My rents are increasing by £100 pcm and even that is insufficient to cover costs and give me a reasonable RTI.
So I will be selling up gradually.
And I am not even factoring in all the other reasons that make it worthwhile to sell up like S21 and S24 etc.
At some point any Govt still so desperate for GR votes will introduce rent controls.
It takes years for the 'bombing' effects of rent controls to be be fully evidenced.
But there will be an immediate electoral bounce for the Party that introduces such bonkers rent controls.
After the by-election the Tories are desperate.
Don't be surprised if they spring rent controls on LL but only those with mortgages in their own names............,......you know to help 'level the playing field' even more!!!!
Why is most twits condemning Boris before he does what he says hes going to do?
Because he like the other Tories aren't interested in tenants or LL.
They want to increase homeownership.
Boris naively believes that forcing LL to sell somehow inspires and motivates FTB to buy!!!
When in fact there are already more that sufficient properties to buy suitable for FTB.
Increasing supply caused by LL being forced to sell up doesn't magically encourage FTB to buy!
Boris won't do anything to assist the PRS.
The last thing he wants is more tenants being created as most of them will vote Labour.
He just wants more homeowners and he stupidly sees LL as an impediment to this being achieved.
He fails to understand that even if massive house building plans were announced it would take decades for significant increases to occur.
In the meantime people have to live somewhere.
The PRS being the obvious solution.
But Boris is now presiding over a shrinking PRS when really it should be expanding to meet the demand for accommodation that cannot be met by the existing housing supply.
This situation does really affect LL that much but it definitely does the poor old tenant who is facing reduced rental supply and consequently substantially higher rents.
Just leaving the PRS alone would at least allow it to get on with this vitally important job of housing those who can't or don't want to buy
But as a bare minimum first Boris needs to abolish S24 and the SDLT surcharge.
Cancel plans to abolish S21.
Just doing that will stabilise the market.
There are then plenty of things he could do to encourage PRS expansion.
But first learn to walk before attempting to run!!
But NONE of the will come to pass so obsessed are the Tories with the idea of garnering GR votes.
The Tories just don't seem to understand that even if every GR voter could buy a house won't mean they vote Tory.
Most of GR are ideologically anti-Tory.
They won't vote Tory no matter what is done for them by any Tory Govt.
But for ill or for worse the Tories seem to be fixated on spreading GR and in doing so I predict the Tories are electorally doomed.
I reckon we won't have long to find out as this particular Govt cannot carry on much longer with a 1 seat Parliamentary majority.
Even this looks like disappearing soon and then Boris will have no alternative than to go to the Country.
If BrExit hasn't been achieved by the time of the next GE then the complexion of a new Govt could be vastly different to anything the UK has ever experienced since the Parliamentary democracy started working properly.
Very turbulent and anxious time ahead I fear and NOT just for LL!
I agree S24 should be scrapped LL's should be allowed investment interest tax relief, SD surcharge 3% removed and also Capital Gains Tax reduced from 28% to 20% like it is for everyone else, S21 reinstated before this Recession gets worse but anyone above Watford gap won't agree things are booming up there for now. We have to remember everything starts in London whether Boom or Recession and then works it way out from there. NLA now joined up with ARLA of letting Agents who are constantly campaigning for more Regulations that have destroyed us in the first place, do they think we don't have enough, ie, How to Rent. Right to rent. Deposits debacle. GDPR / ICO. Article 4. Section 21. Section 24. De-Regulation Act. Wear & Tear allowance gone. Licensing Schemes hugely expensive, decisive & only applies to one half of the Community. Fee Ban. Rogue help to buy schemes to take our Tenants away from us, etc' etc'
I hate the way s24 is described as relief ..... relief from what I ask ? it is a cost and the biggest one for portfolio landlords end of story a lot of landlords are struggling to pay it now at 50% 18 months / 2 years the whole thing is going to get a hell of a lot worse
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