A properly industry leader is calling on government to cut taxes for landlords who agree to long term tenancies and rent levels.
Jonathan Rolande is a spokesperson for the National Association of Property Buyers and he says steps are urgently needed to ensure we don’t see a serious downturn in house prices in the New Year.
One of his calls on the new Liz Truss government is “tax relief for landlords who commit to long term rental with sensible, set rent increases.”
Rolande adds: “Renting longer term is a greater risk for the owner so reward them for providing more security for tenants.”
He wants other measures too.
“We need to start by reforming stamp duty. A positive step would be to see zero rates for pensioners moving downmarket in terms of bedroom numbers, reduced rates for those involved in buy to let transactions and zero rates for first time buyers in less affluent areas.
“We should also look towards selling disused council land for housing with proviso it is built within one year. Where land is not bought by developers, councils should be encouraged to arrange build and rent programmes.”
Next Friday there will be an Emergency Budget, although this has not been confirmed by Truss.
During the Conservative leadership race Truss pledged not to introduce new taxes, including those applying to property.
Commentators say the government is expected to announce it will reverse the recent national insurance contribution increase and could ditch a planned increase in corporation tax.
In addition the Budget is expected to include the temporary removal of green levies from energy bills, plus a figure for the cost of the energy price guarantee announced last week by Truss.
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.
The UK’s largest provider of inventory services says rising tenancy lengths...
New research suggests an overwhelming number of renters want longer tenancies,...
Housing minister Brandon Lewis has backtracked on suggestions that the government...
Speculation that the Truss government might move on to tax cuts...
The vast majority of tenants are unaware of new laws introduced...
Despite the recent tax crackdown, buy-to-let continues to look an attractive...
The property market had enjoyed a boost thanks to the outcome...
There wasn’t much by way of good news in the Spring...
National Landlord Investment Show has announced that the former Leader of...
Twenty twenty-four is a pivotal year for landlords in the Private...
The management of BTL properties, whether it's a modest collection of...
We are thrilled to report that the first National Landlord Investment...
If interest rate rises weren’t enough to drive landlords out the...
Landlords play a crucial role in providing safe and comfortable housing...
.jpg)
Calling all landlords, Investors and property professionals: National Landlord Investment Show...
A recent survey by digital mortgage lender, Molo, revealed that nearly...
In the buy to let market, success goes beyond the transaction...
Mohammed Sharaz, a landlord from Bradford, recently seized an opportunity to...
We believe a well-functioning housing system is one that meets everyone’s...
It’s not just the weather that’s wet and dreary – the...
As the ‘big buy-to-let’ sell off gathers momentum, we take a...
The challenges facing the property market right now are well reported;...
If you are a landlord looking for the silver lining in...
This year is set to bring sweeping rental reforms that will...
A council has prosecuted a landlord for letting out two HMOs...
The Labour-led government in Wales has issued a consultation proposing the...
Another council is looking for landlords with rental properties to match...
Another council is looking for landlords with rental properties to match...
.png)
Landlords and renters’ activists are at either end of the spectrum...
A prominent lettings sector expert is blaming the media for anti-landlord...
Who are you and what does it say on...
Who are you, and what does it say on...
Who are you? I am the Head of Broking for...
Join the conversation
Jump to latest comment and add your reply
Personally I'd like to see SDLT abolished for all UK resident buyers and maybe just a fixed tax of about £500 per transaction.
Remove Section 24 and go back to the traditional method of determining profit.
Reintroduce taper relief for properties held long term and used as BTL.
Separate out BTL, holiday homes for rental and second homes for personal use. They're not the same and it causes huge media confusion when they try to describe them all as second homes. A second home is a luxury. BTL and rental holiday homes are business activities.
Stop all the nonsense about property income being unearned. We either self manage or pay an agent. Either way someone is doing the work.
Removing tax barriers such as SDLT and punitive CGT would increase the number of property transactions and therefore increase VAT receipts. It would also boost employment in numerous industries from plumbers through to curtain manufacturers.
Or switch it so that only sellers pay Stamp Duty not buyers….. based on CGT but reasonable level
Jo
I have a second home which I financed over 30 years as a holiday let.
It was a lot of work to keep it up to 5 star standard and I certainly don't regard it as a luxury and "unearned".
My kids didn't have passports until they went abroad as students as all our holidays were spent in our "luxury" second home.
Now when I eat my sandwiches with grandchildren on days out at theme parks etc. I am amazed at how much is spent on junk food and drink by people I would think are much poorer than me. I guess it's all about priorities but I don't begrudge them their luxury lunches , just wish they didn't begrudge me the fruits of my labour and sacrifices.
Robert - if it's a holiday let it's a business activity. If you happen to use it yourself it's a nice perk but still a business.
I have a holiday home that is used solely for myself and my family. That is a luxury.
It's not a question of begrudging. It's a question of catagorising.
BTL provides long term homes for people who don't want, can't afford or aren't ready to buy their own home. It would be reasonable for the government to provide a more supportive tax regime as there is major shortage of long term rental properties.
Holiday lets are a commercial activity which produce a taxable income. The far more favourable tax treatment of holiday lets in recent years has been a contributory factor to the shortage of long term lets.
Second homes (for personal use only) are a luxury and of no real benefit to anyone other than their owner. It could be argued that they pay Council Tax and don't fully utilize the services provided but that's fairly negligible.
Incidentally my holiday home was a derelict building in a town that still has dozens of derelict buildings in France so has no relevance to the UK housing shortage or UK tax regime.
Well said Jo, bang on the money. I would add that CGT should be on par with other investments such as shares, why do we pay so much more...18% when shares are 10% and for the higher tax payer 20% shares and 28% on a house. Another punishment.
Robert your observations on junk food and home made sandwiches and peoples priorities are very well made points.
I don't think Jo is contentious over your second home as you clearly let it out as well as use it yourself. I believe the point she is making are those rich enough to have the luxury of buying a second home for their sole purpose and again the point she is making is on impact to local community and taxes.
Thought provoking article.
Switching stamp to sellers would destroy the housing market overnight, and much of the sectors it supports in employment, creating a black hole in the economy unlike anything we have ever seen. The only way to reform it is to change the format/method/level buyers pay it at.
All good ideas, but if they bring in the EPC C then it’s all moot as many of us will sell up.
*moot
What is the definition of "long term tenancies"? One year? Two years? Five years? Ten years? How long is long? This is far too vague.
I definitely would prefer to sell the properties myself, than hand them over indefinitely to tenants.
And interesting that the people seeking to induce landlords to enter into indefinite arrangements with tenants are never landlords.
The SNP have stopped families from being able to rent my properties for that very reason - students only now for me. Many Scottish landlords are doing the same or selling up. Glasgow rents are up over 14% in the last year and my son had over 60 enquiries last week for a student property available at short notice.
One of my tenants thought 6 months was far too long a period to commit to initially but is still there more than 5 years later.
Best way forward is to return to the past to undo the problem you deliberately created.
Scrap 2015 De-Regulation Act, Reinstate Section 21 &24. Scrap double SD, Scrap Licensing Scheme fees if Council’s want those Schemes fine pay for there own administration, we have to pay for doing all the work they impose on us, instead of sitting there complaining about high rents they are causing. Give us back our 10% west & tare for furnished lettings. Give us back our Deposits to protect our property not turn us into an insurance guarantors for other peoples money. Return landlordism to Civil Law not brand him a Criminal for being a landlord providing first class accommodation for millions, that would be a start..
Very well said Michael!
How can you give a Tenant long term Tenancy if he up sticks and off after 6 months, will we get another penalty for that.
We'd probably be prosecuted and our names put on the new property portal as rogues!
Whilst this is a good idea, we really need the government to stop penalising landlords differently to any other industry. Bring us back in line with mainstream taxes on the income, and bring in a tapered relief if you hold and rent the property long term. Capital gains at 28% in unfair when it is 20% on any other business. Entrepreneurs relief should be available to those who want to retire, if ER is available to other industries. I get it if you own one house, but those of us with a portfolio, running a proper business should not be treated any differently to any other trade.
on another matter,Aran Curry (who he?) says I can make 5 times the profit I'm now making - anyone believe this tosh?
It's probably true that many of us could make more profit, either by switching to serviced accommodation, or buying in certain areas (mainly up north) where yields are higher, or buying properties most suited to serviced accommodation, or converting large properties into flats, or some other strategies. I think it's called sweating your assets. None of those options appeals to me, but might suit some people. I think Aran is a genuine person, but like others offering property education the strategies they promote might not suit everyone.
Please login to comment