Baroness Alicia Kennedy, the outgoing director of Generation Rent, is angry with Jeremy Hunt.
The Baroness claims “the cost of living crisis has hit private renters the hardest” and wanted help from the public purse to be announced in the Budget yesterday.
But there was no reference to the rental sector in Chancellor Jeremy Hint’s speech.
“The cost of living crisis has hit private renters the hardest, with 50 per cent being asked to pay more rent - on top of other bills going up. Evictions for rent arrears are at their highest level on record” she says.
And she continues: “The millions of people who rely on the benefits system to cover their rent are being squeezed more and more, with Local Housing Allowance frozen since 2020 but rents having risen in that time by eight per cent nationally.
“The Chancellor had an opportunity today to provide some respite by relinking Local Housing Allowance to market rents. But this inaction means we will see more people get into debt and face homelessness.”
Meanwhile the National Residential Landlords Association is also disappointed, calling the Budget a missed opportunity.
Chris Norris, Policy Director for the NRLA, says: “The Chancellor spoke of growth yet did nothing to introduce the pro-growth measures that are necessary if the private rented sector’s supply crisis is to be addressed.
“The current system, under which landlords are penalised for providing new homes to rent, only makes it tougher for many renters to access good quality rental properties.
“Without a comprehensive review of how the sector is taxed, supply and demand issues will only become more acute as time goes on.”
The NRLA believes the Government must take steps to encourage a PRS “which works in the interests of landlords and tenants alike.”
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“The millions of people who rely on the benefits system”. Sums up Britain.
Agree, in a way that is the saddest thing about this once great country, we have become a nation of beggars, living on the scraps of the state.
Yes you are quite right, this is a very sad state of affairs. The millions can't all be genuinely unable to work, especially in recent times where there have been millions of job vacancies. I expect we all know people who could work but can't be bothered.
And we are hell bent of importing more all the time.
For once I agree with her, we had zero mention, but I suspect the help landlords wanted would be somewhat different to what she had in mind.
What about people who work and pay a mortgage that’s going up at a ferocious rate?
This titled, over privileged individual who does little for her fat salary thinks it only fair that those who do nothing are plastered with the cash of those who do contribute.
It was a very disappointing budget for both landlords and tenants.
At least UC tenants have the option of applying for a Discretionary Housing Payment to help with any rent increase. Does the government really want to turn hardworking, low paid essential workers into beggars?
As a landlord who until last October had almost never increased rents for existing tenants I currently have the attitude that as Social Rents are going up 7% my rents are going up by at least 7%. The LHA level ones that I haven't increased for 3 years are going up a bit more but will still be no more than the cheapest comparable property currently available on Rightmove.
Increasing rents will almost certainly put my taxable turnover into the 60% tax band so the government will be taking 60% of any extra rent the tenants are paying. Mortgage payments are due to rise significantly this year so I'm still going to need to fund some of that from somewhere (probably the maintenance budget). Spending less on tax deductible maintenance will make even more turnover taxable at 60%.
If I was being sensible I would sell a couple of houses but I really don't like the idea of making good tenants homeless.
Hopefully I can hang on to all my properties until the next election and Labour will be a bit more tenant friendly and have policies that will enable landlords to continue being landlords.
I read and partly agree but I’m of the nature, Better the Devil We have got rather than the Devil we ain’t git - in this case Labour and Prob make things worse.
Labour are usually tenant friendly only. That usually means being anti landlord which they have no problem with at all. It's popular with their voters who are more likely to be tenants.
It goes against the grain but for me the Golden Age of BTL was under a Labour government.
I firmly believed things would only get better when the Conservatives won in 2015 and went straight out and bought 2 more HMOs. I even bought one jointly with one of my sons as he wants to take over the business one day. That then had the effect of losing him any FTB perks and meant he had to pay an extra 3% SDLT when he wanted to buy his own home. I just can't believe how badly treated landlords and tenants have been by this government. Most landlords are the epitome of what a true Tory should be - hardworking, self supporting, financially disciplined, achiever. Some of us have a social conscience and do our bit to put back into society.
I just feel totally shafted by current policies and so sorry for tenants being caught up in this fiasco.
I am working on the assumption that Labour will bring in rent controls, maybe right to buy and higher Capital Gains Tax. At 63 we are getting out and will take what equity we can get now. In the mean time we are going to try to keep rents as close to market as possible and increase rents on existing tenants.
Christopher
Rent controls tend to mean restricted increases for existing tenants. That's actually better (for us) than the no increase policy a lot of us have had for existing tenants. Obviously not so good for the tenants.
Right to Buy would be problematic. Most tenants aren't ready to buy or wouldn't want to buy the well located but ugly flat they're renting or be able to get a mortgage for the HMO they're living in.
At the last election the Labour policy on CGT was far superior to the Conservative one. They were proposing to introduce indexation relief and then tax any additional gain at your marginal rate. For those of us who have owned long-term in the South that is far more palatable. For example 40% of a £50K gain after indexation is somewhat better than 28% of an unadjusted £400K gain.
The Tories have turned into socialists Jo. What with Brexit and trying to keep the Red Wall seats. Teresa had Toby Lloyd in her housing team writing her policies (Ex Shelter). They have gone bad sadly.
Jo - Tenant friendly does not equate to landlord friendly 🤔
UBI , CBDC , SCS , RIP UK
Acronyms for a dystopian future for the plebs and the rest of us the way things are going
Baroness Cranky comments again.
It’s always the Lazy scrounges and illegal immigrants that benefit from Government hand outs. I don’t have a problem with making life easier for “working” People, but we have a lot of trash in this Country, who deserve nothing.
Exactly. It's getting to the point I want to emigrate. Or at least get some whiplash, or try and get some asthma from some employer's premises / a landlord's property. Why do I bother going to work?
Sorry! Scroungers
From what I heard of the budget, businesses will be able to deduct before tax their investment on machinery, plant and premises for 3 years (which may be extended).
Presumably we're still not classed as a business through some twisted logic.
Allowing similar deductions might help with EPC improvements the Govt. want, non-decent homes they want to eliminate, and more generally in improving rentals.
I've done most of what I want to do already, but if solar PV was deductible I'd do it.
Good to hear Kennedy is outgoing, but doubt replacement will have more sense.
Cost of Living has affected EVERYONE, including Landlords, Yes, rent ( like Everything else ) have inceased, but so too have building - repair costs and mortgages.
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