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Easing tax on landlords would end Airbnb ‘problem’ says NRLA boss

Reversing the tax penalties imposed on buy to let landlords in recent years would reduce the impact of short lets on communities.

That’s the claim from the National Residential Landlords Association chief executive Ben Beadle.

Earlier this week Housing Secretary Michael Gove announced that councils will be given greater power to control future short-term lets by making them subject to planning consent.

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Meanwhile, a new mandatory national register will give local authorities the information they need about short-term lets in their area, and the government suggests this “will help councils understand the extent of short-term lets in their area, the effects on their communities, and underpin compliance with key health and safety regulations.”

Existing homeowners will effectively get retrospective planning consent and will still be able to let out their own main or sole home without planning consent but only for up to 90 nights throughout a year.

But Beadle says there’s a way of increasing buy to let rental supply as well as reducing the impact of short lets.

He comments: “These changes aer being introduced as a result of taxation changes which make it more attractive to rent a property in the holiday letting market rather than to a family in the private rented sector.

"The best way to control holiday lets is to reverse the damaging mortgage interest relief changes introduced back in 2015. These changes have served only to decrease supply, heighten demand and increase rents in the process."

The NRLA has been campaigning for changes to the rules around holiday lets to tackle the supply crisis in the private rented sector.

Currently holiday lets are taxed more favourably than privately rented homes, which the association believes is unfair.

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    He's totally correct.
    Taxing us in the same way as every other business would make a huge difference to viability.
    For many landlords the choice is either holiday lets or sell up completely. The tax situation with traditional BTL is completely untenable for many landlords now interest rates have trebled.
    According to my landlord software between the 3 owners of my portfolio we have a traditional profit of around £90K. But it then goes on to say we will be taxed on a completely fictious amount of £154K. Obviously quite a bit of that will be at 40%.
    Rent increases have to be so much bigger than they otherwise would be to cover the extra tax. The problem then is I'm likely to hit the 60% tax bracket (we don't equally own the portfolio).
    Also market forces dictate the maximum rent, so it isn't possible for all landlords to increase rent enough to remain viable. Which is when they turn to holiday lets or sell up and make the whole housing crisis even worse.

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    It’s the endless Regulation’s, red tape and taxation that has caused all the problems that now exist and they want even more. Licensing Schemes is another total disaster Council’s messing around for ever keeping property vacant for long periods 6 to 15 months waiting on them to do their job or respond usually they are on leave when you try in vain to contact them, then eventually they’ll come up with a long unjustified list that could have been done instead of waiting.
    I never understood this 90 day rule what on Earth is it can’t get my head around that.

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    It crazy how banks are charging upwards of £5000 in fees for buy to let and yet it’s not a business. The government saw this as an opportunity to make money but now interest rates are over the income received it proves that governments are knee jerk law makers. They don’t look at repercussions of their actions yet every time anyone does business with them they need to have a pie in the sky plan for business continuity if something goes wrong. Now everyone is losing money because interest is now not a recognised expense and these landlords pensions have gone to dust. Very poor government lawmaking and more like a Putin approach than a democratic one.

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    Removal of Section 21 is the main reason!

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    100% right Margaret - for the vast majority of landlords

     
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    Each one of us has their top reason, s21 is certainly up there, but when you add them all up, for an older demographic of landlord…… 🤷‍♂️ It’s time to hang up the rent book and cash in 💰 to sunnier climes 🏝. Mother Nature can decide your time is up in an instance 🪦, I intend to reach my “ End of Days”, with the bulk of my capital investment spent on maximum enjoyment of my life and my family.

     
    Robert Black

    Have to agree on that onel!!

     
  • David Hollands

    We need section 24 put back so landlords are tax only on the profit like any other business in the uk.
    To be tax 40% on the rent results in paying tax on money I do not have after paying the mortgage.!!!
    Section 24 was removed when interest rate were very low so the impact was small and now interest rate are high Private landlords with a mortgage are running at a loss.
    I have 2 properties which I will have to sell this year so I can retire. Currently working at 68 and having to keep working to run the properties.
    Our Government currently are destroying the the BTL for private landlord and Tenants are losing Quality properties to rent. Madness !!!!

    Robert Black

    Ah yes but the businesses won't be taxed the same way so set up a business, I won't be doing that for my only property, or suffer or sell A lot of us will br selling and the losers will be the tenants

     
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    More poor legislation to mitigate the effects of more poor legislation to mitigate the effects of poor fiscal and monetary policies. It’s like the blind are leading the stupid

    Robert Black

    When will they wake up Some of them will sleep in the Lords Most will retire and not give a **** about us mere humans

     
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    No doubt they'll soon try to solve the "problem" of short term rentals by making them subject to the same unfair tax treatment as long term rentals!

  • Sarah Fox-Moore

    Landlords are not a business when it suits them yet impose costs & restrictions on us like a business when it suits them.
    "It is just an Investment...which we er, treat as a Business - but not like any other business; one where we tax you on Turn over."

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    • s M
    • 23 February 2024 12:19 PM

    It's even worse than an investment, HMRC describe it as a PASSIVE investment. Clearly they don't believe that, as your allowed to claim mileage to visit your properties to check that they are safe and secure.

     
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    I am apt to think that their blind stupidity is deliberate. The WEF don't want private property ownership. 'You'll own nothing and be happy'. Google and download 'The Great Taking'. Iam out of debt and into fully paid off (non rented) property gold and silver.

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    The law of unintended consequences at play as usual. Short term policy making with no stress testing. Bunch of clowns.

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