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Generation Rent says landlords should  share tax break with tenants

The Generation Rent activist group says the Conservative manifesto pledge to give a tax break to landlords selling to tenants should be accompanied by those landlords being forced to sell at a discount.

Specifically, the Tories propose to have a two year temporary scrapping of Capital Gains Tax if private landlords sell their homes to the sitting tenants.

Dan Wilson Craw, the deputy chief executive of Generation Rent, says: “To really have an impact, a portion of this tax break needs to go towards a discount on the price for the tenant, otherwise few will be able to afford to buy out their landlord.

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"But many tenants aren't in a position to buy at all: 23,000 households faced homelessness between April and December 2023 because their landlord was selling up. Tenants should therefore have the option to nominate another buyer, such as a housing co-op or the council, who would allow them to stay. This would mean the policy not only boosted home ownership but reduced homelessness too."

The Conservatives proposed resuscitating the Renters Reform Bill - the original version had insufficient time to pass through Parliament when the July 4 General Election was called. 

Wilson Craw says on this pledge: "No-fault evictions make life intolerable for private renters, fuelling homelessness and making it difficult to complain about problems in your home. It is reassuring that the Conservatives remain committed to abolishing these evictions.

"But to enjoy genuinely fairer renting, tenants need stronger protections when evicted for reasons beyond our control, and from unaffordable rent increases that force us out of our homes.

"Most renters would prefer to be home owners but high rents make it hard to save and high house prices mean many of us don't qualify for a mortgage. These proposals won't reduce either, and risk pushing prices up further.” 

Meanwhile Ben Beadle - chief executive of the National Residential Landlords Association - says more comprehensive tax help should be given to landlords.

He comments: “Tenants who want to become homeowners should be supported to do so. Whilst incentivising landlords to sell to existing tenants has the potential to help, it will not reverse the damage to the rental market caused by tax hikes under recent Conservative governments. 

“As the Institute for Fiscal Studies has warned, changes to mortgage interest relief and the level of stamp duty paid by landlords have led to higher rents and stifled the supply of homes across the private rental market. This comes at a time when the number of tenants enquiring about every available rental property has more than doubled compared with before the pandemic.” 

Responding to the Conservative Party’s pledge to end section 21, Beadle adds: “Reform of the rental market should have taken place in the last Parliament. As we said then, a balance between security for tenants and policies which retain the confidence of responsible landlords is crucial if we are to deliver much-needed homes for rent.

“That balance can only be achieved by fixing a broken justice system so that tenants and landlords can enforce their rights when section 21 ends in a timely and effective way.  As the Law Society has warned, reform risks being ‘in vain’ without investment in legal aid support and the courts.”

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  • George Dawes

    They really don’t live in the real world do they ?

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    Like said previous- G E whatever is said it will never be enough! And you You said it George - As they don’t live in this world !

     
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    Well Mr Dan Wilson Craw deputy CEO of generation rent & Mr Ben Beadle CEO of NRLA why did you make 23’000 people homeless between April & December last year by the Renters Reform Bill and Removal of Section 21, that was the reason why did you leave out that bit.
    SHAME ON YOU.
    Just add the other Collusion expert now standing down having done his dirty work living in grace and favour..
    Shall I mention the Council’s Licensing Schemes and the dozens of unfair terms & conditions attached its certainly an all out effort to make as many homeless as possible.

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    Give tenants a discount? For what? All the skin in the game was invested by the property owner, not the tenant. I would rather evict them and sell to others than be forced to give a tenant a discount for doing nothing more than being a tenant.

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    Dan is all about 'Forcing' LLs to do his will! He must live in a parallel universe where the have nots have all the power!

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    Which is sadly increasingly becoming our universe.

     
  • John  Adams

    Great idea, looking forward to them paying their share of all the maintenance and refurbishment costs....

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    They could roll their sleeves up and get on with the maintence and refurbishment them selves, but that would mean WORK that rude 4 letter word to most of them

     
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    😂😂 a new day, a new crackpot idea. They never fail to bring a smile to my cheeks.

  • Rob NorthWest-Landlord

    I love the way every house sale leads to homelessness. Left empty then? What if they sell to a renter from another property? Oh the possibilities!
    I'm waiting for the proposal that all landlords must sell to the homeless, and that only the homeless can bid for the property.

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    Selling to the Tenant don’t reduce homelessness or increase supply.
    The idea is to get them off Benefits but too cowardly to say so.
    So if government wants us out that badly its easy to do scrap capital gains tax, we are paying taxes from the beginning and every year since and isn’t Inheritance waiting @ 40% what do you want blood.

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    Oh hilarious. We should sell BMV and give them a lump sum from the saving on CGT?? When you take into account inflation there will be plenty of properties that haven't actually increased in value much (depending when purchased) so the landlord would actually be making a loss. In some areas property prices in real terms have only just exceeded the peak in 2007.

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    Nobody needs to force anybody to do anything, it’s simple maths. If the tenant hasn’t got enough deposit to buy, the landlord will consider whether it is worth helping the tenant from the benefit of selling to him/her. No doubt there will be numerous caveats like you must have owned the house for 2 years, the tenant needs to have been in the house 2 years, etc. You are only going to get one shot at it, you only have one tenant, so if it saves you £50k in tax, you might think it’s in your interest to chuck the tenant £10-20k. But no-one needs to force anyone to do anything!

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    'The devil is in the detail' Duncan as you have already pointed out.
    I doubt that if this were to be implemented, there would be so many terms and conditions to be met, it wouldn't be worth the paper that it was written on.

     
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    I get a discount from B & Q, should I share that with them too? 😠

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    GR are ridiculous ranters!

  • jeremy clarke

    Tell you what Dan Wilson Craw, before you try this with landlords, how about you contact Tesco and Sainsburys see if you can negotiate a discount for tenants there first?
    The only truth in any of his illiterate ramblings is teh observation that most are tenants because they cannot afford to buy! yup, that's why tenants exist generally!

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    This is where free school dinners, no personal responsibility and rampant benefits naturally get you. The sense of entitlement is off the scale.

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    • A S
    • 12 June 2024 13:36 PM

    It started with the "everyone's a winner" mentality at school sports days. You won't find that mentality in Singapore, China etc. People need to know that there are rewards for winners and being a winner takes hard work.

     
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    • A S
    • 12 June 2024 13:34 PM

    A lot of huffing and puffing that will impact hardly anyone. And won't ever become policy as the Tories have no chance. What a waste of energy all round!

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    So I borrow the money, buy a house, refurbish it, let it to Tenants then even though it's me that has done all the hard work I have to sell it to the Tenants in order to avoid CGT? It would be easier to move into the property myself for 6 months and sell it as my main residence.

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    Good point!

     
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    Care in the community springs to mind

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    So when you have the house let to a group of 7 joint & several Contract which one will be entitled ? Is it all joint & several or one.

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    So tories say they will steal less money from landlords, but insist they can only sell to tenants or councils not the open market ,so the house will have to be sold at a fraction of its market value , the same as regulated tenancies when I was buying houses with sitting tenants at one fifth to one eighth of their open market price on that basis landlords will be selling at a capital loss not a capital gain so we should pay tenants for the privilege of being defrauded yet again

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