Last Updated: 13/01/2017
Tags: Private Landlords Should Be Supported And Recognised For Their Contributions
Tax relief on mortgage rates is due to be phased out over a three year period from this April and although the changes are a major concern to many landlords, a recent poll by Landlord Voice revealed that half of the landlords survey owned their rental properties so would not be affected by the oncoming changes.
However for those landlords who do have buy-to-let mortgages there is still some hope that the Government might do a U-turn before April and not introduce the new changes. Landlords would also like to see some other aspects changed, like an end to the 3% the levy on stamp duty payable on investment homes according to the poll. They would also like to see a reduction on capital gains when they sell a property.
‘We strongly urge Chancellor Philip Hammond to listen to landlords’ concerns. Landlords should be supported and recognised for their contributions in providing affordable housing, rather than burdened with unfair tax measures that will see them having to take considerable cuts to their income and being forced to pass some of this to their tenants,’ said Jenny Mayes from Simple Landlords Insurance.*
Although the private landlord has been accused of inadvertently pushing up property prices in the UK, it’s important to remember that they still play a very important role in supplying homes to people who cannot get onto the housing ladder. The chronic shortage of social housing has meant that people will have to rely on the private landlord to provide them with somewhere to live. In reaction to the problem the Government has pledged an investment of £1.2 million pounds into the Starter Homes Land fund aimed at first time buyers between the ages of 23-40, however Government schemes in the past aimed have had very little impact on the housing shortage in the UK.
In a recent article in Property Wire, they stated that half of tenants in the UK’s private sector cannot afford to buy, saying that first time buyers living in London can’t even afford starter homes. A survey completed by an investment firm based in Manchester found that 52% living in rental property said that they couldn’t afford to buy and 25% of people didn’t meet the mortgage criteria.