The National Landlords Association has warned George Osborne off removing a tax ‘perk’ for private landlords.
It says that costs in the private rented sector could rise by up to £2.6bn if buy-to let mortgage interest payments are made non tax-deductible.
In a letter to the Chancellor ahead of today’s emergency Budget, the NLA’s chief executive officer Richard Lambert says that making mortgage interest payments non tax-deductible would only put greater pressure on the cost of housing.
Lambert said: “It has been suggested that private landlords receive too many ‘perks’ or reliefs which give them an unfair advantage compared to owner-occupiers, but this ignores the fact that letting residential property for profit is a business.
“No business pays tax on their gross turnover alone so why should landlords be treated any differently?”
He said that landlords would have no other option than to raise rents.
Lambert concluded the letter by asking for “an unequivocal reassurance that the Government will continue to regard buy-to-let mortgage interest payments as a legitimate business cost, and give landlords the confidence and certainty to invest for the future”.
TAX TAX TAX and more TAX.
There seems to be a a falsehood that tenants can keep having their rent rising due to TAX and increased costs faced in providing accomodation. Look at a landords costs:
1. interest on capital
2. Annual gas safety certificate say £100 pa
3. Electrical safety say £100 pa
4. Property license fee (Croydon) £150 pa
5 Letting fee say £200 pa
6 Management say £1,000 pa
7 Buildings insurance
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Whoops!!!
7 Buildings Insurance £500 pa
8 Legionnaire risk assessment £100
9. health and safety assessment £100 pa
10 interest on capital @ say 3% £7500
11 Fire risk assessment £100
12 Decorations £1500 pa
13 Boiler replacement fund £300 pa (£3000 every 10 years)
14 Inventory charges say £200pa
General repairs £1000 pa
This totals up at around £12,850 per annum
this equate to over £1,000 per month in routine running costs. There is no allowance for updating property such as installing fire alarm system, improving insulation, up grading bathrooms and kitchens to keep modern standards OR reward for the Landlord’s time, effort etc. There is arguably capital growth but that can be a loss if you buy at the wrong time Like 1986 or in the wrong location.
It is about time those advocating rent control, more legislation removed their heads from the sand and actually gave some thought to what they say and do. These figures show why tenants rent. It is not rent control it is paying market salaries and NOT OVER TAXING everyone, particularly those on low incomes.
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“No business pays tax on their gross turnover alone so why should landlords be treated any differently?”
“…… ignores the fact that letting residential property for profit is a business”.
Also helps them with housing!!!!!
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