Landlords will bear the brunt of Labour’s Budget

Landlords will bear the brunt of Labour’s Budget

0:05 AM, 8th November 2024, About 2 hours ago

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Landlords are facing the prospect of picking up the bill for Chancellor Rachel Reeves’ recent Budget, says Nick Lyons.

The chief executive of property inventory firm NoLettingGo says the increased tax burden on businesses, including letting agents, will inevitably lead to higher costs being passed on to tenants.

He says: “The additional cost to employers will result either in decreased profits, lower pay settlements for staff or both.

“For letting agencies and the enormous number of small suppliers that all agents depend on, this will have a massive effect.”

Pass costs to landlords

The 6.7% increase in the National Living Wage will also have an effect, he adds, forcing businesses to either absorb the costs or pass them on to landlords.

He said: “These additional costs will either have to absorbed or passed on to the landlords, who, in turn, will have no choice but to pass them on to tenants who will face yet further rises in rents.”

Landlords also face increased Stamp Duty Land Tax on second homes and buy to let properties, which could lead to fewer people investing in the sector.

Mr Lyons said: “This was a further blow to investors; many of whom may think twice about any plans they had to expand their portfolios.”

Private rented sector has been overlooked

While the Chancellor has made efforts to support other areas of the housing market, such as Build to Rent and social housing, the private rented sector has been largely overlooked.

He explains: “The truth is that the country relies on a thriving PRS – at 4.6million homes, it accounts for 19% of the residential properties in England and around £1.5 trillion worth of stock.

“If investors continue to leave the sector because of the weight of opposition they feel, where are those millions going to live?”

He also pointed out that the increased regulation and abolition of Section 21 evictions in the Renters’ Rights Bill, plus new EPC standards, is a ‘blow to investors’.

He added: “Many of whom may think twice about any plans they had to expand their portfolios.”


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