Landlord email to Scottish MP

That is an excellent email. It covers all the ground, showing how the tax changes will be bad for tenants, bad for the housing stock, bad for those who will be made homeless, and as a result of all three, bad for the economy. They will not make it easier for FTB’s to qualify for mortgages. The tax changes are good for nothing, like their author Osborne.

I have not been a landlord very long and am only just refurbishing my second property at a cost of £50,000 to £60,000. This is a three storey end of terrace house, which had been on the market for many months. One offer had been made below the asking price, but that was eventually withdrawn when they really investigated what needed to be done. No first time buyers had shown any interest an I doubt whether they could have financed it anyway. Being new to the profession I have quickly come to realise that the impression Government Ministers and their advisers have of Landlords is that of unscrupulous, grasping, Scrooges who take advantage of tenants by charging high rents for poor quality accommodation. They appear to think the odds are stacked in the landlord's favour and attempt to equalise the balance by imposing extra or higher tax burdens upon us.
In fact, whilst there is a small number of rogue landlords, it seems to me that most of us are trying to provide clean, comfortable, well maintained accommodation at reasonable rents. Little account appears to be taken of rogue tenants, who probably outnumber rogue landlords anyway. Whilst I had intended to purchase and renovate other properties for rent in the future, George Osborne's 3% stamp duty and the future changes to the tax regime, are making me have second thoughts. George Osborne was prone to "shoot from the hip" in terms of his policy making (which is why he did so many "U" turns) and I am hoping that the new regime will think things through a little more carefully and not let their own tax-grabbing greed guide their policies in respect of the rental market.
However, a change in attitude can only be brought about by letters like the one from our Scottish colleague being sent to MPs. There is a need for a comprehensive case to be made to government ministers outlining why they should be supporting good landlords not trying to cripple them. This includes issues far wider than tax and finance, it includes the onerous eviction processes and red tape generally. As I said I am new to the Landlord profession and have much to learn if I am to stay in it, and it may be that a comprehensive case has been made out in the past and if that is the case is there a need to update it to take account of more recent tax and legislative changes. I do not intend to teach "granny to suck eggs" here and apologise if my comments come across in that way
Cyril Moseley

send a copy to robb at shelter? rub his nose in it

Reply to the comment left by "terry sullivan" at "12/08/2016 - 12:23":

Hi Terry, I will happily send my response to Shelter, but it may carry more weight if it was sent by someone else as an example of the way the government's (and to some extent shelter's) attitude could lead to a dearth of rental properties and create more homeless people. I would be quite happy for someone else to use it in this way and identify me in the process.

Cyril

I'm afraid I don't share the optimism shown by other commentators to the potential for this post to influence government thinking. Most Scottish MPs are SNP, which is unremittingly hostile to the PRS. Remember, the Scottish Government very quickly replicated Osborne's 3℅ tax surcharge and recently consulted on changes to letting law that includes removal of 'no fault' repossession and paves the way for rent controls.

As a fellow Fife landlord I will be interested to be updated with the outcome of the meeting with the MP - if it even happens. If my experience of SNP MSPs is anything to go by I suspect the MP's reaction will less one of intellectual persuasion or rebuttal and more one of smug satisfaction that a private landlord has been well and truly kicked in the financial goolies.

It's not all bad North of the border Andrew.

You guys can avoid the 3% LBTT levy if you decide to incorporate a rental business with six or more properties.

In England and Wales the 3% SDLT surcharge is payable on all transactions.

Also, whilst far from perfect, I do actually rather like your new rental contracts in Scotland. They will pretty much kill off the the market for accidental landlords and leave only professionals in the market. I just hope, for your sake, they improve the eviction processes for when you need to evict bad tenants.

David Main makes a good point about SNP MPs - they're far more likely to be rubbing their hands with glee than be sympathetic to our situation (poor misguided fools though this makes them!).

The thing is this though. If we DON'T all keep writing and bringing this to their attention, over and over again, they definitely won't ever see it as an issue of importance. Also, I once wrote to Mullin myself, proudly and clearly explaining from the off that I am 400 miles from his constituency and a Tory, so I wasn't particularly hopeful of any support, but in fact I quickly got back a response that was far more reasoned and sympathetic than I was expecting.

The simple fact is that not trying in the first place is the biggest sin, but we also don't know which of our contacts will be the straw that breaks the camel's back in terms of changing their mind(s). Keep writing.

I too have wrote to my MSP over the last few weeks outlining the above points. However I more than likely will sell some of my properties. Mine are all rented to working families who are not able or looking to buy at present or eligible for a housing association property. I am based in Dumfries and Galloway. My MSP has passed my letter to the Secretary of State for Scotland as he too is interested in his response. I am currently awaiting a reply. Like the above I also use local tradesmen far more than the average homeowner, due to the current spec now required for letting being so high. Also my husband and I invested in this business to provide a pension for ourselves as due to being with private employers have no pension provision. We now would have been better enjoying the money and asking the state to look after us in our old age.