NRLA wants Holiday Lets to be hammered the same way as BTL?

9:02 AM, 5th February 2021, About 4 years ago 55

Text Size

NRLA Clarification:

“Calling for long term-rental property to be taxed more favourably than short-term holiday lets is clearly not the same as saying they should be taxed the same. After all how could you favour one over the other if they were taxed the same?”

“A clear example is the proposal the NRLA put out in its press release- whilst the stamp duty levy would apply to the provision of new homes to rent adding to the overall supply of housing, it would continue to apply to those investing in new holiday lets. The NRLA also believes that the Chancellor should look at the way the sector is taxed in the round to ensure it has an advantage over short term holiday lets given the pressing need for long term rental properties. As Ben notes in his quote it is the impact of tax policies as a whole that are causing such supply problems. “

The NRLA press release says it: “Wants to ensure the tax system encourages the provision of longer-term rental property over short-term holiday lets. From April this year, the final phase of reducing mortgage interest relief for landlords to the basic rate of income tax will be completed. This measure does not apply though to furnished holiday lets. This has encouraged the removal of properties from the long-term market for use as short-term holiday lets.”

Ben Beadle, Chief Executive of the National Residential Landlords Association comments:

“To be taxing long term homes to rent less favourably than holiday lets is simply bizarre. It completely undermines efforts by the Government to encourage the provision of long term, secure housing.

“It is time for the Government to realise that its tax policies have created a shortage of rented housing. This can only mean higher rents and reduced choice for renters. This is not going to do much for the levelling up agenda.”

The National Residential Landlords Association is also calling on the Chancellor to scrap the 3% stamp duty levy on the purchase of homes to rent where landlords invest in properties that add to the net supply of housing. This would include developing new housing, converting large properties into affordable units, changing the use of a property from commercial to residential or bringing one of the almost 650,000 empty homes in England back into use.

This comes as the Royal Institution of Chartered Surveyors has concluded that rents will rise because of demand for properties increasing, whilst new instructions from landlords continue to “dwindle.”

Property website, Rightmove revealed that outside London asking rents increased in the fourth quarter for 2020 for the first time since 2011, leading to a record average of £972 a month. It warns that in the suburbs, towns and villages, available housing is lower than normal for this time of year, whilst demand is higher.

Ben Beadle said:

“To have a tax on developing new housing is completely nonsensical at a time when more is needed. Supporting growth in the private rental market, alongside all other housing types, would provide a significant boost to the economy in the midst of the COVID-19 pandemic. Research published last year suggests that landlords inject over £3.5 billion into local businesses across the UK.”

Share This Article

Comments

moneymanager

17:38 PM, 5th February 2021, About 4 years ago

Reply to the comment left by john glynn at 05/02/2021 - 09:43
With no actual rationale I was distinctly underwhelmed the moment I heard his name, expectations fulfilled.

Report Comment Reply

john glynn

17:41 PM, 5th February 2021, About 4 years ago

Reply to the comment left by Freda Blogs at 05/02/2021 - 17:04You are completely missing the point. The NRLA should be questioning the legality of Section 24. BTL is a business whether held in a company structure or not and this should be their line of attack. Highlighting the tax status of FHLs will do nothing if not embolden HMRC to levy punitive taxes on those too. Running any property business these days is hard enough without comments like yours adding fuel to the fire.

Report Comment Reply

moneymanager

17:46 PM, 5th February 2021, About 4 years ago

Reply to the comment left by at 05/02/2021 - 12:06
"The main problem as has been mentioned many times before is that investing in a BTL property is regarded by HMRC just as that, an investment and not a business. That is why they 'got away with' introducing S24 as a BTL is not regarded as a business (unless it is part of a company set up)".

Oddly enough it is PRECISELY that business treatment of an incorporated property activity that should, on the basis of government's desire for tax neutrality between structures, mean of neccessity that unincorporated are also businesses.

Report Comment Reply

Freda Blogs

17:53 PM, 5th February 2021, About 4 years ago

Reply to the comment left by john glynn at 05/02/2021 - 17:41@John Glynn
I actually agree with much of what you say - and it is not so different from what NRLA and I are saying.
Hence I am not missing the point at all - however, in my view you are disrespectful to suggest that I am (as well as inaccurate in what you say) just because I have offered an alternative viewpoint to the majority - but not all - posters on this topic.

Report Comment Reply

john glynn

18:16 PM, 5th February 2021, About 4 years ago

Reply to the comment left by Freda Blogs at 05/02/2021 - 17:53
Freda, if what I said is inaccurate why do you agree with much of what I wrote???? And why is it disrespectful to challenge your viewpoint???? You are making as much sense as your original post.

Report Comment Reply

Mark Shine

0:54 AM, 6th February 2021, About 4 years ago

Re Mark A’s (and other landlords) grievances... I accept ur points, but do wonder (or rather hope) that NRLA were playing devils advocate by trying to embarrass the govt in to logically treating landlords (whether “inc”, non “inc” or FHL etc etc) more similarly?) Realise many here fear treated “equally” may simply mean a fiscal race to the bottom, but but but... if govt is encouraged to treat LLs more “equally”, surely fairness for all is poss more likely to result for all LLs? Together (whether “inc”, non “inc” and FHL LLs) could be a more unified effective voice for lobbying / govt education purposes?

Report Comment Reply

LANDLORD 35

9:29 AM, 6th February 2021, About 4 years ago

Airbnb and holiday lets are about to get "hammered" in Scotland.
Following the introduction of the lifetime tenancy in Scotland many landlords moved to Airbnb and holiday lets resulting in a considerable loss of long term accommodation. The Scottish
government is introducing licensing and controls on Airbnb
and holiday lets in April this year.

Report Comment Reply

Carol

9:36 AM, 6th February 2021, About 4 years ago

It's obvious that the government want to kill the rental market but where are people going to live? Not all can afford to buy, have the credit rating to buy or even want to buy.

Report Comment Reply

TrevL

12:07 PM, 6th February 2021, About 4 years ago

Think it makes a lot of sense, to have houses that are empty for 35-40 weeks of the year, while there is a housing crisis is rediculous.

The greater tax raised from these properties might protect us hard working landlords, who provide permanent housing for people, from even more draconian government measures on the PRS.

Report Comment Reply

terry sullivan

12:24 PM, 6th February 2021, About 4 years ago

Reply to the comment left by LANDLORD 35 at 06/02/2021 - 09:29
there is no scottish govt--its just an assembly

Report Comment Reply

Previous 1 2 3 4 5 6 Next

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

Continue with Facebook

Continue with Twitter

Username/Email Address

Password

Remember Me

Forgotten your password?

Don't have an account? Sign Up

“Account”	means an account required to access and/or use certain areas and features of Our Site;
“Cookie”	means a small text file placed on your computer or device by Our Site when you visit certain parts of Our Site and/or when you use certain features of Our Site. Details of the Cookies used by Our Site are set out in section 13, below;
“Cookie Law”	means the relevant parts of the Privacy and Electronic Communications (EC Directive) Regulations 2003;
“personal data”	means any and all data that relates to an identifiable person who can be directly or indirectly identified from that data. In this case, it means personal data that you give to Us via Our Site. This definition shall, where applicable, incorporate the definitions provided in the EU Regulation 2016/679 – the General Data Protection Regulation (“GDPR”); and
“We/Us/Our”	Means Property118 Ltd , a limited company registered in England under company number 10295964, whose registered address is 1st Floor, Woburn House, 84 St Benedicts Street, Norwich, NR2 4AB.

Name of Cookie	Purpose	Strictly Necessary
JSESSIONID	Used only to collect performance data, with any identifiable data obfuscated	No
__cfduid	This cookie is strictly necessary for Cloudflare's security features and cannot be turned off.	Yes

Name of Cookie	First / Third Party	Provider	Purpose
__utma, __utmb, __utmc, __utmt, __utmz	First	Google	Helps to understand how their visitors engage with our website
_fbp	First	Facebook	Helps to understand how their visitors engage with our website