Reform UK says it will abolish section 24 for landlords

Reform UK says it will abolish section 24 for landlords

14:06 PM, 17th June 2024, About 5 months ago 74

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Among the promises being made by Reform UK to boost the UK’s private rented sector (PRS) is a pledge to abolish section 24 in its first 100 days in office.

Section 24 was introduced in the Finance Act 2015 by the then Chancellor George Osbourne which removed a landlord’s ability to offset all of their mortgage interest, from rental income before they calculated the tax liability and allow a 20% basic rate deduction.

In its ‘Our Contract With You’, Reform says it will ‘scrap the 2015 tax changes for landlords’.

Reform adds that the tax system should encourage smaller landlords into the rental markets – not penalise them.

It adds: “We will restore landlords’ rights to deduct finance costs and mortgage interest from tax on rental income.”

The Contract also pledges to abolish the Renters (Reform) Bill – which Labour and the Conservatives have said they will revisit after the election.

Unveiled the party’s election pledges

The party’s leader Nigel Farage unveiled the party’s election pledges in Merthyr Tydfil, south Wales.

Among other housing issues raised by Mr Farage is that rents are up by 25% since 2021.

He said: “Is it any wonder with an exploding population rents are going up?”

Mr Farage also said: “I’m absolutely in no doubt that we are in decline culturally, we’ve begun to forget who we are.

“We are a party that know what we believe.”

He also says that rising immigration is the ‘dominant issue’ in the election – and the country needs to ‘build a new dwelling every two minutes just to deal with the current levels of migration’.

Reform social housing law

Reform will also reform social housing law to prioritise ‘local people and those who have paid into the system’.

It says that in parts of the UK, ‘almost half of all social housing is occupied by someone born overseas. Foreign nationals must go to the back of the queue. Not the front’.

Reform is also planning to ‘fast track planning and tax incentives for the development of brownfield sites, including unused offices and vacant high street properties’.

Mr Farage says that Reform will ‘restore trust in politics’ and adds: “You might dislike what we say, you might not even want to vote for what we say, but at least we do say what we mean.”

Five core pledges from Reform

Reform has five core pledges, including freezing ‘all non-essential immigration’ to help ‘boost wages, protect public services, end the housing crisis and cut crime’.

The party says it will also ‘stop the boats’ in its first 100 days, with a plan to leave the European Convention on Human Rights (ECHR).

The tax cuts promised by Reform include:

  • Raising the minimum threshold of income tax to £20,000 a year
  • Abolishing stamp duty
  • Abolishing inheritance tax for all estates under £2m
  • Cut £50billion off public spending
  • Leave the European Court of Human Rights
  • Incentivise the use of new construction technology
  • More new apprenticeships and vocational courses will increase the supply of skilled, well-paid workers to replace cheap overseas labour.

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Liam

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15:04 PM, 17th June 2024, About 5 months ago

Reply to the comment left by northern landlord at 17/06/2024 - 14:56
I agree, but on the other hand you could argue that UKIPs vote share paved the way for the referendum. Did UKIP ever get any seats in the commons? Can't remember without looking it up. Though their popularity certainly could be argument for the conservatives EU referendum - Cameron was a remainer after all!

That's what I said in a previous post, even if Reform don't get a single seat their policies will be too big to ignore by the main 2 if they have a large vote share.

On another note, every time I see a post slating Reform on Facebook or some news website about their party the comments are full of people in favour of them (Reform). Some comments I've seen favouring them have 1000s of likes and upvotes more often than not.

Liam

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15:16 PM, 17th June 2024, About 5 months ago

Reply to the comment left by Stella at 17/06/2024 - 14:36
I hear you... The recent pledge from the Tory's about capital gains tax reduction if you sell to a tenant made me think - but it's too little, too late. They can't be trusted. They are red dressed in blue.

Of course I can't comment on your circumstances and some landlords will need and want to sell but capital gains tax only gets you if you are selling. Raising a mortgage to release funds is tax free! Of course it depends on your situation because of section 24 etc weather that's worthwhile or not and of course if you're able to or if it's a viable proposition.

Martin Fitzgerald

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15:19 PM, 17th June 2024, About 5 months ago

We must all Help Reform to make a difference
If Labour get in Landlords will pay a massive price .
Where will our tenants move to as we reduce our Portfolios ?
The best pragmatic solution is for Reform and the Conservatives to forces and win the election.
Landlords MUST vote against Labour , they are Anti Landlord !!!!!
If Labour gain power , Landlords will soon feel the pain .
Then , where will our decent Tenants live ?Labour will not be able to build enough houses , and they will have pushed the Landlords to exit the market .
Look at the Housing Emergency in Scotland .

Downsize Government

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15:23 PM, 17th June 2024, About 5 months ago

Reply to the comment left by Stella at 17/06/2024 - 14:36
Stella make sure your conservative has not voted against landlords in the past or you will achieve nothing.

Downsize Government

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15:25 PM, 17th June 2024, About 5 months ago

Reply to the comment left by northern landlord at 17/06/2024 - 14:56
Well then, we are stuck with 2 awful parties forever dragging country down the gurgler together.

Stella

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15:46 PM, 17th June 2024, About 5 months ago

Reply to the comment left by TheBiggerPicture at 17/06/2024 - 15:23I had lacklustre Chris Grayling as my MP but he is now retiring
The new Conservative MP will be Mhairi Fraser.
She does not have a track record so no voting history but is supposed to be to the right of the party.

Cider Drinker

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16:11 PM, 17th June 2024, About 5 months ago

We are going to have a Labour government as those with short memories register their protest votes.

The best that we can hope for is a strong opposition.

It has to be Reform.

Purnima Obhrai

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16:11 PM, 17th June 2024, About 5 months ago

Dream on that Reform is your answer , they’re just spouting eye catching slogans which sadly some people will believe . I’m a landlord and don’t believe a single word Farage and his cronies spout . They can say this stuff only cos they know they could never deliver it without guess who - will have to pay for it somehow . Not saying Labour is the knight in shining armour but they get my vote !

graham mcauley

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16:18 PM, 17th June 2024, About 5 months ago

Reply to the comment left by Purnima Obhrai at 17/06/2024 - 16:11
Angela Rayner as number two to run this country, as well as Starmer, do you need any other reason not to vote for labour.

When anyone says reform have some good ideas, but how are they going to pay for it?
have not bothered to look at the Reform website, where it tells you exactly how they will do it

Cider Drinker

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16:19 PM, 17th June 2024, About 5 months ago

Reply to the comment left by Purnima Obhrai at 17/06/2024 - 16:11
I guess you don’t remember the previous Labour governments.

Liam Byrne’s famous note read ‘Sorry there is no money’.

My landlord -related concerns will be trivial when compared to the disaster that Labour will bestow on our once great country.

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