RLA call for Section 24 rethink after Stamp Duty windfall

RLA call for Section 24 rethink after Stamp Duty windfall

15:40 PM, 1st February 2017, About 8 years ago 25

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A few weeks ago I wasn’t at all happy with the RLA (“Residential Landlords Association”) and I published a rather damning article entitled Are the RLA losing the plot?”

Well, by my reckoning, they have now redeemed themselves with a Call for tax rethink after stamp duty windfall

Are the RLA losing the plotIn an article yesterday on the back of the figures published showing a £1.19 billion Stamp Duty surcharge windfall for the Treasury up to the end of last year the RLA have called for a Landlord Tax rethink.

“The RLA is now calling on the Government to use this extra revenue from the stamp duty changes to scrap planned reforms to mortgage interest relief, which will, in turn, prevent landlords selling up or having to increase rents.”

One RLA survey has found that 58% of landlords are considering reducing investment in their rental properties because of the changes. And 66% feel the tax changes will place upwards pressure on market rents.

At the very least, the RLA believes the Government should pause the start of the introduction, from April, of the mortgage interest changes to enable a better assessment to be undertaken of the likely impact of the policy.

RLA Policy Director, David Smith, said: “In raising nearly twice as much in just nine months as the tax was predicted to make in one year this stamp duty windfall gives the Government a chance to back the rental market and support the development of new homes which we desperately need.

“At no stage has evidence been published to support the assertion that landlords are taxed more favourably than homeowners, or that they are squeezing first time buyers out of the market.

“Assessments by the Institute for Fiscal Studies and the London Schools of Economics contradict the Treasury’s position completely.

“It is also nonsense for HMRC to suggest that one in five landlords will be affected by the mortgage interest changes, when what matters is the number of properties affected.

“The Government has received far more money than it  expected. We urge them to use this to support the country’s tenants and undertake a fuller impact assessment of a policy that has the potential to cause untold damage to the rental market.”


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Old Mrs Landlord

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8:48 AM, 5th February 2017, About 8 years ago

Reply to the comment left by "Gary Dully" at "05/02/2017 - 07:46":

I find this anecdotal evidence that the government's avowed aim of increasing home ownership is to some extent being achieved most interesting. Five indivuals have been made homeless to enable one (family, presumably) to purchase your HMO. In this respect the prime minister's aim of helping the 'JAMs' seems to be serving the 'haves' rather better than the 'have nots'. Those at the bottom of the pile have little hope of ever bettering themselves. (Don't interpret this as meaning I am in favour of the lazy and feckless being handed everything on a plate at the expense of those of us who work hard and pay our taxes, only to have the fruits of our labours snatched away from us by unfair retroactive tax adjustments)

Kenny Ingham

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9:05 AM, 5th February 2017, About 8 years ago

Would it be an idea to ask members the number of properties they own which are mortgaged and get accurate figures per portfolio reflecting actual reality which might be scoped up to be a true reflection among property owning Landlords?

H B

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12:06 PM, 5th February 2017, About 8 years ago

Reply to the comment left by "Old Mrs Landlord" at "05/02/2017 - 08:48":

This also got be thinking about all the money builders are going to make converting perfectly good HMOs back to their original condition over the next few years.

CazT

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12:11 PM, 5th February 2017, About 8 years ago

Obfuscated Data

CazT

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12:13 PM, 5th February 2017, About 8 years ago

Obfuscated Data

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