Telegraph needs landlord feedback on Renters Reform Bill please – Article Written

Hi Melissa, I do hope this is not a one off article - from the response both here and online there are clearly many issues stacking up against private landlords which will also adversely affect tenants and which need to be challenged.
I messaged the NRLA Policy section (see below) this morning asking why we aren't hearing anything about the combined impact of rate rises and Section 24 with a simple example based on £1,000,000 of BTL mortgages ( I know the maths isn't exact):
'Has anyone noticed or thought about the impact of interest rate rises combined with section 24 of the Finance Bill 2015? While interest rates were low this was manageable - as an example most of ours are 1.75% over base - so with a base rate of 0.1% we were paying 1.76%. On 1 million pounds worth of BTL interest only mortgages that is £17,600 per year of which we are allowed to claim 20% relief - i.e. £3,520.00. This means we are taxed on £14,080.00 that we have paid to mortgage companies i.e. we are taxed on £14,080.00 we do not have. Our interest rate from July 1st this year will be 3% which means we will be paying £30,000.00 in interest of which we may claim relief of 20% - i.e. £6000.00. However, we will now be taxed on £24,000.00 that we do not have. WHY IS THIS NOT A MAJOR HEADLINE?! We disposed of 4 residential units in the past financial year and will do the same this year. Rental property is scarce and rents have increased considerably due to the effects of this change to tax laws. I do not understand why there seems to be silence on this issue'.
We had around 40 BTL units mainly let to people on benefits and or those recovering from substance issues, mental health issues and those escaping domestic violence. Most have been with us for years and rents have been kept low. This has changed in the past year and will continue to do so.
Please ask the Treasury why someone who has been doing this for 20+ years as a sole trader can no longer claim mortgage tax relief, but someone with no experience can buy a property through a company and be able to claim full tax relief immediately. All this put in place by a multi-millionaire Chancellor who walked away to a swathe of global positions.
Kind regards

Reply to the comment left by Richard of York at 29/06/2022 - 15:09
I agree with this entirely. It looks as though the change that was brought about to stop us deducting our finance costs was brought in to penalise one group of voters; it didn't affect companies at all. And whilst you are at it why are we being penalised by the forthcoming EPC changes without being able to deduct all the capex costs against rents?

Reply to the comment left by Beaver at 30/06/2022 - 08:57
Agreed - but why are we even discussing the EPC 'C' stuff anyway, when the EPC algorhythm is not yet aligned to the objectives of the policy, as it is supportive of gas boilers which the govt wants to get rid of? Melissa, there’s plenty of fodder for this topic in other threads on 118, from people far more knowledgeable than I.
How many landlords in their right minds are going to throw £000s at a property with no confidence of achieving the required EPC after the expenditure (evidence on this site where EPCs have even got worse), all to save the tenants 50p a year on utility bills? Hardly a good investment proposition. That’s assuming you can get tenants out to do the very intrusive works of course – oh sorry, I forgot, you can’t.
This government is completely shambolic, espousing numerous ill-conceived nonsense policies with legions of unintended consequences and zippo chance of successful implementation.
I haven’t subscribed to the many anti Landlord conspiracy theories flying about, but you do have to ask yourself what is really going on, or is it that the government is just that dumb?
Just another reason to sell up and get out of the PRS.

I’m so happy. Enough is enough, I’m getting out of the sector completely. I have a planned strategy in place for the disposal of each property.
One by one they will go.
I’ve served dozens of tenants witnessed (not personally) babies being born, deaths of spouses and partners, job losses, police incidents, fights, damage to property.
I’ve replaced kitchens bathrooms shower rooms roof tiles soffits and fascia’s boilers fencing radiators guttering front doors back doors and double glazing.
I’ve spent a small fortune on cookers freezers washing machines dishwashers.
I have employed electricians, gardeners, plumbers, roofers, plasterers, painters, carpenters, Handy men (persons), carpet fitters, cleaners, estate agents, solicitors, surveyors, architects, rubbish disposal companies.
I have been available 24hours a day 7 days a week for almost 17 years.
However, I will be withdrawing my services along with the support services already mentioned because my business is deemed to be not a business by the government.
George Osbourne put in place policies which ultimately will mean many people will be unable to find places to live…there will not be any. We left. Gone off. Not available.
On an empty property where the landlord is paying to the council council tax and paying service charges ground rent insurance utilities standing charges and the monthly payment for a mortgage he/she will be taxed at my current rate at 40% over and above the mortgage company monthly payment.
Each 1% increase by the Bank of England could mean a 25% increase in the payment amount of which you will be taxed even more!
All with zero cash flow! Go figure.
A desolate landscape is what I predict with huge I mean huge increases in rent. Incoming tenants will have to agree to forfeit their soul and that of their offspring in order to secure a property.
No sensible landlord could possibly take a risk and why would they?
Every working individual will struggle to meet the new criteria.
There will be no support from local councils they will swamped with requests.
A couple of nails in the coffin ⚰️ just to completely make sure the sector is irritatingly crushed. EPC requirements of C or above and the abolition of section 21. That should nicely convince most landlords they are completely wasting they’re time trying to do something for the community.
A few people reading this might say yeh but limited companies, trusts, blah blah blah it’s simply a herding process for future legislation you have not even dreamed of. Limited companies pay even more interest than individuals? And trusts have their own complications with taxes to pay further down the line.
Once mine are all sold and 20-30 families that have been with me mostly for over a decade are homeless I’m confident some will say those landlords are a nasty piece of work.
I’ll be looking for new opportunities elsewhere.

I absolutely agree. I am also selling up. My first flat went on the market yesterday and the others will follow either when tenants leave or mortgage fixed terms end, when I will unfortunately have to evict my excellent tenants.

I'm very happy for you, Richard, in getting out.
The new LL s will come along and accept all of these regulations and quirks that come with the trade as they've never known anything different.
I've been getting out for a little while now but I fully appreciate how good the property renting business has been over the last forty years. Particularly of late with the historically low interest rates and ease of borrowing money.
When I entered the business it was all about capital appreciation as there was little profit from the rental income side.
But for years now we've been getting both sides of our bread buttered - jam on too.
I trust that you too have made a profit from your rentals and the capital appreciation on your properties. I wish you well in your new ventures.

Reply to the comment left by Helen at 19/07/2022 - 13:00
I think that’s a great way to do it well done. We need to form an ex- landlord forum and discuss possible future ventures for like minded people:)

Reply to the comment left by Helen at 19/07/2022 - 13:00
I think that’s a great way to do it well done. We need to form an ex- landlord forum and discuss possible future ventures for like minded people:)

Reply to the comment left by Richard Mann at 19/07/2022 - 13:47
That's a good idea Richard. I had considered becoming an EPC inspector. You can do an online course for £1500. Hopefully they will be changing the algorithms for inspections soon but knowing this government it probably won't happen for years.
However, I am somewhat busy organising my sales and close to retirement age so I won't be rushing into anything which may be as stressful as being a landlord, in a hurry!

Reply to the comment left by Neilt at 19/07/2022 - 13:28
Thank you for your warm wishes I’ll certainly be enjoying some down time and I am thankful and fortunate to have a little put to one side to look at other opportunities to keep me busy. I do hope other landlords help out my soon to be ex tenants it’s going to be a difficult time for some of the lovely families that I have gotten to know. Thanks for your comments once again!