9:13 AM, 6th November 2024, About 2 weeks ago 25
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Day by day, more landlords are waking up to the clear picture that the UK Government has no intention of allowing smaller scale private landlords to thrive—perhaps not even to survive. Rather than making a clean break, the Government has taken a ruthless, underhanded approach to dismantling the Private Rented Sector (PRS) as we know it for nearly a decade now. By piling on one costly measure after another, it has turned the rental landscape into a minefield for independent landlords, pushing them closer to financial ruin while opening the door for corporate giants to take over.
1. The Opening Shot: Section 24—A Masterstroke of Tax Warfare
When Section 24 hit, many landlords didn’t realise what it signalled. Stripping landlords of mortgage interest tax relief was more than just a policy shift—it was the opening salvo in a campaign designed to cripple small property owners. By taxing landlords on money they never actually received, Section 24 turned profitable portfolios into ticking time bombs. Corporate landlords, meanwhile, stood unscathed, sheltered by complex financial structures. It was a calculated move that foreshadowed the onslaught to come.
2. Piling On: The Stamp Duty Land Tax Surcharge
If Section 24 was the opening shot, the Stamp Duty Land Tax (SDLT) surcharge was the follow-up assault. What started as a 3% “additional property” tax has now escalated to a crippling 5% surcharge—a staggering, upfront cost that has private landlords reeling. For every additional property, the Government demands a punitive payment that makes portfolio growth nearly impossible. Yet corporate landlords escape the worst of it, buying in bulk and qualifying for non-residential SDLT rates. For private landlords, it’s a nightmare; for corporates, it’s an invitation.
3. Suffocating Layers of Regulation: Licences, EPCs, and Endless Hoops
As if tax after tax weren’t enough, the Government has tightened the regulatory noose. Selective Licensing schemes and EPC compliance requirements aren’t just costs—they’re part of a relentless effort to wear down landlords, one regulation at a time. Each new rule, each inspection, and each fee chips away at already shrinking profits, leaving private landlords struggling to stay afloat. And while small landlords scramble to keep up with the paperwork, corporate giants, with their armies of compliance officers, breeze through with ease.
4. The Final Cut: A 5% SDLT Surcharge Designed to Destroy
The Government’s message could not be more sinister: private landlords are unwelcome in the PRS. The latest 5% SDLT surcharge feels like the final stroke in a campaign of attrition. For every property, independent landlords must now pay an eye-watering upfront tax that many simply can’t afford. Corporate landlords, however, waltz around this surcharge by buying in bulk, securing properties under non-residential rates that small landlords can only dream of. It’s an iron-fisted move designed to tax private landlords into oblivion.
A Calculated Campaign to Clear Out Private Landlords
This is no accident. Piece by piece, the Government has systematically dismantled the PRS for private landlords, turning once-viable investments into financial traps. This underhanded campaign hasn’t just sidelined private landlords—it’s given corporate giants free rein to shape the rental market however they see fit. In the end, tenants pay the price with higher rents, fewer choices, and faceless corporate landlords who prioritise profits over people. It’s becoming clearer by the day that the Government’s “vision” for the PRS is a corporate-dominated market, with smaller scale private landlords wiped out entirely.
At Property118, we’ve been at the forefront of fighting against these harmful policies and advocating for a balanced, fair rental market. We believe that with the right tax reforms and sensible regulations, landlords can be encouraged to stay in the market, providing homes for tenants and ensuring rents remain affordable.
But we can’t do this without your support. If you believe in protecting the future of the UK rental market, please consider supporting Property118.
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The UK’s rental market doesn’t have to collapse, but without urgent changes, we’re heading toward a crisis. Let’s work together to stop it before it’s too late.
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Desert Rat
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Sign Up23:59 PM, 9th November 2024, About 2 weeks ago
Reply to the comment left by GlanACC at 09/11/2024 - 08:27
GlanACC, You are correct, the big corporate companies will only let to the best tenants that can afford the top rents.
I've no idea who the government think are going to house the rest of them when they push out private landlords. I certainly will not be taking them.
As you said, you can forget about social housing being built.
My houses are mostly high standard detached or semi detached houses with nice gardens and I only let to the kind of people the big corporations want.
My houses are normally snapped up on the first day of viewing, I've no need to accept people on benefits.
Over the last couple of years I've had a couple of tenants that have had problems and are struggling, but I'm trying to help them out.
They are struggling but are just about keeping up with rent payments.
Do you think that the big corporate companies would do this?
The government will continue to hit landlords as we are an easy target.
Once they push out the landlords that own the back to back terraced houses the big cities that house the benefit tenants and they have nowhere to house people, maybe they will realize their mistake.
Stella
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Sign Up0:05 AM, 10th November 2024, About 2 weeks ago
Reply to the comment left by JB at 07/11/2024 - 07:49
Rachel Reeve's CGT tax on farmers is designed to give the corporates a helping hand.
At least the farmers are not rolling over and accepting it, they are willing to fighting back.
Perhaps this is also how Mr Starmer intends to get his hands on land to build the proposed 2.5 million properties.
GlanACC
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Sign Up8:04 AM, 10th November 2024, About 2 weeks ago
Reply to the comment left by Desert Rat at 09/11/2024 - 23:59
Dessert Rat, yes my remaining 6 properties are all long term tenants, including 1 who was in the house when I bought it 20+ years ago. I have told the tenants I will not sell the properties provided they keep up with the rent and they can have the house as long as they want BUT when they move out I will sell.
I have previously sold 2 of my properties to former tenants, including 1 where my business has given the tenant a loan to improve the property.
PAUL BARTLETT
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Sign Up11:42 AM, 11th November 2024, About 2 weeks ago
Reply to the comment left by Edwin Cowper at 09/11/2024 - 18:20
"The S24 rule was brought in -it was said - because it wasn't fair that ordinary people buying their own homes were competing with Landlords who got tax relief on all their borrowings. That meant Landlords could afford to buy when ordinary people could noty. As someone who has been a landlord for over twenty years I'm afraid I can't disagree with that"
Wrong because the private home owner is entitled to 100 exemption from Capital Gains Tax on their primary property, whereas second homes are not. So that provision levelled the playing field meaning that Section 24 was nothing but a revenue grab by HM Treasury, so that only a Property business is not able to offset costs against revenue to determine the taxable profit. Every other business does that because it is just.
The direction of travel to landlords being professional is completely misaligned with the HMRC view that landlords are not running a business just a hobby ('cos it's so much fun!). Political delusion to have cake and eat it too..
Gary Lloyd
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Sign Up14:59 PM, 11th November 2024, About 2 weeks ago
Absolutely spot on Paul....not to mention the landlords cost of maintaining properties and all the proposed licensing and red tape costs just around the corner. The playing field I believe was positioned on a hill.