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David Jones, former Welsh Secretary and MP for Clwyd West has written an article in the "Conservative Home" magazine, warning his party to stop "clobbering" landlords.He says, to ensure the extra supply of rented accommodation, the Chancellor should now reassess the campaign he is pursuing against landlords. To see rented housing as the enemy of owner occupation is misplaced and counterproductive to addressing the country’s housing needs.
"Contrary to popular myth, landlords are not taxed more favourably than home owners.", David writes. "As the Institute for Fiscal Studies has noted: “The tax system is not, and was not, even before the recent changes, more generous to people buying to let.”
No evidence has been produced by the Treasury to support its argument that landlords are competing for the same properties as first-time buyers and are therefore denying opportunities for home ownership. Professor Michael Ball of Reading University has noted that many properties bought to rent, such as houses in multiple occupation, are often unappealing to first time buyers.
As a party, we should ask ourselves why we clobbering a group of people who, having been hit by Gordon Brown’s pension credit reforms, decided to invest in property as a way of providing financial security for themselves and their families.
The assaults on landlords through the tax system, including restricting mortgage interest relief to the basic rate of income tax and a three per cent point levy on stamp duty for the purchase of homes to rent, will both deter investment and drive up rents. Landlords will seek, not unreasonably, to recoup these extra costs. The Treasury Select Committee argued that if the stamp duty levy did not result in higher rents “it could not be claimed to support home ownership.”Full/source article Mr Jones' comments come at the same time as a fresh study by the Pensions and Lifetime Savings Association (PLSA) looking at how 35-85 year olds currently use or plan to use property to fund their retirement found that downsizing was the most popular with 11% choosing this option to fund their retirement, while buy-to-let and letting holiday homes, at 4% each, came next. Re-mortgaging was the least common choice at 1%.
Younger people are more likely to think of their property as part of their retirement planning. Of the 6 million people in the UK who are not retired and home owners with a mortgage, 53% thought their home would play a part in financing retirement, even though 13% do not expect to pay off their mortgage before they retire.
Some 33% of 35-44 year olds feel they will have no choice but to use their property to finance retirement. Of course, many landlords choose BTL as a vehicle to finance their retirement, so S24 deterring investment will put greater strain on state pension resources.Full/source story
TAKE ACTION - Send this link to all your landlord friends and share on Facebook and other social media channels. Section 24 Letter and Report to your MPUP NEXT - Conservative Peer attacks BTL tax reformsSEE ALSO - Tenant Tax campaign moves to the political arena NOW WATCH:
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
Good!!Re: "No evidence has been produced by the Treasury to support its argument that landlords are competing for the same properties as first-time buyers and are therefore denying opportunities for home ownership."
We were just talking about the fact that there are many more people today who cannot buy due to stricter lending criteria AND due to the fact that more and more people work on 'zero hours contracts' or other 'contractual' arrangements that make it very difficult to get a mortgage. Not to mention the self-employed, who used to be able to self-certify. It's not just young first time buyers.
Our plumber (divorced and in his 40s) is renting a flat ironically like the one we're currently refurbishing to sell, just down the road from it. He tried to look into buying recently but found with his self-employed income not cutting the mustard that he just can't borrow enough. So he's stuck renting in a rental market that is shrinking due to the government's misguided ideas, while his rent will no doubt continue rising...
So there are more and more people who need to rent, through no fault of landlords, while we're being driven out of business by the government.
There won't be more home ownership, there'll be more homelessness!
Author of The Complete Guide to Property Strategies and The Complete Guide to Property Investing SuccessLearn more at http://www.completepropertysuccess.co.uk
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"It is the small decisions you and I make every day that shape our destiny" Anthony Robbins
This is good news
But we need a lot more support from MPs if there was a u turn on S24
I always remember Ian Duncans Smiths face when George announced S24 to the commons he clapped and smiled
He loved it and I am sure he was not alone
I freind of mine has Mr Pickles as his MP and the repy he got was well put your rents up you have five years to sort yourself out
I now hate the Torys I thought they were the party of enterprise and ambition
I will never vote ever again thank you
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.