Wednesday, March 20, 2013

Budget Help For Landlords

The Budget is once more up us and as ever landlords are optimistic that there may be some giveaways for us.  I've called in the past for tax breaks for landlords that would mean that we are treated the same as other small businesses.  Successive Government however only seem interested in giving large institutional investors tax breaks to try and encourage them to invest more money in the residential rental sector.

So what are the chances of tax breaks for landlords?

I'm afraid that I'm not optimistic about any additional help for landlords in this budget.  The general perception remains that UK landlords are doing OK and don't need any help.  This view is rather short termist and what is needed is a more positive, comprehensive and long-term approach to the private rental sector.  This could involve tax reform in return for meaningful comprehensive regulation of the private rental sector whilst also introducing a flexible longer term tenancy to run alongside the existing Assured Shorthold Tenancy Agreements.  This would provide a long-term growing private rental sector which has at it's core business principles more aligned to the longer term letting requirements of the growing 'generation rent'.

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1 comment:

  1. Paul BarrettMarch 23, 2013 at 10:51 PM

    Flexible tenancy agreements aren't the issue.
    The issue is the ability of a LL to remove any tenant who for whatever reason does not pay rent.
    the existing eviction laws are the biggest preventive circumstance for LL to not let to HB tenants. without RGI in place, either on the tenant or a guarantor.
    If a LL could have a tenant removed after 1 month of rent arrears immediately by the police as happens in Australia if they refused to leave then the lettings industry would be transformed.
    LL would be able to let for ANY period and to any tenant knowing that in the case of rent not being paid they could be removed if the LL so desires as soon after the rent due date.
    But in this case allowing 1 month to elapse and essentially the 2nd rent due date.
    It is the inability of LL to remove a tenant if they fail to pay rent that causes LL not to rent ot certain types of tenants.
    The current eviction laws do nothing to assist tenants to source rental property.
    They are prevented from having access to all rental property because of the existing eviction laws.
    This does no favours for tenants who cannot pass referencing.
    It effectively means no LL will take them on.
    Only in cases of non-rent payment need the eviction laws be changed.
    It will NEVER happen though which is why tenants will increasingly struggle to source rental property.

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