Landlords need carrot & stick says CIH

Landlords have been threatened with a carrot and stick to encourage them to improve the maintenance and management of their properties.

Property Hawk has talked before about the need for tax incentives to encourage landlords.

The Chartered Institute of Housing (CIH) whilst accepting that landlords receive £7bn of tax allowances a year, make the point that there currently is no incentive for landlords to carry out work above the minimum standard.  The English Housing Survey shows that a third of private rented homes would have failed the government’s Decent Homes Standard in 2012, compared to only around one in seven social rented homes, while almost one in five don’t have central heating.

The CIH  and the Resolution Foundation( RF) recognise that an improved tax system would encourage landlords to improve standard by allowing certain work to bring a landlords property up to a certain standard would be classed as an allowable expense.

WE AGREE!

For too long letting property has been treated by the tax system as an investment business rather than a trade making many of the expenses relating to improvements in their property  disallowable for revenue purposes.  To encourage landlords to invest in better standards then a tax system that reflects the fact that landlords run a property rental business not just a property investment.

Landlord insurance - professional rates - expert brokers