The Budget on Wednesday will contain a £300m tax raid on the private rental sector according to a report this morning - a report thought to be the subject of a leak from government.
The Sunday Times says: “The Chancellor [Jeremy Hunt] is to launch £300m tax raid on second home owners who make money from holiday lets in an attempt to make the [income tax cut] sums add up.
“He will abolish a series of tax perks for landlords who rent out their properties to short-term holidaymakers rather than long-term tenants.
“Although it represents another tax grab by the Conservatives, Hunt will argue it will help tackle the housing shortage in coastal areas and holiday hotspots such as Cornwall and the Lake District, where landlords are converting to holiday lets to benefits from generous tax perks, depriving local people of housing.”
Today the National Residential Landlords Association issued a broadside against the government.
“The Chancellor needs to address the chronic shortage of long-term rentals by attracting new landlords to the market. Squeezing holiday lets is not the answer. He should follow the advice of the Institute for Fiscal Studies and reverse punitive tax hikes which have stifled the supply of the homes renters desperately need” says chief executive Ben Beadle.
“Scrapping the stamp duty levy on the purchase of additional homes would see almost 900,000 new long-term homes to rent made available over the next 10 years. This would lead to a £10 billion boost to Treasury revenue as a result of increased income and corporation tax receipts.”
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Further taxation on long term landlords would not be helpful to the housing market generally.
However, one cannot say the same for short lets where there is flexibility, though not much.
Which ever way you look at it it is just another reason to sell up and get out and definitely another disincentive to propsective new Landlords who can put their investment/money elsewhere
Equalising tax on long term and short term rentals - but by screwing short term lets instead of stopping penalising long term lets.
Totally predictable and going after small corporate landlords will be next in the war against property owners.
Hunt himself owns a block of flats, down here on the South coast, held within a company wrapper. He'll protect his corporate mates, and himself in the process
I hope not as I am consideringg incorporating single BTL to reduce capital gains tax
The government should concentrate their fiscal efforts on taxing the big international corporates like Google and Apple and the asset strippers of Thames Water to generate money to build houses instead of the soft target of holiday letters who run small businesses. Taxing them will not solve the housing crisis anymore than the punitive measures already taken against the PRS. All they want to do is make political capital from vilifying landlords. None of this makes fiscal sense.
Far too hard to do that 🤷♂️
The tory party used to steer the economy by incentivising the direction they wanted through positive tax cuts and benefits. Now they are another version of Labour and everything they do is regressive. They call themselves conservative but they are just an offshoot of Labour now.
We have to vote the current shower out so they can be replaced with proper Conservative members
😂😬😂😬 Same old broken record, nothing will fix this other than a drastic reduction of our population, OR millions of social and private properties being built…. IMMEDIATELY.
Brilliant I knew Chancellor Hunt would give Landlords something in the Budget.
😂😂 I know, I feel like one of those poor abused dogs 🐕 tied to a gate and beaten…. Constantly.
HATE HATE HATE PUNISH PUNISH PUNISH DISCRIMINATE DISCRIMINATE Why are they not honest for once AND call themselves the " FOURTH REICH"
Don’t agree with NRLA about addressing New Landlords greenhorns into the Business that they know nothing about.
How about addressing existing Landlords first that are that are being driven out in droves .
Then these faux-Tories wonder why people are turning to REFORM. It will be a cold day in hell before I vote Conservative again.😡
It does not matter who you vote for they all hate us only because it makes them look good - I’m sick to death of being made to look like a greedy landlord and choking every time I breath - in fear of making a bit of money to use to spend on keeping my houses decent !
Actually REFORM have said they will scrap the RRB.
But will they AL or is that just talk
Yes, Andrew, I believe they will. They are more Conservative than this current government.
I have got to the stage now where I don't actually care if people think that I am a greedy landlord.
Another reason not to vote for Sunak.
Is this really going to change any short term let landlord away from short term letting? Or will the response be just to increase their charges? I know what my first reaction would be if I was a short term letting landlord and it wouldn't be to change my business model!
Just a tenant tax on the short term tenant just like the tenant tax they imposed on our long term tenants.
I'm intrigued how will this affect all those migrant let's? And while killing off Air BnB in favour of Hotels and B&Bs might help some resorts it will have the opposite affect as prices go up and even more people hop on a plane abroad for a cheaper vacation.
They are completely clueless. Many holiday lets are available for 12 months of the year and bring valuable revenue to the area.
They should look at targeting the second home owners who dont rent out and only use the property for a few weeks a year and effectively contribute nothing to the local economy!
If Holiday let owners leave the sector like BTL landlords are doing this will not create long term tenancies as the properties will more likely be sold rather than suffer Gove's RRB which is already driving out Landlords.
So he creates a lose lose situation for the locality and Tenants!
Well done Hunt! Another own goal!
As has been said they should stop and ask why are so many Landlords selling up before they think stopping Holiday Lets will increase private rented availability and offer incentives to do long term rentals!
S
I suspect there is a think tank behind all this, dare I say madness, they are probably unelected and I think, in my little tank, they should think again
Many second home owners use both homes for about the same amount of time when extended family stays are included. Since there's no rent to be paid, local businesses reap the benefit of this extra income, both hospitality and building trades.
I have bought 3 second homes, none of which were wanted by locals as they all needed too much work to bring them up to standard.
From April 2024 I will be fined 200% of Council Tax, which means less money to spend with local businesses.
For this extra I only get my bins emptied, nothing else as I am already paying full Council Tax elsewhere for everything else.
Everything they do to Landlords is so they hope they can get more votes It might work but at what cost to the economy
Andrew Murray
Good idea but who are we actually going to vote for to achieve that
Try REFORM, they are opposed to RRB.
The trouble is that Reform won't be running the country after the election, Labour will and if you think that things couldn't get any worse, then you have a shock coming unfortunately.
@ John Hughes, remember the referendum result . . .
I feel like a broken record. Levelling up the penalties so Short let’s are taxed as punitively as BTL won’t make me return my properties to BTL. Only removing S24 and the 3% stamp duty hike will. I didn’t leave BTL because I could make more money from Holiday let’s.I left BTL because I can’t make any money from it. Why is this going to make me go back??
Reece Mogg on GB In his State of the Nation programme seems to be in support of Private Landlords . And old Fashioned Conservative Values.
`Landlords Evicting thousands of Tenant for No reason using Section 21 ) Thousands of Tenant being made Homeless due Section 21 Evictions .
I keep reading the Same Twaddle quoting good old Polly in News Paper after Newspaper , ( I think they must copy each others articles or Open Polly press release at different times )
No Landlords are selling up because of Government Policies . That`s why there are more Families being Made Homeless. Section 21 Removal, Section 24 Tax, Wholesale Selective Licence schemes rubber Stamped by Gove.
I would suggest they Contact the NRLA for an alternate view but not sure what Beadle would say .
The Renters Reform Bill will cause more Landlords to Sell Up , No new entrants , Hence more Homelessness
Thousands of tenants being evicted due to none payment of rent would be nearer the truth
No good expecting the Bungling Boy Beagle to support landlords.
I agree. Jacob Rees-Mogg is one of the few conservative MP's who holds true Consevative values left in this government.
I have read the Reform party's manifesto fairly comprehensively and they seem to hold beliefs more like the Conservative party of old. They state in it that they will repeal the Renters Reform Bill and also reform the punitive tax disincentives currently in place. They state that they will also review the current Council licensing schemes as they feel the local councils already heve sufficient powers to regulate the sector.
As Labour appear to be likely to win the next election then I don't agree with the belief that a vote for Reform is a vote for Labour.
Perhaps it is time to vote for a third party more allied to conservative values and give both major parties a severe jolt to their confidence like George Galloway has done in Rochdale.
The Workers Party with George Galloway landslide victory ruffled a few feathers with his huge majority comeback.
Shame we have no one to vote for.
You have REFORM, who are against RRB, or stick with the old failures.
Reform are certainly worth a try
👍
Not sure about Nigel Farage either being involved or leader of different parties now President Reform Party, previously Independent ((UKIP) and was instrumental in bringing us out of EU along with Boris Johnson.
I don’t think it done us much good and probably costing individuals more in many ways. Uk tried for years to join ECC (6 Countries) but President Charles de Gaulle kept us out for years. Uk eventually joined then encouraged loads of others Countries to join which they did, then went out the back door ourselves. Anyway Nigel supported Brexit fair enough but then what ? left us high & dry, he said that’s it finished now no Forward Plan and left us like that, goodness me out then what nothing.
Farage to be fair campaigned to leave the EU and did it. Irrespective of what he does next I do think he is emboldened by a lot of the nonsense he sees now in politics.
It would not surprise me if he stands again to mix it up a bit.
He did what he set out to do. As he said at the time, he needed a break from campaigning and he has had that. Well at least until Coutts and NatWest de-banked him and thousands of others.
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