What New Year’s resolution should the government make?

What New Year’s resolution should the government make?

According to a new Landlord Voice poll conducted by Simple Landlords Insurance, the number one New Year’s wish from landlords is for the Government to keep buy-to-let tax relief on mortgage interest payments.

The survey revealed the planned tax increases are the top concern for landlords in 2017, voted for by 47% of respondents. Landlord’s second biggest wish for the New Year would be for an end to higher stamp duty charges, while in third place was a reduction in capital gains tax.  

Tax relief on mortgage interest will be phased out starting April 2017, and it will continue to fall over the next three years. By 2020 landlords will be taxed on their income and for some, this could push them into a higher rate tax bracket.

However a separate poll of landlords conducted by the Council of Mortgage Lenders found that half owned their properties outright and would therefore not be affected by the changes as their properties are mortgage free.

Stamp duty charges and capital gains tax

The second most wished for change, to reduce stamp duty charges, further revealed buy-to-let owners’ frustration with what estate agents Haart have dubbed a “war on landlords”. Since April 2016, property investors have faced a 3% stamp duty surcharge.


In third place, landlords wished that the government would reduce capital gains tax. Although the basic rate of capital gains tax dropped 8 points to 10% in 2016, landlords were left out and pay 18% on residential property if they’re in the basic income tax band, or 28% in the higher band.

Hope on the horizon

Despite the pressure, many landlords are still optimistic about the future, and 36% of respondents rated their confidence level in the year ahead at 8 out of 10 or higher.  

On top of that, 88% plan to remain as landlords for the next year and a third plan to increase their portfolios.

Landlords under pressure

Jenny Mayes from Simple Landlords Insurance says: “We strongly urge Chancellor Philip Hammond to listen to landlords’ concerns. Landlords should be supported and recognised for their contributions in providing affordable housing, rather than burdened with unfair tax measures that will see them having to take considerable cuts to their income and being forced to pass some of this to their tenants.”

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brandonlee10
brandonlee10 24 Jul 2017

The financial ramifications of the triggering of Article 50, the starting gun for Britain's departure from the EU, are far from clear. Buyers will be most cautious in London, given that buying a home in...

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IrisJ.
IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

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IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

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cornishalan
cornishalan 10 Jul 2017

Added to the cost of purchasing these village properties are the above average maintenance costs. Particularly where the property is a listed building or requires specialist building skills such as thatching...

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Jo Mullett
Jo Mullett 07 Jul 2017

Here in Swansea, known as the Japanese knotweed capital of the UK, it never fails to amazes me that people have no idea of the potential problems this invasive non-native plant can cause when buying or...

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NathanG
NathanG 05 Jul 2017

McDonalds, for example, have been purchasing their real estate on prime locations for years. If something happens to the company they'll have invaluable assets that will be able to save them. We might

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Jonah
Jonah 04 Jul 2017

Graham: surprised to see you cite the "extra tax liability" as capping out at ?560. It doesn't - the extra tax is exponential, as it is levied on the income (i.e the inflating level of rental income you...

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Dianne Griffen
Dianne Griffen 29 Jun 2017

Be very wary of anyone bringing you deals that they have ?found? and want to ?sell on to you? or ?joint venture? with you on ? you need a proper legal contract for this, involve a RICs surveyor to confirm...

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jason hadzikostas
jason hadzikostas 28 Jun 2017

The most important thing is a budget. Students have to manage their spendings in food, house maintenance, books and many other things. According to me, student Studios are the perfect option for them as...

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SecomTech
SecomTech 22 Jun 2017

AT Last...This was discussed years ago and there was a move towards landlords registering their bad tenants on a database..(can't remember where) It seems a logical step though our leaders will probably...

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Bertrand
Bertrand 02 Jun 2017

How about the Welsh Govt introducing a scheme to protect landlords against "rogue" tenants who are then taken to court for criminal damage to the properties they trash. Pretty unlikely I suspect and politically...

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AmberMorris
AmberMorris 25 May 2017

"Please don't pick a novelty tune-playing doorbell. They're not 'fun'. They're stupid." Laughed a lot to this. It's actually true, though.

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