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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Latest Comments

Tony Gimple
Tony Gimple 09 Dec 2017

Linking professionalism to limited company borrowing is a flawed concept. Despite S24 etc., limited companies are the most tax inefficient way of running a property business and leave borrowers seriously...

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

It's normal. If you plan to buy a house in one of the most beautiful spots in the country you should pay a high price.

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

I think that the situation will be the same at December.

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Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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