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

MBM Homelets
MBM Homelets 23 Mar 2017

Although this is a very positive step, there is little or no guarantee of the standard of workmanship employed by the tenants. We have had experience of a professionally decorated property being ' painted'...

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ajay
ajay 21 Mar 2017

How is the "robust evidence" looking now?

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NathanG
NathanG 20 Mar 2017

I've been watching the series so far and am completely baffled by the cases that were presented. Though, I don't think that we can protect ourselves from every scam possible - it will just make the scammers...

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Landlady14
Landlady14 01 Mar 2017

You would think so Niraj Shah! My experience only proves that there are varying qualitiers of professional in all aspects of property letting. None of the ones I have dealt with, from letting agents to...

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Mark
Mark 01 Mar 2017

Thanks for this article. Hopefully one day everybody's lifestyle will be eco-sustainable.

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Ben Taylor
Ben Taylor 28 Feb 2017

I was convinced that London was the most expensive!

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Alan Read
Alan Read 28 Feb 2017

Australia are leading the way in this I think. The trouble with Britain is we don't get enough sun to make use of solar power.

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James Powell
James Powell 27 Feb 2017

This is a very good news.

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DanHumphreys
DanHumphreys 27 Feb 2017

It sounds like a good idea. Anything to help the younger generation get a foothold.

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Matt
Matt 20 Feb 2017

Is this fake news?

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Matthew Hollywood
Matthew Hollywood 07 Feb 2017

Matthew Hollywood - Director Mishon Mackay Land & New Homes - Brighton The shortage of New Homes is in part effected by the lack of land sales. Land sales are held back because there is a disparity between...

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CommercialTrust
CommercialTrust 30 Jan 2017

Hi Graham, Would be interesting to see the above figure calculated against an investment via a Lt Company /SPV structure and if the investor found themselves pushed in to the higher tax bracket. Mortgage...

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