The government targets Landlords yet again
It seems that during a meeting between the government and the RLA the minister said landlords should be made to squeal under the current crackdown to help people buy their own homes. The short sightedness of this comment really shocks me. Not everyone can or wants to own their own home. If the government spent more time trying to resolve the supply and demand issues, it would see a natural levelling out of both house prices and rent.
In their infinite wisdom the government via George Osborne has imposed a 3 per cent stamp duty on buy to let landlords and from 2017 will curb tax relief on mortgage interest.
It seems the RLA do not want to name the minister in question, however I think this sends a very clear message to all landlords and letting agents on the governments agenda and how it thinks is the best way to deal with the lack of affordable housing in this country.
Historically private landlords have made significant contributions to housing and it does seem the government are jumping on the media bangwagon with this crackdown. How can you have one rule for private landlords and one rule for another?
It seems reading between the line that if landlords as a populous squeal then the government believe their policy is succeeding. A very interesting key performance indicator.
As previously mentioned if the Government is determined to increase the number of homeowners, surely making the product cheaper either by supply or legal methods place further costs onto landlords which ultimately find their way to tenants, perpetrating a vicious circle
Why would the Chancellor want to dish out a deadly dose to swathes of landlords who contribute a vital part of the nation’s housing?”
I will watch with interest to see if there is a backlash from Conservative MPs of which many are indeed landlords.
The Chancellor has announced a series of policies targeting buy-to-let landlords in a bid to “level playing-field” between those buying a home to let, and those who are buying a home to live in. Would it not be easier to only allow some properties to be purchased as a home? It would be interesting to see if the crackdown is in fact legal?
To recap last April buy-to-let investors face a 3 per cent stamp duty surcharge, and from 2017 they will only be able to claim tax relief on their mortgage payments at the basic rate of 20 per cent.
What are your thoughts on this latest crackdown? Will it lead to more affordable housing or will landlords just pass on the costs to tenants?