The Residential Landlords Association (RLA) has stepped up its campaign for the Government to help encourage longer tenancies.
The membership body has made a submission ahead of Chancellor Philip Hammond’s Budget on October 29 calling for tax reliefs for landlords that offer longer tenancies up to a maximum of five years.
The RLA suggests that rather than legislating for a set term for tenancies, landlords could instead receive tax relief on rental income which could increase each year a tenancy continues up to a maximum of five years if the tenancy is renewed. The relief would then remain at this level.
David Smith, policy director for the RLA, said: “Landlords recognise the demand for longer tenancies which provide stability for tenants and landlords.
“Recent statements by MPs suggest that positive taxation to support longer tenancies would gain support in Parliament, enabling such tenancies to become available far quicker than imposing them by law.
“We call on the Chancellor to back this pragmatic proposal.”
Comments (11)
Landlords recognise the demand for longer tenancies which provide stability for tenants and landlords.
But whatever you do don’t make them prove it and actually offer one.
David Smith of the RLA is like all of his ilk living off the coin of landlords in the PRS.
He’s effectively a dole bludger living off the PRS who he claims to represent, he and the RLA provide nothing of any use to landlords whatsoever in representation to the government et al, and support in our fight against S24 and the plethora of hate motivated legislation that raises money for the haters buy slowly eating away at the profits of landlords destroying stability of rents and security of tenure.
I have never had a tenant wanting more than a 12 month AST and I have many tenants for 12 years and the remainder 4-5 years. We don’t need telling what to do, we need to be left alone.
Clueless, gutless, useless and vacuous twits one and all.
RLA are asking, nay begging, the Government for a few crumbs. They along with the NLA should be fighting for a fair deal for Landlords
I’m in support of any landlord concession right now but this is nonsense. There should never have been any S24 in the first place, for anything, under any circumstances. Asking for a partial claw-back on something that does nothing useful for the sector is ridiculous.
Why should landlords be effectively punished financially if their tenants choose to have short-term tenancies? This makes no sense.
Cry baby cry baby cry baby cry.
You can just offer a longer tenancy if you’re so worried about missing any financial incentives dear. Tenants can still leave; neither landlords or tenants would be trapped in them. But, you much prefer to spin any tenant choice as a witch-hunt I realise. Typically hysterical me me me response from your ilk. Incentives just creates a two tier market though; the only acceptable solution is to legislate. I doubt the Tories have got that in them though. Too many of them are landlords themselves.
Except almost all lenders have a condition preventing longer than 12 month tenancies…go pester them.
Except the quite long and growing list of those that don’t.
http://blog.shelter.org.uk/2016/06/mortgage-lenders-open-up-buy-to-let-to-longer-tenancies/
Because of the inefficiencies of HMRC and their inexplicable refusal to use basic digital technology (an excel spreadsheet) for the past 14 years SA105 land and property is an opt in tax rather than obligatory one.
If a landlord has not been asked or has no reason to compete a self assessment tax return they don’t have to and many don’t.
A tax relief for longer tenancies is a great idea but HMRC ought to be forced to collect all of the tax due on rental income. At the moment the much greater incentive to many landlords is they’re enjoying 100% relief because they haven’t been asked to pay any tax.
Extending schedule 23 of the 2011 Finance Act to include the portals, Gumtree, Twitter, Facebook etc would provide a very effective means to identify agents and landlords who are currently invisible to HMRC.
That might not be brilliant for the supply side but given HMRC has the power to collect back tax for the past 20 years the remedies of collecting quite large amounts of not asked for tax ( it isn’t evaded or avoided if HMRC don’t ask for it) could include we’ll let you pay it off but you need to offer longer tenancies to tenants who continue to pay their rent on time, don’t cause a nuisance and treat your property with the respect they would if it was theirs.
> If a landlord has not been asked or has no reason to compete a self assessment tax return they don’t have to and many don’t.
I think you are wrong with this statement. It is your responsibility to send a tax return if you meet certain criteria. One of the criteria is you received more than £2500 (or possibly £1000) in rent in the tax year. If you fail to send a return when you should have done so then you can be fined.
http://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return.