Disappointing day for landlords

It has been a disappointing day for landlords, with Philip Hammond’s announcement to ban letting agent fees paid by tenants yet another blow to the PRS.

In his Autumn Statement, the Chancellor said he was taking action against the ‘spiralling’ unregulated fees charged by agents,  a move which will pass the fees onto landlords, inevitably pushing up rents for tenants.

And while there were no big surprises there was other worrying news, with tax on insurance premiums to go up by 2% and the announcement that the Government is planning a review into the way incorporated businesses are taxed.

The news of the review comes after thousands of landlords made the decision to incorporate following last years’ Mortgage Interest Relief announcement, in a bid to reduce tax liability.

The Chancellor’s decision to ignore the opportunity to look at Mortgage Interest Relief was also a big disappointment, after calls from across the industry to reverse this unfair tax-grab on landlords.

There were also no changes to the Stamp Duty surcharge introduced by George Osborne. To read the full Autumn Statement documents click here. 

Letting fee ban will drive up rents

A ban on letting agent fees paid by tenants will increase market rents – hitting hardest the tenants they are designed to help.

Housing Minister Gavin Barwell MP said in a tweet just weeks ago that a ban was a: “Bad idea – landlords would pass costs on to tenants via rent. We’re looking at other ways to cut upfront costs & raise standards.”

The RLA has the same concern. Chairman Alan Ward said: “Agent fees have to be paid by somebody. If any additional fees are passed on to landlords, tenants will end up paying them forever as market rents will increase.”
Read more…

Ban on letting agents fees – the industry opinion

Lettings Agent associations have joined the RLA in condemning the Government’s decision to ban letting agent fees paid by tenants.

David Cox, managing director of the Association of Residential Letting Agents (ARLA) has branded the move ‘draconian’ with Isobel Thomson of the National Approved Letting Scheme (NALS) saying the majority of letting agents fees are ‘fair and reasonable’.
Read more….

RLA Chairman reacts to Hammond’s Autumn Statement

RLA Chairman Alan Ward has released a video message reacting to today’s Autumn Statement and talking about how it will impact on landlords.
To watch the video click here.