In a surprising week, Brenda from Bristol became the latest internet sensation when in a BBC interview she exclaimed ‘you’re joking, not another one!’ when asked about the forthcoming snap election. Brenda’s dismay seems to have captured much of the mood around the country as yet another big political decision looms. Even before the dust has settled from the Brexit referendum the political campaigning has begun for the June 8th snap general election.
At Galley Properties we don’t endorse one particular political party, but what will do is stand up for the concerns of our landlords and tenants. Just a few weeks ago Teresa invited Doncaster Central MP Dame Rosie Winterton to discuss the problems facing the private rented sector and what the government should do to help. Teresa, along with Residential Landlord Association vice chair Chris Town, explained how new tax changes could force many landlords to quit the market and send rents rocketing.
Recent changes to mortgage interest relief, which will see landlords taxed on turnover rather than profit, is being described as a tax grab. Already at Galley Properties we have had some landlords sell rental properties. Teresa explains: “we are seeing numerous landlords already selling or planning to sell in the near future. These are landlords with decades of experience with many tenancies lasting years and some with large portfolios. These are the very professionals that the country should be encouraging to expand but instead they are being punitively taxed and worrying about bankruptcy.”
The RLA has been campaigning against the tax changes since they were announced by former chancellor George Osbourne, with hundreds of members meeting with their MPs to discuss the devastating impact of the plans at a time of housing crisis. It was great that Dame Rosie, Doncaster Central MP, took the time out to meet with Teresa and Chris to listen to their concerns. Dame Rosie said: “The meeting was extremely useful as we had a very interesting discussion on a number of issues in respect of the private rented sector from the perspective of landlords and also from the perspective of tenants. ”
RLA vice chair Chris Town added: “The RLA has been asking members to meet their MPs and we are delighted to share with Dame Rosie first hand experiences of the changes already being seen on the ground as a result of this unfair tax grab. The changes to mortgage interest relief are not just a landlord issue they are very much a tenant issue as well. Experts have warned rents would need to increase by between 20-30% for landlords to offset the impact.”
With this latest election just a few weeks away many are left wondering if yet another tax grab on Landlords will take place. Any further uncertainty to the industry can only be a bad thing for both landlords and tenants. Galley Properties will be working hard to support all of our customers through the current and any future changes. Although MP Dame Rosie Winterton is in opposition to the current Conservative Government it is hoped the message she has taken away from her meeting with Teresa and Chris will be heard. The mood of the meeting was very positive and it is hoped a sensible compromise which will maintain a good level of rental stock and prevent huge rent increases can be found.
Teresa and Galley Properties would like to thank both Dame Rosie Winterton and RLA vice chair Chris Town for taking the time out to meet and discuss these issues.
Are you a landlord and need an agent who stands up for you on the important issues? Not only are we a national award winner but we are active in supporting the concerns of all our landlords and tenants. Why not speak to us, the ‘Yorkshire and Humber Agency of the Year’ 2016, about what we can do for you. Call our friendly team on 01302570470
Who is Brenda? Find out more on the BBC here: http://www.bbc.co.uk/news/uk-politics-39631693