Nearly a third of renters say they can’t imagine ever owning their own home

Thirty per cent of renters cannot imagine ever owning their own homeA new study has shown that 31 per cent of renters in cannot imagine ever owning their own home.

The research, commissioned by GoCompare Mortgages, also revealed that more than a fifth (21 per cent) of renters think that the removal of mortgage interest tax relief on buy-to-let properties, which came into force in April 2017, will reduce the supply of rented properties in their area.

Some of the tenants surveyed were also concerned that they will face rent hikes as buy-to-let landlords pass on the higher costs. Six per cent said that their landlord had already or will increase the rent as a direct result of the tax changes.

Unsurprisingly, affordability and access to mortgage loans were found to be the main reasons why many Brits rent. Just 14 per cent of tenants surveyed said that they rent out of preference. Half of the other respondents claim that they rent because they can’t afford to buy their own home and 11 per cent were renting because they were currently unable to obtain a mortgage.

In terms of demographics, the survey found that more women (57 per cent) rent than men (43 per cent); 39 per cent of rented properties were single households, 28 per cent were families with children and 23 per cent were couples. One in ten of people surveyed share their home with flat or housemates.

Analysis

Commenting on the research, Matt Sanders from GoCompare Mortgages said: “Our research reveals that half of all tenants are in rental accommodation because they can’t afford to buy their own home. It now looks like many have given up all hope of ever owning a home and, for some, the changes to buy-to-let regulations are likely to make renting more expensive. In turn, that makes saving for a mortgage even harder.

“April saw profound changes to the taxation of buy-to-let properties which will reduce landlords’ profits and our survey suggests that there is a real concern among tenants that to protect their profits, over time some landlords will increase rents while others may sell-up – reducing the stock of available private rented homes.”

Worries about increased landlord costs due to elimination of mortgage-interest relief being passed to tenants through higher rents may be borne out by new statistics which show that 30 per cent of landlords have increased rents in response to buy-to-let tax changes.

The Renters Alliance helps renters with bad landlords and letting agents. If you have a story you would like to share, please contact the National Renters Alliance through our website or email us at contact@nralliance.co.uk

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Rogue landlords to receive £12bn in housing benefit payments over next five years

poor housing renters alliance

Rogue landlords who rent out homes which fail to meet basic health and safety will be receive more than £12bn in housing benefit payments – enough money to build half a million new homes.

Currently around £2.5bn is paid annually to landlords who rent out properties which the government classifies as “non-decent.” Such properties are categorized as having inadequate heating, outdated sanitation, be in a state of serious disrepair or be unsafe. This may include having a dangerous boiler, vermin infestation or faulty wiring.

The latest figures follow a Renters Alliance report earlier this year that nearly a third privately rented properties fail to meet government-defined minimum housing standards. More than 750,000 homes in London alone having a category one housing hazard, the most dangerous type.

Landlord housing benefit payments

Despite the poor average quality of private rented accommodation, landlords are continuing to profit from huge sums of public money. Since 2010, spending on housing benefit has increased by £4bn and now stands at £24bn per year with 36 per cent (£8.8bn) going to the UK’s 1.75 million private landlords.

The English Housing Survey’s latest report reveals that rogue landlords receive more than a quarter of all housing benefit paid to private renters. Some of the spending rise is a direct result of private rents rising by an average of 22 per cent since 2010 which has led to increasing numbers of private tenants relying on the state for financial support.

Housing benefit going to private renters has more than doubled in the last 10 years from £3.7bn to £8.8bn despite the government making 13 cuts to housing benefit since 2010. The treasury forecasts that private sector housing benefit spending will rise to £9.4bn per year by 2021-22.

Political response

Commenting on the latest figures, the Labour party accused the Government of having “made it easier for rogue landlords to fleece the system”.

Labour also claims that the government has consistently refused to introduce licensing of all private landlords and have clamped down on local councils who want to introduce their own licensing schemes.

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John Healey, the Shadow Housing Secretary said: “The number of families renting from a private landlord has soared by more than a million since 2010, but decisions made by Conservative ministers have made it easier for a minority of bad landlords to fleece the system.

“Most landlords provide decent homes that tenants are happy with, but these rogue landlords are ripping off renters and taxpayers alike by making billions from housing benefit on substandard homes.

“Theresa May declared the ‘housing market is broken’, but Tory ministers won’t act to make the market fairer or work better for private renters. After seven years of failure, the Conservatives have no plan to fix the housing crisis.”

Improvement

Last year, ministers rejected an amendment to make it a legal obligation for landlords to ensure their properties are “fit for human habitation”. This followed attempts a year earlier in 2015 when Parliament voted against a “Fitness for Human Habitation Bill,” proposed by the Labour MP Karen Buck. The Bill would have introduced a legal requirement that residential rented accommodation be provided and maintained in a state of fitness for human habitation.

Some progress has been made in several aspects of housing standards enforcement. The Government has now introduced a register of rogue landlords, which will become active from October. However, it will be accessible only to Whitehall departments and local councils. Tenants or prospective renters wanting to check if their landlord is on the register will be unable to do so.

Lack of resources

Renters will also soon be given new rights to reclaim rent they have spent on unsuitable properties and councils have the power to fine failing landlords up to £30,000. However, local government sources say council budget cuts have made it difficult for councils to enforce existing regulations.

Across the whole of the UK, an average of only one rogue landlord is prosecuted per council each year despite more than a third, or 1.4 million, private rented properties failing to meet minimum housing standards.

The Renters Alliance helps renters with bad landlords and letting agents. If you have a story you would like to share, please contact the National Renters Alliance through our website or email us at contact@nralliance.co.uk

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Renters in the UK spend average of 62 per cent of income on rent

generation-rent

The extent of Britain’s housing crisis has been laid bare by a new report from the real estate consultancy Knight Frank.

Rising property prices and stagnant wages leave increasing numbers of people with little alternative to renting. Over the next five years the number of renting households is forecast to increase to around 5.79 million, or 24 per cent of the total, up from about 21 per cent today. More alarmingly, renters across the UK spend an average of 62 per cent of their income on rent.

A YouGov survey of more than 10,000 tenants and 26 major investors also found that while at least three-quarters of UK renters are living in homes owned by private landlords, they will increasingly rent from large-scale institutional landlords such as city firms and property companies investing in the growing Build-to-Rent or multi-housing sectors.

James Mannix, head of residential capital markets at Knight Frank, said of the report: “The strength of the UK private rented sector (PRS) has grown demonstrably in recent years. As consumer demand for affordable, flexible accommodation continues to rise, PRS is firmly establishing itself as a key opportunity for institutional grade investment, due to its long-term potential.

Informed by the survey of the key investors and operators in the market, Knight Frank estimates that by 2022, the private rented market will be worth in the region of £70bn.

Young professionals aged between 25 and 34 make up the largest proportion of households living in the PRS. However, there are also significant numbers of renting families along with 50- to 64-year-old sole-occupiers and couples in addition to retirees many of whom spend over half their incomes on rent. Overall, 40 per cent of renters pay more than 50 per cent of their incomes on rent, the report found.

Unsurprisingly, 68 per cent of renters still expect to be living in rented accommodation in three years’ time, with 30 per cent of respondents saying that the most common reason for renting was to saving for a deposit to buy a property, 21 per cent said renting allowed them to live in an area where they could not afford to buy, while 18 per cent calculated that renting was more affordable than paying a mortgage.

The Renters Alliance helps renters with bad landlords and letting agents. If you have a story you would like to share, please contact the National Renters Alliance through our website or email us at contact@nralliance.co.uk

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Thirty per cent of UK landlords have hiked rental prices as tax increases bite

Rent Costs London

Thirty per cent of landlord have hiked rents in response to tax and regulatory changes according to a new survey of the rental market.

The study conducted by BDRC Continental on behalf of Foundation Home Loans revealed that 30 per cent of landlords have hiked rental prices, with the greatest proportion doing so in the East Midlands (41 per cent).

More than a third – 38% – of landlords said they had reviewed the size of their portfolios to ensure they could withstand any creeping costs, while 7% have sold off properties to either reduce portfolio sizes or diversify.

Furthermore, 19 per cent of landlords with 20 or more rental properties have reduced the size of their property portfolios by selling off property.

Aside from political uncertainty, many landlords have been deterred by recent tax changes, including the phasing out of tax relief for higher-rate taxpayers and the introduction of a 3% stamp duty surcharge.

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Jeff Knight, marketing director, Foundation Home Loans, said: “Landlords have been met with a raft of changes, from stamp duty charges to shifts in tax policy, and the lack of certainty on the political front has clouded the picture somewhat. The response has been to ‘batten down the hatches’, streamlining larger portfolios and protecting income by increasing rents – decisions that can be reviewed once the buy to let market is more accommodating.

“The fact remains that, whether it’s as a stepping stone to home ownership or a longer term lifestyle decision for tenants, the rental sector is an increasingly important part of the housing mix. This will ultimately be best served by a wide choice of property, and good landlords who can have confidence in decent returns.”

Percentage of UK landlords who raised rents, by region

UK 30%
East of England 33%
East Midlands 41%
London (Central) 24%
London (Outer) 24%
North East 23%
North West 35%
Scotland 15%
South East 33%
South West 31%
Wales 23%
West Midlands 31%
Yorkshire 31%

Percentage of UK landlords who reviewed portfolio size, by region

UK 38%
East of England 40%
East Midlands 50%
London (Central) 45%
London (Outer) 40%
North East 43%
North West 34%
Scotland 35%
South East 40%
South West 38%
Wales 32%
West Midlands 35%
Yorkshire 28%

The Renters Alliance helps renters with bad landlords and letting agents. If you have a story you would like to share, please contact the National Renters Alliance through our website or email us at contact@nralliance.co.uk

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Ealing Council Award £65m Regeneration Project to Grenfell Tower Contractor

Ealing

Ealing Council approved the award of a large contract to Rydon, the main contractor on the Grenfell Tower development, weeks before the fire broke out.

According to Construction News, Ealing’s main cabinet approved Rydon as the development partner for the £65 million project to build 296 new housing units to replace the High Lane Estate in Hanwell.

The Council authorised the executive director of Regeneration and Housing to finalise the contract with Rydon at a meeting on 25 April. The minutes of the April meeting state that Rydon’s bid was the most “economically advantageous” of the three tenders, with a “very strong financial offer coupled with excellent construction delivery and programming”.

The deal will see the contractor finance, develop and submit a planning application for the new development, before demolishing the existing estate and replacing it with mixed-tenure housing, the majority of which will be affordable.

Rydon was the main contractor on last summer’s £8.7 upgrade of the Grenfell Tower in Kensington. To date 79 people are reported dead or missing following the fire last week and the exact cause of the fire has yet to be determined.

Rydon has insisted all its work on the refurbishment met all required building control, fire regulation and health and safety standards.

According to Construction News, although Rydon was selected as the preferred development partner for the Ealing project, no deal has yet been signed.

The latest High Lane Estates contract would be the second development partner deal between Rydon and Ealing Council on a major regeneration, after Rydon’s 50:50 joint venture with A2Dominion Regeneration won the £155m revamp of Green Man Lane Estate.

The government confirmed yesterday it had ordered councils and social housing providers to urgently check whether any panels on their new-build or refurbished buildings are clad with aluminium composite material (ACM), which is believed to have been installed at Grenfell Tower.

The Renters Alliance helps renters with bad landlords and letting agents. If you have a story you would like to share, please contact the National Renters Alliance through our website or email us at contact@nralliance.co.uk

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Three-quarters of UK social housing blocks ‘potentially unsafe in a fire’ according to 2011 Government report

grenfellA report from 2011 warned that almost three-quarters of UK social housing blocks were potentially unsafe in a fire.

Carried out when Grant Shapps was Housing and Local Government Minister, the 2011 survey revealed that 75 per cent of managers responsible for maintaining social housing buildings were not certain their blocks had undergone a proper fire risk assessment.

The latest revelations on government inaction over safety standards in social housing follows additional reports that a review of building regulations covering fire safety was promised by former Croydon Central MP Gavin Barwell last year but not published.

Mr Barwell, recently appointed chief of staff for Theresa May, told MPs in October that part B of the regulations would be reviewed following the investigation into the fatal 2009 Lakanal House fire in Camberwell which killed six people.

The review was never published and fire safety experts claimed the Government’s desire to cut red tape could have prevented ministers introducing new safety measures.

Mr Barwell, who was housing minister at the time, told the House Commons: “We have publicly committed ourselves to reviewing part B following the Lakanal House fire.”

Government drive to reduce regulation

Former chief fire officer Ronnie King, honorary secretary of the all-party parliamentary group on fire safety and rescue, said the regulations “badly need updating” and “three successive ministers have not done it”.

Speaking to the Press Association Mr King said: “It’s sad that we always have to go to stable-door legislation.

“Lakanal House wasn’t enough deaths to trigger off a major public inquiry. It just went to an inquest, there was no formal report on it.”

Mr King also suggested that a Government drive to cut red tape – by insisting that three regulations are removed for every new one created – should be reconsidered when it comes to fire safety.

Asked why he thought the review of building regulations had not been produced, he said: “My own thinking is there was the red tape challenge and they don’t really want to put regulation on to businesses, adding a burden.

“It’s one of those that if you bring in a new regulation, you have got to give three up to get it.”

Asked if he thought the red tape challenge was putting people at risk, he said: “I think where fire safety is concerned, it ought to be reconsidered, this ‘one in, three out’.”

“Buildings like the one today over 30 metres [Grenfell Tower], when they are new, would require fire suppression installed. But there are 4,000 older tower blocks in the UK that don’t have sprinklers.

“There are people who would argue that it’s too costly and there are other measures that could have been done but it’s a fact that people don’t die in sprinkler buildings.”

Labour MP Jim Fitzpatrick, chairman of the all-party parliamentary group, said the Government has resisted calls to install sprinkler systems in high-rise blocks.

Prior warnings

Astoundingly despite an all-parliamentary group’s recommendation that sprinklers be fitted to older buildings this appears not to have been acted on. Following the Lakanal House fire, the coroner,Judge Frances Kirkham, wrote to the government recommending that it “encourage providers of housing in high-rise residential buildings” to “consider the retrofitting of sprinkler systems”.

Mr Fitzpatrick, who was a firefighter for 20 years, told LBC: “We’ve been pressing for fire sprinkler systems in buildings where we think it’s appropriate – certainly over a height level and in places where there is vulnerability, care homes and in schools – and Government has been resisting that for some time.”

Many fire safety experts have warned that chronic under-investment in social housing over several decades has left hundreds of blocks of flats unsafe, with councils and other housing suppliers unable to afford the hundreds of millions of pounds it would take to bring them up to standard.

 

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City investors plan to profit from UK social housing

londonstockexchang_634

Increasing numbers of fund managers are looking to profit from social housing and other niche sectors as income investments from the property market continue to stagnate.

Residential Secure Income, a new investment group targetting social housing, is set to float on London Stock Exchange in July. The company plans to raise £300m as part of its initial public offering.

RSI, managed by ReSI Capital Management, plans to acquire homes and lease them back to local authorities and housing associations.  The company claims that it will provide inflation-linked income returns and targeting a dividend yield of 5 per cent.

Residential Secure Income’s announcements means that it will become only the second UK-listed fund dedicated exclusively to social housing investments. Its planned launch follows that of Civitas Social Housing in November last year which raised £350m to acquire properties around London, the Midlands and the south of England to lease back to housing associations. Civitas also targets a dividend yield of 5 per cent.

Increasing private sector involvement

The social housing sector is increasingly attracting private sector money. Pension funds and insurance companies — including Legal & General and Pension Insurance Corp — have been lending to housing associations for several years.

GCP Capital Partners — which runs the GCP Infrastructure fund — said it already holds some social housing and is looking to increase its exposure to the asset class through lending to housing associations.

GCP fund manager Stephen Ellis said: “We’ve got £100m plus and a pipeline of £50m at the moment

“We lend against the acquisition or development of properties by housing associations.”

Mr Ellis added that with 750 housing associations there “ought to be rampant opportunities”, and that retail funds’ small size allowed them to strike deals that bigger players — such as insurers and pension funds — were uninterested in.

Housing associations were also good borrowers, Mr Ellis continued. “Not one housing association has ever defaulted.”

The exemption of housing benefit reductions is a further bonus for investment in supported accommodation.

“Essentially what we’re looking to do is attract public sector-backed cash flows, as long-dated as possible, and wherever possible with inflation linkage,” Ellis said.

However, Andrew Summers, head of research at Investec Wealth, warned that even for private investors there remained risks, notably the possibility of negative press coverage in the event of homes being repossessed. “Housing is a political hot potato,” he said. “There’s a lot of headline risk in [the potential story of] people being thrown out of their homes to fund City investors.”

The Renters Alliance helps renters with bad landlords and letting agents. If you have a story you would like to share, please contact the National Renters Alliance through our website or email us at contact@nralliance.co.uk

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Majority of councils failing to police letting agent fee rules

Letting Agent Fees

New research has shown that 93% of local authorities have failed to issue financial penalties against landlords and letting agents for failing to disclose lettings fees.

Despite the introduction of the requirement for letting agents to publicize fees in May 2015, only three penalty notices have been issued by councils against letting agents. Even more astoundingly only one of the penalties has been paid in full.

The survey of council enforcement of letting agent fee rules was carried out by London Property Licensing on behalf of the National Approved Letting Scheme (NALS).

Under the Consumer Rights Act 2015, letting agents must prominently display a list of their fees at each of their offices as well as on their website.

Almost two thirds of councils surveyed admitted they do not consider enforcement of letting agent fee rules as a high priority and 45% of councils said they only undertake reactive enforcement measures.

Lack of resources is the biggest problem cited by local authorities for their failure to enforce letting agency fee rules. Thirty-three percent of councils said they had allocated no staffing resources to this work in 2016/17. A further 62% said they do not anticipate any change in the level of staffing they can allocate to enforcement in 2017/18.

Letting fee ban

NALS says it is concerned about the disconnect between the government’s aspirations and the reality of delivery of enforcement. This is likely to deteriorate further with the introduction of bans on letting agent fees charged to tenants announced in the Chancellor’s Autumn Statement.

Sixty-four percent of councils surveyed said they are yet to assess the likely impact on enforcement when the proposed ban on up-front letting agent fees charged to tenants is introduced.

Isobel Thomson, NALS chief executive, asks: “We recognise Trading Standards teams are underfunded and under-resourced, but if local authorities aren’t enforcing the current legislation what will make things different when the fee ban is implemented?”

“Without sufficient robust and coherent enforcement action, we will never stop the criminal element in the PRS,” she says.

“They will continue to operate knowing they won’t face any penalty and it’s the consumer who will continue to suffer. We believe now is the time to start a constructive dialogue with the Chartered Trading Standards Institute and its members on how we can work together to stamp out the rogues.”

Leon Livermore, chief executive of the Chartered Trading Standards Institute (CTSI), adds: “[We] welcome the research produced by NALS and believe that it highlights the issues of the robust enforcement needed for existing regulation that can deliver for the consumer.”

“We look forward to further engagement with NALS.”

CTSI has sent open letters to the political parties underlining that it believes that the current model of trading standards is ‘broken’ and needs to be fixed.

The group claims that under-resourcing and a postcode lottery for protection, alongside a vast remit, means that the model of 192 separate services needs to be changed.

The Renters Alliance helps renters with bad landlords and letting agents. If you have a story you would like to share, please contact the National Renters Alliance through our website or email us at contact@nralliance.co.uk

Full list of local authorities surveyed: Buckinghamshire, Cornwall, Cumbria, Devon & Somerset, East Sussex, Hertfordshire, Lancashire, North Yorkshire, Nottinghamshire, Suffolk, Warwickshire, Worcestershire, Bolton, Manchester, Oldham, Stockport, Trafford, St Helens, Wirral, Barnsley, Rotherham, Sunderland, South Tyneside, Wolverhampton, Sandwell, Walsall, West Yorkshire Joint Services (includes Calderdale), Barnet, Brent, Croydon, Kensington & Chelsea, Richmond upon Thames, Redbridge, Southwark, Bath & North East Somerset, Brighton & Hove, Durham, Herefordshire, Middlesbrough, Nottingham, Redcar & Cleveland and South Gloucestershire.

No response received from: Bexley, Birmingham, Gloucestershire, Lincolnshire, Liverpool, Torbay and Wokingham.

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London landlords deserting capital in search of higher profits following sixth month of rent falls

for_saleBuy-to-let landlords are buying more properties outside London following the 6th consecutive month of rent falls in the capital according to the UK’s largest estate agent, Countrywide.

Fifty-per-cent of London buy-to-let landlords are looking to buy properties outside London this year according to Countrywide’s new figures. In 2016, London landlords purchased over 22,000 homes outside of the capital – a seven-fold increase on the 3,311 recorded in 2010 when Countrywide first began keeping records.

In April, just 12 per cent of London homes were sold to buy-to-let landlords which is close to a record low.

Countrywide says that London landlords are increasingly looking to northern England for buy-to-let properties with Liverpool becoming a particular hot-spot in the buy-to-let sector.

Landlords looking further afield hope to benefit from better yields and lower stamp duty. Average stamp duty currently stands at £40,000 in the capital which falls to £6,300 outside of London.

Around 9 per cent of buy-to-let properties in the north were sold to London landlords and 26 per cent of London landlords picked up property in the East of England.

Johnny Morris, Countrywide’s research director, said: “In response to slower price growth and government tax hikes, London landlords are looking further than ever to find a return.

“Lower entry costs and higher yields outside of the capital are enticing investors to look further afield than they have previously.

“Rental growth remains low across Great Britain. Mostly driven by London where rents have fallen for the sixth consecutive month.

“The repercussions of the stamp duty rush are still playing out in the rental market as stock levels continue to remain high.

“But with fewer investors buying in the capital we will likely see stock levels fall, driving future rental growth.”

The Renters Alliance helps renters with bad landlords and letting agents. If you have a story you would like to share, please contact the National Renters Alliance through our website or email us at contact@nralliance.co.uk

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Tony Blair sets up buy-to-let company to avoid tax rises on £33 million property empire

Former Prime Minister Tony Blair
Former Prime Minister Tony Blair

Former Prime Minister Tony Blair has set up a company to manage his £33 million property empire, joining a growing number of landlords who are opting for incorporation to beat tax rises on buy-to-let operations.

Blair, along with wife Cherie and eldest son Euan, are believed to own a total of 38 properties. The families’ property portfolio includes flats in north-west England which Mrs Blair and their son let out via an existing company, Oldbury Residential Ltd, which holds investments worth £2.4m in the year ending April 2016.

The family has reportedly banked at least £1.7m in profits from buying and selling nine properties, and they also have an extensive portfolio of private homes, including a £9m five-storey Georgian townhouse which they purchased in 2004 and a £10m Grade I-listed Buckinghamshire manor house.

Now Mr and Mrs Blair have set up another company, Harcourt Ventures Ltd, to let and manage properties, with Tony Blair owning half of the shares and his wife named as the sole director.

Landlords incorporating to reduce tax liabilities

Setting up a limited company is one of several ways in which private landlords have responded to recent tax changes within the private rented sector. These changes include increases in stamp duty and cuts to mortgage tax relief introduced in April which no longer allow landlords to offset mortgage interest from their rental income.

The reduction of Mortgage Interest Relief, first proposed by former Chancellor George Osborne in the 2015 Summer Budget, eliminated landlords operating as sole traders from deducting mortgage interest payments from their rental income to reduce their tax liabilities.

Cherie Blair Law Firm Hired By Landlord Group

Landlord groups have fought several failed campaigns against the tax changes via petitions and talking their case to the High Court hiring Cherie Blair’s law firm, Omnia strategy, to argue that the tax changes breach landlord’s human rights.

Speaking after the landlords lost a high court review in October last year Mrs Blair said: “We know the case has been supported and followed with interest by a large number of individual landlords. Many of these landlords now face challenging times ahead.

“From the outset, the legal process was just one aspect of our clients’ fight against this unfair measure. Together with their impressive and growing coalition, they will continue to engage with the government, and the legal team wishes them every success.”

Landlord Fight-back

Buy-to-let landlords are now incorporating their lettings operations as limited companies to avoid the tax changes and to secure additional finances to buy more properties according to industry statistics.

The proportion of homes available for rent in the UK, owned by a company landlord, reached 20 per cent in the first quarter of 2017 – the highest number since records began in 2010.

Landlords incorporating their businesses to avoid the tax changes would have to pay stamp duty land tax on the transaction, which now stands at 3 per cent. Capital gains charged on the transfer to the company may be deferred until it is sold again and profits are taxed at 20 per cent, though this is set to reduce to 18 per cent by 2020.

The deferment of capital gains tax is called incorporation relief, but in order to qualify landlords must demonstrate that the property is part of an actual business rather than just a passive investment. Some landlords are now claiming to provide additional services such as cleaning or gardening in order to lower their tax liability.

Incorporated landlords can claim £5,000 per year as a tax-free dividend but any income over this amount will be charged at 7.5 per cent for basic-rate taxpayers, 32.5 per cent for higher-rate payers and 38.1 per cent for additional-rate payers.

However, most financial experts advise that the statutory obligations and costs involved in running a company outweigh any tax savings for most landlords unless they have a sizeable property portfolio.

The Renters Alliance helps renters with bad landlords and letting agents. If you have a story you would like to share, please contact the National Renters Alliance through our website or email us at contact@nralliance.co.uk

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