Posts with tag: Residential Landlords Association

Manchester rent controls will choke off housing supply says RLA

Published On: October 7, 2019 at 9:06 am

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Plans to introduce rent controls in Manchester are currently being discussed. However, the Residential Landlords Association is warning that this will choke off the supply of homes to rent and make it more difficult for tenants to find a place to live.

A new report has been jointly published by The Royal Society for the encouragement of Arts, Manufactures and Commerce and One Manchester. It argues that the Government should grant powers for the Combined Authority to establish rent pressure zones to control high rents.

The RLA has pointed out that all available evidence shows rent controls lead to a reduction in the supply of homes available for rent. This has restricted choice for tenants, led to lower quality housing and, in some places, an increase in homelessness.

In London, where a similar proposal is being made by the Mayor of London, the Centre for Cities has warned that strict rent controls would divide the city’s renters into “winners and losers.”

The association also bring to our attention that there was a recent article on rent controls in San Francisco in ‘The Times’. It warned that they have made the problem of homelessness worse, “because they discourage people from letting out property and thus reduce supply, pushing house prices up further.”

John Stewart, Policy Manager for the Residential Landlords Association, said: “Rent controls are on the face of it an attractive but simplistic and populist approach to the increased cost of housing. In reality, they make the situation for tenants worse.

“All the evidence from around the world where they have been introduced shows that they reduce supply and drive up the cost of housing.

“Having controls on rent is not much help to a person who cannot find somewhere to live because of the cut in the number of properties available.

“Instead, the Mayor of Greater Manchester needs to work with the private rented sector on how to boost the supply of homes for rent to meet ever growing demand.”

Concern growing over new buy-to-let tax changes

Published On: August 31, 2016 at 11:23 am

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There are growing fears in the property industry that the Government could be about to introduce a new buy-to-let tax assault on landlords.

Over the long weekend, the Law Society accused the Government of avoiding any property consultation in the way it introduces proposals. This, it warns, could mean profits from the sale of buy-to-let property could be subjected to income tax rather than capital gains tax.

Concerns

In the words of the Law Society, the measures were, ‘slipped in at the committee stage of a Parliamentary Bill, by the Government. This was instead of the formal legislation subject to a mandatory consultation period.

The Residential Landlords Association has now expressed its concern, calling on the Government to clarify amendments made to the Finance Bill 2016.

Concern growing over new buy-to-let tax changes

Concern growing over new buy-to-let tax changes

Writing in a letter to Chancellor Phillip Hammond, the Residential Landlords Association said that the amendments have blurred the distinction between trading profits from the purchase and resale of property and investment in property to let.

A statement from the RLA said, ‘at a time when the Government are attacking residential landlords through changes to Mortgage Interest Relief and Stamp Duty Land Tax, we have significant concerns of the potential devastating impact on the sector of further tax changes.’[1]

What’s more, the Association has moved to ask its members and others wanting to slacken the burden on the private rental sector to contact their local MP.

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/8/growing-industry-concern-over-new-buy-to-let-stealth-tax

 

 

RLA slams report declaring PRS unfit for purpose

The Residential Landlords Association (RLA) has moved to defend the private rental sector, in the aftermath of a scathing report from the Resolution Foundation.

This report analysed the latest housing trends in the UK and concluded that the private rental sector is not fit for purpose. According to the Resolution Foundation, private sector tenants are much more likely to face insecurities as a result of shorter-term tenancy agreements.

Overhaul

In response to the report, the RLA said that the sector is certainly not in need of a radical overhaul. Instead, the RLA believes that the private rental sector provides a vital service to an ever-growing number of tenants.

The most recent English Housing Survey revealed that private sector tenants spend an average of four years in their current rental property. This is a slight rise from the 3.7 years recorded five years ago.

What’s more, the survey found that private sector tenants are more satisfied with their accommodation than those in the social rented sector.

RLA slams report declaring PRS unfit for purpose

RLA slams report declaring PRS unfit for purpose

Changes

Rather than a substantial overhaul, the one change that the RLA feels is necessary for the sector is the way that buy-to-let landlords are currently taxed. The RLA warns that recent changes implemented by the Government on mortgage interest tax relief for landlords will see investors passing on these further costs to their tenants.

Alan Ward, chairman of the Residential Landlords Association, noted, ‘the evidence shows that tenants in the private rented sector are staying in their homes for longer. No landlord ever wants to lose a well behaved tenant who pays their rent on time.’[1]

Alterations to mortgage interest tax relief for buy-to-let landlords are scheduled to come into force in 2017.

[1] https://www.landlordtoday.co.uk/breaking-news/2016/8/the-prs-is-fit-for-purpose-despite-claims-to-the-contrary-says-rla

 

 

RLA calls for Government to stop tax changes

Rent increases in Britain are unavoidable unless MP’s move to stop what landlords are calling unfair tax changes, according to a new claim.

The Residential Landlords’ Association observes that plans to cut mortgage interest tax relief for buy-to-let landlords will see rents driven up.

Legislation

At present, legislation is moving through Parliament, which the RLA believes will see tax bills rise substantially and in some cases, cut profits altogether. Should supply of rental property continue to fall, landlords could face higher overheads, meaning they will raise rents to cover costs.

In a recent survey of RLA members, some 84% observed that they are more likely to consider raising rents following the Chancellor’s tax alterations.

The firm is now calling for amendments to the Finance Bill, in order to protect both landlords and tenants. It has called for the Government to stop the changes and to remove the additional Stamp Duty levy on buy-to-let purchases. It warns that the tax hike will have a detrimental impact on landlords and the sector when it is needed most.

RLA calls for Government to stop tax changes

RLA calls for Government to stop tax changes

Concerns

A number of MP’s have moved to express their concerns. Former Welsh Secretary, David Jones, has called for the Government to stop heaping more pressure on landlords.

Alan Ward, RLA chairman, stated, ‘landlords do not want to increase rents unnecessarily but many will have to if they stay in business as a result of these wholly unreasonable tax increases. It is unfortunately tenants who will end up paying the price either through higher rent bills of finding it more difficult to find somewhere suitable to live.’[1]

‘We welcome the concern of many MPs and hope that they will be able to persuade the Government to change its mind,’ Ward added.[1]

[1] http://www.propertywire.com/news/europe/uk-landlords-tax-change-2016071312136.html

New Welsh bill to amend tenancy contracts

Published On: October 23, 2015 at 10:10 am

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A new bill currently working its way through the Welsh Assembly could dramatically change the way tenancy contracts are written, but will still give letting agents the right to charge fees to their tenants.

The Residential Landlords Association says that it has been working closely with the Welsh Government on the terms of the Renting Homes Bill.

Controls

Proposals to remove landlords’ no-fault Section 21 eviction notice powers and to include rent controls within the bill have been disregarded, the association claims.

In addition, the RLA says it has secured concessions, such as a new abandonment process, meaning landlords will not require a court order should they believe a property has been left empty.

New Welsh bill to amend tenancy

New Welsh bill to amend tenancy

A statement from the RLA says, ‘we have also maintained the ability for letting agents to charge fees to tenants which means that, at least in practice, agents should not have to pass this cost onto the landlord.’[1]

Despite its positivity, the RLA says that it still has concerns over whether the bill, if passed, will contain a six month moratorium, which would protect tenants from eviction during the opening six months of their tenancy.

[1] https://www.landlordtoday.co.uk/breaking-news/2015/10/welsh-bill-changes-tenancy-contracts-but-leaves-letting-agents-fees-unchanged

 

 

RLA calls for enforcement, not introduction

Published On: July 15, 2015 at 11:23 am

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The Residential Landlords Association has called for increased enforcement of existing legislations in order to protect tenants, as opposed to the introduction of further rules and regulations.

Compliance

Yesterday, the Welsh Government announced its, ‘Rent Smart Wales’ scheme. Speaking at the launch, RLA vice chairman in Wales, Douglas Haig, said, ‘whilst we encourage all landlords to comply with the new regulations and follow the Welsh Government’s guidance the RLA believes that this will detract local authorities’ attention away from tackling the minority of landlords who are criminals and stretch resources further.’[1]

‘We believe that existing regulations in the private rented sector are sufficient to tackle the criminal landlords, however we do not see adequate enforcement of the powers that already exist. A better deal for tenants would be to put the resources used to create the scheme into enforcement instead,’ Haig continued.[1]

RLA calls for enforcement, not introduction

RLA calls for enforcement, not introduction

Costs

Confirmation is still be to given on when a landlord will be able to begin registering under the scheme or start preparing for training. What’s more, the cost of licensing or applying for a licence has also yet to be revealed. The RLA suggests that this may be around £200 per managing landlord.

[1] https://www.landlordtoday.co.uk/breaking-news/2015/7/rla-enforcement-not-regulation-needed-to-protect-tenants