‘Nonsense’ to say landlords can always absorb ever-rising costs
NRLA boss Ben Beadle makes comments as Moneyfacts reveals those on variable rates now paying £1,100 a year extra in premiums.
Fast-rising buy-to-let (BTL) mortgage rates prompted by the conflict in the Middle East could the final nail in the coffin for the many landlords already facing higher costs and tax bills, it has been claimed.
Trade organisation the NRLA has made the comments following this week’s revelation that private landlords with variable-rate mortgage or who are switching to new deals face an average extra £1,100-a -year higher loan payments.
Chief Executive Ben Beadle warns that for many BTL investors this comes on top of higher income tax rates for those in receipt of rental income from next year which many including the Office for Budget Responsibility have warned will push up rents.
Landlords also face higher costs as they begin to pay to join both the Private Rented Sector Ombudsman scheme and the new landlord database under the Renters’ Rights Act plus the expected significant cost of upgrading properties to meet the expected minimum EPC level of Grade C by 2030, which is now less than four years away.
Worried
Also, many landlords are worried about the looming end to Section 21 evictions at the end of this month, which will make removing bad tenants more lengthy and expensive, and a growing campaign lead by London MayorSadiq Khan to allow English local authorities like his to introduce rent controls.
It is simply stereotyped nonsense that every landlord can somehow absorb ever-increasing costs indefinitely.”
The NRLA says that instead the Chancellor should scrap the planned income tax increase for landlords and reform the tax system so that it encourages landlords to invest in their properties, and also unfreeze housing benefit rates.
“While the Government cannot be held responsible for the impact of the conflict in the Middle East, it should take action where its own policies will lead to higher rents,” says Beadle.
“It is simply stereotyped nonsense that every landlord can somehow absorb ever-increasing costs indefinitely. They can’t, and as a result, it is tenants who will suffer most as rents continue to creep up.”
