‘People-power ‘group clamours for South of England rent cap
Acorn’s Brighton Branch Chair Keziah Hall went on BBC Radio Sussex to add their voice to growing calls for rent controls in Brighton and Bristol.
Brighton’s high rents are pushing out people on lower wages and should be capped, Keziah Hall (main image) the local chair of pressure group Acorn has told the BBC.
Hall, who had difficulty finding a new home after she was evicted this summer, blames second home-owners, the large number of students and commuters attracted by Brighton’s ‘London by the sea’ reputation for the high rents.
Forced out
She complained that with a benefit cap on rent of £1,200 a month and a mean Brighton rent of £1,675, it was impossible for low-paid workers such as bus drivers and workers in the hospitality sector to find a home and, as a result, they were being ‘forced out’.
There is no advice to landlords as (to) what rent should generally be.”
When BBC Radio Sussex asked her what should be done about it, she suggested a rent cap, adding: “There is no advice to landlords as (to) what rent should generally be.” She thinks the cap “should be the cost of a living wage sort of thing.”
Acorn is not alone in its demands for rent caps. As was reported in The Neg, there are growing calls for it in Brighton and Bristol, too, where the Green Party has a strong presence and has backed the protests.
And, in Brighton, The Living Rent Campaign recently handed a petition signed by 1,800 people urging the council to lobby the new Labour government for a rent cap or freeze.
Acorn defines itself as a community union that harnesses the power of people to press for change on issues that matter.
The relentless demonization of the private rental sector by all sides of the political spectrum is only part of the story all be it a large part. Since 2000 the UK population has increased by over 10,000,000 due to mass immigration. The infrastructure has not been built to deal with that. Hence very high demand for property combined with low supply.
Acorn and their like would do better if they campaigned for an end to mass immigration and an end to the demonization of the PRS. Fat chance.
Its only going to get worse………….
Renters Group Acorn should be contacting MP’s & Govt to call to scrap Section 24 Tax which is making their rents expensive.
Instead of calling for rent caps that will make it impossible for them to ever secure a home again. Telling a Landlord:
‘You can only charge this amount & we know that means you going to lose every month, but we need a home’
This means that the Landlord won’t give you the house in the first place & be better off putting his funds in the bank with no risk of going prison if you take the battery out the smoke alarm.
You may have more success if you go ask the Landlord:
‘Why is rent so expensive?’
One reason is this Section 24 Tax that is utter bonkers, it’s almost impossible to believe. Example:
If you paid £800pm rent
Tax bill would be £320pm
Leaves you £480pm
Mortgage £500pm
Means you’ve lost £20 EVERY month. Lost £240 every year EVERY house.
And that’s how Section 24 Tax works. Because the Govt don’t like Landlords and says we shouldn’t be allowed to deduct mortgage from earnings before paying Tax.
Pre 2015, they allowed the mortgage/loan just like every other business. They bought this Anti Landlord measure in and it got them votes, got them more tax, but it started the real shortage and expensive rents u see for tenants now.
What used to happen is
Rent £800pm
Mortgage £500pm
Leaves you £300pm.
Tax bill £120pm.
Means you make £180pm which then means you’ve got enough for maintenance, repairs, refurbishment etc.
That’s how the Govt allows every other business to work.
To put it in simpler terms, imagine a bricklayer who could no longer deduct the cost of bricks as an expense. If they earn £500 for a job but spend £500 on bricks, they would still need to pay tax on the £500 income, even though they make no profit.
This policy impacts landlords across the UK and can lead to higher operating costs, which may influence the rental market overall.
Another example
£700 rent x 40% Tax = £280 leaves £420 minus £500 mortgage = Loss £80
£800 rent x 40% Tax = £320 leaves £480 minus £500 mortgage = Loss £20
£900 rent x 40% tax = £360 leaves £540 minus £500 mortgage = profit £40.
So the Tax system the Govt bought in for Landlords forces Landlords to lose unless charge high rents.
Hence why rents are now so expensive.
So Acorn, you’d be better writing to your MP mentioning Section 24. If he she says the private person doesn’t get tax relief on their mortgage interest, say the private person doesn’t pay tax on any rent to start with to be entitled to any tax relief you dimwit lack of common sense Eton Toff imbecile.
Well put no one seems ever to explain the finances to these protest groups. Cap rents and landlords will sell up in droves especially in the South and the situation will be exacerbated and there will be no rental properties period.
Landlords are a major part of the solution to housing governments are a major cause of the problem.