60% Landlords Want Lower Taxes. What Will the Government Do?

During the previous government, renting was deemed more affordable than buying. Thus, as a result, more people opted for renting out houses and apartments. Even older tenants between the age group of 55 - 75 did not own a home.

As the new government scrambles to meet the demands of both landlords and tenants, getting the right balance for both the rental market and the property investment will be quite a challenge. A recent survey by the property services group Leaders Roman Group reveals that a whopping 60% of tenants and landlords want reduced taxes and lower stamp duty taxes.

What Does the Survey Reveal?

According to the survey, landlords and tenants want lower taxes imposed on landlords and lower Stamp Duty Land Tax on home purchases. In addition, the survey revealed two key areas for rental reform— the re-introduction of a Help to Buy and a Decent Homes standard. Diving into the data, 34% of tenants and 30% of landlords are advocating for the Help to Buy scheme. Also, 31% of tenants and 30% of landlords are demanding a decent home standard.

Furthermore, 45% of tenants and 10% of landlords agree about affordability and fair rent controls. 45% of landlords and 25% of tenants want investment in social housing. However, only 12% of tenants and 1% of landlords feel the Renters Reform Bill was crucial.

When asked which political party best serves their rental interests, 64% of landlords and 17% of tenants opted for the Conservative Party. And 15% of landlords and 53% of tenants feel like Labour would address their concerns.

Consequences of Not Lowering the Taxes

The government has quite the task of balancing between trying to sustain the rental market while also helping to boost the property investment and housing market. The government’s announcement to abolish Section 21 of the Housing Act 1988 ends “no fault” eviction. This means landlords now cannot be given eviction notices without a valid reason or a breach of the tenancy agreement.

These factors and the higher rates of taxes will lead to higher rents, potentially harming the rental market of the country. However, the government does have plans to increase the affordability of the housing market. These plans must cater to the rental market as well as the housing market of the UK.

Conclusion

The relationship between landlords' demands and government policies has created complications. Both landlords and tenants call for lower taxes and more support. The government needs to balance support for the rental market without stifling property investment to avoid increased rents and strain on tenants. Effective and fair reforms are urgently needed.