Call for Government to Give Landlords Tax Breaks

There are calls to reward efficient landlords by offering them tax breaks, which in turn will improve private rental housing.

The Chartered Institute of Housing, and the Resolution Foundation both believe that landlords who sign a minimum standards agreement should be given incentives to improve their properties. Additionally, the two groups are of the opinion that more legislation is needed in order to combat rogue landlords. The abolishment of fees charged to tenants by agents is also being called for.

Tax

It is estimated that private landlords in the UK receive approximately £7bn in tax allowances every year.[1] This includes allowances for repair and maintenance work. However, at present there is little incentive for work to be carried out above any minimum standards.

Revenge evictions

A recent study from charity organisation Shelter indicated that in excess of 200,000 renters in England have been the victims of revenge evictions during the last 12 months. Revenge evictions are when a landlord serves notice on a tenant after they have asked for problems to be solved and maintenance solutions to be carried out on the property.

Call for Government to Give Landlords Tax Breaks

The Chartered Institute of Housing represent housing professionals, whereas the Resolution Foundation campaigns for increased living standards for low-income families. Both said that one-in-three privately rented properties fail to hit minimum living standards.

The Chartered Institute of Housing represent housing professionals, whereas the Resolution Foundation campaigns for increased living standards for low-income families. Both said that one-in-three privately rented properties fail to hit minimum living standards.

The Chartered Institute of Housing represent housing professionals, whereas the Resolution Foundation campaigns for increased living standards for low-income families. Both said that one-in-three privately rented properties fail to hit minimum living standards.

Growth

According to both groups, the private rental sector has more then doubled in size since 1992. There are now 4 million privately rented homes in England, accounting for 18% of the total number of houses.[1]

Interestingly, the percentage of private renters aged between 25-34 increased from 31% in 2008-09 to 45% in 2012-13.[1]

Chief Executive of the Chartered Institute of Housing, Grainia Long, believes that the time has come for standards of living accommodation to be seriously looked at in the private rental sector. Long said: “This Government has focused on measures to boost home ownership, but with more and more people living in the private rented sector, including more older people, more families with children and more vulnerable people from the housing waiting list, it’s vital that we look at new ways to raise standards.

“The cost of housing means that for many people, the private rented sector is the only option, but too many of them are having to put up with poor standards and insecurity.

“Ultimately, we want people to have a good choice of housing at a price they can afford, so we need to make private rent a better option.”[1]

The Deputy Chief Executive of the Resolution Foundation, Vidhya Alakeson, stated: “Many landlords already benefit from generous public subsidy but, while many of them are responsible, not all of them give anything in return.

“By introducing the principle of getting something for something from this investment, we could ensure that housing is improved and works better for both tenants and landlords. Government should incentivise those who work to raise their game in order to improve the overall standards of private renting.”[1]

[1] http://www.thisismoney.co.uk/money/mortgageshome/article-2738445/Give-good-landlords-tax-breaks-make-rental-housing-better-report-urges.html