Steer issue 23 June 2019 - Page 13

Housing decisions implemented by Government.
The Private Rented
Section accounts for
near enough 50% of
the market now, so
one might say there’s a
growing trend here and
the PRS has become
very important. There’s a
huge demand for rental
property and not just
because tenants can’t
afford to buy, for many
it has become a lifestyle
choice. A property they
could rent that’s in a
great location with glorious views or a swanky
design is something that
may be out of their reach
to buy one day so many
will make the decision to
rent it whilst they are still
young. Social media is powerful and everyone wants to
put filters on their selfies of them out partying, or away at
a city break, or photos of parties in their luxurious home to
portray a lifestyle that’s not entirely accurate.
Three things are happening in the PRS that will destroy
it. In fact, it’s a slow car crash waiting to happen and a
nightmare that I’m not about to wake up from anytime
soon, but I need to share this information with you all.
Section 24 of the Finance Act 2015: means that landlords will no longer be able to claim the interest on their
mortgage as a tax-deductible allowance.
The implementation of three-year tenancies: will restrict
both landlord and tenant to only do that term and both
parties are in a legally binding agreement until that term
ends regardless of circumstance (whatever happened to
flexibility for renters?)
The Tenant Fee Ban: banning tenant fees charged by
letting agents because some agents charge too much and
use it as a cash cow whereas others charge a fair fee for
the amount of work conducted. This will be stopped and
the fee will be passed back to the landlord to pay instead
of the tenant. This has been bought about by a minority of
tenants who have complained to charities and who have
taken it upon themselves to lobby government.
I speak with landlords, agents and tenants from all walks
of life and the result of the above is that landlords are now
looking to sell off their buy to lets because it’s no longer
profitable, they feel they are being picked on for making a
success of their life and hard-earned pension/retirement/
child’s inheritance money.
The consequences will have a huge ripple effect, see the
attached the spider diagram on the fee ban.
The solution is:
1. Compulsory agent regulation
2. Cap tenant fees to 25% of whatever the rent is
3. Actually enforce legislation that’s already in place as
its very comprehensive
4. Wipe out higher rate stamp duty for second homes
5. Wipe out landlord taxation on their mortgage interest
If you are a landlord or tenant reading this then
you need to stand against this tidal wave. To find
out more please do get in touch. Thank you for
reading David Votta MARLA Lettings Expert. | 07970395430


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