Having a ‘dig’ at expense of landlords

Photo: John Giles/PA Wire
Photo: John Giles/PA Wire

In response to some of the suggestions made by John Rowe, it may help to consider the bigger picture. For example, landlords are running a business employing tradesmen, paying overheads, mortgages and taxes, feeding their families etc.

So why should landlords not receive a tax allowance on the interest charged by banks on buy-to-let mortgages if, unlike private owners, we have to pay capital gains on the profit made on the sale of a rental property? You have to be able to look at both sides of the coin and realise what the Government allows in mortgage interest relief they more than take back in capital gains tax, charged on the future sale of a rental property.

It would also be very difficult to sell rental properties for anything “over the market price” as John Rowe referred to, as most buyers require mortgages from banks, who will insist on an independent valuation to verify the true, full market value of a property. And why should landlords have to be forced to sell at anything less than the true market price to sitting tenants or anyone else when all other property owners are free to sell for the best offer they can receive?

As far as open market valuations are concerned, let’s not forget what happens when local authorities are free to evaluate the apparently “open market rent” now for housing benefit purposes. This, using their calculations, brings the council rent allowance down to around £80/£90 a week for a two or three bedroomed property, rather than the £110 and more that is actually required if landlords have any reasonable hope of meeting all the running costs and fees for landlord licensing, which Calico and other social landlords are conveniently excempt from! What income is left has to be used to pay overheads, mortgages, repairs costs and taxes before any take home ”net” profit is available to sustain a business, and all from £80/week?

You would be forgiven for thinking John Rowe was ill-informed or someone having another “dig” at an easy target at the landlord’s expense!

Burnley Landlords