Finance Bill

Written evidence submitted by Councillor Geoffrey Hill (FB 66)

Finance Bill 2015 – 16

Reverse the planned tax relief restriction on "individual" landlords

1. Forces landlords to sell forcing tenants onto the street or push rents up to cover costs. Bad for tenants and a mobile workforce. Less homes will be built, this negatively impact a mobile workforce making it harder for business to recruit staff.

2. Landlords have to dramatically increase rents to cover the tax burden.

3. It’s a legitimate business expense and we need a level playing field with other businesses. This has long been a real and legitimate need in the housing sector.

4. We’re losing more capital allowances in the budget as well this make relief this makes the tax relief loss a real business breaking burden.

5. Rouge landlords won’t comply and won’t care, it’s the legitimate quality landlords that will get hurt and go out of business forcing more tenants into poor accommodation.

6. Business needs a stable legislative and tax environment to plan and grow in. When this is added to all the other housing legislation it appears that landlords are being unfairly singled out for harsh treatment when they provide a valuable service.

7. Most landlords make little or no money in revenue terms and this will force many businesses to the wall creating hardship all round.

8. Many landlords are looking at their properties to pay for their retirement, this will destroy these plans forcing more to be dependent on the state.

9. Buy-to-let mortgages are already very expensive compared to normal mortgages so the loss of tax relief is an unfair burden.

10. Rich foreign buyers using Ltd Companies will continue to buy forcing UK nationals out of the market leaving large chunks in foreign hands.

11. One of the reasons for these changes is the growth in BTL and the buoyant housing market. Markets are driven by supply and demand, this change will make little difference to prices as builders will build less as there will be less landlord buyers, home buyers will still bid ever higher. The only true way to change the market is for there to be less people chasing the same supply or for there to be more supply. With a growing population we need more supply and more successful landlords. This policy does neither accept cynically raise taxes from landlords and ultimately tenants.

September 2015

Prepared 14th October 2015