I do see their point on taxing landlords more, but I also see that they should be aware that it could just lead to higher rents and fewer rentals, although that could either lead to more properties to buy or buy ups by bigger corporations to control the rental market (something that could happen in farming like in the US) But anyway…
A video on X has LBC’s James o Brien getting a landlord realising that her passive income isn’t the hard earned income she thinks it is. She’s right that she worked hard to get the deposit and mortgage together and get started, and that’s the point. It was her working at her job to be able to start it which was the hard work, not the money coming in and arranging a cooker to be replaced or cleaning it herself every 6-12 months. I have no issue with landlords having to pay more tax, but there is a concern with how it affects the market.
Just on this point of taxing landlords more-
Renting a property out is not all sunshine & roses -
Pay the rental agent (+ vat)
Pay tax on the rental income.
General upkeep of the property + vat on labour & materials.
Interior repaint & fiddly jobs every time a tenancy changes.
Agent fees every time a tenancy changes ( inventory, marketing, credit checks , viewings, documentation etc etc)
Electrical, Gas & Energy certificates
Insurances on the property & against tenant defaulting
No income during time between tenants,
Paying council tax on the property if there is no occupant.
Of course the property appreciates in value with the local market conditions -but if you sell it you will pay CGT on any profit or IHT if you leave it to the kids
& you want to take more off landlords in tax ?
Higher taxes on landlords will surely mean higher rental costs to tenants who are largely already renting because they cant afford to get on the housing ladder & in turn higher rentals will mean more defaulters on tenancy contracts.
Not to mention the large army of DHS tenants where the rent is paid by the local council, which in turn means that your council tax will go up.