- November 27, 2017
A look at the impact
In recent years landlords have come to dread the appearance of that battered red suitcase. Yet the recent Budget announcement by the Chancellor, Philip Hammond, saw many breathing a sigh of relief. As Tim Walford-Fitzgerald, private client tax partner at the chartered accountants HW Fisher & Company, said:
“Buy-to-let landlords could be forgiven for pinching themselves. For once they’ve not been the whipping boys of a Budget.’
And, it’s true, it certainly could have been worse. But landlords still feel very much constrained by the prospect of changes that are already happening: they may not be this year’s whipping boy, but they still are very much tied to the post.
What does the Budget mean for landlords?
“The thumbscrews are still on as far as private landlords and the buy-to-let sector are concerned. But at least they haven’t been tightened still further.”
Angus Stewart, of mortgage brokers Property Master.
In many ways it’s the things that didn’t change that brought the disappointments this year.
• The phasing out of tax relief under Section 24 continues apace.
• A licensing scheme for landlords remains on the cards.
• The tenant fee ban will still potentially pass costs on to landlords.
Yet the fact that landlords were not hit by higher taxes was one thing that was very welcome for being left unsaid.
There were also some other encouraging signs.
Rather than announce more punitive tax measures, Philip Hammond announced plans to look into incentivising landlords who offer tenants longer-term tenancy agreements. Although exactly what these incentives may be remains unclear.
David Smith, of the Residential Landlords Association, scathingly commented that:
“Today’s Budget could have acted on proposals to provide tax relief for landlords prepared to offer longer tenancies. Instead we have yet another consultation adding to the 15 already ongoing which relate to the private rented sector. Tenants cannot live in consultations.”
Is there anything that landlords can bank on?
Change is what defines today’s letting sector – it’s the only constant – and this makes it very hard for landlords to be certain of their income.
Amid the turbulent seas that surround landlords there is something that can be guaranteed, however. And that is your rent.
Khalil’s Rent Guarantee Scheme delivers month after month – even on those fateful Novembers when the Budget is announced.
And unlike the Chancellor, it will only make your life easier.
Here’s how it works.
• You lease your rental property to us.
• We take care of daily maintenance, finding tenants, tenant relationships and rent collection.
• And we guarantee to pay you an agreed rent every single month – regardless of whether your property is occupied or not.
It’s that simple.
There’s no need for an official consultation, but we’re happy to talk it over whenever you want!