David Alexander says the March 11 budget should be used to encourage landlords to stay or enter the market, not leave it.

The Boris Johnson government’s first budget since the General Election is now less than seven weeks away and leading industry figure David Alexander has urged the Chancellor to give landlords a break as increasing numbers of them exit the market.
“With the final phase of George Osbornes’ policy of decreasing tax relief on borrowing coming into force on April 6th many landlords find themselves at a crossroads on whether to continue in the sector or leave,” says Alexander.

His company DJ Alexander is the largest estate agency of its kind in and around Edinburgh and has also launched a lettings platform, Apropos.


“This is occurring at a time when the need for the Private Rented Sector has never been greater and this demand will continue for decades to come which should mean this is a market to be encouraged as an integral part of the housing sector.”

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Alexander suggests landlords across the UK should be encouraged to stay in the market, and new ones encouraged to enter with tax breaks and inducements.


“Governments always wishes to tax businesses to provide them with income but, at present, this appears to be detrimental to the long-term survival of the PRS,” he says.


“Given that almost two thirds (61%) of landlords earn less than £20,000 per annum this is not a group which deserves punitive taxation.”


“It should also be noted that the more punitive the financial regime for landlords the more likely higher costs need to be passed on to the tenant.”

2 COMMENTS

  1. I am a small investor with 3 rentals. I have no problem with the changes because I still find I am in profit and it covers my needs. The only amendment for me would be initial start up costs but I am not including interest relief. The average house bought to to bring to a rental standard costs between 8 and £20000 depending on the level of work. Tenants in general don’t come with carpets etc unlike a home owner. As the house is not theirs its unreasonable to expect them to have such things when they have no real stability. These really should be provided and allowed for in taxation. Once its done it is no different to a shop except our customer is a tenant and theirs buy goods to take away. The shop or house has to attract the customer so if they can claim these things to attract the customer why not a landlord. After that initial investment its up to us to upkeep or replace and I am happy with that.

  2. Having reneted in London in an area with the AVERAGE rent at 1600 per month for a shoe box of a place etc i think this is fair as landlords need to realise that tenants are trapped in a lot of cases because of not having money aside to save for a mortgage etc. This is fair as it also stops landlords buying first time buyers places by mortgaging the other places they might own etc which is very common et c so taking homes ment for first time buyers and stalling buyers market to the point we are at today.

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