Tax on Landlords:
Former Bank of England expert, David Miles, who served on the Monetary Policy Committee 2009-2015, and is now professor of financial economics at Imperial College London, says that “My own view is that this [tax rises on landlords] is profoundly wrong-headed”.
Politicians looking for ways to show they are on the side of home buyers by attacking buy-to-let landlords, home ownership being a central plank in traditional Conservative policy, will find it will “backfire”, thinks Miles.
One response to the housing crisis has been to “point the finger” at the private rented sector (PRS) and raise landlords’ tax, which can only result in higher rents for tenants.
Extra stamp duty and the removal of tax deductible status for buy-to-let loans will simply push up rents for those tenants the government hopes will buy, a self-defeating strategy which makes saving for a deposit impossible for many.
Mr Miles likes some elements of the Help-to-Buy scheme which is a part loan to buy a house, the repayment being linked to the rise or fall in the value of the property, an equity-type loan.
A significant cost of buying a house is the stamp duty levy:
Stamp Duty to pay is Stamp Duty to pay is £0.00 £0.00
|Purchase price of property||Rate of Stamp Duty||Buy to Let / Additional Home Rate|
|£0 – £125,000||0%||3%|
|£125,001 – £250,000||2%||5%|
|£250,001 – £925,000||5%||8%|
|£925,001 – £1.5 million||10%||13%|
©LandlordZONE® – legal content applies primarily to England and is not a definitive statement of the law, always seek professional advice.
Landlords' Tax is “profoundly wrongheaded” https://t.co/79hyxqiQ2u
— LandlordZONE (@LandlordZONE) July 3, 2017