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Agency boss says mortgage interest tax relief for landlords 'must be reinstated'

allison thompson

Leaders Romans Group (LRG) has called for a landlords’ reform bill to protect landlords and safeguard the housing sector.

It suggests that this would recognise landlords’ essential role in preventing homelessness and provide the necessary safeguards to encourage continued participation in the rental market.

The bill could include dedicated housing courts to speed up the legal process, a repeal of Section 24, and an increase of social housing stock. Its recent survey found that respondents thought new legislation would better address their concerns and ensure they are not disproportionately penalised.

LRG believes that pushing landlords to the limit could lead to serious negative consequences for the housing sector and the individuals it serves.

Allison Thompson (main picture), national lettings managing director, says numerous changes over the years, including regulatory measures and alterations to mortgage relief, have significantly impacted landlords’ position, prompting some to consider selling their properties.

The potential for an even greater increase in homelessness looms if more landlords are compelled to exit the market.

She adds: “These changes have inadvertently affected the private rented sector’s capacity to provide homes and support to those in need.”

Petition

Thompson explains more than 42,000 landlords signed a recent petition calling on the government to reverse Section 24, but that the government confirmed it would continue to set mortgage interest relief against rental income only at the basic rate of tax.

She says Section 24 should be repealed. “It is putting up costs, which puts up rents, which contributes to hardship and homelessness.

“Due to substantially increased costs - not only of property finance, but of energy and building materials - this change is much needed.

“By acknowledging the critical role played by landlords in preventing homelessness, policymakers can work towards sustainable solutions that benefit both tenants and property owners.”

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