A narrow Yes win, and the best-honed arguments belonged to the losing side. Members backed the extra two points on landlords' rental income, but the case against was the one that arrived with detail, anecdote and a landlord's confession.
The most-respected Yes case was a fairness argument: “Property wealth shouldn't be protected while working class wages bear the brunt of national taxation”, with the added hope that some landlords might sell to first-time buyers. Two other Yes voters were briefer: one offered “No sympathy for landlords”, another noted that without National Insurance on this income, a higher rate is fair. None of the three engaged with the rent and supply warnings.
The No side made those warnings its centre. One voter put it bluntly: “You don't increase tax on things you need more of”. A landlord wrote that they were waiting for the budget before setting rent rises and that “It's not a tax on landlords, it's a stealth tax on renters.” The most-respected No case, though, came from a would-be seller who cannot move to be near a parent needing care because of a market with “far more sellers than buyers”. Others feared corporate landlords: “Have fun trying to persuade a holding company registered in Luxemburg to hurry up with your tap repair.”
There was dissent within No as well. One voter accepted that landlords should pay tax but proposed a dedicated property-based business tax instead, and another asked simply, “How will raising tax on rentals increase supply?” Yes voters offered no direct reply.
So the vote went to fairness, while the arguments voters rated most were about who ends up paying the bill.
97 Opinions
I'm unable to move house to be closer to a parent who needs care because the market is flooded with ex rental properties and there are far more sellers than buyers, due to past tax changes making it unaffordable for small landlords. This will worsen the issue and make it harder to sell my home. It will also remove all competition for big corporate landlords who are taking over the market. This is likely to push up house prices and rents in the future. Bad all round.
Look, this government will continue to raise taxes in two ways: 1. By targeting productive minorities who wouldn't vote for them anyway (landlords, employers, gambling firms etc) 2. By 'hidden' taxes (employer NI, fiscal drag) While continuing to give benefits to those who will or might vote for them. Raising minimum wage, coincidentally, does both. It's a vote buying strategy. Labour would be fine with a failed state, as long as it's *their* failed state.
You don't increase tax on things you need more of, particularly if that rise can be passed on.
I applaud the establishment for paving the way for more market capture by only the biggest of real estate managers. Have fun trying to persuade a holding company registered in Luxemburg to hurry up with your tap repair.
Lefties gonna leftie, so no surprises there. Many landlords will remove their properties from the market and the remainder will skyrocket in price to compensate. If they introduce a price cap like other countries no one will fix anything. It's all so predictable one has to wonder if they do it on purpose. Then the big companies scoop up whatever's left, and as a tenant you stay there wondering if Steve the landlord wasn't better after all
This is another that will only end up costing people more, not the landlords. What is it that they don't understand about these things?
Private landlords are not allowed to offset their mortgages and now have to pay 24% of of the total rent received in tax unlike other businesses. Add the mortgage Add the insurance Add the license fee Add the Repairs Add the EPC, Gas checks, EICR Add advertising for new tenant Add the Credit check costs Add the hours of work if the landlord does it themselves. Work out the hourly rate and ask yourself if you could afford to work for that amount. !!
And they wonder why inflation and cost of living continues to skyrocket, the tax rises won’t be absorbed by landlords. Rent rises inbound. Disposable income reduced year on year again. Increasing Taxes should always be the last option not the fix it now.
How will raising tax on rentals increase supply?
Property wealth shouldn't be protected while working class wages bear the brunt of national taxation. Raising taxes on rental profits ensures landlords contribute a fairer redistributive share back into the system, whilst potentially encouraging some to sell their properties to first time buyers