Section 24 may lead to increased rents

Landlord Discussion
1

I just read in the OpenRent newsletter that rents are likely to go up 15% due to Section 24 requirements. So what are these? Haven’t heard about Section 24 yet - or maybe it is under a different name? Thanks for any info.

Brenda

2

Could be under a different name Brenda as agents like to call it the Tenant Tax just like how opponents of benefit reform called it the bedroom tax.

The new rules are just that you cant deduct mortgage interest from your income tax payments anymore.

Or at least this is something they are phasing in up to 2020. So it will lessen landlords rental incomes.

4

@Brenda you must be one of the 1.4 millions…

http://www.landlordreferencing.co.uk/blog/1-4-million-landlords-unaware-of-section-24-implications/

Landlords need to wake up to the threat to our investment!

5

Basically what it means is the Government is trying to screw everyone again for tax. So if the Landlord puts his rent up the tenant suffers more & so if unable to pay the extra then we have more people living on the streets, because the Government wont help the tenant, Its all very well building these new rent to buy but who the hell can afford them. Rents go up, utility bills go up, food bills go up & wages stay the same , so quality of life goes down. its a lose lose situation. The rich get richer & the poor get poorer. However, I do have to say some Landlords are rather greedy because some properties are not fit for habitation, these are the ones making a profit. If you haven’t got respect for your property then you have no respect fro yourself or anyone else.

6

Thanks for the feedback. I am very fortunate to own my flat outright with no mortgage or interest to deduct - good not to have a mortgage, but I pay 20% on the money that is left after expenses so the Tax Man does get a big chunk. After losing the 10% wear and tear I really didn’t want to lose more deductions but thankfully this one does not apply to me. I do feel bad for landlords who have lost this deduction - makes renting out harder and harder.

7

I remember speaking to a letting agent a couple of years back and he didn’t know what it was. I can’t remember exactly how the conversation went, but I know I new about section 24 and mentioned it in the conversation to which he replied, “what’s that”?

It’s one thing for landlords to not be on top of their game, especially if they rely on agents to manage their properties, but it’s to be hoped that letting agents are clued up.