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Government Issue Response To Tax Relief Petition

Government Issue Response To Tax Relief Petition

Government Issue Muted Response To Tax Relief Petition

The Government has published a response to the online petition that opposes the proposals to change the amount of tax relief on buy to let mortgages announced by the Chancellor, George Osborne, in the post election summer budget.

From April 2017 onwards landlords will only be able to claim the basic rate tax relief rather than the higher rate tax relief on buy to let mortgage payments. It is widely feared that the move will severely affect the profitability of the private rented sector (PRS).

The online petition to reverse the planned tax restrictions on individual landlords has attracted more than 23,600 signatures since being posted.

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Tenancies Reform Bill Fails On Technicality

Tenancies Reform Bill Fails On Technicality

Tenancies Reform Bill Fails On Technicality

UK private rental sector (PRS) and social landlords were able to breathe a sigh of relief on Friday 28th November 2014, when the controversial Revenge Eviction Bill, or to use its correct title, the Tenancies Reform Bill, presented by Lib Dem MP Sarah Teather, failed to progress past its first reading in the House of Commons.

Rather than failing on a vote, the bill failed on a technicality after MP’s Philip Davies and Christopher Chope chose to talk it out, known as filibustering, because there were not enough MP’s present in the House of Commons to vote for the Bill. The debate started at approximately 9.30am and parliamentary procedure dictates that only Bills which remain unopposed after 2.30pm may make further progress.

MP’s who supported the Bill tried bringing forward a closure motion, to end the debate and call for an early vote, however for a successful majority, at least 100 MP’s must support it, but the motion was only supported by 60 MP’s and the debate on the Bill subsequently ended.

In order for the Tenancies Reform Bill to become law by the next election it must pass a second reading stage in the House of Commons, but it is not certain whether the Government will commit more parliamentary time to debate the Tenancies Reform Bill to try to force it through.

UK PRS and social tenants do need to be protected from the small minority of rogue landlords, and so do good, reliable, law abiding landlords.

It is far from fair that the majority of upstanding landlords should be expected to alter legal business practices because of criticism drawn by a few rogue operators within the UK’s private rented sector.

The Tenancies (Reform) Bill proposed restrictions on the serving of section 21 notices even where only a “hazard awareness notice” has been issued by a council. Landlords wouldl also be prevented from serving a section 21 notice where an improvement notice has been served on a rental property relating to category 1 or category 2 Hazards under the HHSRS rating system, or where the rental property requires emergency remedial action.

Tenants would also be able to challenge section 21 notices where they had complained to the landlord or council before the notice was issued, but the council was still deciding whether to even inspect the property in question.

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Red Ed Calls For Rent Controls As Part Of Election Campaign

Red Ed Calls For Rent Controls As Part Of Election Campaign

Red Ed Calls For Rent Controls As Part Of Election Campaign

Labour leader Ed Milliband has called for a European style rent indexation to be introduced as part of the political party’s election rhetoric.

The re-introduction of rent controls under the new guise of a newly titled Rental Price Index, designed to stem excessive rent increases, is intended to be one of Labour’s biggest vote magnets

The current coalition Government decided late last year that they wanted private rental sector landlords to act as unpaid members of the UK Border Agency, controlling and reporting on the immigration status of tenants, in order to avoid excessive financial penalties. This legislation is due to come into effect later this year after passing through Parliament and the House of Lords without too much fuss from MP’s, despite lobbying from landlord associations and heated debates with lettings industry professionals. 

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UK Council of Mortgage Lenders May Change Buy To Let T's & C's

UK Council of Mortgage Lenders May Change Buy To Let T’s & C’s

Lenders may have to change their terms and conditions on buy to let mortgages and rethink their attitudes towards standard tenancies, according to the UK Council of Mortgage Lenders (CML).

The Council of Mortgage Lenders (CML) was responding to calls by Labour leader Ed Miliband for longer-term tenancies in the private sector after he said he wanted to see greater security offered to households in rental accommodation. Similar calls have also been mounted by Shelter, and longer tenancies were also discussed in Parliament at the end of January.

But the CML acknowledges that lenders are nervous about extended tenancy agreements because of the risk of a build-up of rental arrears leading to buy to let mortgage arrears, affecting lenders’ ability to repossess the property if a long-term tenant is in place.

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