Written By Em

Em

Em Morley

Taxpayers left in limbo after changes to Finance Bill 2017

Published On: April 26, 2017 at 1:03 pm

Author:

Categories: Finance News

Tags: ,,,

The Government’s choice to scrap significant proposals to non-domicile rules and inheritance tax changes from the Finance Bill 2017 at such late notice has left many taxpayers in limbo.

That is the view of accounting, tax and advisory practice Blick Rothenberg, which offers its support and sympathy for taxpayers.

General Election

Ahead of the forthcoming General Election, the Government decided to rush through the Finance Bill 2017 in the House of Commons yesterday. As such, there was only time for four hours worth of debate.

In order to pass the Finance Bill in the allotted timeframe, the Government dropped several proposals at the very last moment.

Nimesh Shah, partner at Blick Rothenberg, noted: ‘It is unbelievable that such important provisions have been dropped at the eleventh hour, after the painful amount of work that has gone into the process to finalise the legislation.’[1]

‘It is even more disappointing for those non-domiciled individuals who were readying themselves for the changes and arranging their affairs in the run-up to the end of the [5 April 2017] tax year,’ she continued.[1]

Taxpayers left in limbo after changes to Finance Bill 2017

Taxpayers left in limbo after changes to Finance Bill 2017

Time

Shah feels that the Government should be taking their time with such important legislation changes and suggests that this particular debate should have been left until after the election.

‘To rush it through in this slapdash way before the election is unsettling for taxpayers,’ she observed.[1]

With a second Finance Bill expected to be published after the election, Shah fears that a number of the scrapped changes will be re-introduced and backdated.

Concluding, Shah noted: ‘Non-domiciled individuals will now face a period of limbo, waiting for the outcome of the election and publication of the second Finance Bill. This will be the second time in three years that we will have two Finance Acts in a year, adding to yet more tax legislation.’

‘Moves like this create unstable and complex tax policy, and the government needs to put politics to one side in the interest of certainty for taxpayers.’[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/4/inheritance-tax-changes-to-uk-residential-properties-leave-taxpayers-in-limbo

 

Older property purchasers more deterred by Brexit threat

Published On: April 26, 2017 at 10:02 am

Author:

Categories: Property News

Tags: ,,,

A new survey has revealed that uncertainty surrounding Brexit is impacting more on young home buyers than older ones.

An investigation commissioned by property consultants Cluttons found that 63% of 18-24 year olds has reconsidered buying a home after becoming disillusioned with the economic outlook.

However, the OnePoll survey found that older people were not as deterred, with 82.07% of those aged 55+ saying that Brexit has not impacted on them at all.

Regional Uncertainty

By location, people in Oxford were found to be the most concerned of the impact of a weaker post-Brexit economy, with 80% of people here saying they were reconsidering a property purchase. This is well above the national average of 53.7%.

Those in Yorkshire and Norwich were also found to be wary about purchasing in the midst of Brexit uncertainty. 72.7% and 72.2% respectively in these regions said that they were considering moving house.

Overall, 35% of those asked said they were looking to either move or upgrade their property. 72% of people said that Brexit did not impact on their intention to purchase.

78% of those in the South East said they had not been deterred by purchasing property as a result of Brexit, followed by 77% in the Midlands, 75% in Scotland and 73% in Wales.

Older property purchasers more deterred by Brexit threat

Older property purchasers more deterred by Brexit threat

Chance

The poll also revealed that 29% of the total UK residents surveyed agreed that they found the Brexit decision was a chance to capitalise on an ailing market.

Faisal Durrani, head of research at Cluttons, said: ‘Brexit has undoubtedly fuelled economic anxiety across the country. That said, it is encouraging to note that despite heated discussions in the wake of the Brexit referendum results, it’s clear that home buyers have not been deterred by political events in Westminster.’[1]

[1] http://www.propertywire.com/news/uk/brexit-affected-younger-buyers-uk-majority-not-deterred/

 

 

Lettings Fee Ban Consultation Should be Extended or Suspended, Insists ARLA

Published On: April 26, 2017 at 9:39 am

Author:

Categories: Property News

Tags: ,,,

The lettings fee ban consultation should either be extended or suspended until after 8th June’s General Election, insists ARLA Propertymark.

The organisation believes that the consultation period for the proposed ban on letting agent fees charged to tenants should either be extended or suspended until after the vote.

Lettings Fee Ban Consultation Should be Extended or Suspended, Insists ARLA

Lettings Fee Ban Consultation Should be Extended or Suspended, Insists ARLA

ARLA Propertymark’s Chief Exectuive, David Cox, sent a letter to the Secretary of State for Communities and Local Government , Sajid Javid, yesterday, also requesting that workshops on the lettings fee ban be reintroduced as part of the consultation process.

The full letter is here:

“Dear Secretary of State,

As the UK’s largest professional body for the lettings industry with over 9,000 members, ARLA Propertymark requests that you extend the time limit for the consultation to ban letting agent fees in light of the recently announced General Election.

We were pleased that a key part of this consultation process, as set out by DCLG [the Department for Communities and Local Government], was to engage the sector and host a number of workshops throughout the country to discuss the implementation of the fee ban and proposals in the consultation. This was most welcome, as it would have allowed agents to gain clarity from officials on some of the points raised in the document and share their views on the proposals. However, as it is likely the fee ban will become a manifesto pledge in the coming weeks, and therefore a political issue, this work cannot properly take place during purdah; when civil servants will need to take extra care to remain impartial and objective. General Election guidance also makes clear that statements which refer to future intentions of the Government should not be handled by a Department.

Therefore, ARLA Propertymark asks that the Government either extends the consultation for a further period beyond the election, or suspends it until a new Government is in place.

Either way, we request that the consultation does not close until the now cancelled workshops have taken place; as the Department originally committed to do as part of the consultation process.

I look forward to hearing from you in due course.

Yours sincerely,

David Cox

ARLA Propertymark Chief Executive”

Do you agree with Cox’s calls?

In addition, ARLA Propertymark has recently released its Private Rented Sector report for March: /tenants-lower-rents-lettings-fee-ban/

Tenants Securing Lower Rents Ahead of Lettings Fee Ban

Published On: April 26, 2017 at 9:22 am

Author:

Categories: Landlord News

Tags: ,,,,

Tenants are getting savvier, by securing lower rents ahead of the lettings fee ban, according to a study of letting agents by ARLA Propertymark.

In the March Private Rented Sector report from the organisation, 3.6% of letting agents had seen rents drop, compared with 2.2% in February. There were still increases, however, with 25% of agents reporting that landlords had put their rents up, down from 32% last year.

Tenants Securing Lower Rents Ahead of Lettings Fee Ban

Tenants Securing Lower Rents Ahead of Lettings Fee Ban

Worryingly, however, letting agents also reported an increasing number of landlords selling their rental properties during March. An average of four landlords per letting agent branch had announced plans to sell up last month.

No reason was given for the decision, but it does coincide with the reduction in mortgage interest tax relief and forthcoming letting agent fee ban.

The last time the number of landlords selling their properties rose above three per branch was in November last year, when the fee ban was announced.

David Cox, the Chief Executive of ARLA Propertymark, believes that this shows that tenants are already being affected by the Government’s buy-to-let tax changes.

It is believed that rent prices will go up following the lettings fee ban, as landlords will instead be forced to foot the charges.

Meanwhile, the supply of rental stock remained flat, at an average of 183, but was 8% higher than March 2016.

Letting agents also had a higher number of tenants registered, at 36 per branch, up from 34 in February.

Cox comments on the report: “It’s concerning that, despite supply increasing over last year, stock failed to return to the market after dipping in February.

“When we also consider that this is coupled with a rise in the number of landlords selling their properties, this is bad news for those searching for a rental property.

“The introduction of mortgage interest relief means the market is becoming less and less attractive to investors, and it appears some landlords are, as we predicted, choosing to exit the market rather than pay the higher taxes.”

He continues: “What’s more, two thirds of our members are concerned the Government will introduce even more landlord taxes in 2017, which will only further dampen supply.

“Following the announcement of the ban on letting agent fees, we expect the situation to only get worse for tenants when, inevitably, the costs are passed on to tenants through higher rents.

“However, it’s positive that more tenants are taking action and negotiating rent reductions before the consultation ends and they see their rents increase.”

Have your tenants been requesting lower rents recently?

40% of renters feel the marketplace is ‘ruthless and unethical’

Published On: April 26, 2017 at 9:07 am

Author:

Categories: Property News

Tags: ,,,

A new survey over 2,000 UK adults by online estate agent LetBritain has uncovered the sentiments of those in Britain’s rental market.

According to the data, 40% of UK renters, or 7.21m people, called the marketplace, ‘ruthless and unethical,’ citing unscrupulous letting agents and gazumping as their main irks.

Demand

37% said that the present rental system is unfit for purpose as it cannot meet demand and cannot adapt to the changing speeds in the market. Another 37% said that they have been misled by an estate agent with regards to the competition that they faced from rival renters.

In addition, 38% of UK renters said that they were knowingly advertised properties that were never available, while 31% feel they lost out as their estate agent preferred another tenant.

40% of renters feel the marketplace is 'ruthless and unethical'

40% of renters feel the marketplace is ‘ruthless and unethical’

Given that there are 4.3m rented households across Britain, a large number of tenants are seemingly disillusioned by the process of securing a property through a high street agent.

Fareed Nabir, founder and CEO of LetBritain, noted: ‘Today’s research delivers some revealing insights into the opinions of generation rent. It is obvious that renters up and down the country feel let down by their estate agent – from luring them in with properties that aren’t available to misleading potential tenants about the competition they face, the country’s rental population is suffering at the hands of questionable practices. Clearly a faster, fairer and more transparent system is required to alleviate the time and stress involved in securing a rental property.’[1]

[1] http://www.propertyreporter.co.uk/landlords/uk-renter-sentiment-revealed-in-new-survey.html

 

 

Which Political Party will Mostly Benefit Student Tenants?

Published On: April 26, 2017 at 8:30 am

Author:

Categories: Property News

Tags: ,,,,,

As the UK prepares to go to the polls once again, student tenants and landlords alike will be considering which political party to vote for.

StudentTenant.com has assessed the many morals, manifestos and tactics from the three main political parties to guide those in the student lettings market on who to vote for to get the best deal.

A lot has happened since Britain voted to leave the EU last year: David Cameron has stepped down as Prime Minister; Theresa May has taken over and triggered Article 50; and now Britain is preparing for another General Election.

Since May announced the snap General Election to be held on 8th June, party campaigners have been fighting for votes. But finding the right party to benefit student tenants and the future of the private rental sector can be confusing.

Last year, 18-24-year-olds overwhelmingly voted to remain in the EU (71%), but many things have changed since then.

Who should student tenants and their landlords vote for? StudentTenant has investigated the pledges of the top three political parties:

Labour

Private rental sector reform:

  • Reduce rents and increase security for tenants renting from private landlords.
  • Regulate the rental sector to stop substandard accommodation and unfair charges from lettings.
Which Political Party will Mostly Benefit Student Tenants?

Which Political Party will Mostly Benefit Student Tenants?

University tuition fees:

  • Last year, Jeremy Corbyn campaigned to abolish tuition fees by raising £10 billion in taxes from businesses and high earners.
  • 7% rise in National Insurance for those earning over £50,000.
  • 5% increase in Corporation Tax.

There has been no mention of tuition fees by Labour for the upcoming General Election.

Post-Brexit economy and business:

  • Long-term investment in the workplace – creating a high wage, highly skilled workforce to increase productivity and create more job opportunities for young people.

Conservative 

Private rental sector reform:

  • Encourage housing associations and local authorities to increase the supply of rental properties.
  • Attract investors into residential development, including homes for rent.

University tuition fees:

  • Previously raised the tuition fees to £9,000 under the coalition government and has recently increased by a further £250 without an announcement from the Department of Education.

Post-Brexit economy and business:

  • Investment into smaller businesses and enterprises, to create 1.9m new job opportunities for young people.
  • Cut Corporation Tax to help companies invest internally and grow, to create more job opportunities.

Liberal Democrats

Private rental sector reform:

University tuition fees:

  • Last year, the Liberal Democrats announced that they would force a vote by MPs in a bid to stop raising the current £9,000 limit.

There has been no mention of tuition fees by the Liberal Democrats for the upcoming General Election.

Post-Brexit economy and business:

  • Build a sustainable economy for the future by supporting small businesses and new business models.

Danielle Cullen, the Managing Director of StudentTenant, comments: “Educating young people about the upcoming General Election and what each political party is offering them is incredibly important to the future of Britain. We’re edging ever closer towards Brexit, and young people must make an informed decision on who they should vote for, and actually make the effort to go out and put a cross in the box.

“Looking into specific housing, university and post-Brexit economy pledges from political parties, it’s clear that some parties are much more beneficial to the student demographic than others. However, it is also important to think about life beyond university, and the job market for young people and housing issues for young professionals. If we can help some people in more than just finding a student property by actually helping them shape their future, I will be pleased.”

She continues: “A lot is changing in the student sector, particularly in the private housing market, with the announcement that the Government is planning to abolish letting agency fees. It’s encouraging to see that the Government is finally putting in place structured policies to help the rental market, but it’s so important to understand more about the logistics of how this will affect young individuals.

“The current Tory plans leave an area of uncertainty in who is going to foot the bill. Property specialists are predicting that landlords will seek to recoup the costs from rising rents, eventually absorbing the agency costs. We could see some landlords quit the rental market when faced with absorbing these extra costs which could be problematic for the student rental market in particular.”