SO shortly after bringing in clause 24 that sees Landlords being taxed on money they borrow as well as losing wear and tear allowance, the Conservatives hike Stamp Duty for second homes to 3%.
The Conservatives tell the Bank of England to get on the case and increase multiples and make it harder for Landlords to borrow. The lapdog duly does as directed and multiple go up to 135% or more.
And while other property owners get a reduction in capital gains tax to 20%, Landlords are held up at 28% by themselves.
Then yesterday I read on Property 118 that the Conservatives are pushing through that Landlords will be taxed on property sales as though it was income. Here comes 40% tax very quickly if they ever sell.
This is ethnic cleansing of landlords. People who had worked hard to build up a rental or two are now being eradicated by increasingly high taxes – not to mention crippling regulation. May I add, regulation that rogue landlords continue to ignore but honest landlords now have to pay for.
I see a short term benefit in grabbing lots more tax, but what happens when the landlords go out of business or bankrupt? And this will happen, you cannot ethnic cleanse 2million landlords and hope that there is no fall out.
There will be 2million more people needing Government hand outs or assistance when they face financial ruin. That’s the landlords.
What about the private tenants who will no longer have anywhere to live? It will be hotel and B&B accommodation for them and soaring costs for Councils, so more cost being passed on via taxes. For many of the evicted tenants it will be living on the street.
And then there is the construction industry. Now there is no reason for landlords to buy homes to rent out, expect a slump there. Construction is a driving force of the economy.
And more homes will come on to the market for sale. Everyone will see prices stay static but the poor will not be able to buy these homes anymore than they can at the moment. Especially with it being harder to secure lending.
Theresa May has a chance to put things right and reverse these unfair laws, this ethnic cleansing, before it is too late. If she doesn’t then the UK’s housing crisis will be made immeasurably worse. It doesn’t take a rocket scientist, just someone with their eyes open to see that.
The Property Insurer