info@sccci.co.uk   01270 504 700   Help
Sign Up SCCCI Portal helps you connect with your local business community.

Landlords welcome tax incentives for long-term tenancies

The government is considering introducing tax incentives for landlords who offer longer tenancies, as part of a new property consultation.


The Ministry of Housing, Communities and Local Government has launched a consultation on implementing a 3-year tenancy model to support the increasing number of private tenants seeking long-term security.


The report puts forward a number of options, including introducing a financial incentive for landlords in the form of tax relief or cash payments. Many of these changes will require the guidance of experienced property accountants to achieve the best returns on property investments.


The Residential Landlords Association (RLA) says this would encourage 63% of landlords to offer a longer tenancy.


David Smith, policy director for the RLA, said:


"With landlords having faced a barrage of tax increases we believe that smart taxation, such as that being proposed today, would provide the longer-term homes to rent many families and older people want."


According to the government report, 41% of privately renting households in England do not expect to move into home ownership, and 38% have dependent children.


However, the RLA warned against making 3-year tenancies a statutory requirement, arguing that many tenants require the flexibility of shorter-term arrangements.  If you would like to discuss your property portfolio with one of our experienced property accountants advisors, please contact Kate.Quirk@affordbond.com 


Remember you can also subscribe to our newsletter by selecting the SUBSCRIBE button on our Homepage at www.affordbond.com