Tenant urges Government to U-turn on tax changes
Wednesday 01 March 2017
A tenant in Hull is calling on the Government to drop new tax rules for landlords which he fears will see people forced out and made homeless as rents are increased.
Dad Michael Sansam told the Hull Daily Mail he preferred to rent rather than attempting to buy, and has rented from David Idoine for seven years.
He described Mr Idoine as 'a landlord that does care and spends money on his houses', but added: “If the Government goes through with this, they would be the ones making people homeless by forcing landlords to sell their houses.”
Mr Idoine warned the tax changes could force him to put up rents by 78 per cent by 2020 in an attempt to recoup his losses.
Under the new regime, landlords will no longer be entitled to claim 100 per cent tax relief on their mortgage interest payments. By 2020, only a 20 per cent relief against mortgage interests will apply.
Landlords with multiple properties and whose profits are eroded may have to either increase rents or sell their homes – leaving tenants in difficulties.
The proposed 78 per cent rent rise would push up Mr Sansam's £110 a week rent by £85, he told the Hull newspaper, with the monthly sum increasing from £433 to £845 in just three years.
“There is no way I could pay that amount of money for my house,” said Mr Sansam.
Mr Iodine, who owns 165 properties in Hull, said the new tax rules would make being a landlord unprofitable.
The Humber Landlords Association (HLA) says its 300 members, who own 35,000 homes in the area, are being punished by rules designed by ex-Chancellor George Osborne to resolve the housing crisis in the south of the country.
Danny Gough, chairman of the HLA, warned that being a landlord in the area would become 'unaffordable'.
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