Scottish Association of Landlords backs Finance Bill change

by: Edward Murray
  • 05/09/2016
  • 0
Scottish Association of Landlords backs Finance Bill change
The Scottish Association of Landlords (SAL) has put its weight behind an amendment to the Finance Bill, proposed by Roger Mullin MP, calling for the government to review the impact of changes to Mortgage Interest Relief (MIR) on the availability of affordable housing.

The new clause to the Finance Bill will be debated at Westminster during the Report Stage of the Finance Bill this afternoon.

Changes to MIR will see landlords taxed on their turnover rather than profit and SAL is concerned this could push many landlords into a higher income tax bracket despite their income not having increased.

The association believes this could reduce the willingness of landlords to upgrade properties or invest in new homes. It also fears the tax could push some landlords’ businesses into bankruptcy; reducing the number of rental properties available and putting upward pressure on rents.

John Blackwood, chief executive of SAL, said: “The changes to MIR are yet another attack on responsible landlords who provide essential housing across the UK.  The changes will mean landlords are taxed on their turnover, unlike every other business in the country which is taxed on profit. This will likely force a large number of landlords to sell, reducing much needed housing supply.”

He added: “The result will be increased costs for landlords and either a reduction in investment, an increase in rents or both. All of this at a time when governments in both London and Edinburgh acknowledge the vital role the PRS has in tackling the current housing crisis. We will work with our members to try and ensure vulnerable people do not suffer. Increased costs will inevitably impact most on those who cannot afford to see bills increase, potentially driving them in to the arms of rogue or criminal landlords who do not meet legal standards on safety or tenant security.”

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