As proposed changes to the tax system look set to have repercussions on landlords with empty homes, Belvoir Sheffield leading letting agent in Sheffield has hit out at the plans to end council tax discount.
Under the new plans outlined by Eric Pickles, the Local Government Secretary, the council tax relief given to landlords during void periods would be scrapped, which often allows landlords to finance repairs and refurbish to stand a better chance of finding a tenant.
Commons Liberal Democrat MP Stephen Gilbert also suggested that authorities should be given the power to limit the number of holiday properties in their area.
Rick Flay, Director at Belvoir Sheffield, who offer a wide range of property to rent in Sheffield, said: “tax relief allows landlords to make improvements that would otherwise not be possible in the privaterented sector. It is imperative that empty homes are rented out fast as the property shortage in the UK continues to grow, but this should not be at the expense of the residential landlord.
“Landlords are often keen to implement new ‘green’ initiatives during these periods and council tax relief also makes this possible.”
Speaking earlier this week, David Salusbury, The National Landlords Association (NLA) chairman said: “Landlords are always keen to ensure that their properties are tenanted, but they must not penalised during periods that allow them to maintain, repair and improve their properties.”
Rick added: “The Government seem to penalise landlords in many cases and it is a baffling concept. Surely at times when there is a property shortage, the Government should be encouraging new landlords to the market and looking afterthose already there.”
In recent years landlords have felt that they are penalised in various capacities, especially when it comes to tenancy deposit schemes. All landlords operating an assured shorthold tenancy have to sign up to this and it obligates them to place tenant deposits in one of three schemes approved by the government within 14 days of receipt. If they fail to do this, the courts can order a fine ofthree times the deposit amount to be paid to the tenant by the landlord as apenalty.
Rick continued: “Many landlords have felt that with schemes such as this, the tenantis protected leaving the onus on them to prove that the property has suffered damage, with many landlords failing to make a successful claim. These latest plans are another bitter blow for the residential landlord and the Government needs to offer its support in the midst of the housing crisis.”
Belvoir Lettings Agency in Sheffield is the One Stop Specialists for Lettings including Property Management, Tenant Find, Investment and Wealth Management Advice, Fit-outs and Renovations, Furniture Packs and Investment Property Insurances and Mortgages.
