Leading industry figures and organisations are asking landlords and letting agents to sign a parliamentary petition calling for the Section 24 tax changes for buy-to-let landlords to be scrapped.
The petition was started by Simon Foster who is a landlord from the Midlands. The petition calls for the Government to allow landlords to fully offset their mortgage interest costs against their tax. Announced by George Osborne in 2015, full tax relief has been replaced by a basic rate reduction of 20% from their income tax liability for their finance costs.
Foster’s petition has been signed by over 17,000 people so far. The Government must respond to all petitions which have gained more than 10,000 signatures. The next target for the petition is to reach 100,000 signatures which will trigger a debate by MPs.
Foster says “We want the Government to reinstate the ability of landlords to set the full amount of mortgage interest against rental income, before tax is calculated.”
“Like many self-employed business people I am a small, well-established private landlord that is now struggling to make any money from letting properties.”
“Unless the ability to offset mortgage interest against rental income is reinstated I will like many be forced to sell my properties. This could reduce the number of properties available on the private rental market.”
Leading letting agent and former Propertymark President Maxine Fothergill recommends that landlords and letting agents sign the petition as the Section 24 taxation of buy to let landlords is both unfair and causing a shortage of rented property.
Fothergill says “Landlord and agents, are all painfully aware of the effect Section 24 has had on the buy-to-let market which in many cases, has reduced stock as many landlords have been selling up as it has become less viable to stay in the sector.”
“With a serious housing shortage, we can’t afford to lose any more rental housing stock and we need the Government to sit up and listen to our sector to stop this daily erosion.”