Chancellor considers applying national insurance to rental income, according to reports
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Is there a way to avoid this being directly passed on to tenants?
Not in the way proposed. Pretty much garrenteed to pass on to renters.
Only way I think it would be possible. Would be some form of progressive income tax based on number of properties owned.
But even then it will be complicated. All landlords would register the property as owned by an LTD.
On the whole their really is no way to prevent any tax getting passed on to customers. Without also controlling prices. And that will lead to reduction in the number of folks renting property.
Real Social housing investment is the only solution. Creating actual lower priced compition to the private market.
Exactly why Thatchers gov argued to destroy it. She openly opposed what she called unfair competition to private rentals.
The current market is exactly what the Tories wanted.
Probably not. Same way that increasing employers NI contributions will have led to slower wage growth (its too early to tell for sure I think)
About time, should have done this before the winter fuel allowance fiasco.
Awesome, just in time for my renewal. I wonder how my landlord will phrase the increase this time… “Hi, your tenancy renewal is due. Unfortunately I need to increase the rent a little bit” I reckon.
So… Reeves thinks taxing landlords using NI will make them sell up and release properties into the market which will drive down prices. What is more likely to happen though is that taxing landlords more = landlords immediately charge more rent = fewer people rent = more people buy houses = increased demand drives house prices up = landlords charge even more rent as their property is worth more now = landlords make more money than ever and renters get unbelievably screwed in a rental market that was already bleeding them dry. Reeves makes £2Bn though, so what’s a few more homeless families eh?
