A campaign group is urging letting agents to join with landlords in lobbying MP over the government’s change to buy to let investors’ mortgage interest tax relief.
The change - phased in between next spring and April 2020 - affects UK resident individuals that let residential properties in the UK or overseas, non-UK resident individuals that let residential properties in the UK, individuals who let residential properties in partnership, and trustees or beneficiaries of trusts liable for income tax on property profits.
Landlords will be able to deduct 75 per cent of finance costs from rental income in 2017/18 and use a 25 per cent basic rate tax reduction. This becomes 50 per cent finance costs deduction and 50 per cent of basic rate tax reduction in 2018/19 before moving to 25 per cent and 75 per cent in 2019/20 before reaching no deduction of finance costs and 100 per cent basic rate tax reduction in 2020/21.
Now two landlords campaigning against the change have met housing minister Gavin Barwell - in a wide-ranging meeting reported here - and say the next phase of their campaign is to get like-minded opponents of the tax change to lobby their own MPs.
“Consider going with one or two others – a fellow landlord, letting agent or a tenant who can talk about how rent rises will impact their ability to get on the property ladder or the fact that if they do not aspire to this, that they are happy renting, always see themselves doing this and want affordable and good quality accommodation like you provide” suggests the landlords.
The pair are also preparing a presentation - which will shortly be available on the Residential Landlords’ Association website - which individuals can use to help lobby MPs if they wish.
You can see the landlords’ full feedback on the Barwell meeting here.