Sources claim that the private property owners will soon be forced to increase their rent if they buy properties to let. The pledge stakes are converted to non-tax deductible in the UK's by the PRS. It has been hinted that if the changes in taxes are made, then the PRS could increase to a whopping £2.6 billion. This warning has been given by The National Landlords Association (NLA).
A letter was written to the Chancellor before Wednesday’s Budget Meeting. In this letter, the Chief executive of the National Landlords Association (NLA), Mr. Richard Lambert, said that if the mortgage payments were made based on interest, non-tax deductible the outcome would be devastating. He further stated that this should not be allowed, as it will put extreme pressure on the cost of residential housing. He also commented with resolve, that this action would be the last thing needed by the UK economy.
The letter dictates the efforts and contributions made by the property owners for the UK economy. These were in the form of revenue enhancement payments and also by supporting the housing industry.
Lambert stated that there have been a lot of suggestions which indicates that private property owners receive a lot of benefits which gives them a biased advantage as compared to the tenants. He indicated that this neglectsthe point, allowing personal residences to be used by others for earning,is a business.
No business pays tax on gross turnover, so why should landlords be treated any differently? In the end Mr. Richard Lambert concluded that he is looking for reassurance from the Government, that it will allow the purchase of propertiesto let mortgage interest payments be recognized as an official business cost. This decision will give the private property owners the confidence to invest more in the future.