Landlords claim tax increase will affect tenants

PROPERTY landlords claim tenants will be left with a sub-standard service after tax increases being imposed by the UK and Scottish governments take effect.

The Scottish Association of Landlords (SAL) said the measures by Holyrood and Westminster administrations threaten to increase costs, making it easier for irresponsible landlords to provide sub-standard housing.

They claim it also threatens housing supply for those who believe renting is the most suitable option for them.

SAL and the Residential Landlords Association (RLA) south of the Border, have launched a joint campaign to convince Chancellor Philip Hammond to reverse or amend tax changes in his Autumn Statement.

It comes as new figures revealed that in Scotland and Wales average new lets are down on a year ago.

The average monthly rent in July north of the Border was £689, down from £696 in July 2015, according to the lettings arm of Countrywide.

John Blackwood, chief executive of SAL said: “With tax and legal changes being implemented at Westminster and Holyrood, there has never been a more important time for landlords to join trade bodies such as SAL.

“We need the data and information about the terrible effects these tax changes will have if we are to convince the UK Chancellor and Scottish Finance Minister to alter course.”

The changes include the phasing in of mortgage interest relief at the basic rate of income tax; income tax for some landlords will be calculated on the landlord’s income, not their profit; the 28 per cent rate of Capital Gains Tax will be cut to 20 per cent among other changes.