HOUSING ACT DELAY COULD COST LANDLORDS MILLIONS

The Government's schedule, announced yesterday, for the introduction of the new Housing Act could create a tax loophole and cost private sector landlords millions of pounds.

"We hope this is an oversight but it's a serious concern and we are obviously seeking urgent clarification - says the leading Residential Landlords Association.

The problem surrounds the 25% capital tax relief that will be attracted for work already started, as opposed to 100% revenue relief, as a result of a delay in implementing the Act.

The Government announced yesterday that the new health and safety rating system and licensing scheme for houses in multiple occupation will now come into force in April 2006 in order to create more time for local authorities and landlords to discuss the new measures.

But, "many landlords have already started to upgrade their properties, before the Act is implemented, to comply with new fire safety legislation," says Chris Town, chairman of the Residential Landlords Association whose members own over 100,000 private rented properties throughout the UK. "As a result it would appear they might now lose the benefit of the 100% revenue relief.

"The problem lies in the various fire safety improvements required by the Housing Act - which local authorities are insisting are completed as soon as possible. Until this announcement they would have been classed as an immediate legal requirement and, as such, qualify for the special allowance of 100% revenue relief.

"But, with a delay in implementation, this drops to 25% capital relief. This would create a massive acceleration of tax revenue to the Treasury and take landlords four years to get their money back."

The Residential Landlords Association (tel: 0845 666 5000) is a leading national organisation for professional landlords, residential property investors and self-managers - with members owning over 100,000 properties in the UK private rented sector. The range of members' services - on www.rla.org.uk - includes legal advice, insurance, financial services, credit referencing and training. For tenants there is www.tenantdocs.co.uk - where tips include a free download of the RLA's award-winning Plain English tenancy agreement. The RLA operates a web-based property search on www.homes2rent.net and publishes the bi-monthly Residential Property Investor magazine.

For further press information and interviews please contact

Brian Johnson at Powell Communications - tel: 0161 834 9836, fax: 0161 839 2660; brian.johnson@powell-pr.co.uk