RLA : RPI : Stamping on landlords

News from the Residential Property Investor, the bi-monthly magazine for RLA members

other artilces from the December 1999 / January 2000 issue

Stamping on landlords - December 1999 / January 2000

The additional amounts involved may not be huge. But imposition of increased stamp duty on rental agreements is yet another example of Government disregard for the private landlord and lack of sympathy for the residential letting market.

Increasing the fixed duty on stamping of duplicate and counterpart agreements from 50p to £5 is no more or less than a tax on landlords that can have little justification a payment for the pleasure of being able to uphold an agreement.

The increases in duty and change of rules have implications equally as bad for tenants as for landlords.

It is not unknown for landlords to pay the full stamp duty on the main copy of rental agreements, but it is in fact the tenant's responsibility to have that agreement stamped. Failing to do so means the agreement will not be recognised by the courts and will also bring penalties and interest. This is hardly helpful to tenants who are unlikely to be legally advised and may not necessarily know about their responsibilities until too late.

Neither does it encourage tenants to regard rental agreements as the formal and binding commitment they in fact should be. Indeed one of the consequences may be that formal tenancy agreements become less common.

Meanwhile tenants may well want to accept shorter tenancies so as to restrict their liability to stamp duty.

All in all the changes are an unjust imposition on both landlords and tenants that yet again increases costs in the private rental market and distorts and hinders its efficient working.

other artilces from the December 1999 / January 2000 issue