Budget 2016 - final countdown to contact your MP!
Help us to up the ante on our #FightingMIRChanges campaign and halt Chancellor George Osborne's proposed plans for the reduction in Mortgage Interest Relief.
We need you to help us get your MPs to warn the Treasury of the consequences of the MIR changes, changes that will impact tenants as well as landlords.
Our key concerns
More Landlords will be affected by the changes than the Treasury has predicted. In a survey of almost 1,200 landlords, of those currently paying the basic rate of income tax, over 60% said that the changes would push them into a higher rate of tax despite their income not having increased. Some will find they are renting at a loss, pushing them to leave the market, reducing supply.
As a result of changes to mortgage interest relief, because tax will now be applied to turnover rather than profit, many landlords on the basic rate of income tax will find themselves pushed into a higher rate of income tax despite their income not having increased.
This will deter landlords from investing in the new homes that are desperately needed to meet rising demand, further reducing supply.
The measures will discriminate against UK based landlords in favour of overseas landlords to whom the tax measures will not apply.
There will be an increase in rents due to the extra costs and shortage of properties.
Research by Savills suggests that the UK will need one million new homes to rent by 2021. We are passionate that small landlords are just as vital to the supply of new homes as institutional and corporate investors.
It is ultimately tenants who will suffer as they face increased difficulty in obtaining decent and affordable housing.
What we are asking for
The RLA realises that the Chancellor is not going to reverse the proposals completely. We are now campaigning the MIR changes to be applied to new borrowing only, a move that will minimise the impact of these changes on established landlords and businesses.
What we need from you
Cherie Blair's law firm Omina Strategy is acting on behalf of a group of landlords opposing clause 24 - on human rights and tax law grounds.
The RLA is an interested party, but after seeking our own legal advice last year we were warned there was little chance of success if we pursued a Judicial Review. As a result of this we are taking the political route and lobbying for changes to the legislation.
Your voice can make a difference, which is why we need you to speak to your MP about how you will be affected by the changes. Act now:
We won't stop after this budget - we still have the autumn budget before the first phase of the changes is introduced in April 2017. Act now, together with the RLA to #FightingMIRChanges.