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Fighting MIR Together

Help us to up the ante on our #FightingMIRChanges campaign and halt the government's proposed plans for the reduction in Mortgage Interest Relief.

We need your help in warning MP's of the dire impact of these changes on the private rented sector. Please urge them to warn the Treasury of this impending catastrophe, this 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.

Our Latest Research Findings

Our Research Lab, PEARL has been undertaking research to collect evidence on the impact of these tax changes. Our latest research findings show that:

  • The changes to Stamp Duty Land Tax with the 3% levy is putting of further investment into the private rented sector by private landlords. This is despite the need for an additional 1.8 million homes to rent to meet demand according to RICS.
  • 70% of landlords will be negatively affected, and 62% reported that the tax changes would reduce their profitability by at least 20%
  • To mitigate the changes, 67% of landlords reported that they would have to increase the rents. This is consistent with previous research from academics Imperial College London that shows that rents would have to increase by 20-30% to offset any negative impact
  • Landlord confidence in the sector is decreasing, and more landlords plan on selling properties in the next 12 months than those that plan to buy
  • 31% of landlords that have increased the rents in the past 12 months reported it was due to the changes to Mortgage Interest Relief

Find the full research report on our PEARL website here: https://research.rla.org.uk/report/impact-taxation-reform-private-landlords/

The RLA Fight

The RLA realises that the Government is not going to reverse the proposals completely. We are now campaigning for the MIR changes to be applied to new property borrowing only, a move that will minimise the impact of these changes on established landlords and businesses. But we have not given up on the fight against MIR changes.

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. We are having a number of successes with a number of peers and MP's vocally supporting our campaign.

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:

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We won't stop fighting these changes. Act now, together with the RLA to #FightingMIRChanges.