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Senior Labour MP suggests Tax Breaks for offering Longer Tenancies

Dr Tom Simcock
Written by Dr Tom Simcock

A senior Labour MP has suggested the Government could offer tax deductions to landlords who provide longer tenancies.

During oral questions to Ministers at the Treasury on Tuesday 29th November, Meg Hillier MP (Labour, Hackney South and Shoreditch – Chair of the Public Accounts Committee) told the House:

“More people in my constituency rent privately than own their own homes and for most of them ownership is a distant or impossible dream. Are the Government considering looking at the supply of private rented housing on longer tenures, perhaps with rent guarantees, and possibly using tax reliefs or other mechanisms the Treasury has in its armoury, to encourage landlords to provide those longer-term tenancies and better security for the many private rented sector tenants?”

The Chief Secretary to the Treasury, David Gauke MP, responded without committing to looking into this:

“The Government are taking action to ensure that we build more homes. There is a need for flexibility in terms of tenure…but last week’s autumn statement included a series of measures that will help to ensure that we are building more homes in this country, which is what we need.”

Landlords what are your views on tax breaks for longer tenancies? Would you support measures for longer tenancies if the government did a u-turn on Section 24?

Please let us know your thoughts in the comments section below or on our Member’s Forum.

 

About the author

Dr Tom Simcock

Dr Tom Simcock

Tom is the Senior Researcher for the RLA and leads the RLA’s research lab; the Private renting Evidence, Analysis and Research Lab (PEARL). His expertise lies in researching change in society, public policy and quantitative and qualitative research methodologies. Tom’s research on housing has received national media coverage, featuring on the front page of The Times, has influenced government policy making, and has been cited in debates in the House of Commons, House of Lords and by the London Mayor.

5 Comments

  • I’d be up for it if it got rid of the ludicrous S24. But Gauke is so wedded to this lunacy (he doesn’t seem to understand the PRS at all) that they won’t even consider it.

  • I’d be interested given two things – instant repossession from tenants who damage the property and instant repossession for rent default.

  • Yes if council GUARANTEES the rent and deals with all insurance, property repair and maintenance and housing benefit issues and hands the property back at the end of the agreed term in good condition.
    Yes if tenants who are destructive, don’t pay or carry on illicit dealings or cause a nuisance to neighbours (noise, smells, rubbish, abuse etc) can be evicted immediately. (How about a ‘tenant licensing scheme’ as a corollary to the landlord licensing schemes being introduced around the country?)
    Yes so long as there is a 100% irreversible legal position that tenants will never acquire the right to buy a privately rented home.

  • I would like to see periods of probation and maybe also elements of a commercial lease such as the landlords right repossess if they were redeveloping the site or using it for themselves.

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