Wales

What’s the biggest challenge facing the Welsh PRS? Gordon Fox of PKF Francis Clark shares his view

Gordon Fox
Written by Gordon Fox

This week the RLA is hosting it’s Future Renting Wales conference, and each day leading up to the conference we will be sharing an opinion piece from one of the keynote speakers, on what they think is the biggest challenge facing the Private Rented Sector in Wales at the moment.

Today is the turn of Gordon Fox, of accountancy firm PKF Francis Clark. Here, he shares what, in his view, is the biggest challenge impacting the private rented sector at the moment:

The private rental sector has more than doubled in size in the past 15 years, accounting for almost one-fifth of all dwellings, showing its growing importance to the UK housing mix.

It provides an alternative to ownership for those who cannot afford to buy, or whom prefer not to buy.

The government has recently changed the tax treatment of landlords in several ways, including imposing a surcharge on Stamp Duty Land Tax for landlords, removing the wear and tear allowance, and reducing the amount of mortgage interest eligible for tax relief.

The latter change is forecasted to make 440,000 of Britain’s landlords higher rate income tax payers.

The new tax treatments are significant challenges to landlords, damaging their returns and creating disincentives to invest in the sector.

They hit some categories of small landlord particularly hard and inevitably will drive them out of the sector, while others will try to pass the costs on to their tenants, stretching household budgets and putting homeownership further out of reach”.

The Future Renting Wales conference will run from 9:00am to 4:45pm on the 30th of november 2017. There are still a handful of tickets left so be sure to grab yours if you havent already! We look forward to seeing you.

About the author

Gordon Fox

Gordon Fox

Gordon started his professional tax career over 30 years ago with the Inland Revenue and then after several years in a smaller private practice, followed by several further years with a leading international practice, he joined Francis Clark's tax advisory service in 1992 and has greatly assisted its tremendous subsequent growth.

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