Landlords welcome tax incentives for long-term tenancies
The government is considering introducing tax incentives for landlords who offer longer tenancies, as part of a new consultation.
The Ministry of Housing, Communities and Local Government has launched a consultation on implementing a three-year tenancy model.
This is intended to support the increasing number of private tenants seeking long-term security, as more families and older people plan to stay in privately rented property.
The report put forward a number of options, including introducing a financial incentive for landlords in the form of tax relief or cash payments.
The Residential Landlords Association (RLA) says this would encourage 63% of landlords to offer a longer tenancy.
David Smith, policy director for the RLA, said:
“With landlords having faced a barrage of tax increases we believe that smart taxation, such as that being proposed, would provide the longer-term homes to rent many families and older people want.”
According to the government report, 41% of privately renting households in England do not expect to move into home ownership, and 38% have dependent children.
Other proposals for implementing the longer tenancy model included enforcing it through legislation or introducing it as a default option.
However, the RLA warned against making three-year tenancies a statutory requirement, arguing that many tenants require the flexibility of shorter-term arrangements.
For further information on tax incentives for long-term tenancies, please contact Arthur Bell on 023 8046 1258.