Give good landlords tax breaks, says new report
Extra tax breaks should be offered to landlords who sign up for a national accreditation scheme to raise standards in the private rented sector, according to a new report.
The report, from the Chartered Institute of Housing (CIH) and the Resolution Foundation (RF), says that targeted incentives for landlords would encourage them to improve the maintenance and management of their properties, offering a ‘something for something’ deal. Private landlords currently receive around £7bn of tax allowances a year, including for repairs and maintenance, but there is no incentive to carry out work above the minimum standard – and that standard is not being enforced effectively.
The report, entitled “More than a roof: how incentives can improve standards in the private rented sector”, suggests that financial incentives could either take the form of new additional funds for those who sign up for accreditation, or diverting more of the existing allowance to those who do.
But it also warns that more effective regulation is needed to tackle the most unscrupulous landlords – and to ban letting agents from charging tenants fees.
Current government policy is mostly focused on improving standards by encouraging greater competition in the sector, while Labour policy is mostly focused on greater regulation. But CIH and RF said a combined ‘carrot and stick’ approach would be more effective.
The report recommends:
• Creating a single, easily understood set of minimum standards (covering both property conditions and housing management) for landlords and making sure that sufficient resources are made available for enforcement
• Extending the regulation covering estate agents to letting agents and stopping letting agents charging tenants fees for their services
• Considering the use of incentives by the government to encourage landlords to commit to higher standards (over and above the legal minimum)
• Developing a nationally agreed set of standards for accreditation (covering both property conditions and housing management)
• Creating a single, easily understood set of minimum standards (covering both property conditions and housing management) for landlords and making sure that sufficient resources are made available for enforcement
• Extending the regulation covering estate agents to letting agents and stopping letting agents charging tenants fees for their services
• Considering the use of incentives by the government to encourage landlords to commit to higher standards (over and above the legal minimum)
• Developing a nationally agreed set of standards for accreditation (covering both property conditions and housing management)
http://www.landlordtoday.co.uk/news_features/Give-good-landlords-tax-breaks-says-new-report
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