A Solution To The AirBnb Problem? Reduce Tax Burdens For Landlords
In a move to address the impact of short-term lets on communities, National Residential Landlords Association (NRLA) chief executive Ben Beadle highlights the potential solution of reversing recent tax penalties imposed on buy-to-let landlords. This proposition comes as Housing Secretary Michael Gove empowers councils to regulate short-term lets through planning consent, aiming to provide better control and understanding of their impact on communities.
The new mandatory national register is set to offer local authorities crucial information on short-term lets in their respective areas. According to the government, this register will assist councils in comprehending the extent of short-term lets, their effects on communities, and ensuring compliance with health and safety regulations.
Under the proposed changes, existing homeowners will receive retrospective planning consent, allowing them to continue letting their main or sole home without planning consent for up to 90 nights annually. However, Beadle advocates for an additional approach to address the supply-demand balance in the rental market.
Beadle emphasizes, “The best way to control holiday lets is to reverse the damaging mortgage interest relief changes introduced back in 2015.” He argues that these tax changes have shifted the attractiveness of renting properties toward the holiday letting market, negatively impacting the availability of rental properties for families in the private sector. The NRLA has been actively campaigning for amendments to these rules to alleviate the supply crisis in the private rented sector.
The NRLA's push for changes in holiday let regulations aligns with the goal of promoting a fair and balanced approach to taxation for both holiday lets and privately rented homes in these areas.
As discussions around reversing tax penalties gain momentum, Lyss Homes stands ready to keep the community informed and provide expert guidance. Our team is committed to navigating the evolving real estate landscape to ensure that homeowners and landlords in Leytonstone and neighboring areas have access to the most up-to-date and relevant information.
In East London, this issue holds particular relevance. In recent times, we've witnessed a notable increase in landlords selling their investment portfolios or exploring short-term letting for their properties. Many have turned to us with inquiries about Airbnb management, recognizing the potential for lucrative returns. While this surge in short-term lets may seem like a positive trend, it is contributing to a concerning ripple effect in the rental market.
The consequence? More families are facing challenges in finding suitable long-term homes. As properties shift towards the allure of short-term letting, the available housing stock for families dwindles, subsequently intensifying the already competitive rental landscape.
On the surface, rising rents may appear as a sign of a thriving market, but the reality is more complex. The surge in short lets, coupled with the overall increase in property demand, is pushing rental prices to higher levels. This trend, while initially sounding promising, poses a considerable financial strain on tenants.
In the current economic climate, where the cost of living is a prevalent concern, escalating rents can translate into heightened financial stress for tenants. We recognise the broader implications of this trend and we are committed to addressing the evolving needs of both landlords and tenants in Leytonstone and surrounding areas.
While we don't offer Airbnb management services, we understand the importance of maintaining a balanced and sustainable rental market. Our focus remains on fostering a rental environment that accommodates the diverse needs of families, individuals, and landlords alike.
For expert guidance on navigating these challenges or exploring alternative solutions, feel free to reach out to Lyss Homes. We are here to facilitate a conversation about the evolving dynamics of the rental market and ensure that the interests of both landlords and tenants are carefully considered.
Want to sell or let your property ?
We are estate agents and letting agents in Leytonstone, E11 and we are specialists in the East London property market. Request a free valuation and one of our experts will get in touch with you to discuss how we can help you
