The report suggests that policy should concentrate on helping good landlords of all sizes to expand their portfolio.
Key points:
• The Review highlights that landlords are generally in a good financial situation. A majority have low loan-to-value ratios and many landlords have unmortgaged properties.
• The Review suggests welcome changes to stamp duty and Capital Gains Tax to encourage portfolio development.
• The Review also calls for changes to the tax regime that should be framed to encourage landlords to view their letting activity as a business rather than as an investment activity.
• We agree that managing agents and letting agents should be subject to mandatory regulation to ensure better quality management.
• This Review, if implemented, will help encourage good landlords to expand their portfolios and move into the business of letting fulltime. It will also help corporate landlords to increase their lettings and attract higher levels of institutional investment.
• A nationally administered permit or licence for all landlords would be required on a payment of a small fee. While we welcome this approach in principle, we await more details on implementation and practicalities.
Keshav Thukaram, Managing Director, Smartlandlord.co.uk, comments:
“The Rugg Review offers a lot of clarity on the composition and challenges of the PRS. It also highlights responsibility that lies with the government, local authorities, managing agents, letting agents and landlords to make this sector a successful and sustainable for the longer term.”
“It encourages and provides commitment for smaller landlords with incentives to make lettings a proper business venture rather than an alternate investment to pensions etc.”
“The light touch landlord permits/licensing needs to be carefully devised and should not deter landlords from expanding their portfolio.”
A full Smartlandlord.co.uk response to the Rugg Review will follow in due course.
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For more information please contact:
Smartlandlord.co.uk
Tijiani “TJ” Musa
020 7553 5901
tijiani.musa@
Julia Surry
020 7553 5909
julia.surry@
