Friday, 11 December 2015

Half the truth = a complete lie

From City AM:

Research conducted for the Residential Landlords Association (RLA) has also shown that each tenancy in the private sector nets the Treasury in the region of £1,000. Buy-to-let, far from enjoying a privileged status within the housing market, is a net contributor to the government’s coffers.

Yes, I have also calculated this figure as best I could and private landlords appear to be paying about £5 billion a year in income tax and other bits and pieces, = 5 million rented homes x £1,000 each.

That's half the truth. And a complete lie...

The bit he doesn't mention is that private landlords collect £9 or £10 billion in Housing Benefit every year, which is a drain on 'the government's coffers'.

Net the two figures off, and overall we see that private landlords are a drain on 'the government's coffers' of £4 or £5 billion a year.

That's the whole truth.


mombers said...

" The tax changes introduced by the government, however, will only drive up rents as landlords, many of whom do not make a profit on their properties, seek to recoup the extra costs"
FFS, if they are making losses anyway, why haven't they put up their rents?
"The Institute for Fiscal Studies agrees, as do countless landlords who have said so in survey after survey by the RLA."
Would love to see the actual statement from the IFS - who have published a paper on how business rates cannot be passed on in the long run.

Mark Wadsworth said...

M, the IFS said, quite correctly, that the tax take from a rented home is about £1,000 a year higher than from an owner-occupied one.

The IFS never said anything as stupid as 'landlords will pass on higher tax or costs as higher rents' that is just homey propaganda bollocks.

Ben Jamin' said...

@ M

"FFS, if they are making losses anyway, why haven't they put up their rents?"


As Robin Smith would say, it's because they are in deep denial.

Once they admit they cannot pass on increases in costs, then that leads to thorny questions about what is it what they do that means they can't.

After all, everyone else does.

They keep the lid on that particular can of worms. Even if it means lying to themselves.