A North East property company is leading the region’s charge against the socalled ‘Tenant Tax’ which many predict will put intolerable new financial burdens on the property rental sector.
Walton Robinson, one of the region’s leading letting/estate agents and buytolet specialists, is urging landlords, tenants and fellow property companies across the North East to challenge the impending Section 24 of the Finance Act 2015.
The now infamous Section 24 will significantly increase the tax burden on residential landlords and rental prices are expected to rise as a result. Many landlords are predicted to sell their stock, shrinking the buytolet market, decreasing the provision of affordable rental accommodation and leading to increased levels of homelessness.
Walton Robinson, which works with over 10,000 landlords and tenants each year, has also made a significant financial contribution to a crowdfunding campaign to force a Judicial Review of Section 24, with Cherie Booth QC leading the legal efforts, in the hope it will result in its abolition.
Leading property commentators nationally have condemned Section 24, with one branding it “a new benchmark in absurdity,” but the new tax regime will be introduced next year unless it is successfully challenged.
Mark Walton, managing director of Newcastle based Walton Robinson, urged individuals and businesses to make a stand against the ‘Tenant Tax’.
“If Section 24 does come into force, the financial pressure it will put on landlords and tenants will be intolerable for many,” he said.
“Landlords will be significantly disadvantaged under the new tax regime compared to owner-occupiers, which will cause many to sell, and the provision of muchneeded rental accommodation will decrease further. For those who do retain their stock, tenants will see their rents rise as landlords struggle to recover their margins, which will price many out of once-affordable accommodation.
“This is a nightmare for the whole sector, including businesses like ours, who will undoubtedly suffer too. I would urge everyone to get behind challenging Section 24 before it is too late.”
To support the challenge against Section 24:
- Lobby your local MP at www.nlalobby.co.uk
- Donate to the crowdfunding campaign at https://www.crowdpac.co.uk/campaigns/36/axethe-tenanttax
- Spread the word and speak to your landlord or letting agent if you have any concerns