The threat of higher taxes and more red tape for the private rental sector led a landlord to evict his 90 year old tenant.
The Daily Telegraph reports that Alan Shields, who is now 75, entered the buy to let market in 2002 when bought a bungalow outright for £164,000, investing a further £20,000 in renovations.
After years of reliable rental payments but little upkeep from the tenant, Shields issued a Section 21 eviction notice. According to the Telegraph, Shields cited concerns over Labour’s commitment to abolish Section 21 as the key factor behind his decision.
“We looked at what Michael Gove was proposing when he was Secretary of State for Levelling Up, Housing and Communities, but we thought we would wait and see what happens with the election. However, the elimination of Section 21 worried us the most.”
Shields was also concerned at growing speculation – ahead of the late October Budget – of possible new taxes levied on landlords.
He continues: “Speculation varied, but some expected capital gains tax rates to go as high as 45%. Although Rachel Reeves didn’t ultimately raise the tax on rental properties in the October Budget, the uncertainty made it feel not worth the effort anymore.”
Shields and his wife assisted the tenant find appropriate alternative accommodation close by.
In the same story Ben Beadle, chief executive of the National Residential Landlords Association, says: “Right across the country, it is tenants who are suffering as landlords decide to sell up. No amount of changing the rules about when landlords can sell will address the chronic shortage of homes to meet demand.”
This article is taken from Landlord Today