Stamp Duty and EPCs unpopular with landlords
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The latest findings from research agency BDRC’s quarterly survey of 500 private landlords shows that Stamp Duty and Energy Performance Certificates are the two least popular pieces of legislations with landlords.
The survey asked what legislation landlords would like to see removed if they could influence the government. The overwhelming front runners were Stamp Duty and EPC with nearly one in four choosing SDLT and one in five EPCs.
Mark Long, director at BDRC, says: “It may not be a surprise that Stamp Duty is so unpopular with Britain’s private landlords. It’s likely to become even more disliked when the ‘holiday’ for properties under £175,000 comes to an end in January 2010.”
Looking in more detail at the responses, there are some significant differences around the least popular legislation depending on landlords’ portfolio size. With only 8% mentioning it, Stamp Duty is less of an issue for professional landlords, (those with 20 or more properties.
And while 7% of private landlords would like to see Stamp Duty removed, this proportion reaches 13% when it comes to landlords with one property.
EPCs, which are required by law whenever a property is rented to a new tenant and has applied to the majority of landlords since October 2008, are equally unpopular with all private landlords - regardless of portfolio size.
A typical Energy Performance Certificate costs £100 to purchase and in theory, is valid for 10 years. However, legislation dictates that if an existing Energy Performance Certificate is more than a year old when the property is put back on the market, then a new one is required. As many landlords struggle to maintain profitability, the research reveals that this additional cost is clearly perceived as an unnecessary burden.
Long adds: “Stamp Duty and EPC’s lack of popularity come from their ubiquity and their thinly veiled revenue-raising by HM Revenue and Customs. Throughout 2008 and 2009 our quarterly research with Britain’s private landlords has reported the challenges they have been facing, and the important service they provide, particularly with such a profound shortage of affordable housing in parts of the country.
“These two pieces of legislation affect all landlords looking to maintain their incomes - and in difficult economic times like these, landlords are clearly questioning their purpose and whether they receive any value from them.”
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