Prime Minister Sir Keir Starmer has redefined ‘working people’, excluding those earning from assets and property.
- Landlords worry about potential income tax hikes after Starmer’s recent comments at the Commonwealth leaders’ summit.
- Over a third of landlords plan to sell due to anticipated tax rises, shrinking the rental market.
- Official data contradicts the PM’s stance, showing a significant percentage of landlords are actively working or retired, relying on rental income.
- The focus remains on the critical shortage of rental homes as demand continues to rise.
Prime Minister Sir Keir Starmer, in a recent statement at the Commonwealth leaders’ summit in Samoa, created waves by offering a new definition of ‘working people’, effectively excluding individuals who derive their income from assets and property. Starmer articulated that a working person is one who ‘goes out and earns their living usually paid in a monthly cheque’, unintentionally sparking debates on the inclusivity of this definition.
In the wake of Starmer’s comments, the prospect of impending income tax rises for landlords looms. Bea Montoya, Chief Operating Officer of Simply Business, expressed concern over the lack of reassurance against such hikes, pointing out that over a third of landlords are already contemplating selling their properties. This potential exodus could result in the disappearance of up to five million rental homes from an already constrained market, with 43% of those selling indicating tax increases as the decisive factor.
Moreover, Ben Beadle, Chief Executive of the National Residential Landlords Association, challenged the Prime Minister’s remarks. According to Beadle, the assumption that landlords are not working individuals is incorrect. Official statistics indicate that 30% of landlords hold full-time employment, an additional 10% are part-timers, 28% are self-employed, and a significant 35% are retirees relying heavily on rental income for their financial stability. Beadle urged the government to address the real issue at hand: the acute shortage of rental properties available to meet the surging demand.
The government’s policies must address the growing demand for rental properties amidst looming tax concerns.
