More red tape for buy-to-let landlords, warns RICS

More red tape for buy-to-let landlords, warns RICS




Plans to boost the growth of small businesses were confirmed yesterday in The Queen 's Speech, but RICS has warned of the extra red tape in store for buy-to-let landlords....

Plans to boost the growth of small businesses were confirmed yesterday in The Queen 's Speech, but RICS has warned of the extra red tape in store for buy-to-let landlords.

One of the bills, announced yesterday morning, is set to benefit over one million employers nationwide, by capping employer contributions to £2,000, saving small and medium sized businesses a total of £1.3 billion.

The Queen immediately set the tone for her annual speech, by reiterating the Government’s “first priority” is to ensure Britain’s economic recovery.

Ed Milliband, Leader of the Labour party, said: “[The] Queen's Speech should respond to the deep problems the country faces. On the evidence so far, it is not up to the scale of the task."

Under The Queen’s proposals, businesses will be able to employ an additional worker on a salary of up to £22,400, or four employees working full time on the adult minimum wage, without paying any additional National Insurance.

It is hoped that the plans will tackle the ongoing issue of employers using offshore patrol companies, whilst also helping to tackle employers would abuse the NIC system.

The Queen also told MPs and peers that a deregulation bill will be introduced, in order to alleviate the burden of legislative restrictions on growing businesses.

Ministers have claimed the bill will reduce excessive and unnecessary regulations, including dormant legislation, which many believe currently shackles the growth of key grass roots businesses. For example, legislation such as the health and safety laws, which will now be exempt to self-employed people whose work activities pose no risk of harm to others.

The Government said it expected 450,000 businesses – representing one third of firms - to be taken out of employers National Insurance altogether.

The speech also outlined the Government’s commitment to helping first time buyers, by showing support for the Budget’s ‘Help to Buy’ shared equity scheme.

The £3.5 billion investment is open to all those who aspire to own a new build home, whilst also supporting those with small deposits in gaining better access to mortgages.

Controversially however, The Queen announced plans to tighten the immigration system, which many believe could have a detrimental effect upon the housing market.

On the matter of the immigration reform, Stephen Thornton, Director of External Affairs of The Royal Institute of Chartered Surveyors, said: “Government’s proposals to introduce a duty on all landlords to ensure that their tenants are in the UK legally will impose more red tape on all landlords, particularly the growing number of ‘amateur’ buy-to-let landlords.

“The Government has stubbornly refused to look at introducing better laws to protect both landlords and tenants – it is unacceptable that it expects the property industry to deliver its immigration policy.”

The Queen told the house that the immigration bill will aim to "ensure that this country attracts people who will contribute and deter those who will not".

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