These disturbing figures prove recent tax-cut isn’t all it pretends to be

Credit: Howard Lake

(Acclaimed News) Shocking figures were released yesterday regarding the number of MPs that hold landlord status in the UK. It has come to light that 20% of all MPs own rental properties compared to just 3% of people across the population as a whole.

You may recall that during his budget speech, George Osborne said:

“The better off the landlord, the more tax relief they get. All this has contributed to the rapid growth in buy-to-let properties, which now account for over 15% of new mortgages, something the Bank of England warned us last week could pose a risk to our financial stability.”

But looking at the bigger picture this will actually have a detrimental impact on tenants as the they are now likely to see widespread rent increases as a result, as landlords will be ‘justified’ in raising rent to recoup their losses.

Statistics released by Generation Rent reveal that 126 MPs are landlords, and out of that number a massive 70% represent the Conservative Party.

Out of that 126, 52 of their number own multiple rental accommodations, although the amount of money these homes bring in and the size of their properties are unrecorded. The MP that is reported to be the richest in the UK, Richard Benyon (who also represents the Conservative Party), owns a number of properties (although the exact figure is unclear) across the counties of Berkshire and Hampshire as well as in the London Borough of Hackney. He also owns family estates in Hackney and in Berkshire, namely a 20,000 acre stately home called Englefield Estate and his London home, Benyon Estate.

Although the Benyon family (who are worth around £110 million) were originally going to invest in a redevelopment plan for a council estate in Hoxton, they were eventually persuaded to withdraw from the scheme when a group of working class mothers who faced eviction from their homes opposed the scheme.

Despite the fact that the Conservative Party have cut the maximum amount of benefits that a London household can receive to £23,000, he recoups around £49,000 annually through housing benefits paid to his business.

The Tory MP Kevin Hollinrake, representing Thirsk and Malton, owns a third share in 12 homes in the York area and has commented on Twitter that the amount of rent charged by private landlords should not be controlled as it would prevent landlords investing and reduce the number of available properties. Around 5.1 million people in the UK are currently private tenants.

Sources:

http://www.cityam.com/219724/buy-let-landlords-hit-george-osborne-restricts-mortgage-tax-relief

http://www.morningstaronline.co.uk/a-abb5-One-fifth-of-MPs-are-private-landlords#.VZ7h6_lVhBc

http://www.theguardian.com/uk-news/2015/jul/08/osborne-buy-to-let-tax-relief-limit-budget