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Stormy
weather ahead for Landlords in June Budget __________________________________ 20th
June 2010 Summary:
The new UK coalition government's budget takes place on
the 22nd June and its outcome could mean a lot of job losses and problems for
landlord with tenant's ability to pay rent. Owners
of investment properties could suffer in a number of ways in the Budget on Tuesday.
The prospect of higher capital gains tax on second homes and rental properties
is one concern and the NLA - National Landlords Association has been running a
campaign asking members to write to their local MP objecting to this. Naturally
if there is an increase probably a high percentage of landlords will retain their
properties as investment landlords should be in the business as a long time prospect
and CGT levels of course go down in the future. VAT
levels could increase which means
that the costs of repairs, letting and inventory agents fees, the renewal of equipment
and putting in a new bathroom or kitchen will be higher as rental income is exempt
under VAT regulations in the UK. Finally
there is the knock on effect from job losses as a result of the budget. A major
concern for landlords has been rising unemployment and the tenants having problem
being able to pay their rent. Many
landlords have been taking out Rent Guarantee Insurance. Rent Guarantee Insurance
will protect the landlord in the event that their tenant fails to pay the rent.
As a tax deductible premium this will guarantee the property owner receives the
rental income they are expecting from the property regardless of the tenants personal
circumstances, ability or willingness to pay the rent. If
a tenant falls behind on their rental payments it could have serious financial
implications for the landlord especially if they have mortgage commitments or
are depending on the income as part of a their retirement pension. Insurance policies
will usually guarantee the rental for a fixed period, typically 6 or 12 months.
Some policies will provide additional cover once the landlord has obtained vacant
possession until they are able to re-let your policy. Naturally anyone considering
buying one must check with the individual insurance provider for the precise terms
and conditions. Philip
Suter who runs the www.jml-property-insurance.co.uk property insurance advertising
website said " We advertise several Landlord insurance companies who offer Rent
guarantee insurance products - HomeLet,
Letsure,
Endsleigh,
Rentguard
and Simple.
We
have set up a specialist page on the site for landlords as more and more landlords
are concerned about their tenants being able to pay. "If
the effect of the budget is going to cause higher unemployment, even in the short
term then property owners need to protect themselves. As we have been saying for
the past couple of years is insurance is one essential you can't afford to be
without today and rental guarantee insurance is now vitally important." More
information can be found at http://www.jml-property-insurance.co.uk/landlords_Rent_Guarantee_insurance.htm Ends... Company
Information jml
property-insurance.co.uk is part of jml
Property Services, the trading name of Jeffrey
Milner Ltd. The company is an UK based company
that was established in 1979. jml insurance acts as a promoter for insurance companies
selling property insurance including landlord and tenant rental products, pet
insurance, wedding insurance, motor insurance, car hire excess insurance )via
insurance4carrental.com
) travel insurance and non standard insurance products.
They also operate jmlvillas.com
an online low cost villa advertising service marketing service for owners of holiday
home property to advertise and are part of the jml
Group that includes jml
Training and Consultancy. ©
jml Property Services June 2010 
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