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Press comment: Covid-19 housing measures the right move from the industry

19/03/2020

If you are covering the announcement that banks and building societies will extend the option of a three month mortgage holiday to residential landlords, and implement a moratorium on repossessions of mortgaged properties for both owner occupiers and buy-to-let property owners, please see the following commentary from Rachael Griffin, tax and financial planning expert at Quilter:

"The package of measures that have been announced by banks, building societies and government in relation to people who have a mortgage are the right moves from both legislators and the private sector. The announcement from UK Finance and the Building Societies Association (BSA) will also extend the mortgage holiday to buy-to-let mortgages, which will be relief for those landlords that simply can’t afford to lose payments from their renters. This is a difficult time for all and the housing industry is pulling together to help people get through it with a roof over their head.

"Additionally it is very encouraging that banks have opted to suspend repossessions for three months. All the these measures should give homeowners, renters and landlords the breathing space they need to get through the pandemic.

"However, the government should also turn its eye to a variety of tax changes coming in April, which could add fuel to the fire particularly for one man band landlords who have already seen their ability to earn money massively curbed. The Residential Landlords Association and the National Landlords Association are calling for rules to be delayed in order to support landlords, with the final stage of the restriction on mortgage interest relief currently due to be implemented in April. These measures will make it significantly more difficult for one man band landlords and delaying this change would give them much needed breathing space and in turn reduce the impact on the tenants that occupy their properties.

"Many professional landlords will have taken advantage of setting up a limited company so they pay business taxes rather than suffer the tightened buy to let tax rules which have plagued individual landlords over the past few years. Under the package of measures announced yesterday landlords who have opted to create a limited company could be in a better place to manage a cashflow shortfall as small businesses will be offered government loans under their coronavirus emergency measures, but individual landlords will not get access to this cheap financing.

"Landlords will also find that from April they will be subject to changes to the rules around Capital Gains Tax (CGT) payable on the sale of a property. This will affect the CGT relief they can claim under private residence relief, although it seems unlikely many people will be expecting to sell during the current uncertainty so this should not be of immediate concern." 

For more information contact

Alex Berry023 8072 626007741 151931alex.berry@quilter.com
Michael Glenister020 7778 963807469 144535michael.glenister@quilterinvestors.com

Notes to Editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £110.4 billion in customer investments (as at 31 December 2019).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes Old Mutual Wealth UK platform and Quilter International, including AAM Advisory in Singapore.

The Old Mutual Wealth Heritage life assurance business was acquired by ReAssure Group Plc on 2 January 2020.

Since its IPO in June 2018, Quilter plc’s businesses have progressively rebranded to Quilter, as follows: 

  • Quilter Financial Planning (previously Intrinsic)
  • Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
  • Quilter Financial Advisers (previously Charles Derby Group)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Wealth Solutions in 2020)
  • Quilter International (previously Old Mutual International)

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.

Disclaimer

This announcement may contain certain forward-looking statements with respect to certain Quilter plc’s plans and its current goals and expectations relating to its future financial condition, performance and results. 

By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond Quilter plc’s control including amongst other things, international and global economic and business conditions, market related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing and impact of other uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation and other regulations in the jurisdictions in which Quilter plc and its affiliates operate. As a result, Quilter plc’s actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in Quilter plc’s forward looking statements.

Quilter plc undertakes no obligation to update the forward-looking statements contained in this announcement or any other forward-looking statements it may make.

Nothing in this announcement should be construed as a profit forecast.