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Mr. Miyagi

Mps Pocket Rents From Homes Paid For By Taxpayer

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MPs may be making thousands of pounds a month renting out London properties renovated at taxpayers' expense, The Daily Telegraph can disclose.

Chris Bryant, a shadow justice minister, has rented out his mansion flat in Bloomsbury

They are letting their second homes and so will not be caught by new rules introduced in the wake of the expenses scandal. In some cases MPs are moving into rented properties while letting out the flats the taxpayer has already funded.

The "property merry go-round" is thought to be costing the Exchequer millions of pounds a year as MPs move into properties within miles of houses that they own and have already been largely funded by the state.

The disclosure is expected to lead to calls for greater transparency in the expenses system to allow the public to see for which property their MP is claiming expenses.

It may also lead to pressure on Parliamentary watchdogs to allow MPs to claim mortgage interest for properties they already own, if the taxpayer can receive a share of the profits from selling the flat or house.

Labour and Tory MPs have moved into new properties after the Commons authorities announced that they would block future claims for mortgage costs and claw back a proportion of the profits made on subsidised properties.

MPs can claim for rental costs on new London homes.

Chris Bryant, a shadow justice minister, has rented out his mansion flat in Bloomsbury. The Rhondda MP claimed £4,000 for stamp duty and £881 for legal costs on the flat when he bought it for £495,000 in 2005. He has since claimed for the mortgage costs and the service charge of up to £1,400 every six months.

Peter Luff, a junior defence minister, has also recently rented out a flat in London.

The Conservative MP Philip Hollobone has rented out his house in Blackheath. The Kettering MP bought the Georgian house in 1998 for £385,000 and has claimed up to £1,829 a month to cover the interest on the mortgage. The house is now worth around £1.1 million.

The Labour MP Clive Betts has also rented out his Westminster flat. As well as £1,000 a month for the mortgage, the Labour MP for Sheffield South East claimed £1,268 for carpets, £570 for a sofa bed and £689 for a television. A bed cost £1,135, a wardrobe was £725, while a dishwasher cost £308.

Andrew Love, the Labour MP for Edmonton, which is 10 miles from the Commons, has rented out his Westminster flat. MPs with constituencies near Westminster can no longer claim for a second home.

He claimed £929 for a television, £2,895 for decorating and £3,500 in legal and property costs on the flat. Bolton North East MP David Crausby and Sheffield Healey's Meg Munn, have also started renting their flats, as has the Scottish Nationalist Angus Robertson.

Mr Robertson said he was not making a profit from renting out his flat. "The rental income covers mortgage repayments and costs," he said.

The other MPs declined to comment.

Despite a fall in property prices, there is a high level of demand for rental properties in the London at the moment.

A quarter of tenancies in the capital are going to sealed bids, according to letting agents Ludlow Thompson, making it a good time for MPs to rent out their homes.

Last year MPs were banned from claiming more than £1,250 a month to cover mortgage interest costs. However, claiming mortgage costs will be barred completely from August 2012.

MPs who continue claiming mortgage interest costs until 2012 will have to repay a portion of the increased value of their properties to the House of Commons authorities.

If an MP's flat was valued at £500,000 in May 2010 and the MP continued to claim 50 per cent of the mortgage costs until 2012, the House of Commons would be entitled to half the increase in value of the flat over that period.

If the value of the property increased to £520,000, the MP would have to pay the parliamentary authorities £10,000.

If MPs rent a new property, they can claim £17,600 a year to cover the rental costs

telegraph link

edit for link

Edited by Mr. Miyagi

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If MPs rent a new property, they can claim £17,600 a year to cover the rental costs

At London prices, I guess that's something fairly modest these days.

How does it compare to housing benefit for daily-wail fat-cats and their parasitic landlords?

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  • 238 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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