The new Chancellor Philip Hammond should “change the Government’s attitude to the Private Rented Sector (PRS) to prevent the UK housing crisis spiralling out of control”, that’s the call from Alan Ward, Chairman of the Residential Landlords Association, following the Government minister’s reshuffle.

According to the RLA, George Osborne has been imposing “punitive tax rises” since 2015 on the PRS, claiming that private landlords are preventing first time buyers getting onto the property ladder.

A report from The London School of Economics appears to back the RLA’s assertion that this is not the case, arguing that only a minority of sales to landlords involve bids from both types of buyer.

George Osborne’s clampdown came despite independent predictions that one million new homes to rent will be needed over the next five years and the Treasury Select Committee warning that: “addressing the “home ownership crisis” must not come at the expense of a shortage of homes to rent.”

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The RLA is therefore calling on the new Chancellor, Philip Hammond MP, to reassess previous thinking and change course, recognising that forcing some landlords to sell up and stifling investment by others will only make it more difficult for so called “generation rent”.  Many thousands of people need to find suitable housing and the RLA’s argument is that current policy will simply push up rents for those in rented accommodation.

Alan Ward, Chairman of the RLA says:

“Access to decent, affordable homes to rent is vital to supporting a flexible labour market, and ensuring that young people and families have a place to live.

“Whatever the new Government does to support home ownership, demand will continue to increase for homes to rent.

“The new Chancellor has an important opportunity to reverse recent punitive tax changes and support the majority of landlords who are providing good housing to their tenants to invest in the new homes we need.”

2 COMMENTS

  1. The government encouraged many to take money out of their pensions to invest themselves…. in such as buy to let and is now RETROSPECTIVELY changing the BTL tax rules. so that MANY thousands of BTL landlords with existing mortgages, put their savings in BTL and will be paying tax EVEN when their BTL\’s are BREAK EVEN or loosing money,. and now house prices are collapsing ( the governments intention !!!), and they will loose their equity and have little pension left. This is gross !!… a big vote looser , and deserves press coverage. The TAX should not apply to EXISTING mortgages .. its not the Fair Britain that Teresa May campaigned on.

    New BTL investors will now simply purchase property now through a company , so it will not affect new BTL purchases MUCH in the long run, BUT .its trapped existing BTL landlords who cant make the switch to a company without incurring capital gains tax, stamp duty, legal and lending fees, reducing their available deposit for a new mortgage so they are unlikely qualify for due to new lending criteria, so they will come out of the rental sector. The extra stamp duty on investment property was more than enough to reduce completion for home buyers, without pulling any other big levers to effect the market. Now that we have Brexit uncertainty its time to undo proposed extra taxation of BTL

    Being a landlord is a genuine active business, and this is now the only business where you cant offset all your costs of interest !… The end game will eventually to remove the 20 % tax credit, in the same way that mortgage tax relief on your main home was removed many years’ ago !

    Renewed pressure need to be put on the NEW government Now, before the Autumn Budget. These huge tax changes were brought in without consultation. The consequences are severe.

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