Landlords have called on the Chancellor to remove the 3% additional stamp duty they pay on property purchases in his next budget due on March 3rd or risk a supply crisis in the rental housing market.
The National Residential Landlords Association (NRLA) is calling on the Chancellor to scrap the duty on the purchase of homes to rent where landlords invest in properties that add to the net supply of housing.
This would include new homes, converting large properties into affordable units, changing the use of a property from commercial to residential or bringing empty homes back into use.
Citing Rightmove and RICS figures, the NRLA says the market is already showing signs or rising rents and supply dwindling.
Ben Beadle, Chief Executive of the NRLA, says: “To have a tax on developing new housing is completely nonsensical at a time when more is needed.
“Supporting growth in the private rental market, alongside all other housing types, would provide a significant boost to the economy in the midst of the COVID-19 pandemic.
“Research published last year suggests that landlords inject over £3.5 billion into local businesses across the UK.”
Level playing field
Beadle (pictured) also wants a level tax level playing field between traditional landlords and Airbnb operators who, once the mortgage interest relief is finally abolished this year, will have a tax advantage over their longer-term renting counterparts.
“To be taxing long term homes to rent less favourably than holiday lets is simply bizarre. It completely undermines efforts by the Government to encourage the provision of long term, secure housing,” he says.
“It is time for the Government to realise that its tax policies have created a shortage of rented housing. This can only mean higher rents and reduced choice for renters. This is not going to do much for the levelling up agenda.”