New Chancellor Phillip Hammond has been urged by an industry trade group to reset the government’s approach to taxing the buy to let sector.
His predecessor George Osborne introduced a raft of controversial tax changes for the sector – notably a three per cent stamp duty surcharge on the purchase of buy to let properties, the phased reduction of mortgage interest tax relief, and changes to the Wear and Tear Allowance – and now the Residential Landlords Association wants a rethink.
The RLA says that these measures are forcing some landlords to sell up and are stifling investment by others, making it more difficult for many people to find suitable housing and will push up rents for those in rented accommodation.
“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” says Alan Ward, chairman of the Residential Landlords Association.
“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.”
The RLA represents 40,000 private sector residential landlords in England and Wales.