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Give the rental sector a (tax) break agency tells government
The Haart agency is calling on the government to give the private rental sector a break in the autumn Budget, as figures show falling numbers of investors entering the market.
Various factors, including additional taxation on buy to let homes and continued speculation that house prices are set to fall are thought to be deterring many potential landlords from investing in property, claims Haart.
Figures from the Royal Institution of Chartered Surveyors last month showed a decline in the number of new homes to rent coming onto the market and this was mirrored in Haart’s own figures. These recorded that the number of new landlords registering to buy in August was down 2.9 per cent on a monthly basis and 28.4 per cent annually.
The agent now wants the government to remove the additional three per cent stamp duty charge on second and buy to let homes, introduced back in 2016, before it puts further pressure on the availability of rental properties.
Haart would also like to see a reversal of tax relief changes which are currently being phased in and which will see mortgage interest tax relief replaced by a tax credit limited to the basic rate of tax.
Paul Sloan, development director for the agency, says: “We are continuing to see buy to let purchasers fall on the year. The additional tax burden which has been placed on the sector has certainly been a setback and we would urge the Chancellor to remove this in the Budget.
“Landlords have in the past been a popular target for taxation, but the reality is that more and more people need rental properties to live in – and investors are needed to provide them.
“The continued media commentary on the effect that the UK’s departure from the EU might have on the housing market is also unhelpful, especially given that it is largely sensational speculation not based on fact.
“The facts are that property ownership is unsuitable or unaffordable for many and there is insufficient availability of social housing, making privately rented property an accessible and affordable option that is increasingly in demand. With a decline in new rental properties coming onto the market and tenant demand continuing to rise, rents are predicted to rise further than house prices – meaning that buy to let remains a worthwhile investment.”
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Original Source: Letting Agent Today.
Original Author: Graham Norwood.
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