Government policies are discriminating against UK based investment in the housing market by making it easier for foreign investors to purchase properties.
This allegation has been made by the Residential Landlords Association (RLA) in its submission to the Treasury ahead of the budget in March.
In the Autumn Statement it was announced that a 3 percentage point levy would be added to Stamp Duty for the purchase of buy-to-let property, except where 15 or more properties are being purchased at once. As the vast majority of investment in UK rental housing has been made by small landlords owning just a handful of properties to rent, this measure discriminates against them in favour of larger investors, many of whom are likely to be from overseas.
The RLA is calling for all new build properties contributing to a net increase in the housing stock to be exempt from the stamp duty levy. A survey of more than 1,100 landlords by the RLA found that 30% would be more likely to buy new properties if this were the case.
With the Office for Budget Responsibility uncertain about the likely impact of the Stamp Duty changes, the RLA is calling for the Government to give more time to consider the implications of the policy given the potential ramifications on housing supply and rent levels. Ministers have indicated that the policy will be implemented from 1 April despite the consultation having not yet been concluded.
RLA chairman Alan Ward said: “It is astonishing that a Conservative chancellor is leaving the way open for foreign investors and cutting opportunities for individual UK landlords. This additional assault on private landlords coming on top of changes to the taxation of rental income will only lead to reduced supply and higher rents
“The chancellor’s planned changes to Stamp Duty came as a bolt out of the blue. Regardless of the Government’s plans for home ownership, demand for rented housing is only set to increase.
“The Government needs to understand that not everyone will be able to afford to buy a house or indeed want to, even if more houses are built. Its whole policy towards the private rented sector needs to change. If it does not, it will only make the housing crisis worse.”
The RLA is also taking advice over whether the Government’s changes to mortgage interest relief, announced in the 2015 Summer Budget, are a breach of the Human Rights Act and European Union Law on free movement of capital.
Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.
.jpeg)
.jpg)
%20(002).png)
.png)
Join the conversation
Jump to latest comment and add your reply
Osbourne is not a "Conservative Chancellor" he is a Gordon Brown clone, trying to position himself as "Prime Minister in waiting". This is all to do with his personal agenda, he believes that Conservative voters will always vote Conservative (how wrong can you be) and that all he has to do to become Prime Minister is appeal more to voters from the left. What price loyalty?
The government's announced changes to mortgage interest relief taxation are unfair, unlawful and will increase the average rents more than anyone would have predicted. Many landlords resist rent increases for their tenants, but I for one am now having to go through all my rent levels (many have not been increased in 6 years) with an eye to making them economically viable in the future. Therefore all my rents will be increasing this year and I am certain that this has not been factored in by the government, who did not consult anyone about these unlawful changes.
You are lucky that you can increase your rents, as where I am I will just have to absorb the extra costs.
Rents in my area haven't increased to any extent in over 20 years.
I am certain that if I attempt to recover the costs from raising them then many of my long-term tenants will leave.
I will be doing the same. Luckily, as a London landlord, I am in a position to do so. Those who are not will simply start saving on maintenance which will ultimately lead to a deterioration of the remaining rental stock.
Osborne would be wise to stay out of things he clearly knows nothing about. He's not helping here.
Those that can pay will stay those that cant need to replaced withthose that can. Alternatively the Landlord will be replaced - your choice.
Any other business is permitted to offset gross costs against their gross profits - landlords are being treated differently to any other business in this respect and therefore this is discrimination against landlords and is wrong morally commercially and is illogical unless one accepts it is also discriminatory.
Please login to comment