Buy-to-let landlords avoided a further tax clampdown in the Budget yesterday, while the Chancellor Philip Hammond revealed government plans to review whether landlords should be offered ‘incentives’ to offer tenants longer tenancy agreements.
The government wants to offer greater support to those who rent, as the number of people who do not own their own home continues to grow.
Tim Walford-Fitzgerald, private client tax partner at the chartered accountants HW Fisher & Company, commented: “Buy-to-let landlords could be forgiven for pinching themselves. For once they’ve not been the whipping boys of a Budget.”
But while some buy-to-let investors are supportive of longer-term tenancies, many are disappointed that the Chancellor failed to address calls for tax incentives for landlords.
Perks could have included clawing back tax relief that is currently being phased out of mortgage interest tax relief for buy-to-let.
David Smith, of the Residential Landlords Association, commented: “The Budget could have acted on proposals to provide tax relief for landlords prepared to do offer longer tenancies and taking action against mortgage lenders who block them being granted.
“Instead we have yet another consultation adding to the 15 already ongoing which relate to the private rented sector. Tenants cannot live in consultations.”
Jeremy Leaf, a north London estate agent, welcomed the government’s decision not to increase the rate of tax on buy-to-let investors.
“This would have had a detrimental effect on the supply of affordable property to rent as investors have been in retreat for some time,” he said.