The National Residential Landlords Association is calling on the Chancellor to scrap the three per cent stamp duty levy on the purchase of homes to rent where landlords invest in properties that add to the net supply of housing.
This would include developing new housing, converting large properties into affordable units, changing the use of a property from commercial to residential or bringing one of the almost 650,000 empty homes in England back into use.
The NRLA call - as part of its wish-list ahead of next month’s Budget - comes as the Royal Institution of Chartered Surveyors warns of rising rents because of higher demand for properties, whilst new instructions from landlords continue to “dwindle.”
And this follows Rightmove’s revelation in a recent report that outside London asking rents increased in the fourth quarter of 2020 for the first time in nine years - the portal warns that in the suburbs, towns and villages, rental supply is lower than normal for this time of year, whilst demand is higher.
NRLA chief executive Ben Beadle 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.”