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.”
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So SDLT is preventing new accommodation coming onto the rental market; extra costs like EICRs & reduced tax breaks are encouraging LLs to exit the market - you just wait until the EPC C regs hit - we will be running for the exit leaving hordes of homeless tenants behind us! This Govt is destroying the PRS without putting any extra social housing in place. Its a disaster slowing unfolding before our very eyes!
Oh so true. In the time I have been a Landlord (over 20 Years) there has been no encouragement but just more and more regulations and costs. Some regulations are good where they are for safety but the latest EPC consultation is a joke and discriminatory against LLs. I for one will be exiting and taking my profit with me.
Most of my properties would struggle to get to a C rating, in fact one is still a low F , which I have an exemption on, I'm going to wait and see, I'll be 72 in 2025 so that might be the time to cash my chips in, most of my properties were bought in the 90s for peanuts, maybe I'll just keep 2 or 3 of the them and blow the rest away in the auction room .
Pleased to see the NRLA picking up the tax environment for landlords and the effect on renters - hurt landlords and you hurt tenants
As in any business it's the end user that pays every time, increase our costs and we either increase the rents or we sell the properties.
Why on earth do NRLA think the Government should give incentives to convert Commercial properties to Residential are they all loosing the plot, far too much of this has gone on already collapsing the Housing market and doing away with jobs, where do they think people are going to get work, far better to campaign to scrap the practice altogether. Will everyone be at Home playing with their Computers thinking its work, really they are only doing what poorly paid Office Clerks used to do in the 60's & 70's, now that they want everything done in a different format to render half the Country use less, just like me who was able to do everything for 40 years, survive 5 Recessions and now put in a position that I have been successfully De-Educated, congratulations keep on with your nonsense you know it all.
politicians are wedded to poking their noses in and never learn--thats why they are pols
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