The Chancellor has rendered hundreds of lettings businesses unviable overnight as a result of his Budget tax clampdown.
That’s the view of the Short Term Accommodation Association, a fledgling trade body for the short lets sector.
It warns that the changes to the tax treatment for furnished holiday lets announced by Hunt earlier this month will force the closure of hundreds of businesses around the UK.
Chief executive Andy Fenner says: “Plans to change the tax treatment for furnished holiday lets have sent shockwaves through the industry and are likely to force the closure of hundreds of small businesses.
“Now the dust has settled on the announcement, it’s no exaggeration to say that there is real fear out there.
“We urge the Government to reconsider before irreversible changes are inflicted on a sector that has been hit by so much already. From planning reform, to licensing and registration schemes, the disruption and extra cost pressure the industry has already been asked to endure has felt endless.
“Against this backdrop of near-constant uncertainty, the latest proposals are a step too far.
“Some of these businesses will be single properties, others portfolios that support dozens of jobs. Many of them will be small businesses that have been built up over decades, sometimes involving multiple generations of family owners.
“What has been proposed will tear up a playing field that has been largely responsible for turning the holiday let industry into one of UK tourism’s crown jewels. If we move the goalposts, many of these businesses could be rendered unviable overnight.”
In a separate development a survey of 833 UK property professionals, commissioned by GetAgent, found that the vast majority were disappointed in the Budget, with 27% describing it as inadequate and a further 54% stating it was underwhelming.
The industry had been expecting a significant announcement on 99% mortgages: however, this was scrapped just days before, a decision that 56% of those surveyed agreed with.
In its place, there had been hopes of another stamp duty reduction based initiative and 71% of those surveyed believe this should have been included.
Some 67% also stated they would have liked to see some other form of buyer incentive introduced to help kick start the market, with 64% stating they would have liked to have seen more focus on housing supply.
