The National Residential Landlords Association has slammed yesterday’s lacklustre Budget as a missed opportunity.
Yesterday’s announcements - like to be the last ones before an election - included confirmation that tax concessions for owners of furnished properties let out as holiday accommodation would end, in a bid to remove the incentive for landlords to offer short-term holiday lets rather than longer-term homes. This will take effect from April 2025.
To great surprise the higher rate of Capital Gains Tax was reduced from 28 to 24 per cent: this is a bid to encourage landlords and second homeowners to sell their properties, making more available for first time buyers.
However the Chancellor also abolished Multiple Dwellings Relief, although transactions with contracts that were exchanged on or before yesterday - March6 - will continue to benefit from the relief regardless of when they complete, as will any other purchases that are completed before June 1.
But there were no announcements that directly helped first time buyers or encouraged higher volumes of house building.
Ben Beadle, chief executive of the NRLA, says: “The Chancellor has once again ignored calls to revitalise long-term investment in quality rented homes in favour of tinkering at the margins for short-term gain.
“Increasing taxes on holiday lets and cuts to Capital Gains Tax will make no meaningful difference to the supply of long-term rental properties. Meanwhile, those reliant on housing benefits still do not know if their benefits will be frozen from next year or not.
“With an average of 11 tenants chasing every home for private rent, social housing waiting lists at 1.3 million, almost 110,000 households in temporary accommodation and the number of first-time buyers slumping, the Budget needed to tackle the housing crisis once and for all. What we got was a deafening silence
“This was a missed opportunity to make providing new homes to rent and buy the priority it desperately needs to be.”
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Yes they just don’t get it. The agenda is force landlords to sell to help first time buyers. Not to protect a much needed rented sector that after right to buy has been done by private landlords. Factor in interest rate increases and the model is broken. Only takes one bad tenant as well to cost you money as opposed to a marginal profit. The opportunity cost of capital is greater elsewhere. Typically yield on BTL c 5% but capital growth albeit subject to CGT. If you also pay rent insurance which has gone through the roof and someone to manage the return for a 75% LTV BTL mortgage will be at best modest after income tax esp for higher rate taxpayers and maybe a loss now that rates have more than doubled in the space of what 2 years
The other Ben comes up with the bleeding obvious, why did he and the NRLA not campaign harder for landlords rights? The 100k membership should be more than enough to force change yet a few smelly latte drinking researchers sponsored by Mum, Dad & Nationwide have made him look completely ridiculous.
Why NRLA did you not petition the government on S21, S24, RRB and I am sure every single member would have voted or signed the petition. You have completely let the membership down and the view of the NRLA of working from within is a complete failure. However they was very successful in issuing the whole membership with a Tradepoint discount card....!
Yes NRLA a complete let down.
Yes who's side are they on?
Still selling 👍🏻💰👍🏻💰 They’re idiots 🤷♂️ Time to leave it all behind 🏝🏝
Simon Logan Cannot argue with or criticise any of that
Ben said that he had long accepted that S.21 would be going and he’s supposed to be representing us ? some stitch up its not landlords view.
He has the ear of Gove and get him to retain fixed term lets for his Student portfolio type only, it will also suit the Big Boys with their new build multi storey Student Blocks of Flats to help them take over this Market easy money far better than worrying about the Homeless.
Wasn't expecting anything for landlords from the budget. Any reduction in CGT is welcome, but as the annual exempt amount has been cut from £12300 to £6000 and then £3000 then it's just taking with one hand and giving back with another.
The only worthwhile give away would have been removal of the unfair S24 taxation.
Landlords unless also in work will not benefit from changes to NI.
Will have to keep putting rents up thanks to interest rates having put mortgages up by over 100%.
Worried Landlord Totally agree with you
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