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RLA calls for mortgage interest relief changes in Budget
The Residential Landlords Association has called on the government to drop cuts to mortgage interest tax relief and introduce reduced capital gains tax when landlords wish to sell properties to their tenants.
The trade body has outlined a host of suggestions as part of its submission ahead of the Budget, which will be delivered on 22 November.
Top of its wishlist is the dropping of changes to mortgage interest tax relief, which restricts landlords to only being able to claim relief at the basic rate of income tax. Previous research by the trade body suggested that as many as one in four landlords are considering selling some or all of their portfolio as a result of these changes.
Alan Ward, chairman of the RLA, said: “RLA research shows many landlords have stopped investing in more properties as a result of recent tax changes, instead moving into short-term holiday lets or ceasing to rent to groups deemed ‘high risk’ such as the young and those on benefits.
“These decisions have far-reaching consequences for a country in the grip of a housing crisis and we will do everything in our power to convince the government that this unfair tax must be reversed.”
The RLA also called for “action” on lenders who prevent landlords from offering longer tenancies, and for the introduction of a scheme allowing tenants with good payment histories to have them recognised by credit reference agencies.
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The trade body called on Philip Hammond, the Chancellor, to reduce the rate of CGT charged when a landlord sells to a sitting tenant from the current 28% to 20%, and urged the government to ensure all unused or abandoned plots of public sector land are redeveloped as new sites for PRS homes.