A Conservative MP says new figures about the rental sector produced by high-end lettings agency Savills may justify closer scrutiny of tax breaks enjoyed by landlords.
Savills' figures, produced for the Financial Times, suggest that landlords have made £177 billion in profit from capital growth over the past five years - making them the ownership category to have benefitted most from the recovery, even without counting rental income which has gone to landlords in addition on top of the appreciation.
The FT reports that the total value of privately rented housing in Britain has grown 57 per cent since the financial crisis, and now exceeds one trillion pounds for the first time.
Lucian Cook, head of research at Savills, is quoted in the FT as saying his data indicates that the benefit of recent house price growth has become increasingly concentrated in the hands of private investors.
Cook also says it is difficult to see how this will change in a housing market where capital values remain expensive in relation to people's incomes.
The figures from Savills come as MPs and pressure groups are becoming increasingly outspoken about what some consider to be the excesses of the private rental sector.
Conservative MP for Dover, Charlie Elphicke is cited in the FT as one member of parliament saying this new data is sufficient for ministers to call a halt to buy to let tax perks such as wear and tear allowance and relief on mortgage interest.
Most people would say that is money which could have gone to people owning their own homes rather than investors. It underlines that tax breaks that buy to let investors get would be better off used to help first time buyers to own their own homes he says.
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Comments
Arnie - I referred to mortgage interest, wear and tear as "tax breaks". With respect to your post, I absolutely agree that they are not "breaks" - they are legitimate business expenses which should be off-set against tax liability. I agree entirely with your post and that was a typo in my post.
What a right Charlie Charlie is ! Another bloody politician spouting off about something he certainly appears to know nothing about.
Okay - scrap the 2 tax breaks and see what happens to the PRS. BTL investors will scarper in their droves and where will all the hard done by tenants/VOTERS!!! live then
Idiot - and to think we TAX payers pay that guy's wages.
Renting property is a business.
Mortgage interest and the wear and tear allowance are business expenses not tax breaks.
So another MP talking nonsense. These figures released by Savilsl are nonsense- apprecoation is meaningless unless the property is sold or re-financed to release equity. There are already taxes in place for all options there- Capital Gains, Inheritance (if unsold) and applicable Taxes sich as Stamp Duty of re-financed to buy other properties. The rental icn ome mentioned is already taxed as well.
So yes, well done 'Charlie' lets besiege the PRS sector with more tax when they are supporting the governments inability to meet demand. What a pratt!