Tax rises for landlords being introduced today will make renting less affordable and stifle investment in homes to rent, making it harder for renters to find suitable accommodation.
That’s the view from the Residential Landlords’ Association as new measures start to restrict mortgage interest relief for landlords and tax their turnover rather than their profit.
A survey for the RLA has shown that two-thirds of member landlords feel they will need to increase rents to cope with the new tax burden. The results also show that 58 per cent of members plan on cutting back investment in property.
The association claims that independent experts have argued that landlords will need to increase rents between 20 per cent and 30 per cent to cope with the extra cost of the tax hikes.
“Today’s tax increases contradict everything the Government has said about needing a larger rented sector to give tenants more choice and more affordable housing” explains RLA chairman Alan Ward.
“It is tenants who will be hit hardest by these punitive tax increases. Aside from likely paying more in rent, in many places they will face a growing shortage of affordable places to rent.
“We call on ministers to undertake a major review of the impact of this policy and if all the predictions about its impact are right, to abolish the changes in the Autumn Budget.”