The Budget has failed tenants by doing nothing to increase the supply of private rental property according to two lettings sector trade bodies.
The Residential Landlords Association and National Landlords Association - which will formally merge later this month - have issued a joint statement saying that the likely increase in rent as a result of inadequate supply to meet demand will hurt tenants, and make it harder for them to save for their own homes.
The RLA and the NLA had called for the Chancellor to scrap the stamp duty on the purchase of additional homes where landlords invest in property adding to the net supply of housing such as new build properties or bringing long term empty homes back into use.
After the Budget - which confirmed the two per cent stamp duty surcharge on non-UK resident overseas investment buyers - the two associations said: “The government is undermining its own efforts to boost homeownership through its attacks on the private rented sector. By choking-off supply and making renting more expensive it is tenants who are hardest hit.
“Ministers need to wake up to the reality of the damage their tax measures are doing to the private rented sector and support landlords to provide the new homes for private rent we desperately need.”
Although the Budget fell below many industry observers’ wishes by failing to cut any mainstream market stamp duty levels - despite pledges by the Conservative party in the build up to the General Election - there was at least the consolation of new additional taxes for the private rental sector after years of fiscal measures introduced by successive Budgets.
You can see our summary of the Budget measures that affected the agency industry here.