Last ditch appeal by agents for Budget help on EPC reform

Last ditch appeal by agents for Budget help on EPC reform


Todays other news

Propertymark has urged the government to use its Budget today to focus on Stamp Duty reform and support for landlords to help them reduce their costs and meet the Minimum Energy Efficiency Standards.

Propertymark has drafted what it calls “realistic spending proposals that can potentially help increase the supply of privately rented accommodation and boost homeownership.”

The propositions include help for last-time buyers by reforming Stamp Duty Land Tax, ending Section 24 of the Finance Act, and help for landlords and homeowners to achieve net zero via interest free loans, grants, with commercial buildings receiving extended VAT exemptions.

Propertymark wants the stamp duty rate for first-time buyers, which is currently set at zero for properties worth up to £425,000 to remain in situ. In addition, the professional body would also like to see further support offered to first-time buyers to help them approach the property market.

For those aged 55 or over who are considering ‘right sizing’ by relocating to a potentially smaller property, there is potential for HM Treasury to tap into a new source of revenue while increasing house sales and giving larger families the chance to live in homes suitable for their needs.

Propertymark would like the government to reverse Section 24 of the Finance Act, which would allow landlords to be treated as small businesses and claim 100 per cent of their mortgage interest when completing tax returns. Since the measure was introduced in 2015, costs for landlords have surged and dissuaded them from investing in the sector. 

The trade body says its own research shows that 69 per cent of landlords surveyed had experienced an increase in their monthly mortgage repayment. The body fears that if the supply of rental properties is hindered by the retention of Section 24, then this will increase rents further and potentially lead to increased costs to welfare payments to help tenants facing rent arrears. 

With much speculation that the government is tempted to increase Capital Gains Tax, Propertymark has stated that HM Treasury could consider increasing the tax on profits made on the sale of buy to let properties to align with the higher rate of 24 per cent, irrespective of a landlord’s income bracket to avoid spurring landlords on to leave the market.

Finally, Propertymark wants help for landlords and homeowners with their energy efficiency targets through a mixture of grants, loans, and help with survey costs, all of which should further support them to meet the Minimum Energy Efficiency Standards. The professional body suggested that such a measure would help boost economic growth by placing reduced pressure on the Warm Homes Plan and increase jobs in the construction sector if there is increased investment in retrofitting buildings.  

Chief executive Nathan Emerson says: “The Chancellor has a real opportunity to promote much-needed progression within the housing sector. Carefully planned housing policy is the cornerstone to every community across the entire UK and is fundamental to a successful economy. 

“With the population expected to hit 70m within the next five years, it’s imperative to have a strategy that upscales a workforce capable of delivering a sustainable mix of homes in key areas of demand. There must be very careful consideration on how available land is utilised moving forwards, ensuring brownfield areas are fully prioritised before dipping into greenbelt land and that there is robust wider infrastructure to support such developments. 

“Any proposed taxation structure must promote long-term investment in housing and ensure flexibility for those wishing to move to homes that are best suited to their needs. It’s also important that there is full evaluation regarding future ‘new towns’ to ensure any proposals drive success and deliver future proof solutions for generations to come.” 

Share this article ...

Join the conversation: Login and have your say

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions. All comments are screened using specialist software and may be reviewed by our editorial team before publication. Letting Agent Today reserves the right to edit, withhold or delete comments that violate our guidelines, including those that harass, degrade, or intimidate others. Users who post such content may be banned from commenting.
By commenting, you agree to our Commenting Terms of Use.
Recommended for you
Related Articles
The targets are high cost and must be met by...
A council wants to find out how it is doing...
Service charges for flats rose by an average 11% in...
For several years now the letting agents' trade body has...
The Welsh Government is backing the call for a 'compensation'...
There will be a greater emphasis on digitisation....
A consultation document is being released today....
Recommended for you
Latest Features
The targets are high cost and must be met by...
A council wants to find out how it is doing...
Thirdfort says the move will strengthen its offer to the...
Sponsored Content
Tenants want a place they can call home—somewhere comfortable, safe,...
Letting agencies face the dual challenge of keeping both landlords...

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.

No one likes pop-ups ...
But while you're here