Propertymark has expressed support for much of the Welsh Government’s new Budget proposals but has come out against an increase in Land Transaction Tax on buy to let properties. 

The Budget, approved by the Welsh Parliament this week, includes a £21m boost to the Housing Support Grant, bringing total funding to £204m for 2025-26. The grant, ringfenced for local authorities, is designed to prevent homelessness and help people access stable housing.

It also contains more than £437m in capital investment for social housing in 2025-26. Propertymark had previously supported a 4.3% increase in local government funding, arguing that councils need greater inspection capacity to enforce the Renting Homes (Wales) Act and the forthcoming Welsh equivalent of the Building Safety Act.

But the trade body has maintained its opposition to the increase in Land Transaction Tax on additional residential properties, introduced late last year, warning that it could further reduce the supply of rental homes.

Tim Thomas, policy and campaigns officer at Propertymark, says: “Propertymark supports measures to help those in the greatest housing need and prevent homelessness, but we disagree with the Welsh Government’s decision to raise Land Transaction Tax on buy-to-let property as introduced in December following the publication of the Draft Budget. Stifling the supply of homes to rent in Wales through higher taxes or ensuring landlords pass on these costs to tenants through higher rents will not help renters with the cost of living or ensure a viable private rented sector in Wales.”