The new Land Transaction Tax must encourage the growth of homes to rent.
The call is being made by the Residential Landlords Association (RLA) Cymru as the Welsh Assembly is to consider legislation to replace Stamp Duty with the new tax after the Summer.
The RLA is calling on AMs to scrap the three percentage point stamp duty levy imposed on homes bought to rent by George Osborne. In February, the cross-party Treasury Select Committee noted that: “the stamp duty surcharge is likely to reduce the supply of privately rented properties, and hence result in higher rents.”
Instead, say landlords, the Assembly should bring in a regime that stimulates investment in new rented accommodation which is badly needed. In November 2015, a report by the Public Policy Institute for Wales for the Welsh Government noted that “a significant proportion of future need and demand for housing will be met through the PRS.”
Douglas Haig, RLA Vice Chairman for Wales commented:
“We strongly welcome the Welsh Government’s commitment to boosting the supply of housing. Wales needs more homes to rent and buy.
“Recent tax changes by the UK Government will only serve to stifle the supply of affordable homes to rent, increase rents and make it harder for tenants to save for a house of their own.
“Ministers and AMs at Cardiff Bay now have a significant opportunity to reform the way property is taxed to support the growth of housing we all want to see.”
- The RLA represents 40,000 private sector residential landlords in England and Wales.
- Further information about the RLA in Wales can be found at http://www.rla.wales/ or by following it on twitter @RLAWales.
- The Treasury Select Committee’s report on the Autumn Statement/Spending Review 2015 can be found at http://www.publications.parliament.uk/pa/cm201516/cmselect/cmtreasy/638/638.pdf. Page 32 notes:
“The stamp duty surcharge is likely to reduce the supply of privately rented properties, and hence result in higher rents. Were it not to do so, it could not be claimed to support home ownership.”
- The Public Policy Institute for Wales report on the private rented sector for the Welsh Government can be accessed at http://ppiw.org.uk/ppiw-report-publication-the-potential-role-of-the-private-rented-sector-in-wales/. It noted:
“a significant proportion of future need and demand for housing will be met through the PRS, with implications for government subsidy.”
- For further information please contact the RLA’s consultant, Ed Jacobs on 0113 278 0211 (office), 07706386773 (out of office hours) or email firstname.lastname@example.org.