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Budget a missed opportunity on housing

Sally Walmsley
Written by Sally Walmsley

Chancellor George Osborne has launched another attack on the buy-to-let sector in today’s Budget.
Proceeds from investment in residential properties will from 6th April attract capital gains tax at eight percentage points higher than nearly all other asset classes – which we at the RLA believe will deter would-be landlords from investing in the sector.

Chancellor George Osborne has launched another attack on the buy-to-let sector in today’s Budget.

Proceeds from investment in residential properties will from 6th April attract capital gains tax at eight percentage points higher than nearly all other asset classes – which we at the RLA believe will deter would-be landlords from investing in the sector.

With forecasts that a million new rental properties will be needed over the next five years whatever the Government does to encourage home ownership, this will lead to further shortages driving up rents.

Whilst Ministers have argued that landlords are crowding out home owners from the housing market, research by Professor Michael Ball of Reading University has shown that many of the properties landlords invest in are not wanted by first time buyers. By choking off investment, the spectre of housing blight and empty homes that landlords are good at bringing back into use is very real.

The RLA, supported by the Royal Institution of Chartered Surveyors, had called for CGT relief where a rented property is sold to a first time buyer or sitting tenant and then re-invested in a new rented property. Research for the RLA had found that 77% of landlords would consider selling properties if such a policy was adopted.

Commenting on the Budget, RLA Chairman, Alan Ward said: “The Chancellor could have used this Budget to encourage and support landlords to invest in much needed new homes to rent.

“Instead he continues his attack on rented housing despite all the evidence showing that landlords are taxed more heavily than home owners and that they buy and improve many properties that otherwise are left empty.”

About the author

Sally Walmsley

Sally Walmsley

Sally Walmsley is the Communications Manager for the RLA and award-winning Editor of RPI magazine. With 16 years’ experience writing for regional and national newspapers and magazines she is responsible for producing articles for our Campaigns and News Centre, the weekly E-News newsletter and editorial content for our media partners.

She issues press releases promoting the work of the RLA and its policies and campaigns to the regional and national media and works alongside the marketing team on the association’s social media channels to build support for the RLA and its work.

4 Comments

  • I feel that it was the most spiteful and even hateful attitude to the army of landlords by this Chancellor.
    The lack of knowledge, experience and compassion to his fellow countrymen, landlords and tenants alike, – that what was demonstrated By George Osborne. He is one of those neoconservatives who cares only about his cronies.

  • The Tories are hell bound to rob small helpless landlords whilst giving their cronies big landlords tax relief
    They are determined to kill off small lanlords

  • I inherited a cottage which has been let for two years and is now about to be sold. It was residential only for this period and not buy to let. Any chance I could come under the new reduced CGT rules.

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