A group of Tory peers has urged George Osborne to rethink plans to cut Mortgage Interest Relief for landlords.
In an article for The Times Lord Flight, Lord Howard, Lord Lytton and Lord Cathcart say the Government’s assault on private-sector landlords is ‘misguided’ and will make the UK housing crisis worse, forcing up rents and making it harder than ever for tenants to save for a deposit.
The Lords challenge the chancellor’s claim that restricting Mortgage Interest Relief for landlords to the basic rate of income tax, will ‘level the playing field’ between landlords and homeowners.
They also quote the findings of an RLA survey of more than 1,200 landlords, which revealed that of those paying the basic rate of income tax, more than 60 per cent said that the changes would push them into a higher rate of tax despite their income not increasing.
For Times subscribers the article can be accessed by clicking here.