Campaigns Finance and Taxation Reform

 Spring Budget – a lost opportunity

Sally Walmsley
Written by Sally Walmsley

The Chancellor has spoken.

But not about housing.

Today’s budget was devoid of any mention of housing issues, or indeed the housing crisis itself, with no new cash committed to initiatives to boost the supply of homes or ease the burden on the country’s PRS landlords.

Despite hundreds of RLA members contacting their MP and relentless campaigning, changes to mortgage interest relief will go ahead as planned and there will be no changes to stamp duty or VAT for building new homes to rent.

George Osbourne’s tax raids were neither fair nor sensible, yet Phillip Hammond has failed to reverse any of them – much to the disappointment of PRS landlords.

Indeed, for those self-employed landlords the budget brought more bad news, with the announcement that National Insurance Contributions for the self-employed will increase by 1% next year and a further 1% the year after.

Likewise, those who have, or are considering, incorporating will see the directors’ tax-free dividend will be reduced from £5,000 to £2,000.

When it comes to good news for the PRS it was slim pickings.

However, the RLA did have some success.

The chancellor’s decision to delay the introduction of Making Tax Digital for those businesses with turnover below the VAT threshold by a year is something the RLA called for in its submission to Government.

The association also welcomes the investment in vocational education, to encourage people into the construction industry and other trades important to boosting housing supply.

RLA Chairman Alan Ward said: “This budget was a missed opportunity by Philip Hammond to right some of the wrongs of his predecessor.

“Those of us out there hoping for a u-turn on controversial policies such as mortgage interest relief changes were left disappointed by a budget that essentially ignored the housing crisis entirely.

“Demand for rented housing is still rising, with 25% growth predicted by 2025.  This is a million or more homes. Can the corporates fund all those? I don’t believe so.

“Private landlords provide choice, good value, in short good homes for good people.

“Growth and demand in the market will ultimately decide on the rent we can charge –  but none of us can afford to run at a loss, and I believe that government will eventually realise the bargain it gets from private landlords.

“This is not the end. We will continue to campaign against unfair taxation. MIR changes were reversed in Ireland years after their introduction so we will not be giving up the fight and I will be continuing to send that message to Mr Hammond and his successors.”

RLA 1 minute round up of the Spring Budget

See our Policy Manager, John Stewart’s quick response to the spring budget below:

Also, see our a round up of live tweeting below:

About the author

Sally Walmsley

Sally Walmsley

Sally Walmsley is the Magazine and Digital Editor for the NRLA. With 20 years’ experience writing for regional and national newspapers and magazines she is responsible for editing our members' magazine 'Property', producing our articles for our news site, the weekly and monthly bulletins and editorial content for our media partners.

1 Comment

  • What do you expect from a party whose blue blooded and wealthy leader, David Cameron, disparaged landlords as distasteful? I rent my property at below market cost, keep them in extremely good condition, furnishing them with white goods from John Lewis, because my tenants are not well off and I feel I get enough rent, though only after saving over a lifetime. Thankfully I only pay tax at 20% and don’t have any outstanding debt on my three properties. But I no longer vote because all political parties hate landlords.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.