Campaigns Finance and Taxation Reform Housing Supply and Rents

Tax rises are slowing housing investment

Sally Walmsley
Written by Sally Walmsley

Analysis released today by the Office for Budget Responsibility (OBR) confirms tax increases are choking off investment in rented housing.

In its Economic and Fiscal Outlook published today, the OBR warns of “subdued growth in residential investment.”

The assessment comes following a string of tax hikes on private rented housing, including a stamp duty levy on the purchase of new homes to rent and restriction of mortgage interest relief to the basic rate of income tax.

Alan Ward, Chair of the Residential Landlords Association said: “Today’s assessment by the OBR demonstrates the folly of taxing the supply of new homes to rent.

“It is more important than ever that we recognise the dynamic role the rental market can play in swiftly responding to the country’s ever changing housing needs.

“The Government should come forward with a package of pro-growth tax and planning policies to support private landlords who want to invest in the new housing the country needs if renters are to be able to find the accommodation they want.

“The build to rent sector is not delivering at the rate required and in the past private landlords have delivered three out of five of all new homes.”

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.

Leave a Comment

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