A damning new report showing how taxing landlords is actually penalising tenants has been welcomed by the Residential Landlords Association.
‘Taxing tenants: how taxes on landlords end up hitting tenants’, published by the Taxpayers’ Alliance, says the Government’s new tax grabs will inevitably force up rents – having a massive impact on the country’s PRS tenants.
The hard-hitting report, out today, says the introduction of the 3% stamp duty surcharge on buy-to-let properties will hurt tenants and should be scrapped – with all stamp duty rates halved immediately with a view to abolishing the tax entirely.
It also claims restrictions to Mortgage Interest Relief for landlords are unfair and advantage prospective buyers at the expense of tenants – demanding the Government axe these also.
Licensing schemes also come in for criticism, with the report demanding more greenbelt land be made available for development if the UK housing crisis is to be addressed.
The RLA has campaigned against the stamp duty and MIR changes, on the basis that the increased costs will force rents up and in some cases see landlords sell up completely, hitting supply.
Alan Ward, Chairman of the Residential Landlords Association has welcomed the report and is now urging the Government to rethink its tax plans.
He said: “Today’s report is another damning indictment of the Government’s tax grab on landlords.
“Recent tax changes will see many landlords increase rents. This will make it harder for tenants to save for a deposit for a home of their own. It will go against everything the Government claims it wants.
“A tax system that encourages rather than damages housing supply would boost revenue for the Treasury and cut costs for tenants.
“Ahead of the Autumn Statement there is now an opportunity for the new Government to think again about its tax on new housing.”
To read the Taxpayers’ Alliance report in full click here.