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Treasury analysis wrong on rental market says IFS

RLA
Written by RLA

The independent Institute for Fiscal Studies has today warned that the Treasury’s budget analysis on the rental market is “plain wrong”…

The independent Institute for Fiscal Studies has today warned that the Treasury’s budget analysis on the rental market is “plain wrong”.

Speaking about the Chancellor’s decision to restrict mortgage interest relief to the basic rate for landlords, IFS Director, Paul Johnson has this afternoon said:

“At present if you own a property which you let out to tenants you can set any mortgage interest costs against tax due on rent received.

“The Budget red book states that this means that “the current tax system supports landlords over and above ordinary homeowners” and that it “puts investing in a rental property at an advantage.

“This line of argument is plain wrong.

“Rental property is taxed more heavily than owner occupied property. There is a big problem in the property market making it difficult for young people to buy, and pushing up rents. The problem is a lack of supply. This change will not solve that problem.”

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RLA

RLA

The Residential Landlords Association (RLA) represents the interests of landlords in the private rented sector (PRS) across England and Wales. With over 23,000 subscribing members, and an additional 16,000 registered guests who engage regularly with the association, we are the leading voice of private landlords. Combined, they manage almost half a million properties.

5 Comments

  • Now is the time if ever there was one for the RLA and other associations to prove there’re worth their salt and fight against it!

  • Yes – it seems to me the RLA, NLA and other landlord associations should jump onto this, do the analysis that the IFS is pointing to, and demonstrate:

    “Rental property is taxed more heavily than owner occupied property.”

    Then we have a very effective means of countering the nonsensical claims that landlords are being “favoured” which regularly is espoused by interest groups and repeated in the media.

    Restricting mortgage interest expense for landlords is like saying that bakers shouldn’t be allowed to expense flour. What madness next?!

  • Yes, this is the time for the RLA to lead the way and start a petition immediately and get it sent out to all other landlord bodies and websites so that it can be circulated widely. The budget proposals are the biggest attack on landlords in living memory and there’s practically zero on it in the press. PLEASE START A PETITION IMMEDIATELY!

  • This policy will do nothing for the country or people living in it .The root of our problem as a nation is the unwillingness of people in government ,councils ,planning offices ,planning committee’s ,district committee’s and ordinary house owners to accept the fact that wee have to quickly pass planning (not force every application to appeal ) and reduce the red tape and over governed regulation on building regulation’s .Whilst some regulations are well intended there is no overview on the whole issue .There is not enough future planning, it is all for today’s needs and by the time it is fulfilled it is out of date and not enough .I myself can not afford to continue to own so many properties and will sell thus reducing the number of rented properties in my area ,BEATS ME HOW ANYONE SEE’S THAT AS BEING BETTER

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