With the party conference season approaching, Propertymark, the industry body for the private rented sector, has called for a government review of taxes affecting landlords.
According to Propertymark: “The private rented sector (PRS) is a key housing provider across the UK and to encourage investment and reduce rents, the UK government must review the impact of tax and financial changes on landlords.
Propertymark adds that landlords are “not immune” to the rising cost of living and need more of an incentive to invest in the sector. It claims that an increasing tax burden on landlords has squashed growth.
The organisation cites the second homes stamp duty surcharge and changes to mortgage tax relief as problematic for landlords. It also highlights the higher rates of capital gains tax that are paid on property sales compared to other transactions - selling shares, for example.
Propertymark has set out its recommendations saying the government must “recognise the impact of the current tax regime on the availability of homes in the PRS, and ultimately the costs passed on to tenants.” It is calling on the government to:
- Review taxes for private landlords.
- Reinstate mortgage tax relief - to remove the disparity between people renting out homes as individuals and as businesses.
- Change the rules on taxes on additional properties - to distinguish between people investing the sector and those buying second homes for their own use.
- Bring back tax relief on energy efficiency improvements - to encourage investment for cheaper bills for tenants.
- Reduce capital gains tax thresholds to align property with other assets.
- Avoid rent controls.
Read more about this story on the Propertymark website.