Whilst Boris Johnson and Jeremy Hunt’s race to Number 10 Downing Street is all over the media, it is also worth considering that a new Prime Minister brings with them a new Chancellor of the Exchequer among other new cabinet appointments. Landlords see this as an opportunity to reverse recent tax measures.
Paul Sloan, Operations Director at Haart sees this as an opportunity to reverse punitive tax policies that many landlords have borne the brunt of: “With a new Chancellor, we will repeat our calls for changes to current policy to support improvements in the PRS.
“In particular, the taxation changes impacting private landlords have been relentless. We would suggest that a rethink on those taxes would be a very good place to start.”
It is believed that whoever replaces Phillip Hammond as Chancellor is likely to hold an emergency budget very soon after taking office. With the phasing out of mortgage interest relief by George Osbourne; the Tenant Fees Act and the launch of the 3% stamp duty surcharge, some landlords have felt that they can no longer sustain a business in the PRS.
Sloan continued: “Whether it’s the additional Stamp Duty Land Tax levied on purchasers’ second and subsequent homes, the phased reduction in tax relief allowable against mortgage payments, or the loss of the wear and tear allowance, life has grown significantly harder for landlords over the past few years.
“We must ensure that private landlords who are providing homes for millions of households across the UK feel able to remain in this sector.
“With the appointment of a new prime minister and Chancellor, we will be redoubling our efforts to act as the voice of private landlords across the country.
“For the time being though, we can only wait and see what the next few weeks and months have in store for the sector.”