Rent increases in Britain are unavoidable unless MP’s move to stop what landlords are calling unfair tax changes, according to a new claim.
The Residential Landlords’ Association observes that plans to cut mortgage interest tax relief for buy-to-let landlords will see rents driven up.
At present, legislation is moving through Parliament, which the RLA believes will see tax bills rise substantially and in some cases, cut profits altogether. Should supply of rental property continue to fall, landlords could face higher overheads, meaning they will raise rents to cover costs.
In a recent survey of RLA members, some 84% observed that they are more likely to consider raising rents following the Chancellor’s tax alterations.
The firm is now calling for amendments to the Finance Bill, in order to protect both landlords and tenants. It has called for the Government to stop the changes and to remove the additional Stamp Duty levy on buy-to-let purchases. It warns that the tax hike will have a detrimental impact on landlords and the sector when it is needed most.
RLA calls for Government to stop tax changes
A number of MP’s have moved to express their concerns. Former Welsh Secretary, David Jones, has called for the Government to stop heaping more pressure on landlords.
Alan Ward, RLA chairman, stated, ‘landlords do not want to increase rents unnecessarily but many will have to if they stay in business as a result of these wholly unreasonable tax increases. It is unfortunately tenants who will end up paying the price either through higher rent bills of finding it more difficult to find somewhere suitable to live.’
‘We welcome the concern of many MPs and hope that they will be able to persuade the Government to change its mind,’ Ward added.