The Residential Landlords Association (RLA) has hit out at claims made by the new Shadow Chancellor, John McDonnell.
During his speech at the Labour Party Conference in Brighton, McDonnell called for 'exorbitant rents' to be controlled and referred to cutting 'billion pound tax breaks given to buy-to-let landlords'.
In a statement issued shortly after the speech, the RLA claims that the Shadow Chancellor failed to inform delegates that 'rental property is taxed more heavily than owner occupied property' – a comment first made by Paul Johnson, director of the Institute of Fiscal Studies.
The RLA also draws attention to McDonnell's omission that some of Labour's own ministers in the Welsh Government have argued against rent controls - most notably Lesley Griffiths AM, Minister for Communities and Tackling Poverty.
In February this year she told the Welsh Assembly:
“I do recognise that rent control can look attractive initially, but I think previous experience shows that rent controls reduce the incentive for landlords to invest and can then lead to a reduction in quality housing. Those properties that are still subject to rent control under the Rent Act 1977 are often of the poorest quality, so I think such a proposal would require very careful consideration. Again, I think that could give possible unintended consequences to the supply of private rented properties.”
Last week another industry body, the National Landlords Association, called on its members to lobby MPs over tax changes announced in the Summer Budget.
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