Tax (not rental reform) is real reason why landlords ...

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06 September 2023

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By Graham Norwood

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Tax (not rental reform) is real reason why landlords quit - claim

Whoever forms the next government must put the private rental sector at the heart of its housing policy.

That’s the view of one industry boss who specifically has called on politicians of all parties to have an urgent re-think on tax policy for landlords.

Daniel Evans, chair of the Association of Independent Inventory Clerks, claims it is the major reason why landlords are leaving the Private Rented Sector.

And he called for a U-turn on the recent tax rule changes which have rendered many landlord businesses unprofitable.

He says: “Landlords have been singled out and are now being hammered for tax. Every landlord is hit by other rising charges, like the cost of maintenance and repairs and the extra expense of new energy efficiency regulations, but it is the landlord tax policy which hurts them the most – no other business is taxed in this way.”

He makes his comments just as Labour announces a new face to take on the Shadow Housing Secretary role - the Shadow Deputy Prime Minister Angela Rayner - in a sign that the issue has become increasingly important to the main parties ahead next year’s election.

Evans says the tax issue is now critical for future rental supply - mostly because of the unfairness of fiscal policies.

When landlords buy a property to rent they have to accept that under the current tax arrangements, they will be paying tax at every stage during the life of that investment.

The tax measures include, in England and Northern Ireland, an extra three per cent of Stamp Duty on any buy to let, no mortgage interest relief, and declining Capital Gains Tax personal allowances. Similar measures exist Wales and Scotland too.

Evans says: “Our senior politicians have to understand that the PRS is in crisis right now and it is a special case.

“There is a chronic undersupply of homes all over the UK and landlords continue to sell up which will only serve to make the situation worse for tenants.

“All they’re asking for is a level playing field on which to conduct their business. That can’t be too much to ask, can it?”

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