Mortgage interest relief changes, the scrapping of the ‘wear and tear’ allowance and the introduction of the 3% stamp duty surcharge have hit landlords’ profits over the past few of years, which partly explains why so many people are exiting the buy-to-let market and thus reducing the supply of much needed private rented stock.
The government’s draconian tax changes have not just pushed a number of BTL landlords out of the PRS, but have also left prospective tenants in some parts of the country with little alternative but to bid against each other, pushing rents up in the process, as a result of falling housing supply.
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NetRent Comment
We believe that it is vital for the long term future of the UK Private Rented Sector that the Government taxes the PRS like every other business in the UK. It was knee jerk reaction from George Osbourne that changed taxation for landlords and successive administrations have failed to address the problem this creates.
There is no doubt that, in the end, it is tenants and often the most vulnerable in society who suffer most from the lack of affordable housing that arbitrary taxation causes. Landlords will exit the business and invest their money in other ways. It might appear to be politically astute to target residential landlords and the PRS as a whole but the reality is that the UK needs a vibrant rental sector. One way to achieve that is to tax the PRS like any other business.
We strongly urge everyone involved in the PRS, landlords, agents and tenants to sign this petition and force an overdue debate about the long term future of the rental sector in the UK.