In a scathing rebuke, Nathan Emerson, the chief executive of Propertymark, has launched a vehement attack on the government’s recent endeavour to further increase taxes on the rental sector. Emerson decried the “constant aim being taken” at the industry, labelling it as “unacceptable.”
This condemnation comes in response to leaked information over the weekend, disclosed by The Sunday Times, revealing a proposed £300 million “tax raid” on the rental sector in the upcoming Budget. According to the report, Chancellor Jeremy Hunt intends to target second home owners profiting from holiday lets, eliminating various tax incentives for landlords engaged in short-term holiday rentals instead of long-term leases.
The Chancellor contends that this move, though perceived as another tax imposition by the Conservatives, is aimed at addressing housing shortages in coastal areas and popular holiday destinations like Cornwall and the Lake District. The rationale is to curb the conversion of properties into holiday lets, a trend depriving local residents of essential housing.
In response to these developments, Emerson expressed deep concern over the rumoured tax assault, emphasizing the detrimental impact on landlords already grappling with economic challenges. He stressed the need for the UK government to recognize the profound impact of inflation and interest rates on landlords, urging a sustainable and workable system to ensure the provision of high-quality homes, whether for short-term or long-term occupancy.
Emerson asserted, “It is unacceptable that there is a constant aim being taken at landlords to the point where the viability of the entire system is becoming seriously questionable for both existing landlords and future investors.”
The Budget proposal has garnered criticism from various quarters, with the National Residential Landlords Association (NRLA) joining the chorus of disapproval. NRLA Chief Executive Ben Beadle called for a shift in focus, emphasizing the need to attract new landlords to address the chronic shortage of long-term rentals. Beadle advocated for the reversal of punitive tax measures and suggested that scrapping the stamp duty levy on additional home purchases could unlock almost 900,000 new long-term rental homes over the next decade, leading to a substantial boost in Treasury revenue through increased income and corporation tax receipts.