Axe Stamp Duty Levy for more rental homes – NRLA

Axe Stamp Duty Levy for more rental homes – NRLA

0:01 AM, 29th January 2024, About 8 months ago 10

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The Chancellor should scrap the 3% Stamp Duty Levy on the purchase of additional properties in the Spring Budget to create more homes for rent and generate £10 billion for the Government, the National Residential Landlords Association (NRLA) says.

It points to an independent analysis by Capital Economics that reveals the removal of the tax would result in nearly 900,000 new private rented homes across the UK.

The NRLA argues that this would help meet the rising demand for rental accommodation, as research suggests that there are now 11 potential tenants for every available property.

‘Tackle the housing crisis’

The NRLA’s chief executive, Ben Beadle, said: “The Chancellor needs to pull out all the stops to tackle the housing crisis.

“Growing the private rented sector is not only vital if tenant demand is to be met, but it would also provide a substantial boost to Treasury coffers, enabling it to invest in vital public services.”

He added: “It makes no sense to discourage investment in desperately needed private rented accommodation.

“Inaction will only result in more misery for prospective renters.”

Increasing the supply of homes for rent

The NRLA says that increasing the supply of homes for rent would boost the Government’s finances by £10 billion over five years, due to higher income and corporation tax receipts.

This is almost the same as the £11.5 billion budget for the Affordable Homes Programme for 2021-26.

The NRLA’s proposals have been backed by Paul Johnson, the director of the Institute for Fiscal Studies (IFS), who warned in The Times that: “The more harshly that landlords are taxed, the higher rents will be.”

The landlords’ organisation has submitted its recommendations to the Government ahead of the Budget on 6 March.


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Cider Drinker

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10:09 AM, 29th January 2024, About 8 months ago

Axing stamp duty won’t make a lot of difference.

Landlords are selling and they don’t pay stamp duty when they sell.

Section 24, higher interest rates, a risk of house prices falling or stagnating, the loss of Section 21 along with forever more rights for tenants are the reasons that the PRS is shrinking and will continue to shrink.

Reluctant Landlord

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10:21 AM, 29th January 2024, About 8 months ago

Reply to the comment left by Cider Drinker at 29/01/2024 - 10:09
it might make a difference, but agree if it did only a quick reactive one that might cause a spike in purchases yes but nothing that addresses the long term problem....

Who's to say that only LL's will purchase anyway. You could get a raft of FTB - then no overall gain in rentals....

Whiteskifreak Surrey

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10:48 AM, 29th January 2024, About 8 months ago

No, the main problem is Section 24 and that is something the NRLA should campaign about.

Grumpy Doug

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11:34 AM, 29th January 2024, About 8 months ago

Beadle yet again exposing his/NRLA out of touch views. Section 24 is absolutely top of the list in terms of damaging policies (as those of us who have recently completed our tax returns will testify). That would be a good start.

Cider Drinker

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14:38 PM, 29th January 2024, About 8 months ago

Reply to the comment left by Grumpy Doug at 29/01/2024 - 11:34
I think the Renters (Reform) Bill and a Labour government will take gold and silver in the anti-landlord Olympics. Section 24 will be competing for bronze.

Lordship

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17:03 PM, 29th January 2024, About 8 months ago

Reply to the comment left by Grumpy Doug at 29/01/2024 - 11:34
NRLA have given up on S24 as they think they have no chance of getting it reversed. So, they go for what the feel are easier targets.
If the stamp duty surcharge was scrapped then maybe they think more new investors will buy and become landlords and potential new customers for them.
Should those running the NRLA fight for what the members want rather than what they think they can get?

Grumpy Doug

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18:02 PM, 29th January 2024, About 8 months ago

Reply to the comment left by Lordship at 29/01/2024 - 17:03
It all depends on how much pain they want to put up with. Ireland implemented their version of S24 some years in advance of the UK and after enormous amounts of pain that has now been largely reversed. When he was Chancellor, Phil Hammond in response to complaints about S24, stated that if the costs to the Exchequer exceeded the benefits, then it would be a candidate for reversal. I would argue that the stupendous amount currently being spent on temporary accommodation alone dwarfs the benefit to the Treasury by a significant factor, let alone the misery that the current crisis is bringing to tenants across the country

Reluctant Landlord

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9:44 AM, 30th January 2024, About 8 months ago

Reply to the comment left by Grumpy Doug at 29/01/2024 - 18:02
changes would ONLY be made if in the benefit of the treasury. That's the only reason why anything is implemented - to bring money IN.

They are not interested at all in tenants or in LL's or the cost of the spiralling temp accommodation cost or anything else. They would argue that's another departments problem. One hand is not interested in what the other is doing despite being attached to the same body!

GlanACC

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17:46 PM, 30th January 2024, About 8 months ago

Cant see anthing in the budget to help private landlords as there is no incentive for the government to do so. There may be something for social landlords though.

Badger

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18:16 PM, 3rd February 2024, About 8 months ago

Reply to the comment left by Cider Drinker at 29/01/2024 - 14:38
S24 will not make it to the podium as it will have pulled a hamstring shortly after leaving the blocks...

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