Propertymark slams Welsh government’s LTT rise on PRS buys

The Welsh government has rolled out its Final Budget and confirmation of the 1% rise in residential Land Transaction Tax (LTT) rates for additional property purchases.

That rise took place in November and Propertymark has voiced its disappointment with the confirmation saying the tax rise could shrink the pool of homes in the private rented sector.

The budget also offers support for those in housing need and facing homelessness.

Disagree with the decision

The organisation’s policy and campaigns officer, Tim Thomas, said: “Propertymark supports measures to help those in the greatest housing need and prevent homelessness, but we disagree with the Welsh government’s decision to raise Land Transaction Tax on buy to let property as introduced in December following the publication of the Draft Budget.”

He added: “Stifling the supply of homes to rent in Wales through higher taxes or ensuring landlords pass on these costs to tenants through higher rents will not help renters with the cost of living or ensure a viable private rented sector in Wales.”

Funds to reduce homelessness

The budget also delivers a £21 million uplift to the Housing Support Grant to £204 million, plus funds for local councils to reduce homelessness and secure homes for people.

Capital spending on social housing also gets a boost with more than £437 million allocated for the coming year, as outlined in December’s Draft Budget.

When the Draft version was published, Propertymark welcomed a 4.3% boost to the local government settlement.

This injection, it argued, equips councils with the muscle to enforce the Renting Homes (Wales) Act and gear up for a Welsh version of England’s Building Safety Act.