Welsh Minister supports tax review proposal for the PRS

Welsh Minister supports tax review proposal for the PRS

0:04 AM, 20th June 2023, About 11 months ago 5

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The Welsh Minister for Climate Change, Julie James MS, has expressed her support for the National Residential Landlords’ Association (NRLA) proposal to conduct a comprehensive review of taxation in the private rental sector (PRS).

The endorsement came during the launch event of NRLA’s State of the Welsh Private Rented Sector report, and she says suggestions on how to modify the tax system to promote the supply of rental homes should be encouraged.

The NRLA report reveals that 76% of Welsh landlords experienced a surge in demand for rental properties during Q1 2023.

This increased demand highlights the need for a more supportive tax environment for landlords, the landlords’ body says.

However, the NRLA’s report also shows that 48% of landlords plan to reduce their rental property portfolios – which could make the housing crisis worse.

‘Strong and vibrant rented sector’

The NRLA’s chief executive, Ben Beadle, said: “Wales needs a strong and vibrant rented sector.

“We welcome the Minister’s openness to look at how the tax system can support the provision of homes tenants need.”

He added: “It is welcome too that the Minister has agreed in principle with the NRLA’s call for a Welsh Housing Survey.

“Too often good decisions have been hampered by a lack of robust data on the state of the rental market.

“We will continue to work with the Government to ensure policy is rooted in evidence and what works for responsible landlords and tenants.”

Exempting new long-term rental properties from the 4% Land Transaction Tax

In response to the ongoing housing supply crisis, the NRLA is urging the Welsh Government to consider exempting new long-term rental properties from the 4% Land Transaction Tax (LTT) levy on additional homes.

Ms James has shown interest in exploring options to level the playing field for the private rented sector.

The NRLA report also underscores the lack of comprehensive and reliable data on the demographics, size and composition of the PRS in Wales which, it says, hinders informed decision-making.

The Minister agreed there is a need for better data and supported the proposal for a dedicated Welsh Housing Survey to provide a thorough overview of the industry.

Recommendations to boost the PRS in Wales

The NRLA’s report offers several recommendations for the Welsh Government to boost the PRS in Wales, including:

  • Implementing a Welsh Housing Survey or regularly publishing equivalent data to provide a comprehensive overview of the housing sector in Wales
  • Conducting and publishing an extensive analysis of the PRS size, composition and residents before committing to the fair rents policy
  • Encouraging the UK Government to perform a full review of taxes impacting the private rental sector
  • Undertaking a thorough evaluation of the Renting Homes (Wales) Act’s successes and failures concerning the supply of homes within the PRS.

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Comments

Dr Rosalind Beck

9:35 AM, 20th June 2023, About 11 months ago

Persuading the Welsh Government to lobby Westminster to repeal Section 24 is the main tax issue. It should be taking centre stage, but doesn't appear to be.

Susan Robinson

10:51 AM, 20th June 2023, About 11 months ago

Good to see you back in the forum Rosalind ! Have missed your commentary.

Freda Blogs

11:52 AM, 20th June 2023, About 11 months ago

Whilst the message is good in principle, they had better get a move on as the supply of property is diminishing fast as landlords sell up. All areas of GB need to wise up fast or it could be too little too late.

Gary Dully

12:44 PM, 20th June 2023, About 11 months ago

Why is he called Julie?

That aside, too little to late.

Does it never occur to anyone in charge of a government department that you can’t buck the market?

If I get taxed to pay a cost, I won’t work for nowt, someone else can do it, thanks.

Strange creatures politicians, they don’t mind taking pay for yapping their lips, but when they see a business model that works, they undermine it until it fails and then have a little swap of faces at the wheel to announce more grand ideas that will fail.

To fix the housing market, tell the pressure groups to a simply disappear for 20 years and leave us to it.

From AirBnb to title splits, the market demand dictates the prices, interference costs more money.

Ian Narbeth

13:41 PM, 20th June 2023, About 11 months ago

Reply to the comment left by Gary Dully at 20/06/2023 - 12:44"Why is he called Julie?"
Because Julie James is an adult female. The picture is Ben Beadle of NRLA.

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