Concern is rising among agents and landlords after sources within the Treasury revealed over the weekend that Jeremy Hunt (main picture with team) is planning a tax raid on the private rented sector within his Budget on Wednesday.
The Sunday Times has claimed that the Chancellor plans to raise £300 million primarily from those offering short-let accommodation to holiday makers via platforms such as Airbnb and Booking.com. This is part of a plan to help fund a 2p cut in the basic income tax rate.
“[Tax cuts] are my priority for the country. When it comes to this budget, I will only bring down taxes in a way that is responsible, and sustainable,” he said during a radio interview on Sunday.
Alarm
Both agents and landlords have flagged their alarm at the report, with NRLA’s Chief Executive Ben Beadle saying this morning that: “The Chancellor needs to address the chronic shortage of long-term rentals by attracting new landlords to the market.
“Squeezing holiday lets is not the answer. He should follow the advice of the Institute for Fiscal Studies and reverse punitive tax hikes which have stifled the supply of the homes renters desperately need.”
Extreme concern
Nathan Emerson, Propertymark
Propertymark has also pitched in, with its CEO Nathan Emerson saying he is ‘extremely concerned’ to see reports of a rumoured £300m attack on landlords within the budget at a time when many have already left the sector and many more are just about holding on.
“Just like traditional homeowners, inflation and interest rates have hit landlords with force and there needs to be recognition from the UK Government that to provide high quality homes, whether they be short term lets or longer-term housing, the system must be workable,” he says.
“It is unacceptable that there is constant aim being taking at landlords to the point the viability of the entire system is becoming seriously questionable for both existing landlords and future investors.”
