Key announcements in the Budget included an increase in the personal tax allowance threshold, a reduction in top rate of income tax from 50p to 45p, and an increase in stamp duty to seven percent (7%) on properties worth more than £2million.
But at a time when demand is outstripping supply in the private rented sector, Landlord Assist is disappointed that there was no provision made in the Budget to assist landlords in the private rented sector.
Graham Kinnear, Managing Director at Landlord Assist says:
“Whilst we were pleased to see an increase in personal allowance up to £9205 per annum and the reduction and proposed further reductions of corporation tax, we were disappointed that the Chancellor did not make any provisions to stimulate growth and investment in bricks and mortar.
“At a time when the UK is experiencing a dramatic housing shortage and finding rented accommodation is possibly the hardest it has ever been, the Government needs to recognise the role played by private rented sector and encourage landlords to increase their portfolios further.
Stephen Parry, Commercial Director at Landlord Assist says:
“We were hoping for measures that would allow landlords to be eligible for capital gains tax breaks if they reinvested their profits back into property.
“By encouraging landlords to increase their portfolios this would improve the quality of accommodation on the market, provide money to the economy, temper the rental price rises and provide greater choice and mobility for renters.
Mr Kinnear adds:
“We agree that the buy-to-let sector should operate as a free market but we feel that the Chancellor missed a great opportunity to provide financial incentives to encourage more people to take part in an industry which already contributes several billion pounds to the economy.
"Meanwhile Landlord Assist predicts that the increase in stamp duty to 7% for properties worth more than £2million will have a negligible impact on the rental market as the tax is applicable on a single dwelling rather than a portfolio of investment apartments."
