Lord Flight, the former Shadow Chief Secretary to the Treasury has criticised George Osborne’s private rental sector policies.
*****Whoops! Looks like this is an old post that isn’t relevant any more :/ *****
*****Visit the blog home page for the most up to date news. *****
Government Legislation
When George Osborne was Chancellor, he introduced a number of policies designed to dampen down enthusiasm for investing in buy to let properties. These policies were widely described as a ‘tax grab’ by the government. His justification was that landlords were pushing up house prices, which in turn was making it more difficult for first-time buyers to get a foothold on the property ladder.
George Osborne claimed landlords enjoyed tax advantages yet according to remarks made by Lord Flight, the Institute of Fiscal Studies says landlords do not enjoy a more favourable tax regime compared to homeowners.
Research from the London School of Economics has concluded that only a minority of first-time buyers have been prevented from purchasing a home because of landlord interest. This counteracts one of George Osborne’s key claims.
Ill-Conceived Tax Hikes
George Osborne’s policies have directly contributed to the housing crisis. Increases in stamp duty land tax and the loss of mortgage interest tax relief have caused many landlords to cease investment in the private rental sector.
The Royal Institute of Chartered Surveyors (RICS) says the UK needs 1.8 million new homes by 2025, but there is a lack of investment. In the meantime, a lack of affordable housing is pushing tenants straight into the arms of rogue landlords, who are happy to provide sub-standard housing.
Lord Flight concludes that stamp duty on investment property should be cancelled.
Comments