NRLA calls for government to scrap BTL stamp duty tax

The National Residential Landlords Association (NRLA) has called on the government to remove the stamp duty levy for BTL properties.

According to analysis commissioned by the organisation and carried out by Capital Economics, removing the tax would see almost 900,000 new private rented homes made available across the UK over the next ten years.

Due to increases in income and corporation tax receipts, the modelling suggests this would lead to a £10bn boost to Treasury revenue over the same period.

The research suggests that these revenue streams would continue over the decades that follow, so long as the landlords do not later sell all these properties.

According to Capital Economics, if owner occupation and social housing continue at their ten-year average rate of growth, almost 230,000 new homes would be needed in the private rented sector each year to meet the government’s ambition for housing over the next decade.

The economic consultancy also estimates that without changes in tax or other policies, the PRS would see a drop of half a million properties over the next 10 years.

Ben Beadle, chief executive at the NRLA, said: “The government needs to wake up to a crisis of its own making. 

“Taxing landlords out of the market serves only to cut supply, increase rents and make home ownership more difficult to afford.

“The government is taking a blinkered approach to the issue, which is not helped by its reluctance to admit mistakes it has made in the past.

"It makes no sense to tax the supply of new homes provided by landlords investing in new build or bringing empty homes back into use. 

“As this study indicates, removing the tax will actually generate more revenue, not less."

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