Jeremy Hunt will deliver his second spring budget since taking over as chancellor on Wednesday in what could be the last big fiscal moment before a general election later this year.
The chancellor has said he wants to bring down taxes in a “responsible” way, but that does not include second homeowners who make money from short-lets, it would seem.
Fourteen years of Tory economics have proved challenging for the buy-to-let market, characterised by tax and regulatory changes, and yet this week’s Budget will contain a £300m tax raid on the rental sector, according to a report in the Sunday Times yesterday, which is thought to be the subject of a leak from government.
Propertymark has expressed grave concern about the potential impact this latest tax raid could have on the rental sector.
Nathan Emerson, CEO Propertymark, commented: “Propertymark are extremely concerned to see reports within the news of a rumoured £300m attack on landlords within the budget, all 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.
“It is unacceptable 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.”
Also responding to speculation of £300m take upheaval to rental sector with the budget, a spokesperson commented: “Propertymark are extremely concerned to see reports within the news of a rumoured £300m attack on landlords within the budget, all 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.
“It is unacceptable 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.”
