Private rents will rise to pay for Osborne tax changes, trade body warns

Almost all landlords are considering increasing rents to pay for the higher taxes they now face.

According to a survey by the Residential Landlords Association, 84 per cent of private sector landlords are likely to consider increasing rents following the Chancellor’s interest rate relief, wear and tear allowance and stamp duty surcharge announcements. 

The survey also found that 78 per cent of landlords felt that the changes would deter them from investing in more properties to rent with half considering getting rid of properties. 

The RLA says that whilst fewer buy to lets being bought might meet the Chancellor’s desire to free up some properties for home owners, for the increasing number of people who cannot afford to buy or who prefer not to, the tax changes will make it more difficult and more expensive for them to access housing.

In forcing rents up the government is hitting those it is keen to support into homeownership through making it more difficult for them to save for the deposit they need, the association claims.

Now it wants the government to exempt from the stamp duty surcharge all rental property making a net increase in the supply of new housing. Some 39 per cent of landlords reported that they would be more likely to invest in new build rental housing if this was exempt from the levy.

“The Chancellor's tax policies are impacting on tenants lives - not only are more than four in five facing rent increases but half of landlords may be selling rented property, which might result in tenants being  given notice to leave their properties. Ministers need to end the myth that landlords are to blame for the country’s housing crisis and base policy on fact, not political expediency” says RLA chairman Alan Ward.