Trade body keeps up pressure over mortgage interest tax change

A trade body claims that vulnerable tenants are finding it harder to access rented housing because of tax changes being introduced next month by the government. 

The Residential Landlords Association says research by both the Council of Mortgage Lenders and Paragon Mortgages has, in recent weeks, demonstrated that landlords are already acting to increase rents because of mortgage interest tax relief changes.  

"This echoes the concerns first raised by the RLA in its own research carried out shortly after the mortgage interest relief changes were announced" says the association.

According to the data from the Royal Institution of Chartered Surveyor’s survey out today, around one third of those who responded felt vulnerable tenants were finding it more difficult to access rented housing.

Last year, Dame Kate Barker, who authored an independent review of UK Housing Supply for the Government, issued a warning that tax changes risked some families losing their homes “because the buy-to-let landlord no longer finds the yield acceptable or can’t afford it.” 

“We need a tax system that supports rather than hinders housing growth but yesterday’s budget did nothing to achieve this despite repeated warnings from the RLA and others over the last 18 months that these changes would have negative effects on landlords and tenants" says RLA policy director, David Smith.

“Even at this late stage we call on all sides to work with the RLA as it develops its own blueprint for a sector that provides the homes to rent we so desperately need.”