Mortgage interest tax change - election candidates receive 1,500 letters

Some 1,500 landlords have responded to a trade group’s campaign calling for them to press General Election candidates to oppose changes to mortgage interest tax relief for buy to let investors.

The letters were set out after an appeal by Residential Landlords Association chairman, Alan Ward, urging candidates to commit to challenging policies that, in the words of the RLA “have seen landlords treated as little more than treasury cash cows.”

When the mortgage interest relief changes are fully phased in in 2021, landlords will no longer be able to deduct mortgage interest payments, or any other finance-related costs from their turnover for tax purposes. 

The association says on its website that it wants the new government to adopt positive tax policies that will encourage landlords. 

Ward has specifically criticised the Conservative manifesto - released at the end of last week - saying: “With almost two million new homes to rent needed by 2025 this manifesto does not go far enough in supporting good landlords to develop the new homes we need.

“We need a tax system that encourages landlords wanting to invest in new homes for tenants and a planning system that frees up small plots as well as improving existing stock.

“Should they win on June 8 we will work with Conservative Ministers to ensure it harnesses the opportunities the private rental market presents to meet today’s manifesto commitment to 1.5 million new homes by 2022.”