Finance News

Chancellor Attacked for Failing to Reverse Tax Changes

Rose Jinks - November 24, 2017
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Chancellor Philip Hammond has been attacked by letting agent Belvoir for failing to reverse the tax changes for buy-to-let landlords introduced by his predecessor, George Osborne, in Wednesday’s Budget.

Despite pressure from the property industry, including landlords, housebuilders, and estate and letting agents, to reverse some of the deeply unpopular tax changes imposed by the previous chancellor, Hammond chose largely to ignore the issues.

The only real good news is the fact that Hammond did not introduce any new tax changes for private landlords in the Autumn Budget.

However, Dorian Gonsalves, the CEO of Belvoir Lettings, is disappointed that there was no action on what he describes as “punitive tax changes” introduced by Osborne in the 2015 Budget.

On the measures that were announced, he says: “Lack of a deposit and affordability are certainly not the only factors that are driving tenant demand and yet, in many ways, this Budget seemed almost to put an unhealthy emphasis on homeownership. Many young people simply do not want the commitment of a 25-30-year loan.

“Also, many young tenants are students or prefer the flexibility of renting to enable them to work in different locations.”

Hammond revealed Government plans to review whether landlords should be offered incentives to offer longer-term tenancy agreements to renters. But, while some buy-to-let landlords support these plans, they may not actually work for many investors or their tenants.

“We presume a new white paper will be published in the new few months, which will address these measures and demystify the Chancellor’s comments about long-term tenancies,” Gonsalves adds.

We have a full breakdown of everything covered regarding housing in Wednesday’s Budget announcement, along with commentary from some of the leading property market experts across the industry. Read more here.

Are you disappointed that the Chancellor failed to reverse Osborne’s controversial tax changes? Let us know your thoughts.