With the buy-to-let sector reeling from a raft of legislation and tax changes, Housing Minister Brandon Lewis has moved to defend these measures during a question and answer session.
Speaking to FT.com yesterday, Mr Lewis backed alterations in regulation, such as the additional 3% stamp duty and mortgage interest tax relief for buy-to-let landlords.
Defiance
In the session, Mr Lewis was asked:
‘Why does the Government want to cut down on landlords and how much do you think the recent measures against them (cuts to mortgage relief etc) will reduce the number of buy-to-let owners?’
Responding, Lewis replied:
‘The changes create a fairer system where buy-to-let investors do not have as much advantage over owner occupiers (who will not have 0 per cent mortgages or the mortgage tax relief, which buy-to-let had). Plus institutional investment (Build To Rent) will be able to continue to grow and I fully support the professionalism of the sector as it grows with more institutional investment.’ [1]
Rogue-landlords
Also in the question and answer session, Mr Lewis was pressed on whether or not he would give his backing to a public database of so-called rogue landlords.
Lewis answered by stating:
‘Our Housing and Planning Bill currently in the House of Lords will introduce bigger fines and banning orders as part of the biggest crackdown on rogue landlords by any Government ever. And we will introduce a database of rogue landlords.’[1]
Housing Minister defiant on tax changes
Capital Pains
Finally, Lewis was asked:
‘Why does the Government allow homeowners to sell their houses and pay no capital gains tax?’
Lewis answered:
‘We have halved the time a property can sit empty before capital gains tax is due and we have tightened the rules about buying residential property through a company. Additionally, we will support families buying their own home through a three percentage point surcharge on rates of stamp duty land tax on purchases of additional properties, like buy-to-lets and second homes.’[2]
A full transcript of the questions can be found be visiting the Financial Times website.
[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/4/housing-minister-claims-buy-to-let-changes-create-a-fairer-system
[2] http://www.ft.com/cms/s/0/9bf91dee-071a-11e6-9b51-0fb5e65703ce.html#axzz46SGeH610