The Chief Executive of the National Landlords Association (NLA), Richard Lambert, has accused Chancellor George Osborne of insulting private landlords.
NLA Chief Executive Accuses Chancellor of Insulting Landlords
Speaking at the Instinctif Partners Great Housing Market Debate, Lambert addressed the Chancellor’s crackdown on the buy-to-let sector.
He claims that Osborne made a mistake by introducing a 3% Stamp Duty surcharge on buy-to-let properties and by reducing the amount of tax relied that landlords can claim on mortgage interest payments.
As of 1st April, landlords are now charged an extra 3% in Stamp Duty on the purchase of rental properties. This guide will help you understand the tax change: https://www.justlandlords.co.uk/news/landlords-guide-stamp-duty-surcharge/
From April next year, landlords will be hit by the reduction in mortgage interest tax relief. Finance expert Paul Mahoney, of Nova Financial, has explained how this will affect your lettings business: /contrary-to-popular-belief-buy-to-let-is-not-dead-insists-finance-firm/
Lambert said: “[The Government] is now talking of discouraging amateur landlords in favour of institutions, in effect directly insulting my members.”
Lambert warns that many landlords will be unaware of the future changes to mortgage interest tax relief and will be shocked when they start receiving bills from the taxman in the near future.
Nigel Terrington, the Chief Executive of the Paragon Group, insists that the changes do not create a level playing field between landlords and homebuyers – as intended by the Government – as landlords don’t benefit from schemes such as Help to Buy and are charged Capital Gains Tax on accumulated housing wealth, unlike homeowners.
Nick Leeming, the Chairman of estate agent Jackson-Stops & Staff, believes there should be a free market for owners and tenants.
Issues such as the forthcoming EU referendum and changes to the law on gazumping were also discussed at the event.