No news is generally considered good news, but that’s not the case for landlords, who were virtually left out of Chancellor Philip Hammond’s Budget 2017 yesterday.
The National Landlords Association (NLA) was quick to express its disappointment following the announcement, in which Hammond failed to address forthcoming tax changes for landlords.
Despite the NLA issuing its own Budget 2017 wish list ahead of the announcement, the Chancellor did not follow its suggestions and instead virtually left landlords out of the plans altogether.
The Chief Executive Officer of the NLA, Richard Lambert, responds to the Budget 2017: “The Chancellor has passed up his last opportunity to reverse the damaging plans to restrict mortgage interest relief for landlords before they hit, or even to act on suggestions as to how he might ease the immediate impact.
“Sadly, he still seems convinced by the Treasury’s analysis of the consequences, and it looks like he will only change his mind when the reality proves different.”
He explains the negative effects of this: “That’s little comfort to the landlords who will be forced up a tax bracket as a result of the changes or potentially forced out of business, nor their tenants, who will be faced either with higher rents or the struggle to find another home in an already pressured housing market.”
The latest industry forecast regarding the reduction in mortgage interest tax relief came from a former member of the Bank of England’s Monetary Policy Committee, who believes that rents could be pushed up by as much as 30% as a result of the change.
Nevertheless, Lambert was pleased with one aspect of the Budget: “However, we’re pleased the Government has listened to our calls to delay the implementation of the Making Tax Digital programme, as it has the potential to cause chaos as landlords struggle to get to grips with the demands of submitting quarterly tax returns online.”
Are you disappointed by the Budget 2017?