The Office of Budget Responsibility (OBR) has warned of “subdued growth in residential investment” over tax increases on private rented housing.
New OBR analysis outlines the impact of such increases on choking off investment in rented housing.
In its Economic and Fiscal Outlook, the OBR warns of “subdued growth in residential investment” and cites the stamp duty levy on the purchase of new homes to rent and restriction of mortgage interest relief to the basic rate of income tax.
Alan Ward, Chair of the Residential Landlords Association said the assessment demonstrates the “folly” of taxing the supply of new homes to rent when it was more important than ever that Government recognised the dynamic role the rental market can play in responding to the country’s housing needs.
“The Government should come forward with a package of pro-growth tax and planning policies to support private landlords who want to invest in the new housing the country needs if renters are to be able to find the accommodation they want.
“The build to rent sector is not delivering at the rate required and in the past private landlords have delivered three out of five of all new homes,” he said.