'Don't mess up rental sector', Chancellor is told
News Category: Industry News
Published: 21-Jun-2010
Ahead of tomorrow’s Emergency Budget, a group of housing experts has written to Chancellor George Osborne telling him that if Capital Gains Tax rises, the damage to the private rented sector could be huge.
The letter calls for renting to be treated as a business activity for tax purposes, and asks for rollover relief, so that landlords are encouraged to re-invest in the sector rather than quit it.
The letter is signed by Ian Potter of ARLA, Michael Coogan of the CML, Peter Williams of the Intermediary Mortgage Lenders Association, Ian Fletcher of the British Property Federation, Alan Ward of the Residential Landlords Association, and Simon Gordon of the National Landlords Association.
The joint letter says that the success of the private rented sector is crucial in terms of meeting the UK’s housing needs, but warns that an unfettered change in CGT could lead to investors leaving the market.
It says that the private rented sector ‘oils the wheels’ of the whole housing market. It points out that first-time buyers currently need a deposit of £33,000 – something beyond many people under the age of 37.
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