22 March 2010
The Chancellor Alistair Darling should use next week's Budget to focus on housing and change the tax system to encourage further investment in private residential properties, according to the National Landlords Association (NLA).
The number of people renting increased by a million to 3.1 million between 2001 and 2008, according to recent data released by the government. Yet, the NLA argues that the current tax system actively discourages investment in rental accommodation by landlords.
The NLA wants the government to help combat the housing shortfall by acknowledging the growth in the private-rented sector and changing the tax system in the forthcoming Budget in order to encourage more homeowners and investors to invest in homes for the private rental market.
David Salusbury, chairman of the NLA, said: "Given the current housing shortage the Chancellor should use the upcoming budget to make investment in property easier and the management of a residential portfolio more cost effective.
"None of the changes for which we are calling would put significant pressure on public funds or reduce tax income to any great degree; in fact most should encourage increased economic activity."
The NLA wants the government to address capital gains, value added, stamp duty and council taxes, as well as the rent-a-room scheme.