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'Don't mess up rental sector', Chancellor is told

21 June 2010
Written by rosalind renshaw

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.

Comments

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    The private rental market has had a detrimental effect on the housing market as whole, it has pushed out genuine first time buyers and favoured those that are fortunate enough to have money to burn.

    We badly need a brake on the situation I hope the chancellor does increase CGT, but at the same time he should do something to encourage FTB's back into the market.

    • 21 June 2010 19:41 PM
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    Renting proeprties is treated as a business in most regards.

    Also the CGT will also seriously effect the new build market which is already on it's knees.

    'George' I voted for you because i thought the tory's understood business.

    CGT increase will be an Economic disaster that will effect the new build market, private rental sector thereby causing a serious shortage on property.

    Please do not do it!

    • 21 June 2010 09:53 AM
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    OK let's hope Landlords don't then feel disadvantaged at all the other elements, rigours and obligations that come into play if their letting is regarded as a business - even if they only rent one property and even if only 'temporarily'?

    • 21 June 2010 09:14 AM
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