WIREDGOV

We recently (17 November 2022) responded to the Chancellor’s decision to cut the Capital Gains Tax allowance in the Autumn Statement, and retain the rented housing Stamp Duty Levy, Ben Beadle, Chief Executive of the National Residential Landlords Association, said:

“The demand for private rented housing is massively outstripping supply.  This will only worsen as growing mortgage rates make home ownership more difficult to afford. 

“The Government has yet again failed to recognise the potential for housing to drive growth and deliver for the economy.  The Chancellor should have focused on boosting supply by ending the Stamp Duty Levy on the purchase of new rental homes.

“Research by Capital Economics suggests that scrapping this could lead to a £10 billion boost to Treasury revenue. This would be as a result of increased income and corporation tax receipts. Instead, these swinging cuts to Capital Gains Tax allowances will dissuade investment for years to come. 

“The last thing renters need is an effective further tax hike on the private rented. All this will do is discourage investment in the new homes to rent the country desperately needs and drive up the cost of renting.”

According to Zoopla, so far this year the demand for private rented housing in the UK is up 142 per cent compared with the five-year average, whilst the supply of such homes has fallen by 46 per cent. A similar trend has been reported by Rightmove who report that, in Q3 2022, tenant demand increased by 20 per cent compared with Q3 2021.

The trend of ever-increasing demand takes place despite the number of owner-occupied households in England having increased by over one million in the past five years.