Landlord tax changes “cause the loss” of 46,000 private rental homes
Tax changes such as the additional Stamp Duty on second properties are being blamed for the loss of 46,000 homes in the private rental sector.
In figures released by the Ministry of Housing, Communities and Local Government, it was shown that despite a 0.92 per cent increase in the total number of dwellings recorded at the end of the 2016/17 financial year, privately rented stock had fallen by 46,000.
The decrease in the number of homes available in the private rented sector, which now represents 20 per cent of the entire housing stock, comes following continued year on year increases. It follows a period of time in which a three per cent surcharge was introduced on second properties valued at over £40,000.
There was also the announcement of a phased-in abolition of the rule that allows landlords to set financing costs against tax.
With research undertaken by the National Landlords Association showing that 20 per cent of its members were looking to offload properties in 2018, possible connections between the tax changes and fall in privately rented properties are being made.
Elsewhere, the Ministry of Housing, Communities and Local Government’s figures have shown that between March 2016 and March 2017, the number of owner-occupied homes increased by 262,000 to 15.1 million and that 2.5 per cent of the total number of dwellings were vacant.