Chancellor’s assault on buy-to-let “is mystifying”

first_imgThe Chancellor George Osborne has been slammed for his outright assault on buy-to-let investors following the introduction of a stamp duty surcharge last week, while also exempting landlords from fresh cuts to Capital Gains Tax, and planning further tax increases on property investors.The former Editor of The Times and the London Evening Standard, Simon Jenkins (left), questioned in his latest column for The Guardian columnist whether George Osborne was really a Tory. He also described Osborne’s “assault” on buy-to-let as “mystifying”.He wrote, “With the withering away of public housing, private renting is how evermore people live, especially in cities. They include the migratory rich, millennials, those unable to afford a house and those who are just very poor and cannot get a council tenancy. Between 2001 and 2011, private renting in London went from 17 per cent to 26 per cent of the housing market, and is continuing to rise.”Jenkins believes that encouraging the release of under-occupied space is the one sure answer to the housing shortage, and the most efficient way of doing this is by encouraging letting, especially in London.“Renting is the most efficient use of urban property. It keeps things flexible. It is first and last recourse of the homeless and the refugee as well as of the middle-class young,” he added.Jenkins acknowledged that great regulation in the private rented sector is required, but added that Osborne’s form of penalising the market, through higher stamp duty, “makes no sense”.Jenkins continued, “Stamp duty is a tax on market flexibility, on buying and selling. It is doubly daft.“This can only serve to drive up rents in the rental sector, which in turn will increase the cost of the already soaring housing benefit budget.”The new buy-to-let stamp duty reforms are widely expected to increase the cost of rent and trigger a decline in the supply of available properties.More than half – 52 per cent – of letting agents reported an increase in buyers looking to invest in buy-to-let property before the stamp duty deadline in February, according to the latest ARLA survey.The poll found that almost two-thirds – 63 per cent – forecast that supply will fall as landlords are pushed out of the market.Some 57 per cent of ARLA members believe that rents will rise as a consequence of the stamp duty reforms that came into effect last week, as landlords pass on costs to tenants.“It’s likely that we’ll see the buy-to-let market drop,” said David Cox, Managing Director of ARLA. “This will most certainly cause rents to increase, with supply dropping, as competition for the limited availability of properties intensifies.”Meanwhile, two landlords pushing for a judicial review of George Osborne’s buy-to-let mortgage interest relief tax clampdown have announced plans for a protest major event in June.Steve Bolton and Chris Cooper, who want a review of section 24 of the Finance (No. 2) Act 2015 which includes the proposed restriction of mortgage interest tax relief at a basic rate, even for higher rate-paying landlords, wrote, “Please block out Friday 10th June in your diary. We are planning a very big and very important event on that date in London. We believe that it is time for large numbers of landlords to come together and stage a fight back.”buy-to-let buy-to-let investors Chancellor George Osborne Simon Jenkins stamp duty surcharge 2016-04-08The Negotiator Related articles 40% of tenants planning a move now that Covid has eased says Nationwide3rd May 2021 City dwellers most satisfied with where they live30th April 2021 First-time buyers, not Stamp Duty, now driving market says leading agency29th April 2021What’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed. Home » News » Housing Market » Chancellor’s assault on buy-to-let “is mystifying” Chancellor’s assault on buy-to-let “is mystifying”8th April 20160511 Viewslast_img read more